Climate Accord blog series | Deloitte

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Climate Accord blog series

Building a green energy future

Deloitte's Climate Accord blog series, developed by Deloitte Netherlands, discusses the most important measures, tools and associated trends of the Climate Accord and the impact thereof on your business. Read about innovation programs, national CO2 tax, hydrogen and more.

Have a glimpse into the Future of Energy

The Climate Accord puts forth a comprehensive plan for achieving a 49% reduction in greenhouse gas emissions in 2030, in fulfilment of the 2015 Paris Agreement.

In light of this plan a number of goals have been set:

  • The Climate Accord (“Accord”) outlines a target of reducing the emission of  greenhouse gases (“GHG”) by 49% in 2030 (with an idealistic target of reaching 55%).
  • Current energy and climate initiatives already in place are expected to lead to a 63 megatonne (Mton) reduction in GHG emissions in 2030, which is 47.8 Mton short of the target. 
  • The Accord outlines a comprehensive strategy to achieve the required additional cut in GHG emissions in 2030. The 47.8 Mton reduction will be achieved across five different sectors: 14.3 Mton in industry, 20.2 Mton in electricity, 7.3 Mton in mobiliy, 3.4 Mton in urban environment, and 3.5 Mton in agriculture.

In order to achieve these goals the goverment has taken a number of measures. In our series of articles we will discuss these measures and the related developments. We hope this series enhances your understanding of the opportunities within the Future of Energy. Have an interesting read!

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1 | Budget day and climate change

Every third Tuesday of September, the Dutch government presents the budget for the coming year. Climate change is an important topic in the budget for 2020 and after.

A number of issues influence the budget:

  • Earthquakes in the North of the Netherlands due to the extraction of natural gas, forcing the government to reduce the production.
  • The recent climate agreement that was signed in the Netherlands focusing on reducing the greenhouse gas emissions with 49% by 2030 compared to the emissions in 1990.
  • A lawsuit instigated by NGO Urgenda, forcing government to reduce the greenhouse gas emissions up to 25% by the end of 2020 compared to the emissions in 1990.  

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2 | Innovation required to counter climate change

As innovation comes at a cost, the government realizes that it needs more carrots to stimulate the innovation rather than to use sticks to punish undesired behavior. Stimulation is available in different sectors and in different ways. For example the Dutch WBSO where innovation is stimulated through a tax credit for Dutch wage taxes is a nice example of a ‘carrot’ to stimulate innovation. Companies are then being stimulated to innovate in new products or production processes on their own production site.

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3 | Heat is hot

In order to meet the targets of the Dutch climate accord €48bn needs to be invested in sustainable heat. This is a result of Deloitte calculations based on the target formulated in the climate accord. The transition from traditional gas to district heating cannot be realized without government incentives according to the calculations. The incentives required in the next 10 years are estimated at €3.0bn - €4,5bn.

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4 | The energy transition requires a strategic regional investment agenda

The so-called ‘Regional Energy Strategies’ (RES) are an important element in the Dutch Climate Agreement. The objective of these strategies is to translate the national targets to regional programs and projects, with a focus on the themes Built Environment and Electricity. On the 1st of March 2021, the thirty energy regions have to deliver a ‘RES 1.0’. In this blog we discuss the objectives of these regional programs as part of our blog series about the Dutch Climate Agreement. We notice that the main focus is on a careful regional process, while little attention goes to the required regional investments.

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5 | Industry Disruption: Hybrid Electric Aviation

In the past year, Deloitte has had the privilege of joining with the Dutch Ministry of Infrastructure & Water (‘The Ministry’) to set up the ‘Action Programme for Hybrid Aviation’ (‘AHEV’). This programme establishes a long-term vision and plan and executes disruption for the creation of a ‘zero-emission aviation industry in 2070 – or as soon as possible’. Hybrid electric aviation is strongly viewed as one of the more promising avenues to achieve this.

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6 | SDE++, new possibilities in 2020

This year the subsidy program Stimulating Sustainable Energy Production (SDE+) is being expanded. The current SDE+ program focuses on the generation of sustainable energy. This can be renewable electricity, green gas or heat. However, the new SDE++ program focuses on CO2 reduction instead of the production of renewable energy. This means that technologies compete on the basis of  "avoided CO2" instead of "generated sustainable energy". In addition, new technologies that can also qualify for the SDE++ program are added. Here we explain what you need to know about the new SDE++ program.

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7 | Realizing a renewable energy future

In 2019 the Netherlands generated 18 percent more electricity from renewable sources than in the previous year (2018: 11 percent). Over the last years, solar power has often been considered to be the catalyst for the energy transition. The bulk of the increase is attributable to new, large rooftop and ground-mounted solar panel systems. And there is much more to come. However, like all transitions this one will not be without its challenges.

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