The technologies tabled during current negotiations on Dutch climate policy at the so-called ‘climate tables’ are deemed sufficient for 49% emissions reduction in 2030 (PBL, Sept. 2018). Although it will require just about all of them to meet this target, the main issue is that unless appropriate policies are rolled out these technologies will not be implemented. Assuming all other barriers are also removed, companies and citizens will only invest is they deem such an investment cost-effective. To secure robust CO2 cuts in 2030, and certainly in 2050, the market playing field (taxes, subsidies, standards, etc.) will need to change. In that process, the focus will have to be directed not towards specific technological solutions, but towards CO2 emissions reduction by whatever technical means or behavioural change possible. This is what will lead to the lowest-cost energy transition.
This brief report therefore focuses on how policies can be adjusted with respect to positive business cases, standards and enabling policy, supplemented by measures to address undesirable impacts of such policies for low-income groups and internationally operating companies.
The study was funded by the Dutch Renewable Energy Association (NVDE) and carried out by CE Delft, Berenschot and Kalavasta.