Dutch Industrial Policy focusing on transition to a low carbon - PowerPoint PPT Presentation

Dutch Industrial Policy focusing on transition to a low carbon industry Paul Boeding Ministry of Economic Affairs & Climate Top Sectors & Industrial Policy Third Transatlantic Joint Workshop March 2018

Current Position of the Netherlands in the World 135 th Size 64 th Population 18 th GDP 14 th Starting a new business 5 th EC European Innovation Scoreboard 5 th Most Productive Country 4 th WEF Global Competitiveness 4 th UN Global Happiness Index 3 th Best countries for business 2 nd Agricultural exports 1 st Most entrepreneurial country in Europe 2 Ministry of Economic Affairs and Climate March 2018

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But…. 4 Ministry of Economic Affairs and Climate March 2018

Basic Principles of Dutch Government Oldest public entities in the Netherlands • Keep the water out! • Keep the money in! • Connect and Cooperate! water regulatory authority Court of audit 5 Ministry of Economic Affairs and Climate March 2018

How do we do this? 6 Ministry of Economic Affairs and Climate March 2018

October 2017: New Cabinet Coalition Agreement: Confidence in the Future • High Ambition: 49% CO2 reduction in 2030 • Climate Agreement between Government, Industry and Stakeholders • Innovation: more Budget for Fundamental & Applied Science • Extra Budged for Demo s and Pilotsin Climate Transition • Looking for EU support to aim for 55% CO2 reduction in 2030 7 Ministry of Economic Affairs and Climate March 2018

Need for a gradual, timely Transition • Transition to low-carbon energy supply requires great effort from citizens, businesses and governments • Even if CO2 price increases becouse of stricter ETS, CO2 emissions in the Netherlands are not expected to reduce before 2030 because of high efficiency of power plants and companies • This implies little time left after 2030 to realise Paris goals. • The Netherlands therefore has a societal and economic interest to work on a timely and more gradual energy transition • New Cabinet: Climate Agreement with Stakeholders 8 Ministry of Economic Affairs and Climate March 2018

Dutch Industrial policy: Ambitions 2020: • NL in top-five of most competitive economies • R&D to 2,5% of GDP • PPP’s > € 500 mln.; financed at least for 40% by private sector Results since 2011: • Global Competitiveness Index : from 8 th to 4 th position worldwide • R&D increased from 1,9% to 2% of GDP • > € 1 bln . in PPP’s with 48% private contribution. Since 2013 € 2,5 bln. invested. over 4000 unique participants, >50% SME • Global challenges, Dutch Solutions

Integrated approach in six industrial clusters • Industry • Transport • Built Environment • Electricity • Land use and agriculture International cooperation and trade 10 Ministry of Economic Affairs and Climate March 2018

Connect and Cooperate • The Dutch Government made available € 3.6 billion for the co-firing of biomass for renewable power generation. • The availability of cellulosic biomass will also serve as a stepping stone for replacing fossil inputs in the petro-chemical sector by commercial biorefinery operations. • Biorefineries will process cellulosic inputs into second generation biofuels and platform chemicals for further conversion into high- value biobased products. • To support the realization of such biorefineries the Dutch Ministry of Economic Affairs and Climate is preparing an annual budget for pilot projects. Cascading the use of biomass is a key to success. 11 Ministry of Economic Affairs and Climate March 2018

Let's move forward! 12 Ministry of Economic Affairs and Climate March 2018