Cabinet aims to make industry more sustainable

The Netherlands has great ambitions in the area of climate. This also has consequences for the sustainability of the industry, which has become even more important due to the corona crisis and the war in Ukraine. Disruptions to the supply of energy, raw materials and products can lead to vulnerabilities. That is why we want to be less dependent for our energy supply. Industry must reduce its emissions by more than 20 megatons of CO2 per year, so that they are reduced by 60% compared to 1990, which is 5 to 5.9 megatons more than was agreed in the Climate Agreement, according to the Ministry of Economic Affairs and Climate Change.

4 topics

The Cabinet is focusing on four areas to make the industry more sustainable. The CO2 levy will be tightened and a CO2 minimum price will be introduced for the industry. In addition, existing subsidies for making industry and small and medium-sized enterprises (SMEs) more sustainable will be intensified and extended. Binding customised agreements will be made with the 20 largest industrial emitters of greenhouse gases. Reciprocal agreements will be made with companies about additional and faster CO2 reductions by 2030, accelerating critical infrastructure, financial support options and facilitating fast and efficient licensing. The government is also working on an implementation programme for the circular economy. The smart use of raw materials and the replacement of fossil raw materials by renewable raw materials is essential for making industry more sustainable.

Preconditions

The government is creating the preconditions that will enable companies to make the transition and is making choices that are focused on the long term. The need to combat climate change and build up future, sustainable economic potential will change the basic industry permanently. The industry itself is responsible for becoming more sustainable.

Opportunities

This increase in sustainability offers new economic opportunities for the Dutch industry and service sectors. Companies can take the lead and continue to distinguish themselves by making the necessary energy transition earlier than others. The government wants to help realise fundamentally new sustainable technologies. The Climate Fund will make an important contribution to this, for example for green hydrogen.

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