2023-07-12 04:26:10
Jul 12, 2023 at 05:05Update: 33 minutes ago
The fall of the Rutte IV cabinet may mean a delay for numerous climate measures. Experts warn that the outgoing cabinet and the House of Representatives must continue to press ahead in order to achieve the climate goals for 2030.
A thick package of letters fell on the (digital) mat at the outgoing cabinet and at the House of Representatives in recent days. They come from employers’ associations, trade associations, environmental organizations and local governments. The thrust is always the same: continue with climate policy as if the cabinet has never fallen.
The organizations fear that the climate goals will get out of sight and the country will come to a standstill due to the fall of the cabinet. And “stagnation is decline,” as a coalition of wildlife groups put it. That is why we should continue with climate policy, the organizations believe.
But it is unclear whether the outgoing cabinet of the House of Representatives is allowed to continue with the climate plans as if nothing had happened. Some measures are politically sensitive and can therefore be declared controversial. They will only be treated once more when there is a new cabinet.
If there is another long formation following the elections, we will be one year further. “Then we will achieve a CO2 reduction of regarding 45 percent in 2030. The goal is 55 to 60 percent,” says Olof van der Gaag, director of the Dutch Sustainable Energy Association.
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Nitrogen and the electricity grid
According to the organizations, improving the electricity grid is one of the things that cannot wait for a new cabinet. In order to become more sustainable, many more people have to use electric cars and heat pumps. Companies must also use much more electricity instead of fossil fuels. To make all this possible, the power grid needs a major overhaul.
But the nitrogen crisis is already causing delays. It is difficult to get permits for the construction of cables and power stations, because some nitrogen is emitted during construction. With a substantial package of measures and billions from a special nitrogen fund, the Rutte IV cabinet wanted to unlock construction once more.
“It is crucial for us that this intention is implemented,” says policy director Hans-Peter Oskam of the sector association Netbeheer Nederland. “We still have to build and expand a few hundred large medium- and high-voltage stations. Nitrogen space is needed everywhere for that.”
But the nitrogen fund still has to be approved by the Senate, where the coalition does not have a majority. Due to the collapse of the agricultural agreement, it remains unclear what the future of the Dutch agricultural sector will look like if nitrogen emissions have to be reduced significantly. It seems unlikely that a caretaker cabinet can solve that.
Netting arrangement is under pressure
The so-called net metering arrangement has been under pressure for a long time. This stipulates that households with solar panels may ‘cross off’ their self-generated electricity once morest the consumption of electricity from the grid. This results in a much lower energy bill and is also a substantial discount on the energy tax.
The Rutte III cabinet already wanted to start phasing out the scheme, because it no longer considered the subsidy necessary. The subsidy has ensured that millions of people purchase solar panels, but is now causing problems for the power grid. Without a net metering scheme, people are encouraged to use their own solar power more often, which means fewer ‘traffic jams’ on the grid.
Originally, the phasing out of the scheme should have started on 1 January 2023, but the proposal was delayed due to the fall of the Rutte III cabinet. The House of Representatives decided to deal with the amendment only following the long formation period. This means that netting continued for another two years, until January 1, 2025.
For people with solar panels on their roof, the current cabinet collapse can result in quite a bit of déjà vu. The House of Representatives has now agreed to phase out the net metering scheme, but it is now the turn of the Senate.
The cabinet had to look for support from the opposition groups of GroenLinks/PvdA or BBB, but they are critical. They can now decide to declare the proposal controversial, which will once more delay the treatment considerably. The effective date of 1 January 2025 would then probably become unfeasible. Good for the wallet of people with solar panels, but a thorn in the side of experts who say that netting is no longer of this time.
Billion dollar fund for climate
With a climate fund of no less than 35 billion euros, the Rutte IV cabinet wanted to ensure that the ambitious climate target of 55 to 60 percent CO2 reduction would be achieved. That goal has now been enshrined in law, following the senate voted in favor of the new Climate Act last week.
This spring, climate minister Rob Jetten presented a package of plans to spend the billions from the climate fund. But it is uncertain whether those billions will appear in the budget next Budget Day. And it is uncertain whether the House of Representatives will agree to all those new measures taken by a caretaker cabinet.
“Every party that voted for the Climate Act should be prepared to continue this policy,” says Van der Gaag of the Dutch Sustainable Energy Association. “If you don’t do that, you won’t achieve the goals and we won’t comply with that law.”
Members of the Senate and House of Representatives can think extensively regarding the warnings from the polder during their vacation. In September, parliament will decide which bills will be declared controversial.
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