Financing the Energy Transition in the Netherlands: Developing a methodology to track financial flows in the energy system
report
The Netherlands has passed legislation that sets climate goals of 55% emission reductions
by 2030 and climate neutrality by 2050, compared to 1990 levels. To achieve this ambition,
the government has established increasing targets for sustainable energy: 14% by 2020,
16% by 2023, 42% by 2030, and almost 100% by 2050 (EZK, 2019). To meet these goals,
transitioning to a clean energy system needs to happen fast, and will require coordinated
action across several domains, including capacity building, institutional strengthening, and
financing.
Planbureau voor de Leefomgeving (PBL) has estimated that around €200-300 billion of
investment will be needed between 2020 to 2040 in the Netherlands to achieve emissions
reduction of 80-95% from 1990 levels by 2050 (PBL, 2020). Given the scale of financial
investment required, it is clear that public sources of financing will not be enough to meet
climate targets, especially taking into account the competing uses of public funds to address
other economic and societal challenges, for example energy security and energy poverty.
Although there are recent trends towards increasing public funding to addressing climate
change, including the €35bn ‘Klimaatfonds’ and €20bn ‘Nationaal Groeifonds, substantial
investment will still need to come from the private sector for the Netherlands to achieve its
climate and energy transition targets. The Dutch government has a key role to play in
helping to mobilise this private investment at scale and speed.
by 2030 and climate neutrality by 2050, compared to 1990 levels. To achieve this ambition,
the government has established increasing targets for sustainable energy: 14% by 2020,
16% by 2023, 42% by 2030, and almost 100% by 2050 (EZK, 2019). To meet these goals,
transitioning to a clean energy system needs to happen fast, and will require coordinated
action across several domains, including capacity building, institutional strengthening, and
financing.
Planbureau voor de Leefomgeving (PBL) has estimated that around €200-300 billion of
investment will be needed between 2020 to 2040 in the Netherlands to achieve emissions
reduction of 80-95% from 1990 levels by 2050 (PBL, 2020). Given the scale of financial
investment required, it is clear that public sources of financing will not be enough to meet
climate targets, especially taking into account the competing uses of public funds to address
other economic and societal challenges, for example energy security and energy poverty.
Although there are recent trends towards increasing public funding to addressing climate
change, including the €35bn ‘Klimaatfonds’ and €20bn ‘Nationaal Groeifonds, substantial
investment will still need to come from the private sector for the Netherlands to achieve its
climate and energy transition targets. The Dutch government has a key role to play in
helping to mobilise this private investment at scale and speed.
Topics
TNO Identifier
984308
Publisher
TNO
Collation
44 p.
Place of publication
Petten