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Deloitte’s Energy Transition Monitor

Energy transition at a crossroads

The energy transition is one of the most significant transformations the Netherlands has seen in this generation. The government has set clear targets for the country to play its part in reducing global greenhouse gas (GHG) emissions, and achieve net zero by 2050. So, more than half way through the transition, how is the Netherlands doing?

The energy transition is arguably the most challenging undertaking of this generation. The Netherlands has made good progress, so far, but the country has come to a crossroads. Most of its progress has come from picking the low-hanging fruit, and reducing industrial output, but to achieve the emission goals for 2030 and beyond, fundamental choices need to be made around the structure of the Dutch economy and the energy system that enables it. The Netherlands has excellent offshore wind potential, a long-established industrial sector, and a leading educational system, so the country is well-placed to create a global blueprint for a successful energy transition.

A successful energy transition depends on the right decisions being made, which require the right information. This Energy Transition Monitor therefore provides a common fact-base, with which to assess the transition’s progress. However, true progress requires more than just reducing emissions (because have we really been successful if we relocate emissions to other countries?). This report therefore provides a holistic perspective, and brings together statistical data, stakeholder perspectives (NGOs, journalists, industry professionals, academics and government officials) and an analysis of public sentiment.

Using these sources, this report examines the transition’s progress from 1990 to 2022, toward the country’s statutory (Klimaatakkoord) targets for 2030 and overall goal of net-zero emissions by 2050. Some key highlights: 

  • The industry sector has reduced its emissions the most, but through lower production output and by reducing non-CO2 greenhouse gases, so the real transition still needs to start.
  • National energy-related emissions have reduced by 32% in 2022 (relative to 1990). However, this ignores emissions from international aviation and shipping, and imported products, which together exceed the reported national emissions.
  • 15% of energy consumed in the Netherlands comes from renewables – mainly biomass, but with strong growth in wind and solar sources for generating clean electricity.
  • Electrification offers the greatest potential for increasing the use of renewables, but progress has been limited. For instance, electric vehicles represented only 1.5% of the mobility sector’s energy consumption.
  • One in three households on average now uses at least one clean energy technology (solar panels, EVs or heat pumps), and the adoption rate is growing fast.
  • Although public sentiment is mixed, the Dutch energy transition has achieved some notable successes, such as the EU’s highest adoption of solar panels and per capita provision of EV charging stations, and 40% of the country’s electricity now being generated from renewables.

The current rate of progress is too slow to meet our 2030 targets, so the energy transition must accelerate, and tough decisions lay ahead. To help make a successful transition, the following approaches to the transition are proposed.

Combine private and public interests, to benefit Dutch society and economy, as well as the global climate. In particular, industrial emissions should be considered alongside domestic production, possibly including a target for manufacturing output.

The effect on greenhouse gas emissions from international aviation and shipping and imported goods should be taken into account when designing and evaluating emission-reduction policies and incentives.

Public support can be harnessed by celebrating the transition’s successes, and by using public policy to set new behavioral norms, rather than focusing purely on financial incentives.

Although electrification should remain the main focus, the remaining demand for molecular sources should be decarbonized more actively, by promoting the use of clean hydrogen and making optimal use of the limited biomass resources.

Incentives have proved an effective way to promote the household take-up of some clean energy technologies, and should now focus on initiatives where the Dutch government is leading and where the greatest impact on emissions can be achieved. For instance changing domestic heating from gas to new renewable technologies, which will create the demand, momentum and confidence for the private sector to scale up production.

The Energy Transition Monitor provides an overview of the status of the energy
transition and proposes bold ideas to accelerate it further and creates a
starting point for discussion, allowing professionals in the field to work
together and make the right decisions for future progress.

Wendy Rudder is one of the architects behind the development of Deloitte’s Energy Transition Monitor (ETM). She explains that the primary purpose of the monitor is to facilitate a fact-based and integrated discussion, leading to better informed decisions. To find out what main points are standing out in the ETM, watch the video here.

Deloitte’s Energy Transition Monitor (ETM) is a data-driven report of where the energy transition in the Netherlands stands. Several experts provide their point of view on this topic and the impact on Dutch society. Watch the video here.

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