Cabinet sets out to make industry more sustainable. The further rise in energy prices puts pressure on industry, sustainability and the Netherlands' strategic and economic position. Sustainability must counterbalance higher energy costs. To this end, the government presents the National Programme for Making Industry More Sustainable.
This is what Minister Adriaansens of Economic Affairs and Climate writes to the Lower House, also on behalf of Minister Schreinemacher for Foreign Trade and Development Society. The focus of the sustainability plans is on companies that use a lot of natural gas and electricity in production or as raw materials. Such parties find it increasingly difficult to compete with companies or imports from countries with lower energy prices. The government reports being concerned about this situation. It is examining an approach that will give companies more certainty and stability in the longer term.
Healthy market dynamics
The structurally high energy prices and energy subsidies made available by other countries create challenges. The government argues that producing less, moving or stopping production due to market conditions is part of healthy market dynamics. Reduced availability of energy can also lead to faster sustainability and energy saving in companies.
At the same time, the cabinet is concerned about the impact of current energy prices on sustainability goals as well as the Netherlands' strategic and economic position. For instance, companies are switching back or considering moving production abroad.
Minister Adriaansens: "The Netherlands desperately needs the energy-intensive industry. Without basic chemistry no microchips or medicines. Without flour, beverages and dairy processing, part of the supermarket is empty. And without steel, aluminium and zinc, high-tech industry, defence industry and mobility stand still. That is why I want to avoid risky, strategic dependencies on other countries in this area."
Compensating is costly
Offsetting increased energy costs for industry is costly. The government also fears serious market distortions due to subsidies and a further rise in energy prices. This as this increases the demand for natural gas and removes the incentive for sustainability.
The cabinet sees a lasting solution in accelerating industry sustainability. Because the faster the Netherlands and the EU make themselves more sustainable and reduce their dependence on fossil fuels, the faster the recovery of the Netherlands' competitive position.
National Programme for Making Industry More Sustainable
The cabinet is pushing for this with the National Programme to Make Industry More Sustainable. Among other things, this programme prioritises the expansion of the electricity grid for issues that have social priority. The cabinet also wants to join forces at European level to reduce dependence on fossil fuels and strengthen its competitive position.
Author: Wouter Hoeffnagel
Photo: annca via Pixabay
