How reach the 2030 target for emission reduction in the Dutch industry as per the national climate agreement, while limiting the risk of carbon leakage?
In June 2019, the Netherlands published the national Climate Agreement (Het Klimaatakkoord). In this agreement, the Dutch government announced to introduce a sensible carbon tax for industry. This tax should serve as one of the key policy tools, aside from the renewed subsidy scheme for CO2 reducing projects (SDE++), to achieve the climate targets in 2030. The tax is closely related to EU-ETS. Trinomics provided strategic policy advise to the Ministry of Economic Affairs and Climate Policy, building on their (recent) experiences and knowledge on EU-ETS (and carbon leakage), the SDE++, European and Dutch climate policies and the options for CO2 reduction in the industrial sector.
Key tasks were:
- Mapping of relevant EU-ETS rules and assess when these could be followed in the national tax and when not;
- Advising on various elements related to the overall system design (e.g., how to deal with electrification);
- Contributing to the development of a trading scheme for credits (dispensation rights);
- Providing strategic policy advise on communication with all stakeholders;