Netherlands

NL-1a:Long-term Agreement on Energy Efficiency for EU ETS enterprises (LEE)

Policy Description

The Long Term Agreements (LTAs) are agreements negotiated between companies and the Netherlands government that aim to promote energy savings in industry. Known as the LEE, the LTA on Energy Efficiency is intended specifically for enterprises that participate in the EU Emissions Trading System (EU ETS). It was introduced in 2009 and replaces the Benchmarking covenant (see NL-1b).

Description

The Long Term Agreements (LTAs) are agreements negotiated between companies and the Netherlands government that aim to promote energy savings in industry. Known as the LEE, the LTA on Energy Efficiency is intended specifically for enterprises that participate in the EU Emissions Trading System (EU ETS). It was introduced in 2009 and replaces the Benchmarking covenant (see NL-1b) [1].

The LEE agreements are, alongside the LTA3 for non-EU ETS companies, part of the third generation Long Term Agreement [2]. The third generation LTAs are an expansion, intensification and broadening of previous LTAs and run till 2020.

Each participating company is required to create an Energy Efficiency Plan and to implement all profitable measures (with payback periods of five years or less). Within the Plan, there is a soft target of 2% annual energy efficiency improvement but no binding targets as companies already have CO2 reductions obligations under the EU ETS.
Aside from the Energy Efficiency Plan, enterprises are to investigate at the strategic level what the energy-saving possibilities are in the long term. Like in the LTA3 (see NL-2), companies are allowed to implement profitable measures outside plant borders and across their value chain.

In return, the government agrees not to impose additional specific national measures aimed at energy conservation or CO2 emission reductions on the participating companies. Also, companies acting under the covenants are automatically granted compliance with the energy-related provisions of their permits under the Environmental Management Act.

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, Negotiated Agreement

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2009

End Date: 2020

Policy Linkages

Complements Long-Term Agreements on Energy Efficiency Effort Defining
Complements EU Emissions Trading System (EU ETS) Effort Defining
Supported By Energy Investment Allowance (EIA) Supporting Measure
Replaces Benchmarking  Covenant on Energy Efficiency Effort Defining

Agencies Responsible

Ministry of Economic Affairs
AgentschapNL

Primary Objective: Energy

Objective

To improve energy efficiency without a negative impact on economic growth or competitiveness of Dutch trade and industry.

Target Group

EU Emissions Trading System participants.

Driver of energy consumption or emissions affected by policy: Energy efficiency within the industry companies in the broad sense (all efficiency measures that can be taken on-site and in the value chain, but also including to a certain extent also material efficiency, efficient products and renewable energy).

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

Coverage

Quantitative Target? yes

Target: Within Energy Efficiency Plans that companies must prepare, there is a soft target of 2% annual energy efficiency improvement but no binding targets as companies already have CO2 reductions obligations under the EU ETS.

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: Termination of the LTA for the company, resulting in compliance requirements under the Environmental Management Act (see NL-8).

Requirements on the Target Group

Participants must:

  • ­ Draw up an Energy Efficiency Plan (EEP) for its facilities by 1 January 2010 at the latest.
  • ­ Update the EEP latest 1st October 2012 for the period 2013-2016 and latest 1st October 2016 for the period 2017-2020.
  • ­ Implement all measures identified as profitable (those under five years)
  • ­ Perform an annual monitoring and reporting of progress on energy efficiency improvements.

Support by Government

  • No supplementary national policy governing CO2 reduction or energy conservation is imposed on these companies
  • Support in drafting and monitoring the EEP by AgentschapNL. 

Implementation Toolbox

The following tools are provided to support implementation of the Long-Term Agreements and the Benchmarking Covenant on Energy Efficiency [3]:

 

Complexity of Implementation

Government

Evaluating energy efficiency plan (EEP) and payback period of measures (AgentschapNL).

Target Group

Developing energy efficiency plan, implementing measures within payback criteria and annual reporting on progress (company).

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 N/A
Estimated costs/benefits for industry N/A N/A
Estimated cost for government N/A N/A
Other Benefits
General Benefits N/A
Specific Benefits N/A

References & Footnotes

References

[1] AgentschapNL (2012). Benchmarking Covenant - MJA. Available at http://www.agentschapnl.nl/programmas-regelingen/meerjarenafspraken-energie-efficiency

[2] AgentschapNL (2012). Long-term Agreement on Energy Efficiency for EU ETS enterprises (LEE) - MEE. Available at http://www.agentschapnl.nl/content/convenanttekst-meerjarenafspraak-energie-efficiency-voor-ets-ondernemingen-mee

[3] Implementation Toolbox http://www.agentschapnl.nl/content/convenanttekst-meerjarenafspraak-energie-efficiency-voor-ets-ondernemingen-mee