The 'Convenant energietransitie glastuinbouw 2022-2030' (Energy Transition Covenant for Greenhouse Horticulture 2022-2030) will continue to guide the Dutch cabinet's policies. However, the Dutch cabinet is also implementing additional measures and may introduce more next spring. This is despite research indicating that these measures are unnecessary to achieve the set CO2 targets.
The research was conducted by the consulting firms Berenschot and Kalavasta, and is included in the Budget Memorandum. It shows that achieving the 2030 climate target agreed in the covenant is guaranteed with the levy of the CO2 sector system and the government's fiscal measures, as industry body Glastuinbouw Nederland emphasized in their response following Budget Day in the Netherlands. Together, the CO2 sector pricing and energy tax amount to a charge of €98 per ton of CO2 emissions.
If the cabinet decides to implement additional energy measures, such as including greenhouse horticulture in the European Carbon Emissions Trading System (ETS-2) and introducing a green gas blending obligation, the total charges could rise to around €200 per ton of CO2 emissions, according to Berenschot. This is over €100 per ton more than the €98 per ton of CO2 emissions that Berenschot's research indicates is sufficient to meet the target.
€40 per ton of CO2 emissions
"These unnecessary charges reduce the investment capacity of Dutch greenhouse horticulture entrepreneurs, hinder the energy transition, and seem to be a goal in themselves rather than a means to achieve sustainability," says Adri Bom-Lemstra, chair of Glastuinbouw Nederland. "While the government is considering compensating growers, we still have to wait and see if such a scheme will be effective. The Berenschot study clearly shows that the accumulation of measures is excessive."
The researchers recommend evaluating the charge rate every two years. A rate of €15 per ton of CO2 in 2030 should meet the emissions target. However, the researchers highlight some uncertainties. They conducted a sensitivity analysis to illustrate these uncertainties, including grid congestion. This analysis indicates that, depending on the circumstances, the charge could need to be adjusted by as much as €40 per ton of CO2, either higher or lower.
With the Berenschot report in hand, Glastuinbouw Nederland hopes that a postponement will lead to a cancellation.
Finger on the pulse
The recently published tariff study was already mentioned last year as a new deadline to keep an eye on last year, following the House of Representatives' approval of the tax law. The latter included a longer phase-out period for the reduced rate for greenhouse horticulture. The tariff study for the CO2 tax is referenced in the amendment that was adopted at that time. Another amendment also includes a review point for last year's CHP measure.
"The review point is important to ensure that funds are returned to the sector if it turns out that the revenues from the measures are higher than necessary to meet the agreed emissions target," explained Jesse Schevel of Glastuinbouw Nederland last year. The target is set at 4.3 megatons by 2030. By 2040, the greenhouse horticulture sector will be the first in the Netherlands to achieve climate neutrality.
The review point is also a way for politicians to keep a close watch on the sector, which has significant sustainability ambitions. The cabinet supports these efforts by allocating subsidies. "Without fiscal measures, those financial incentives in the form of subsidies for sustainability would not materialize," the lobbyist emphasized.