European economy would benefit from a fast-track transition to a truly sustainable society

On January 15 a parliamentary debate on climate, requested by the PVV, predictably showed this party’s reluctance to support what it regards as this government’s expensive hobby, or even a European hobby. The PVV’s request for a debate was supported by all other parties.

EU 2030 climate goals

The debate took place against the background of the battle currently raging in Brussels over the 2030 climate and energy goals. Chances are that the Netherlands will take a moderate stance, despite the likelihood of this hampering its economic recovery, possibly provoking tension in the coalition and permanent damage to Europe’s image.

Less ambitious

Europe used to be a frontrunner when it came to climate policy and played an important role in international climate negotiations. As the crisis deepened attention shifted to other areas. Climate policy remains on the agenda but the level of ambition seems to have lowered.

European Commission president Barroso will be presenting new climate and energy plans for 2030 at the end of January which will, in all likelihood, be less ambitious than the climate goals set for 2020. The European goals are not only a guideline for the Netherlands and other member states, they are also a point of reference for the next big international climate conference in Paris next year.

EP wants binding legislation

Barroso wants to win the support of the European member states for the new climate goals before he steps down in the autumn. At the start of his second term in 2009 Barroso declared climate a policy spearhead. Now he’s more inclined to stress each nation’s individual responsibility and favour non-legally binding goals, much to the annoyance of the European Parliament (EP) which is in favour of binding legislation.

The EP wants an ambitious policy programme to stimulate innovation in industry and the energy sector. What is more, the Commission is ignoring a number of influential member states, including Germany, France and Italy, which have made it clear they are serious about promoting renewable energy. Barroso seems to be pandering to The United Kingdom and the Czech Republic which are dragging their heels at committing to a European policy to invest in renewable energy to combat climate change.

What will Rutte do?

The question is what prime-minister Rutte’s stance will be at the spring European Council meeting. In the 80s and 90s the Netherlands championed the climate cause but now climate has become a sensitive issue portrayed as leftist hobby. While the Germans invested massively in solar power and wind energy the Dutch policy on renewable energy has been random and inefficient. This means that the Netherlands will probably fall short of the goals set for 2020. And as these goals are bound by European law the Dutch are likely to be sued by the Commission over this followed by a serious penalty.

By not investing in renewable energy this country is missing out on a great opportunity to help recovery. Increasingly economists are pointing to the link between the Dutch unwillingness to go for green innovation and the slow pace of economic recovery of the Netherlands.

Sustainability = jobs

Leaked European Commission figures show that ambitious goals for renewable energy and energy efficiency create jobs, some half a million by 2030.

Because the Netherlands is having trouble complying with the present goals, and as a reaction to the anti-climate and anti-Europe noises made by the PVV, the Dutch government will probably support the Commission’s watered-down plans.

Tension at home

This may cause tension in the coalition. Sustainability and green innovations are regarded as important issues by society at large. Just take a look at the popularity of solar panels, clean cars and sustainably produced food. In the run-up to the EP elections, parties like D66, GroenLinks and perhaps Labour will make the most of their green agenda. The conservative-liberal VVD is unlikely to do so.

International image

And then there is the image of the EU. Whether or not Europe – with or without Dutch support – will make the transition to a sustainable society does not solely depend on the goals set in Brussels. It also depends on the willingness of companies to invest in green innovation. Consistent goals and a reliable incentive policy based on those goals would clearly do much to encourage them.

Germany has already shown that opting for renewable energy has the support of the people, in spite of criticisms of the high cost of the ‘Energiewende’. What the Netherlands needs is a clear explanation of the importance of the energy transition. It will have to make sacrifices before it can reap the benefits. Initial investments will be costly and jobs will be lost at the traditional energy companies.

It looks as if the conservative forces are winning the battle in the Netherlands and the rest of Europe. But if Europe opts for the path of least resistance, the image of a continent that is slowly but surely losing its standing in the world and its prosperity will be confirmed once again.