Netherlands

NL-11:Green Deal

Policy Description

The Green Deal programme provides government support for environmentally friendly initiatives with will have positive effects on the Netherlands economy but encounnter barriers that threaten the initiative’s feasibility. Inidividual Green Deals are voluntary agreements between an initiator and the government. The programme was first launched in October 2011 by the Netherlands Ministry of Economic Affairs.

Description

The Green Deal programme provides non-financial government support for environmentally friendly initiatives with will have positive effects on the Netherlands economy but encounter barriers that threaten the initiative’s feasibility. This scheme aims to save energy, materials and water as well as stimulate economic activity from the ground up. Individual Green Deals are voluntary agreements between an initiator and the government. The programme was first launched in October 2011 by the Netherlands Ministry of Economic Affairs [1].

Potential barriers and alleviations are not predetermined but are instead outlined by the applicant leading the initiative. Once the barriers have been listed by the initiator, the government can take or agree upon measure to alleviate the barriers. For example, barriers can include lack of clarity on permits, or regulations applicable to the initiative, finding the right business partners needed to launch a green business initiative, or other problems that might arise during the launch of new green product.

The government can give several types of support in order to alleviate barriers, such as:

  • modifying legislation if possible
  • access to relevant networks
  • support creating the market for new products or services, e.g. by providing an initial demand for products/services or incorporating initiatives in trade missions
  • sharing knowledge e.g. by providing insight into relevant legislation, the process for obtaining permits and possible subsidies.

The aim of the Green Deal programme is to provide initial backstopping support for an initiative that will have positive effects on the Netherlands economy or generate cost savings for companies and individuals once an initiative is widely implemented. In order for an initiative to qualify as a Green Deal, it must have positive effects on one of the following themes:

  • sustainable use of raw materials
  • sustainable use of water
  • sustainable mobility
  • energy with a focus on renewable energy
  • energy efficiency.

These initiatives do not have to be profit-making ventures from the start but should have the potential of profitability and be self-sustaining.  An example of a qualifying Green Deal initiative is a large paint manufacturer that examines and recovers residual heat from paint production to heat a nearby football stadium.
The Green Deal Board is responsible for monitoring and evaluating progress and results of the green deals in place and stimulating new initiatives. Nine members currently make up the Green Deal Board and meet once every three months. These nine members come from the business/industry, NGOs, and government organisations. Five observers from different ministries represent the government to which the Green Deal Board reports (*1).

As Green Deals can cover a wide range of initiatives and businesses, three examples are given below to illustrate the government’s role and its support.


Green Deal: LNG Use in Rhine and Wadden.

This Green Deal aims to stimulate the use of LNG for heavy transport (shipping, fishery and trucks). The government will coordinate uniformity of regional, national and international laws and regulations to enable the applications of LNG to heavy transport. The government will take a share in communication with local governments, NGOs and civilians and research a stable and stimulating investment climate to enable a smooth and cost effective initial introduction of LNG. 

 
Green Deal: Sustainable recovery of waste-to-energy bottom ash.

Bottom ashes from waste-to-energy incinerators may only be used as a secondary building material if measures are taken to prevent alkaline leaching to the groundwater. The waste-to-energy sector wishes to treat or upgrade the bottom ash to a building material without restrictions. This initiative is supported by the government by prioritising research on the possibilities of adjusting the legislation, cooperating with the sector in the use of bottom ash in infrastructure project and allowing the current use of bottom-ash until at least 2018/2020.

 

Green Deal: Sustainable crash rails

Zinc plated crash rails can be renovated and reused. Removing and re-using the zinc leads to reductions in energy and raw material consumption and CO2 emissions. The market for renovated and reused zinc plated crash rails consists of only a few actors. As part of the green deal the government will stimulate the re-use of crash rails by implementing it in its sustainable purchasing guidelines. Furthermore, the government will try to remove potential legislative barriers that surface during the pilot phase and will facilitate the inclusion of re-used crash rails in CO2 emission accounting methods.

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative, Voluntary Agreement, Economic, Incentives & Subsidies

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2011

Policy Linkages

Supported By Energy Investment Allowance (EIA) Supporting Measure
Supported By Fiscal schemes for environmentally-friendly investment: MIA and Vamil Supporting Measure

Agencies Responsible

Ministry of Economic Affairs
AgentschapNL

Primary Objective: GHG Emissions

Objective

Energy use, GHG emissions, and more widely, stimulating a sustainable or green economy.

Target Group

Companies, NGOs, citizens

Driver of energy consumption or emissions affected by policy: Depends on each Green Deal initiative

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

Quantitative Target? yes

Target: 100 Green Deals in 2012, differs for each year (*2).

Time Period: each year

Progress Monitored? yes

Verification Required? no

Enforced? no

Requirements on the Target Group

  • The applicant must play an active role in the implementation of the initiative.
  • Initiatives must be concrete and have an impact in one or more of the fields of:
    • ­ sustainable use of raw materials,
    • ­ biodiversity and water,
    • ­ sustainable mobility,
    • ­ renewable energy,
    • ­ energy efficiency.
  • The initiative must be profitable or have the potential to become profitable (*3).
  • The initiative should show be able to demontrate results relatively quickly (preferably within three years)
  • The initiative should lead to new economic activity or generate costs savings for business and individuals.
  • Submitted initiatives and the resulting Green Deals must be open to disclosing information about the initiative and how government suppored the initiative, to be used as promotional materials.

Support by Government

Several types of support can be given by the government. These include but are not limited to:

  • ­altering legislation if possible
  • access to networks
  • support creating the market for new products or services, e.g. by providing an initial demand for products/services or incorporating initiatives in trade missions.
  • sharing knowledge e.g. by providing insight into relevant legislation, the process for obtaining permits and possible subsidies. Note that, within the Green Deals, the government does not provide separate financial incentives; rather it can suggest existing subsidy schemes for which the applicant may be eligible for. 

Implementation Toolbox

Complexity of Implementation

Government

A wide range of initiatives can be submitted and need to be assessed by different governmental departments.

Target Group

Applicants receive support and advice for implementing their initiatives.

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions N/A Increasing the likelihood that initiatives reach full market feasibility. Providing opportunities towards a more sustainable economy.
Estimated costs/benefits for industry N/A N/A
Estimated cost for government N/A N/A

References & Footnotes

References

[1] Government of the Netherlands (2012). Green Deal, information from the government and applications. Available at http://www.rijksoverheid.nl/onderwerpen/duurzame-economie/green-deal

Footnotes

(*1) The list of current Green Deal Board members is available online at http://www.rijksoverheid.nl/onderwerpen/duurzame-economie/documenten-en-publicaties/brochures/2012/05/24/green-deal-board.html

(*2) Factsheets of all Green Deals are available on the Green Deal website: http://www.rijksoverheid.nl/onderwerpen/duurzame-economie/green-deal

(*3) A payback period for profitable measures is not given. Profitability is judged by the Green Deal Board.