15
have only limited effect at European level.
10
At a European level, national funds for energy saving policy are spent inefficiently if the CO
2
emissions trading system works correctly. We drew the same conclusion in our 2007
audit of the implementation of the CO
2
emissions trading system Netherlands Court of Audit, 2007.
The negative interaction does not mean there is no point to national energy saving policy. Since the European CO
2
emissions trading system had very little effect during its first three years, the Netherlands would
have been in a worse position without a national policy on energy savings and CO
2
emissions. National policy has also increased the share of renewable energy. In our recommendations, we consider ways to use the
energy and climate policy instruments so that they strengthen rather than weaken each other see section 2.3.
We consider the interaction between the energy saving policy and the CO
2
emissions trading system in more detail in chapter 4 of part II of this report.
2.2.5 Feasibility of the energy and climate goals
The fourth Balkenende governments energy saving policy was inadequate to achieve the policy goals or bring the energy saving targets for 2020
within reach. The RutteVerhagen government undertook in the coalition agreement to continue and strengthen the approach to energy saving.
Since the governments energy saving ambitions are unchanged or higher, an even more effective policy will be needed to achieve them.
The RutteVerhagen government has not set a Dutch goal for CO
2
reductions but the European goal still applies. It is unlikely that continuation of the Balkenende IV governments policy will achieve the
Netherlands CO
2
reduction target. Therefore, the need to reduce CO
2
emissions is another reason why a more effective policy is needed. The most recent estimates indicate that the Balkenende IV energy saving
target for 2020 2 on average per annum over the period 2011-2020 will not be achieved, not even if the intended policy proposed at the time
is implemented on time and in full Daniëls et al., 2010. Virtually the same is true of the European target to reduce CO
2
emissions by 2020.
10
This is true not only of the policy instruments to save energy but also of policy instruments to stimulate renewable energy, to commission new nuclear power stations and to capture and
store CO
2
. Owing to the negative interaction with the emissions t rading system, all these measures ultimately lead to a very limited reduction in CO
2
emissions if unused allowances are traded.
16
The target requires the Netherlands to reduce CO
2
emissions that are not subject to the emissions trading system by 16 2020 relative to 2005.
According to the most recent estimate, the probability of this target being achieved is less than 50 if the Balkenende IV policy is continued. Only if
the intended policy proposed at the time were implemented could the target be achieved.
At present, energy saving is one of the most readily available and most affordable options to cut emissions without reducing production.
Alternatives to reduce CO
2
include: large-scale generation of renewable energy;
increased share of nuclear power; carbon capture and storage;
reduced energy consumption in absolute terms.
At present, however, these alternatives are not readily available on a scale large enough to have a meaningful impact on CO
2
emissions. Achieving the energy and climate goals is complicated by inconsistencies
in the various targets. The carbon capture and storage target, for example, might bring the goal of reducing CO
2
emissions a step closer but a power station with a carbon capture and storage facility currently uses
more energy than one without such a facility. In chapter 6 of part II of this report, we provide more examples of inconsistency between the
energy and climate goals. Other targets of the Dutch energy saving policy, such as reducing reliance
on foreign energy sources and energy affordability, are not quantified. It cannot be said what impact failure to achieve these targets will have on
the policy goals. We consider the consequences of energy savings for the energy and
climate policy in chapter 6 of part II of this report.
2.3 Recommendations
2.3.1 New vision of energy and climate policy
Our audit found that the Dutch energy saving policy has not been vigorously executed in recent years. Fundamental changes are needed to
ensure that the Netherlands has access to reliable, affordable and clean
17
energy in the decades ahead. The new European energy strategy gives high priority to energy efficiency. To keep in step with EU policy, the
Netherlands will have to give higher priority to energy efficiency than it has in recent years.
We recommend that the government formulate an integrated vision of energy and climate policy that clarifies:
1. the economic and social benefits of energy savings, renewable energy
and a low-CO
2
energy supply; 2.
the energy and climate policy goals and the relationship between them particularly the relationship between energy saving policy and
CO
2
emissions trading. Integrated vision
Our recommendation that the government formulate a new vision of energy and climate policy is consistent with the motion passed by the
House of Representatives on 27 October 2010. The motion called for the development of an integrated vision of the governments goals for the
environment, nature and climate, accompanied by an integrated impact assessment by the Netherlands Environmental Assessment Agency and
the Energy Research Centre of the Netherlands as is customary, and to present it to the House on Budget Day 2011 House of Representatives,
2010. The motion underlined not only the need for a coherent policy but, the ensuing debates revealed, also a sense that the House was not
always informed clearly and on a timely basis House of Representatives, 2008b; 2009.
The governments vision should also clarify the new line ministries responsibilities and powers in their respective sectors manufacturing,
built environment, transport, and agriculture and horticulture and how the ministers will inform the House of Representatives of the progress
made and of further decision-making on sectoral policy. In view of the low saving rate and the failure of policy intentions in the transport sector,
the governments vision should pay particular attention to transport. 1. Economic and social benefits
To make the transition to clean and renewable energy, the government is heavily reliant on the behaviour of individuals and enterprises. To create
the support necessary for change, it must clarify the economic and social benefits of investing in renewable energy, energy saving technology and
low-CO
2
processes. Various energy and climate advisory councils underline the importance of communicating the economic and social
