Large industrial companies emitted considerably less in 2022 than in the previous year, according to figures from the NEa. There is even a ‘historic decline’ among the 330 companies monitored by the authority: the largest decrease in CO2emissions over the past fifteen years. The decrease seems to be mainly due to higher gas prices and reduced production, rather than due to real sustainability. Is this good news or not?
“It is a spectacular decrease, they will no longer take that away from us,” says director-director Mark Bressers of the NEa. But, he adds: “We shouldn’t start cheering”.
Why not?
“In recent years, you can see that there has been a steady decrease in emissions at energy companies, but that this is relatively small in industry. During the corona crisis, you briefly saw a sharp drop in industrial emissions, but they picked up considerably afterwards. In recent years there seems to be little evidence of far-reaching sustainability in the industry.
“Last year was challenging for the industry due to high gas prices. Many companies have stopped or reduced their production, especially in the chemical industry, which uses a lot of natural gas. Then you can expect to see this reflected in the figures.”
Many people also started insulating their homes and making them more sustainable last year because of the high gas prices. Couldn’t it be that companies have really become more sustainable?
“Certainly. Only the industry works with longer investment terms. As a private individual, you cannot just order a heat pump from an online store. You need time. The industry often works with periods of five years for major adjustments in the business process. At the same time, we do see that everywhere, including in the industry, there is a response to price incentives. If emissions have a high price, you will do everything to become more sustainable.”
“The question now is how robust the emission reduction is. Will production go up again? Has a lot been invested in sustainability in the meantime? That will be exciting in the coming years.”
You carry out inspections at 330 large industrial companies, accounting for half of Dutch emissions. What do you see in sustainability?
“When we visit companies, we don’t look at exactly which innovations they implement. Our first responsibility is to check that companies have their CO2have properly measured emissions, and, for example, whether they keep proper records of how much gas they purchase. We also report on CO2efficiency, and the question of how Dutch companies are performing. Then we look at the average emissions per ton of product and compare the Dutch industry with the best ten percent in Europe. Sometimes Dutch companies are in that ten percent, but often not. We see that the Dutch industry has, to put it mildly, become a little more efficient in recent years, but has not yet taken many steps. The real hits should take place in the coming years.”
What kind of claps then?
“One thing that catches the eye, for example, is Porthos, the project for underground CO2storage. A lot of profit can be made with this, but the construction of that project is under pressure due to the nitrogen crisis. You also see industrial companies switching from gas to electricity. That is a challenge, because the electricity grid and infrastructure must make this possible. Many plans are in the pipeline, they are being considered, but the question remains whether they will be implemented on time.”
If lower production results in lower emissions, shouldn’t companies simply continue to produce less?
“Not necessarily. Above all, we need to look for ways to produce more efficiently. If production in Europe goes down, you may move it to countries in the world where energy prices are lower. Then you can say that you are achieving your European goals, but it doesn’t matter to the climate where the CO2 comes from.”
Do you expect the reduction in emissions to continue or to skyrocket again this year, just like after the corona crisis?
“It’s hard to say in one year. In the longer term, emissions will fall, mainly because of the European emissions trading, because the number of available emission rights decreases every year. That system has been around for eighteen years, just like us, and the price for emission allowances is now higher than ever.
“The European Fit for 55 package ensures that the number of available allowances – which is currently still falling by 2 percent annually – will be phased out more quickly. Expected to increase by more than 4 percent per year. If you add that up, around 2040 all emission rights will simply be gone. The pressure for sustainability will increase, because a company cannot emit without rights.
“In addition, the emissions allowance system is expanding to other sectors. Currently, about 50 percent of emissions fall under CO2 control, which will soon be the majority. European shipping, the built environment and road traffic will also be covered by the emission rights. The smaller industry probably too. More and more companies will therefore have to become more sustainable, and we will also be busier as an authority.”
Read also:
Major polluters paid a record amount for their CO2 emissions
The sale of CO2 emission rights to major polluters brought the State more than 1 billion euros in 2022 for the first time