The energy transition demands fairness and clear guidelines.

We have made good progress in the Netherlands in recent decades, but in order to achieve the climate goals of 2030 and beyond, we still need to accelerate considerably, note Sander Oudmaijer, Director at Monitor Deloitte and Ariën de Klerk, Manager at Monitor Deloitte. They are based on the Energy Transition Monitor (ETM) published by Deloitte at the beginning of September. In order to make the right choices, industry professionals, academics and policymakers have long needed a clear picture and a common factual basis about the status of the energy transition. The ETM provides the current state of affairs on the energy transition in the Netherlands and shows what lies ahead.  

Scale of Dutch emissions

De Klerk: "So far, we've made choices that cause relatively little pain. Most of our progress has come from picking low-hanging fruit and capitalizing on developments that were already in motion. Consider the reduction in industrial production, efficiency measures, and the increased use of existing technologies like solar and wind energy. To meet the climate goals, we can no longer avoid making tough choices that will hurt now." 

Oudmaijer: "To meet the 2030 climate agreement targets, we need to install 570 charging stations per day and add ten emission-free buses per week. Additionally, we must electrify the heating of 600 homes per day and build one wind turbine every other day until 2050. Achieving this will require making fundamental decisions."De Klerk: "We're running out of patches to fix minor shortcomings."

Telling the truth

Therefore, the role of the government in the energy transition is of great importance, say Oudmaijer and De Klerk. The government sets the conditions necessary to achieve the goals while also contributing to conveying "the honest story." Oudmaijer states, "It's important that there are currently subsidies for electric cars and various sustainable measures, but those will eventually come to an end. The energy transition will incur costs for both citizens and businesses. That honest story needs to be told."

De Klerk: "Moreover, it is still often an either/or discussion, but the question is not whether we are going to build a wind farm at sea or on land; it has to be both. Additionally, investments in other forms of energy supply, such as nuclear energy, are necessary. That’s also the honest story: it's both-and."

Oudmaijer: "The Energy Transition Monitor clearly shows what needs to be done. An important question is how to get communities on board with all these developments. No one really wants a wind farm in their backyard. As a government, you need to consider how to facilitate this as effectively as possible. Perhaps the benefits of wind and solar energy should flow back more directly to certain communities, making them more enthusiastic and engaged. For example, the Veur de Wind Farm, where local residents benefit from the wind farm rather than being forced to accept it."

De Klerk: "All these issues require a clear vision from the government. It must be clear to investors and companies what they can and should expect from the government and how it can assist them. The government needs to establish clear preconditions for the long term. If we want to build a wind turbine every other day, then the process of obtaining a permit for wind farm construction must be significantly faster than it is now."

Win-win situations

We have a lot of work to do in a short period of time. Nevertheless, according to Oudmaijer and De Klerk, the right building blocks are in place to tackle this successfully. Consider, for example, a culture of innovation, a long-established industrial sector, and a leading education system. The challenge ahead is to orchestrate all our capabilities in innovative ways and accelerate the transition in a manner that benefits society, the climate, and the economy. 

De Klerk: "What we want to avoid is companies shutting down in the Netherlands only to continue their operations with the same emissions in another country. So, the question is how we ensure that we maintain economic activity and capacity without neglecting our climate responsibilities. In other words, we need to rethink our role in the energy transition and determine what we want to invest in as the Netherlands. It is important that these choices align with the capacity of our country and our current or desired areas of expertise." 

Oudmaijer: "We have been working on hydrogen in the Netherlands for some time, partly to support large industries. If we choose to fully commit to this, the government needs to develop a clear vision. This includes reflecting on questions such as: What types of hydrogen carriers will we use? What do we want to use hydrogen for, and what do we not, and how will we facilitate this as a government? The government will need to take on a facilitating role, enabling companies to make well-considered investment decisions. This could involve ensuring that permits are issued more quickly, clarifying what we want to use hydrogen for, and designating locations where factories can be built."

De Klerk: "Another idea is to strengthen the North Sea Consortium by developing a vision and an implementation plan. This positions the North Sea as a powerhouse for wind energy and hydrogen production in Northwest Europe. In doing so, the Netherlands becomes a global model for a successful energy transition."

Oudmaijer: "Begin by establishing a clear vision as a government and launching pilot projects in collaboration with the business community to determine what works and what doesn’t. This should be an iterative process where government and business work hand in hand to advance the most successful initiatives, ensuring clarity on what truly makes an impact. The time for picking low-hanging fruit is over; now it's about making clear choices and taking concrete actions!"