Strong objectives to reduce the Netherlands' dependence on fossil fuels are supported by measures to ensure energy security, including leadership in low-carbon hydrogen
The Netherlands is taking a balanced approach to its plans for a rapid transition to a carbon-neutral economy that will support strong growth and energy security, according to a new assessment of the energy policy by the International Energy Agency.
To drive this ambitious shift, the Netherlands has focused its energy and climate policies on reducing greenhouse gas emissions, with the aim of reducing emissions by 2030% in 49 and 2050% in 95 compared to 1990 levels. In June 2019 it has adopted a national Climate Agreement that has been developed through a process involving various groups from across Dutch society in establishing policies and measures to achieve these objectives.
“The Dutch Climate Agreement shows broad social and political commitment to the energy transition and is an excellent example of how joint policymaking can provide the framework for ambitious goals,” said Dr. Fatih Birol, Executive Director of the IEA. “The IEA looks forward to supporting the government in implementing its plans.”
The Netherlands faces notable challenges, the IEA policy review shows, because its economy remains highly dependent on fossil fuels and has a concentration of energy- and emissions-intensive industries. The IEA report welcomes the steps the government is taking to address these challenges. These include the introduction of carbon pricing for industrial emissions and a competitive subsidy program supporting a wide range of emissions reduction technologies. It also applauds the government's leadership in supporting electric vehicles through incentives to purchase them and significant investments in charging infrastructure.
“I congratulate the Netherlands on developing a broad policy framework with robust measures to drive emissions reductions in all sectors,” said Dr. Birol. “The balance between ambitious targets and competitive support measures will contribute to a cost-effective energy transition.”
The IEA report points to new challenges in energy security that the Netherlands faces. In line with the climate objectives and in response to concerns about earthquakes caused by natural gas production, the government plans to end production from the Groningen gas field in mid-2022. Gas from Groningen covers a large part of the Dutch demand for heating and industrial energy and is an important source of regional gas supply.
The government is taking strong measures to reduce demand for natural gas, both domestically and in cooperation with neighboring countries. At the same time, it is playing a leading role in developing a market for low-carbon hydrogen to partially replace natural gas and drive emissions reductions in hard-to-decarbon sectors such as industry and heavy transportation. This is complemented by support for carbon capture and storage, which also aims to reduce industrial emissions.
“The Netherlands has a clear vision for reducing its dependence on natural gas while ensuring energy security,” said Dr. Birol. “Additionally, his commendable leadership in low-carbon hydrogen will help drive the cost savings needed for this important technology to play a major role in accelerating the clean energy transition around the world.”
Read the report
The IEA regularly conducts in-depth peer reviews of its member states' energy policies. This process supports energy policy development and encourages the exchange of best practices and experiences to drive safe and affordable energy transitions.
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