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

135th Size 64th Population 18th GDP 14th Starting a new business 5th EC European Innovation Scoreboard 5th Most Productive Country 4th WEF Global Competitiveness 4th UN Global Happiness Index 3th Best countries for business 2nd Agricultural exports 1st Most entrepreneurial country in Europe

March 2018 Ministry of Economic Affairs and Climate 2

March 2018 Ministry of Economic Affairs and Climate 3

March 2018 Ministry of Economic Affairs and Climate 4

But….

Basic Principles of Dutch Government

March 2018 Ministry of Economic Affairs and Climate 5

• Keep the water out!
• Keep the money in!
• Connect and Cooperate!

Court of audit water regulatory authority Oldest public entities in the Netherlands

How do we do this?

March 2018 Ministry of Economic Affairs and Climate 6

October 2017: New Cabinet

March 2018 Ministry of Economic Affairs and Climate 7

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

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

March 2018 Ministry of Economic Affairs and Climate 8

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 8th to 4th 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

March 2018 Ministry of Economic Affairs and Climate 10

International cooperation and trade

Connect and Cooperate

• The Dutch Government made available €3.6 billion for the co-firing
• f 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
• f Economic Affairs and Climate is preparing an annual budget for

pilot projects. Cascading the use of biomass is a key to success.

March 2018 Ministry of Economic Affairs and Climate 11

Let's move forward!

March 2018 Ministry of Economic Affairs and Climate 12