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DE RUEHTC #0416/01 1371029
ZNR UUUUU ZZH
P 161029Z MAY 08
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC PRIORITY 1444
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/USDOC WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUEHBS/USEU BRUSSELS 0646
RHEHNSC/NSC WASHDC
RUEHAT/AMCONSUL AMSTERDAM 3970

UNCLAS SECTION 01 OF 03 THE HAGUE 000416 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR OES, EUR/WE (TSMITH), EUR/PGI (DTESSLER) 
USDA FOR FAS-ELIZABETH JONES 
USDOC FOR 4212/USFCS/MAC/EURA/OWE/DCALVERT 
PARIS FOR OECD 
USEU FOR TSMITHAM 
 
E.O. 12356: N/A 
TAGS: KGHG SENV ENRG ECON EINV EUN NL
SUBJECT: DUTCH SEEK AMBITIOUS ENERGY-CLIMATE CHANGE TARGETS 
 
REF: A) BRUSSELS 117 
      B) THE HAGUE 253 
      C) THE HAGUE 216 
      D) O7 THE HAGUE 501 
 
THE HAGUE 00000416  001.2 OF 003 
 
 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE 
ACCORDINGLY. 
 
¶1. (SBU)  SUMMARY.  While officially welcoming the European 
Commission's energy and climate change targets, some Dutch officials 
have indicated that the GONL was hoping for the adoption of more 
"ambitious" goals.  At home, the GONL is seeking to go beyond EU 
targets by committing independently to a 30 percent reduction in 
greenhouse gas emissions over 1990 levels, an increase to 20 percent 
in renewable energy sources, and cuts in overall energy use by 2 
percent per year -- all by 2020.  Meanwhile, some local 
environmental advocates have questioned the GONL's commitment to 
real targets, given that some can only be met by purchasing emission 
allowances through the European Emission Trading System.  END 
SUMMARY. 
 
SUPPORTING "20 AND 20 AND 10" EU TARGETS . . . 
--------------------------------------------- - 
 
¶2.  (U)  The Dutch officially welcomed the European Commission's 
call earlier this year to implement far-reaching energy and climate 
change targets (reported ref A).  These include an overall EU 
reduction in greenhouse gas (GHG) emissions by 20 percent from 1990 
levels, an increase to 20 percent in power derived from renewable 
sources, and a 10 percent biofuel use target -- all by 2020.  Within 
these overall targets, the Netherlands is expected to reduce GHG 
emissions by 16 percent, increase renewable energy sources to 14 
percent of total energy production, and expand biofuel use to 10 
percent. 
 
. . . BUT SEEKING "30 AND 20 AND 20" AT HOME 
-------------------------------------------- 
 
¶3.  (U)  Meanwhile, the GONL has committed the Netherlands 
independently to a 30 percent reduction in GHG emissions over 1990 
levels, an increase to 20 percent in renewable energy sources, and 
cuts in overall energy use by 2 percent per year -- again, all by 
¶2020.  The GONL is currently studying the feasibility of a mandatory 
20 percent sustainably-produced biofuel mix by 2020. 
 
¶4.  (U)  The GONL's plan, entitled "Clean and Efficient" also sets 
out concrete climate goals for old and new buildings, energy 
companies, industry, traffic, transport, and agriculture sectors. 
For 2008, the GONL has earmarked 140 million euros to implement the 
plan, in addition to an existing budget of 1.3 billion euros for 
climate and sustainable development efforts.  The GONL will report 
annually on the plan's progress and assess in 2010 the need for 
additional measures.  (See refs B-D for related reporting.) 
 
GHG REDUCTIONS THROUGH ETS AND CCS 
---------------------------------- 
 
¶5.  (U)  Jacqueline Cramer, Dutch Minister of Housing, Spatial 
Planning and the Environment, had lamented to the media prior to the 
release of the Commission's climate change strategy that the overall 
EU GHG reduction targets were not "more ambitious."  She noted that 
the 16 percent national target set for the Netherlands was well 
within the scope of current Dutch national GHG reduction goals.  To 
reach its 30 percent reduction target by 2020, however, she has 
noted that the Dutch will need to rely heavily on the European 
Emission Trading System (ETS) and carbon capture and storage (CCS) 
technology.  Cramer has indicated a preference for meeting this goal 
through ETS rather than a carbon tax, given a lack of public support 
for additional taxes.  On the European level, she said the GONL also 
supported an auctioning of ETS rights and a greater harmonization 
and expansion of the system to include other sectors. 
 
¶6.  (U)  In early 2007, Prime Minister Jan Peter Balkenende 
announced plans to make the Netherlands a global leader in the 
development of CCS.  The GONL has already committed some 55 million 
euros in subsidies to support the construction of CCS facilities in 
 
THE HAGUE 00000416  002.2 OF 003 
 
 
Rotterdam, Drachten, Utrecht, and off-shore in the North-Sea.  The 
GONL has also stipulated that the construction of four new 
coal-fired power stations in the country include CCS technology. 
 
¶7.  (U)  The GONL is also exploring how the Dutch agricultural 
sector can contribute to reducing non-CO2 GHGs such as nitrous oxide 
and methane, which are produced in part through fertilizing and 
grazing.  Such efforts could include possible changes in livestock 
feed, improved precision farming, and fertilizers. 
 
INCREASES IN RENEWABLE ENERGY THROUGH WIND POWER 
--------------------------------------------- --- 
 
¶8.  (U)  Minister Cramer has acknowledged that the Netherlands will 
find it difficult to achieve a 14 percent increase in renewable 
energy sources, let alone the 20 percent target it has set for 
itself.  (Renewables currently represent less than 4 percent of the 
overall energy mix in the country.)  While wind turbines are already 
familiar sights in the Netherlands, a new government subsidy program 
will seek to increase wind power production by 100 percent by the 
end of 2012.  The GONL will also introduce subsidies for the 
development of both offshore and onshore wind energy/power grids and 
'incentives' for solar photo voltaic power.  The introduction of 
more renewable energy sources is also expected to contribute to 
emission reductions. 
 
MORE BIOFUEL OPTIONS 
-------------------- 
 
¶9.  (U)  The Netherlands also wants to become a market and testing 
ground for "sustainable mobility," which is defined as meeting 
mobility/transport needs of the present without compromising the 
ability of future generations to meet their needs.  The GONL plans 
to achieve this by increasing the mandatory percentage of biofuels 
used in transport to 5.75 percent by 2010.  As noted above, the GONL 
is studying the feasibility of a mandatory 20 percent 
sustainably-produced biofuel mix by 2020.  The national network of 
biogas and natural gas filling stations will be expanded, and the 
GONL hopes that hybrid buses and buses fueled by biofuels and 
natural gas will be a familiar sight by 2011.  (NOTE:  The Embassy 
contracted a natural gas bus for the transport of a recent 
delegation visiting the Netherlands for energy efficiency related 
meetings.  END NOTE.)  In 2008, the GONL will also introduce a 
differentiated tax scheme designed to encourage the purchase fuel 
efficient vehicles. 
 
SEEKING GREATER ENERGY EFFICIENCY 
--------------------------------- 
 
¶10.  (U)  Other measures under the GONL plan include increasing 
energy efficiency by mandating that all new buildings be carbon 
neutral by 2012.  In January, a first step was taken with the 
introduction of energy efficiency labels for all buildings for sale 
or for rent.  Working together with energy providers, housing 
corporations, and the construction sector, the GONL is also 
implementing a so-called "More with Less" plan.  This plan provides 
subsidies to some 500,000 existing buildings (residential, 
industrial, and commercial), with the aim of achieving energy 
efficiency improvements of 20-30 percent over current levels by 
¶2011.  From 2012 onward, the plan will target an additional 300,000 
buildings annually.  In 2008, the government will also introduce 
subsidies to fund the introduction of renewable energy technology in 
some 100,000 existing buildings (solar boilers, heat pumps, and 
solar electricity). 
 
¶11.  (U)  As one of the largest exporters of agricultural products 
in the world (behind the United States and France) in terms of 
high-value produce ($67 billion in 2007), the Netherlands relies 
heavily on its horticultural greenhouses.  These greenhouses, 
however, use a lot of energy.  The GONL is exploring how heat and 
cold storage can be used to make these greenhouses more energy 
neutral as well as technology for sharing surplus energy with 
neighboring houses or businesses.  In 2011, the GONL plans to 
introduce an ETS system specifically for greenhouses. 
 
SUCCESS RELIES ON INDUSTRY AND PUBLIC SUPPORT 
--------------------------------------------- 
 
THE HAGUE 00000416  003.2 OF 003 
 
 
 
¶12.  (U)  Close cooperation between government and industry has been 
central to the GONL's "Clean and Efficient" plan.  During the 
initial consultation period, Minister Cramer met with leaders in the 
country's top 10 industries.  These meetings resulted in a 
sustainability accord outlining specific measures to reduce 
emissions, increase the supply of renewable energy, and improve 
energy efficiency.  These actions reflected an understanding within 
the GONL that the plan's ambitious "30 and 20 and 20" targets by 
2020 could only be met through the inclusion of the country's key 
energy market stakeholders.  Nonetheless, some industry leaders, 
including Shell's CEO Jeroen van der Veer, have publicly warned that 
Dutch national goals need to be realistic as "overstretched targets" 
can discourage rather than motivate. 
 
¶13.  (U)  The GONL also seeks to educate the general public on 
emissions reductions methods through two consumer-oriented pilot 
projects.  The first, an "Energy Box," is a kit containing a variety 
of energy-saving goods for common household use, including low 
energy light bulbs and energy saving showerheads.  If all of the 
box's contents are installed, the average household could reduce its 
energy usage by 15 percent.  The second, an "Energy Coupon", can be 
used to purchase energy savings products.  The GONL is considering 
plans to introduce the pilot projects nationwide. 
 
COMMENT: TARGETS ONLY ACHIEVABLE VIA ETS TRADING? 
--------------------------------------------- ---- 
 
¶14.  (SBU)  Some Environment Ministry contacts have indicated that 
the GONL was "less than thrilled" with the Commission's energy and 
climate change proposal.  Minister Cramer, in fact, has been 
noticeably quiet on the issue since the European Council's March 
approval of the Commission's energy and climate change legislative 
package.  Meanwhile, some Dutch environment organizations and 
politicians (both within and outside the ruling coalition) have 
questioned the GONL's commitment to real energy and climate change 
targets, given that its "ambitious" national plan includes emission 
allowances purchased through the EU ETS in its GHG reduction 
calculations.