Netherlands to Spend €28 Billion on New Climate Package

The Netherlands has presented a new climate package worth €28 billion (~$31 billion) to reduce greenhouse gas emissions and combat climate change, in line with the EU’s target of reducing net emissions by 55% by 2030 compared to 1990.

The package includes a range of measures to reduce CO2 emissions by 22 megatons by 2030 and make the electricity sector carbon-free by 2035 through 3 GW offshore floating solar by 2030, converting gas-fired power stations to hydrogen, and making batteries obligatory for solar parks.

In addition, the government has set aside €7.4 billion (~$8.18 billion) for hydrogen-related projects, including onshore and offshore, green hydrogen imports, and derisking large-scale hydrogen storage.

The Dutch government’s climate package focuses on various sectors, such as housing, transport, industry, and energy.

One of the most important measures is improving the insulation in the homes of low-income people, who can receive up to €425 million (~$470 million) in funding. This will help save energy and reduce emissions, combat energy poverty, and improve the quality of life.

Another measure is to stimulate the purchase of second-hand electric vehicles with €600 million (~$663 million) in subsidies, facilitating the transition to clean transport and reducing air pollution.

The government is also investing in renewable energy sources, such as solar energy, and is betting on building smaller nuclear reactors.

Furthermore, the package includes blending gasoline and diesel with biofuels, which will increase the price of gasoline. This initiative aims to reduce dependence on fossil fuels and accelerate the transition to a low-carbon economy.

The country’s Climate and Energy Policy Minister, Rob Jetten, said, “The Netherlands has pursued climate goals for years. Now it’s time to take a significant leap. At the same time, all Dutch people must be able to experience the transition, especially those who are less likely to. Climate policy must be inclusive and benefit everyone. That is why we will use subsidies to encourage more solar panels to be installed on rental homes and work on making the most draughty houses in the most vulnerable neighborhood more sustainable as a priority.”

Netherlands-based transmission system operator TenneT had awarded contracts worth approximately €30 billion (~$33 billion) to four partners to deliver eight offshore grid connection systems in the Netherlands and Germany. These systems will link offshore wind farms in the Dutch sector of the North Sea to high-voltage grids on land.

European Commission had proposed a detailed new framework for green hydrogen producers within the EU and from other countries exporting to the region to ensure it is produced using renewable electricity.

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