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Progress Stalls in Climate Agreements: Lack of Definitive Agreements with Largest CO2 Emitters

03 July 2023 at 04:59

Little progress has been made in the climate agreements that the cabinet wants to make with the twenty largest CO2 emitters. The cabinet wanted to conclude the negotiations this year, but for the time being it will stick to a handful of declarations of intent.

Not a single company has yet drawn up a definitive climate agreement with the cabinet. A special advisory committee that has to assess the agreements with the business community has only been able to assess one intended agreement. A spokesperson for Minister Micky Adriaansens (Economic Affairs and Climate) confirms this after questions from NU.nl.

The agreements are an important part of the climate approach in the industry. Large companies account for almost a third of Dutch CO2 emissions and must become much cleaner in the coming years.

By making special ‘tailor-made agreements’ with the largest emitters, Adriaansens wants to take major steps in one go. If these companies promise to reduce their emissions more quickly, the government will help build the necessary infrastructure. There are also billions of extra subsidies available.

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Appointments had to be made ‘much earlier’

At the beginning of last year, Adriaansens set to work with the agreements in good spirits. She wrote to the House of Representatives that she wanted concrete agreements on paper before the end of 2023. During a debate mentioned they even set an ultimate end date, because agreements would be made “much sooner”.

More than a year later, only five companies have signed letters of intent with the cabinet. According to a spokesman for Adriaansens, “a few companies” will be added before the summer holidays. But these statements are only a first step towards a real climate agreement. Many details still need to be worked out.

Meanwhile, 2030 is getting closer. In that case, the promised CO2 reduction must already have been achieved, while all kinds of permits and major renovations are often still required. For the companies themselves, and for the necessary electricity and hydrogen networks.

Consultants start second job

Talks are most advanced at salt producer Nobian. The company signed a letter of intent with the cabinet last December. This should lead to a formal agreement in July, says Nobian spokesperson Jorn van der Meer.

Even then the final destination has not yet been reached, because that agreement still has to be worked out into binding agreements. Moreover, the European Union must still grant approval if the government wants to provide state aid.

The advisory committee is now considering the agreements with a second company, says the Adriaansens spokesperson. But for most companies it seems unfeasible to reach a binding agreement in 2023.

Mysterious negotiations

Hardly anyone at the companies wants to comment on the content of the talks or the planning. Those who do, will often be disappointed later on. Fertilizer manufacturer Yara said to it early this year FD that there should be a letter of intent by March at the latest. It still isn’t there now.

In February, CEO Anton van Beek of chemical company Dow Benelux said against it News hour that a final appointment had to be made by June at the latest. But there is still no more than a declaration of intent. A spokesman declined to comment on further plans.

‘Minister must speed up’

There is dissatisfaction in the Chamber about the slow pace. Last March, Adriaansens already received many critical questions during a debate about the industry. Since then, only one letter of intent has been added and it remains silent.

“Minister Adriaansens really needs to get into gear,” says D66 MP Raoul Boucke. “This cabinet is halfway through the journey, they still have about a year and a half left. Time is running out.” According to Boucke, the minister should be more active in urging companies to become more sustainable. But the minister says that he often has to wait for the decisions of companies.

“It is really a very intensive process,” Adriaansens told NU.nl. “I can’t push it through the funnel, but I will see if I can set a deadline. A clear end point for the first phase. Because I also want to know whether or not a company wants to go along.” It is not yet known what that new deadline will be.

Appointment for one company not necessary

In any case, one of the twenty largest emitters says that it does not make any tailor-made agreements with the cabinet. Gas producer Air Products is already planning to significantly reduce emissions by storing CO2 under the North Sea.

Doing more is currently difficult, says Paul Hoogeveen of Air Products. He emphasizes that the cabinet recognizes this and that the talks about a tailor-made agreement have therefore been broken off. “It’s mutual, it’s not that we dropped out.”

2023-07-03 02:59:12
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