Entrepreneurs: rubbing shoulders together for a green investment climate

Press Release - Oct. 24, 2024

VNO-NCW/LWV welcomes Minister Hermans' pragmatic commitment to her plans. The availability of sufficient clean energy is crucial for the competitiveness of the Netherlands, for a reduced dependence on other countries and for solving the climate problem. This requires that investments in sustainable technology be released quickly so that companies in the Netherlands can make the transition. Business and politics must ensure this together.

The Netherlands is fully engaged in the energy transition, for example, large wind farms are being added again and we are champions of solar energy in Europe. But the pace of renewal is slowing down, according to the Climate and Energy Outlook 2024 from the Netherlands Environmental Assessment Agency.

This is disappointing. We have an urgent climate problem that demands action. In addition, the transition to a sustainable new economy is currently underway worldwide. It is important for the Netherlands to be attractive for sustainable investments so that we will also have a healthy economy in the future. Moreover, the energy transition makes our country less dependent on other countries.

Much is ready

At the same time our business community is ambitious, we can make great strides. Thousands of entrepreneurs have plans for sustainability. And at the largest companies, 100 projects are ready that are good for 20 Mton of CO2 reduction, according to recent research by RVO. These investments must now be unleashed. This requires solutions to bottlenecks.

Tough puzzle

For example, to make their investment decision, companies need clear and reliable planning. With permits and infrastructure in place on time: the connections for electricity, hydrogen or CO2 storage. However, this long-term puzzle is often impossible to put together, especially due to missing infrastructure. Not only already existing companies that want to go green but also new (sustainable) companies are now running into years of waiting lists for electricity. In addition, green investments must also be profitable in the long run. Often the sustainable solution for an entrepreneur means a switch to electricity. But the price of that is now far too high in the Netherlands. Moreover, there must be demand for green products. There is not yet, this requires European solutions.

Stable policy

A further bump is the sometimes wobbly policy. A sampling of recent years: the mandatory replacement by heat pumps that did not become mandatory after all, subsidies for electric vehicles that have been cut and the ongoing debate about the public or private ownership of heat systems. Entrepreneurs only invest at their own risk and expense when they know where they stand and do not have to fear that policy will suddenly change again.

Good Steps

The cabinet is taking good steps by pushing through many policies. The cabinet is also working on solutions to key bottlenecks to loosen investments. The Minister of Climate and Green Growth (KGG) is resolutely tackling one of the key bottlenecks, grid congestion. With actions to expand grid capacity, speed up permitting and encourage smart and flexible use of electricity for citizens and small consumers. Also positive is that the Cabinet is not coming up with new national headlines. Additional levies will make investing in the Netherlands less attractive.

Companies and politicians must pull together so that the investments needed for green technology are quickly released and the climate goals are within reach.

The LWV hereby emphatically calls for Dutch companies that want to become more sustainable and electrify to be able to do so. On the one hand by investing in the power grid, but also by resolutely addressing the inequality in power tariffs compared to surrounding countries.

"It cannot be that industry in the Netherlands pays a power tariff that is 55% more expensive than across the border in Germany, and 41% more expensive than in Belgium. In France, the tariff is even 66% cheaper. Dutch entrepreneurs, especially those in the border region, deserve a fair and level playing field," said Huub Narinx, director of the LWV.