The Dutch greenhouse industry has reacted with anger after the country’s government confirmed that the sector will be included in the latest EU Emissions Trading System (ETS-2) and introduce a mandatory blending requirement for green gas.
The news had previously been leaked ahead of the announcement, and while the government has said that it the government plans to compensate growers for the added costs, it is unclear if this will be allowed under European Commission subsidy rules.
In a statement the Dutch greenhouse growers’ association (Glastuinbouw Nederland) said the sector regretted the decision and did not agree with it. ‘This puts the Netherlands further out of step with its European competitors due to national headlines,’ it continued. ‘The balance between pricing and stimulating the energy transition is getting further lost. This seriously undermines the security of existence and innovative power of greenhouse horticulture.’
It also argued that the decision was not in line with the existing industry energy covenant and the widely supported Grinwis/Flach motion to only include the sector in ETS-2 if all covenant parties agree.
For ten years, greenhouse horticulture in the Netherlands has had its own CO 2 sector system, with a guaranteed climate target for 2030 and ultimate climate neutrality in 2040, as agreed with the government in 2012. ‘The greenhouse horticulture sector is one of the first sectors in Europe to pay for its emissions for years and is also working on the energy transition,’ stressed Glastuinbouw Nederland. ‘However, the possibilities for sustainability in the Netherlands are becoming increasingly difficult due to grid congestion, nitrogen and slow permitting. The Dutch greenhouse horticulture sector therefore welcomes the government’s intention to allocate an additional €200 million to help growers in this transition. While this aid is still in its infancy, the government is already casting additional pricing in concrete.
‘The climate ambitions of the sector were already secured by an annually increasing CO 2 levy. Since this year, the sector has also been subject to a considerably higher energy tax due to the Fiscal Climate Measures Act . The government acknowledges that these are sufficient incentives to become greener, as the Budget Day research also confirmed. Despite the fact that they are not necessary to realise the climate ambition, the government is opting for even higher energy costs in the sector with ETS-2 and the blending obligation.’
According to reports, the obligation to blend green gas into the gas supply is expected to lead to increased costs for greenhouse growers, with some studies suggesting that the additional costs could amount to as much as 10 per cent, with gas prices for the sector could rise by €0,04 to €0,12 per cubic metre by 2030.
