Netherlands Court of Audits afterword
27
Main conclusions, recommendations and undertakings
Place in part I
Conclusions Recommendations
Undertakings
2.1 Fewer and weaker policy
instruments have been applied than thought necessary in advance
to achieve the energy saving goal. Policy instruments must be selected so
that reasonably estimated effects will achieve the policy goals. If the policy or
its impact is inadequate it must be revised.
Since there is no energy saving goal, the minister of ELI does not think this
is relevant. 2.2
Policy instruments had little effect in the manufacturing sector in
1995-2008. The reasons include: energy saving agreements in
energy intensive industries have become increasingly less strict and
the CO
2
emissions trading system has had little effect so far.
Policy for energy intensive industries must be revised:
study options to improve the cost benefit ratio by spreading energy tax
more evenly among user groups; strengthen the CO
2
emissions trading system by supporting calls to lower the
ceiling in 2020. The Minister of ELI will support the
increase in European minimum rates of energy tax.
The government will work at European level to improve the operation of
emissions trading. MEE will encourage energy intensive
industries to invest in energy savings. 2.3
Policy instruments for the manufacturing sector are more
effective if they agree with the reasons why companies take
energy saving measures. Many policy instruments only partially
recognise these reasons. Policy for the manufacturing sector must
be strengthened through better agreement with the companies reasons
to save energy: higher priority for knowledge;
stricter multiyear agreements; increased market for energy efficient
and low carbon goods and services through public procurement of
sustainable goods and services. The costs and benefits of environmental
permits should be studied further. The Green Deal will improve the
agreement. Disclosing each others performance
will be discussed with the participants. Sustainable procurement will be
continued. A plan will be drawn up to strengthen compliance with and
enforcement of the Environmental Management Act. Studies show that the
Act is a cost effective option; additional study is not necessary.
2.4 Part of the energy saving is
negated by the interaction between CO
2
emissions trade and other energy saving instruments.
Three options not mutually exclusive to overcome the negative interaction with
CO
2
emissions trade: 1.
focus energy saving policy on sectors not participating in emissions trade;
2. target policy for ETS sectors on long-
term benefits; 3.
strengthen the operation of emissions trade by lowering emissions ceiling as
from 2020 or by having the Dutch government buy up emission
allowances. The Minister of ELI says that, despite
the emissions trading system, targeted policy efforts are still required to
promote profitable savings options for energy intensive industries.
Innovations that produce alternatives to fossil fuels will be promoted.
Buying up emission allowances is inappropriate. The government prefers
an extension of emissions trading to other sectors. The government will
support the better operation of the trading system at European level.
2.5 Continued implementation of the
Balkenende IV energy saving policy will not bring about the stronger
approach as promised by RutteVerhagen. The binding EU
CO
2
emission reduction target will probably also not be achieved.
A new vision of energy and climate policy is required that clarifies the
relationship, priorities and route to the goals, with particular attention for the
relationship between national energy saving policy and CO
2
emissions trade. According to the Minister of ELI the
vision is set out in the coalition agreement. Existing instruments
complemented with such plans as the Green Deal, Local Climate Agenda and
Sustainability Agenda will be adequate to achieve the European CO
2
reduction targets by 2020.
28
Part II Audit findings
29
1 Introduction