Feasibility of the energy and climate goals

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 18 benefits of renewable energy Innovation Platform, 2010; Council for the Rural Area et al., 2010; VROM Council General Energy Council, 2004. 2. Coherent energy and climate policy The governments vision should clarify:  the relationship between energy policy and climate policy;  the necessary instruments and their principal goals;  the route to achieve the goals. When setting the goals and priorities, it should be borne in mind that a substantial and cost-effective reduction in CO 2 emissions can be achieved chiefly by means of energy savings. Estimate of policy impact and inconsistent policy goals The policy instruments must be selected so that their expected and reasonably estimated effects can achieve the policy goals. If it is known in advance that they will not, the ambitions must be lowered. If policy implementation or effects do not match the ambitions, additional measures will have to be taken. 11 Given the inconsistent and sometimes contradictory energy and climate goals, the government must make clear to the House of Representatives the principal goal of each policy instrument and its potential consequences for other energy and climate policy goals. A coal-fired power station, for instance, will strengthen energy security but will not reduce CO 2 emissions . Inconsistent policy goals can lead to contradictory policy. Dutch energy and climate policy should be checked for inconsistencies and revised where necessary. In this respect, we would remind the government that the Netherlands signed the G20 Pittsburgh declaration of intent in 2007 to phase out fossil fuel subsidies in the medium term because they deter investments in clean and sustainable energy. Relationship with CO 2 emissions trade Available instruments and resources should be used as efficiently as possible. We pointed out to the government in the past that the introduction of CO 2 emissions trade reduced the effectiveness of all other policy instruments. We also recommended that an assessment be made of the costs and benefits of all CO 2 emission reduction instruments Netherlands Court of Audit, 2007. The government has not yet followed up this recommendation. We therefore repeat our recommendation that 11 We refer to policy implementation because it usually fails to meet the ambitions before it is realised that the effects are below expectations.