Extra package of measures to close gap to climate target 2030 | News item

News item | 26-04-2023 | 15:56

Climate and energy minister Jetten today announced additional measures on behalf of the cabinet to achieve the climate goals in 2030. With this package, the Netherlands is making the necessary catch-up in one go, the benefits and burdens are distributed as fairly as possible and the green economy of the future is strengthened. An additional contribution is requested from all sectors. The measures provide an additional emission reduction of approximately 22 megatonnes, which means that the target of 55%-60% less CO2emissions in 2030 compared to 1990 are expected to be achieved.

Limiting climate change to 1.5 degrees

The world faces the challenge of combating climate change and limiting global warming to a maximum of 2°, and preferably 1.5° Celsius. As a prosperous country that has caused a lot of emissions, the Netherlands also has a responsibility to drive down emissions and thus contribute to preventing the increasingly serious consequences of climate change. In the coming decades, the Netherlands will be going through a transition that will demand something from everyone. At the same time, the government is convinced that the Netherlands can meet this challenge as a creative, innovative and enterprising country. And that it can yield a lot: the major revolution will make the Netherlands more beautiful, cleaner and more innovative.

Minister Jetten: “The Netherlands has been chasing after the climate targets for years. Now it’s time to take the big leap. At the same time, all Dutch people must be able to experience the transition. Especially the people for whom this applies even less now. Climate policy must work for everyone. That is why we will use a subsidy to encourage more solar panels to be installed on rental homes and we will give priority to making the most drafty houses in the most vulnerable neighborhoods more sustainable.”

Climate package: fair, feasible, ambitious

This package focuses on actionable measures. The government also believes it is crucial that climate policy works for everyone, regardless of place of residence, age or income. In particular, also for people who are now even less able to keep up because of money worries, limited time or less digital skills. The government is taking measures to better support and unburden this group. The government is also opting for measures that strengthen the future, sustainable earning capacity of the Netherlands. There are opportunities for companies to lead the way: with sustainable products, circular production processes or with innovative, climate-friendly applications – the revenue models of the future.

Objectives by sector

The objective is to reduce CO2 emissions by at least 55% in the Netherlands by 20302 emissions compared to 1990. The government wants to build in certainty, so that setbacks can be absorbed. In practice, the government therefore aims for a higher target, which amounts to approximately 60%. To close the remaining gap, the cabinet is coming up with a package of 22 megatons, in addition to the coalition agreement. An additional contribution is requested from each sector. The size of that contribution is based on the possibilities within the sectors to reduce CO2reduce emissions faster.

Table 1: Estimated emissions in 2030 based on the current policy from IBO Climate and the reduction per sector through additional measures.
SectorEmissions in 2030 based on IBO ClimateAdditional measuresResidual emissions 2030
Electricity174.013
Industry + CE34.85.229.6
Mobility25.04.021.0
Agriculture20.5417.9
Land use2.51.8
Built environment14.61.413.2
Cross-sectoral3.2-3.2
Sum of the sectors114.493

Total national estimate*

(Basic path IBO)

113About 2291
Additional reduction globallyAbout 2.5

Measures

Sustainable electricity: the electricity sector will be CO in 20352-free. To achieve this, the cabinet wants to have realized 3 gigawatts of solar energy at sea by 2030, gas-fired power plants will be converted to use hydrogen and a battery obligation will be introduced for solar parks.

Sustainable and circular industry: the energy-intensive industry will be net climate neutral in 2040, thanks to the European emissions trading system. With this package an extra contribution is requested from the industry. To achieve this, new energy sources and carriers (such as hydrogen) are being scaled up, among other things. The cabinet is also committed to less incineration and more recycling at waste incineration plants and is introducing a ban on fossil heat generation for new and industrial production installations that are to be replaced. To accelerate the transition to a circular industry, from 2027 all plastics must consist of at least 25 to 30% recycled or biomaterial. The government is also increasing the ambition level of the tailor-made agreements so that more emissions can be reduced at the largest emitters via this route.

Sustainable buildings and offices: in 2050 all buildings will be emission and natural gas free. This is elaborated in a standard. In order to achieve this goal, the government will allocate extra money in the coming years to make homes in vulnerable neighborhoods where energy poverty occurs more sustainable and the government wants to use a subsidy to encourage more solar panels to be installed on rental homes. By standardizing, the government encourages more biobased is being built. The government is developing a targeted unburdening approach for business parks and SMEs.

Sustainable transport and transportation: in 2050 we will drive cleanly in the Netherlands – without the emission of harmful exhaust gases. The cabinet wants to increase the share of electric cars for work traffic. Employers are encouraged to encourage employees to use electric cars, public transport or bicycles. To quickly make electric driving attractive for a large group of Dutch people, the government is subsidizing the purchase of a second-hand electric car. At the same time, the cabinet is investing in extra charging infrastructure for electric vehicles, so that a faster roll-out of electric driving is actually possible in the city and region.

Sustainable agriculture: in 2050 there will be sustainable agriculture and land use. To this end, the government has opted for an integrated approach in which the challenges in the areas of climate, environment, water and nitrogen are addressed via the agricultural agreement and the national rural area programme. This means that the target of 5 megatons of CO2reduction in 2030. The cabinet has also made agreements with the sector about accelerating the sustainability of greenhouse horticulture through the introduction of a CO2tax in combination with the roll-out of heating networks and subsidy (SDE++) for the application of heat pumps.

Tax adjustments: the energy tax will be adjusted so that sustainability pays off and polluters pay more. There will be a new reduced rate for part of the gas consumption of households and a separate tax rate for hydrogen, which is lower than the rate for gas. The government will abolish the tax benefit for coal as of 1 January 2028 and will propose in the Budget Memorandum whether, and if so how, the remaining tax exemptions for fossil energy can be phased out.

Climate fund

The climate fund is the most important instrument for financing the measures. In preparation for the decision-making on this package, a total of more than eighty measures were submitted to the Minister for Climate and Energy and subsequently independently assessed by the Netherlands Environmental Assessment Agency (PBL). A total of 28.1 billion euros will be made available for climate expenditure.

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