The government and provinces are investing in area-specific solutions and tackling peak loads News item

News item | 23-01-2024 | 18:11

To continue to make progress with the area-oriented approach, the government wants to release 1.28 billion euros for measures by the provinces that can be initiated this year. The measures have been tested in recent months and make a significant contribution to the nature, water and climate goals. In addition, the government wants to extend the current voluntary termination scheme (Lbv-plus) of the peak load approach until the end of this year and proposes to increase the budgets for the termination schemes (Lbv and Lbv-plus).

Despite the outgoing status of this cabinet, the need for investments in nature and rural areas remains as great as ever. The pressing situation of PAS detectors and other social problems such as the shortage of housing and the progress of the energy transition also require an energetic approach. The Minister for Nature and Nitrogen, Christianne van der Wal, describes in two letters to Parliament how she continues to work on nitrogen reduction and nature restoration with the peak load approach and area-specific solutions.

Area-oriented solutions for the short term

In close collaboration with provinces, sector parties and involved residents and entrepreneurs, we work on area-oriented solutions to make rural areas future-proof. The provinces submitted an initial version of their Provincial Rural Area Programs (PPLGs) on July 1, 2023 in which they have detailed how they want to do this. The provinces have developed packages of measures for these programs that they can start at short notice. These packages contain measures aimed at the most urgent areas such as peat meadows and stream valleys or contribute to multiple NPLG goals. The government wants to make an important part of these first package of measures possible so that the provinces can continue with the area-oriented approach. In order to ensure responsible expenditure of resources, Wageningen Economic Research (WEcR) has been asked to provide advice on the submitted package of measures. WecR has found that a significant portion of the assessed measures have a plausible target range. This means that the implementation of these plans contributes to achieving the water, nature and climate goals. In the report, WecR provides points for improvement for the measures so that the potential effect can actually be realized.

Today the government is sending a proposal to the House of Representatives to add 1.28 billion euros to the LNV budget. This amount is based on the advice of WecR. The reservation of resources is an intermediate step. Provinces will soon submit improved package of measures that will then be fully assessed by the government. After improvement of the packages by the provinces and approval by the government, the funds can be transferred to the provinces. The provinces are expected to receive a budget for the measures they have submitted before the summer, if both Houses agree to this proposal. In the meantime, the area programs are also being further developed. The next cabinet will decide on full financing of the PPLGs.

Progress in tackling peak loads

In order to quickly restore nature, Mr Remkes recommended a targeted approach at the end of 2022 for reducing nitrogen emissions in the short term. In response to this, the government started the peak load approach last summer, as a precursor to the area-specific approach. This approach is important for nature restoration, after which the available space will first be used to legalize PAS detectors.

The approximately 3,000 agricultural companies that fall within the target group of the approach will be given the opportunity to make their company (further) sustainable or to voluntarily close their company with a favorable arrangement. These are impactful decisions that the cabinet wants to provide as much support as possible, including through the deployment of case supervisors. To make sustainability possible, a conversion fund is available and the scheme for extensification has already been published. Two pilots are also developing the possibility of having an agricultural entrepreneur come up with a proposal in the form of a business plan.

The scheme to make company relocation financially possible is still being worked on. The government wants to publish the relocation scheme before the summer, but this depends, among other things, on the state aid test that is being completed by the European Commission. The scheme to support investments in low-emission housing systems and techniques, the innovation scheme, has not yet been published as these systems do not sufficiently do what they promise. The government first wants more clarity about the actual reduction and the technical and legal assurance of innovations. Because only in this way can entrepreneurs be assured that innovations actually contribute to more sustainable business operations. The government is working on this assurance, including by developing a guideline on licensing innovations (through an appropriate assessment).

The government attaches great importance to the fact that entrepreneurs who fall under the approach are able to make well-considered choices. To this end, it is important that sufficient space and time are available to carefully consider the various options within the approach to peak load. Since the schemes for relocation and innovation are not yet available in the short term, the government wants to extend the opening of the voluntary termination scheme, the Lbv-plus, until the end of 2024. The scheme is and will remain a one-off.

There is great interest in the voluntary termination schemes (Lbv and Lbv-plus). The government wants to ensure that every entrepreneur who has taken the drastic decision to submit an application for a termination scheme (and meets the conditions) can actually participate in the scheme. This means that entrepreneurs are not unnecessarily faced with uncertainty, and it also contributes to the major challenge in the field of nitrogen. The government therefore wants to reserve an additional 1.45 billion euros, on top of the resources already available, with which applications for voluntary business closure can be granted.

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