Government earmarks €5 billion for sustainable economic growth and future prosperity

Source: Government of the Netherlands

The government will invest €5 billion, with an extra €1.3 billion in reserve, in a total of 28 projects aimed at achieving sustainable growth in the Netherlands. The money, from the National Growth Fund, will be used to fund digitalisation in higher education and secondary vocational education, green hydrogen projects, and improvements to preclinical cancer research. This means the government is adopting in full the recommendations of the independent advisory committee chaired by Jeroen Dijsselbloem. The spending plans were announced today by Micky Adriaansens (Minister of Economic Affairs and Climate Policy) and Sigrid Kaag (Minister of Finance).

The committee advised the government to allocate €5 billion from the National Growth Fund, with a proportion of this allocation (€3.7 billion) to be made subject to certain conditions. Extra steps are still required before a final decision is made on the additional €1.3 billion that has been reserved. The government has therefore allocated (in part conditionally) and reserved a total of €6.3 billion. On average, 50% of the investment in the projects will come from the fund, with the remaining 50% being provided by various other public and private sector parties. Today’s announcement means that total investment in this funding round could exceed €12 billion in the coming years.

‘Our current level of prosperity and public spending would not have been possible without past investments,’ noted Ms Adriaansens. ‘I want us to be able to continue investing in society in the future too. But to pay for that we need economic growth. The National Growth Fund makes that sustainable growth possible: tomorrow’s prosperity begins today.’

Speaking about the projects to be funded, Mr Dijsselbloem said ‘We have a nice varied package of proposals. Both big, bold projects like the Einstein Telescope and smaller – but high-impact – ventures like CROP-XR to foster the rapid and efficient development of climate-resistant crops. It is also essential, in the committee’s view, to invest in the quality of education and lifelong learning. Because we need more skilled professionals to ensure that projects are carried out. The investments will therefore be mutually reinforcing.’

National Growth Fund

The National Growth Fund was launched in 2020 to bring about a sustainable increase in the earning power of the Netherlands. The Fund invests together with initiators in projects that generate sustainable economic growth in the long term. Economic growth provides scope to continue investing in, for example, healthcare, education and climate action. Growth also means the country earns more, so that we can maintain our standard of living in the future.

The National Growth Fund was initially allocated €20 billion for investment in three areas: knowledge development; infrastructure; and research, development and innovation. Infrastructure was dropped from this list under the terms of the coalition agreement. But this does not apply to the current, second round of funding which was already under way at the time when the coalition agreement was reached. In the first round, the amount allocated (including conditional allocations) and reserved by the government for various projects totalled €4.1 billion. The first projects are now under way.

In collaboration with public and private parties, various government ministries submitted investment proposals to the National Growth Fund for the second round of funding. In the next round of funding – the third – the government wants to enable businesses, knowledge and educational institutions, public authorities, civil society organisations and other parties to submit their investment proposals directly to the National Growth Fund by means of a grant scheme. In March 2022 the House of Representatives approved the legislation that provides the basis for setting up the necessary grant scheme. The legislation is now awaiting the approval of the Senate.

Package of measures to cushion the impact of rising energy prices and inflation

Source: Government of the Netherlands

The government is introducing new supplementary measures to cushion the impact of rising energy prices and persistent inflation on low- and middle-income earners. Inflation may rise substantially this year, possibly reaching 5.2%. This is due mainly to higher energy prices. Purchasing power is expected to fall by 2.7% on average. The government is therefore raising the one-off energy allowance (energietoeslag) for people on incomes around the level of social assistance benefit to € 800. It is also lowering the rate of value-added tax (VAT) on energy from 21% to 9%, and the excise duty on petrol and diesel will be cut by 21%. Finally, the government is bringing forward spending of € 150 million, originally earmarked for 2026, to help low-income households take energy-saving measures. These measures were announced in a letter to the House of Representatives from Karien van Gennip (Minister of Social Affairs and Employment), Sigrid Kaag (Minister of Finance), Carola Schouten (Minister for Poverty Policy, Participation and Pensions), Micky Adriaansens (Minister of Economic Affairs and Climate Policy), Rob Jetten (Minister for Climate and Energy Policy), and Marnix van Rij (State Secretary for Tax Affairs and the Tax Administration).

Increase in one-off energy allowance for people on low incomes

At the end of 2021, the previous government announced it would set aside € 3.2 billion to reduce energy tax. It also presented plans for a one-off energy allowance of around € 200 per household to mitigate the impact of higher energy costs on people on incomes around the level of social assistance benefit. Older people on low incomes will also be eligible for the allowance. This one-off payment will now be raised to € 800 per eligible household. The government and municipalities will get this money to the people concerned as soon as they can. 

Reduction in VAT on energy and excise duty on petrol and diesel

The government plans to cut the rate of VAT on energy (natural gas, electricity and district heating) from 21% to 9% for six months from 1 July this year. This measure will bring down energy bills for households with average consumption by around € 140 over the period. The government also proposes reducing excise duty on petrol and diesel by 21%, from 1 April 2022 until the end of the year. This will lower the price of petrol by 17.3 cents per litre and that of diesel by 11.1 cents per litre.

More money for households to take energy-saving measures

At the end of last year, the previous government decided to earmark € 150 million to help households make their homes more sustainable. An additional € 150 million is now being provided to take extra energy-saving measures. Money is also being set aside for a campaign to raise people’s awareness of the different ways they can save energy.

Caribbean part of the Netherlands

€ 5 million is being made available to mitigate the impact of rising energy prices in the Caribbean part of the Netherlands. Detailed plans will be announced as soon as possible.

Covering the costs

The temporary package of measures will affect the budget. This additional package will cost a total of € 2.8 billion. The government considers it crucial that this cost is covered properly, to avoid passing on the bill to future generations. The government will fund the package in part from extra gas revenue. It will also use remaining funds from the Brexit Adjustment Reserve (BAR). A maximum of € 364 million in BAR funds is available.

Documents (in Dutch)

Foreign investment in the Netherlands stabilized in 2021

Source: Government of the Netherlands

The Invest in Holland network, and the Netherlands Foreign Investment Agency (NFIA), which represents the national government as a partner, were involved in 423 investment projects by foreign companies in 2021. This includes both new and expansion invest­­ments into the country, and brings the number of companies opting for the Netherlands back to 2019 levels, showing a stabilization of business investment since the start of the COVID-19 pandemic.

The 423 projects are expected to create nearly 13,400 direct jobs and an investment value of EUR 2.3 billion in the first three years. In 2020, the number was substantially lower as COVID-19 led to foreign companies postponing or changing investment decisions.

A growing number of these companies strengthen regional ecosystems and actively contribute to the Netherlands’ social and economic goals, relating to innovation, digitalization and sustainability.

Micky Adriaansens, Minister of Economic Affairs and Climate Policy, and responsible for NFIA, emphasizes the importance of foreign businesses for the Netherlands: “Businesses and entrepreneurs are indispensable to the Netherlands. Foreign companies also make an important contribution to our economy. For example, they account for 30% of the total private expenditure on research and development in the Netherlands. Commissioned by the cabinet, NFIA has since 2020 been focusing more on attracting high-quality business activities related to innovation, digitalization and sustainability. I am pleased that the annual figures are showing the first results of this focus.”

Hilde van der Meer, NFIA Commissioner and Chairman of the Invest in Holland network: “The Netherlands is committed to finding sustainable, innovative and digital solutions to global challenges. That is why Invest in Holland is keen to welcome and assist foreign companies that contribute to this goal and strengthen our international ecosystems. Our country offers an excellent business climate for scaling up solutions with impact for the European and global market.”

Investing in the future together

Since 2020, NFIA and the Invest in Holland network have proactively focused on attracting companies that accelerate sustainability, provide new digital applications or enable future innovations. In 2021, there were already several examples of this new focus.

American company Bristol Myers Squibb (BMS) started the construction of its first European CAR T-cell therapy facility in Leiden in 2021. In this manufacturing center, BMS develops personalized therapies for patients with blood cancer, and contributes to the growth of the Netherlands’ leading role in the field of CAR T-cell therapy.

The Scottish company ENOUGH started building a factory that produces alternative proteins in 2021. The factory in Sas van Gent produces circular raw materials from residual products that come from the nearby Cargill facility. ENOUGH also leads a European research consortium into alternative proteins, in which Wageningen University & Research participates as well.

U.S. and India based Quantiphi announced last year that it was opening a new service delivery center in Amsterdam. From this strategic European location, Quantiphi helps to streamline healthcare, education and public sector processes through AI, cloud and data solutions. The company aims to grow its presence in the Netherlands, including further developing their R&D together with Dutch engineers.

Increasing share of companies from Europe

Of the 423 foreign companies that chose the Netherlands in 2021, a third came from Europe (32%), a third from North and South America (30%), and a third from Asia (30%). The share of European companies was larger in 2021 than in previous years.

This growth is largely due to an increased number of companies impacted by Brexit that decided to establish presence in the Netherlands last year. Since the referendum in 2016, 316 Brexit companies (companies that have experienced disruption due to Brexit) have chosen the Netherlands. The activities of these companies in the Netherlands are expected to generate almost 8,000 jobs and EUR 782 million in investments in the first three years.

Evening closures prolonged, primary schools to shut a week early before Christmas

Source: Government of the Netherlands

The number of new coronavirus cases is still very high and there are still many COVID-19 patients in hospital. But the surge in infections caused by the Delta variant does appear to have passed its peak. This means the measures and our joint efforts to combat the virus are having a visible effect. But it is important to keep pushing back the virus as long as hospitals are still struggling to cope, and having to postpone non-COVID treatment and procedures. The new Omicron variant also gives cause for concern and demands a cautious approach. It is expected that this variant will become dominant in the Netherlands within a number of weeks, taking Delta’s place. At this time, experts are unsure about how easily the Omicron variant spreads, how effective the existing vaccines are against it, and to what extent it causes severe illness.

The government is therefore prolonging the measures introduced on 28 November, until at least Friday 14 January 2022. Primary schools, schools for special (primary) education, and out-of-school care facilities (BSO) will also be closed in the week before Christmas. BSO will be open during the regular Christmas break. Primary schools will reopen again on Monday 10 January 2022.

The situation will be reviewed on 14 January, or possibly at an earlier date if the Outbreak Management Team gains important new insights into the Omicron variant.

Measures and urgent advice

  • Everyone should stay at home as much as possible, and limit their number of contacts outside the home.
  • Always stay 1.5 metres away from other people.
  • Be careful when receiving visitors and visiting others:
    • Receive no more than 4 visitors per day (not including children under 13) and limit visits to one a day.
    • Do a self-test before visiting others or receiving visitors.
    • People aged 70 years and over are advised to limit their contacts as much as possible, including with children under 13, and to observe 1.5 metre distancing.
  • Face masks are required for everyone aged 13 and over on public transport and on platforms, at bus stops and stations, and when moving around schools or public indoor spaces such as shops, museums, restaurants and bars.
  • Coronavirus entry passes are mandatory for everyone aged 13 and over at all locations where people are assigned seats, such as restaurants and bars, theatres, concert halls, museums and cinemas, and in indoor sports venues. At all these locations, people must stay 1.5 metres apart.
  • Between 17.00 and 05.00 most locations must be closed and events are not permitted.
    • Essential shops, such as supermarkets and chemists, can stay open until 20.00.
    • Specific service providers, such as notaries, lawyers, mortgage advisors and medical health professionals, can be open for their normal opening hours.
  • Amateur sports matches and training are not permitted between 17.00 and 05.00. Professional sports matches and training and professional artistic and cultural activities are permitted, even after 17.00. No spectators or audiences.
  • At locations where there is a continuous flow of visitors, capacity is limited to 1 person per 5 square metres.
  • In higher education the maximum group size is 75 people per room. In theatres and auditoriums up to 1,250 people are allowed at once.
  • Work at home. If this is impossible: stay 1.5 metres apart at work.

Check the overview of basic rules, measures, conditions and exceptions.

Primary education

Primary schools and schools for special (primary) education will close the week before the Christmas holiday (in Dutch only). Out-of-school care facilities will also be closed during this week. Schools will be open to provide emergency care for vulnerable children and the children of key workers in crucial sectors (in Dutch only). Schools are not required to provide distance learning during this week.

Booster offensive accelerated for all adults

Because of the Omicron variant everyone aged 18 and over will be invited to receive a booster vaccination by the second half of January. This can help increase protection against the new variant and combat its spread. The booster vaccination schedule is based on age, from oldest to youngest. People will now be able to get the vaccine booster 3 months, instead of 6 months, after their last vaccination or most recent positive test. A total of 8.5 million adults are eligible for a booster. Before the end of the year nearly all people over 60 will have been invited to get their booster vaccination.

Financial support

The government is extending the support package (in Dutch only) for businesses, self-employed people, cultural organisations (in Dutch only) and sports organisations affected by these measures until the end of March 2022. A total of €4.4 billion has been set aside for this purpose.

Support for the events industry is being extended until the end of the third quarter. Events that are prohibited by the government during this period are eligible for support, although organisers will be liable for a greater share of the risk.

Evening closures and stricter measures during the day

Source: Government of the Netherlands

The number of people testing positive for coronavirus has never been as high as during the past few weeks. Access to healthcare is under pressure across all of the Netherlands. Unfortunately, it is necessary at this stage to cancel scheduled care, such as hip and hernia operations, to ensure the continuity of the most acute care, such as major heart surgery, cancer treatment and kidney transplants. We all want hospital, GP and outpatient care to be available when we need it. The number of infections and hospital admissions is not expected to fall in the short term. The government is therefore imposing stricter measures in order to curb the number of infections and stop the health and care sector being further overburdened. The measures are intended to significantly reduce the frequency of contact between people. During the daytime people can still go to school, carry out their work and do sports and other activities, but with some restrictions. In the evenings almost everything will be closed. These measures will enter into force at 05.00 on Sunday 28 November and apply until at least Sunday 19 December. The government will reassess the situation on Tuesday 14 December. 

Measures and urgent advice

  • Everyone should stay at home as much as possible.
  • Between 17.00 and 05.00 locations must be closed and events are not permitted.
  • Everyone aged 18 and over must stay 1.5 metres away from others.
  • Essential shops, such as supermarkets and chemists, can stay open until 20.00. 
  • Essential service providers, such as notaries, lawyers, mortgage advisors and medical health professionals, can be open for their normal opening hours.
  • Amateur sports matches and training are not permitted between 17.00 and 05.00. Professional sports matches and training and professional artistic and cultural activities are permitted, even after 17.00. No spectators or audiences.
  • Face masks while moving around and 1.5-metre distancing are required at all locations where people have assigned seats, such as restaurants, bars, cinemas and theatres. This means fewer people can be admitted to these locations.
  • 1.5-metre distancing and face masks will be required at all locations with a continuous flow of visitors, such as trade fairs. This means fewer people can be admitted to these locations. 
  • The rules for working from home have been tightened: ‘Work from home. If this is impossible: stay 1.5 metres apart at work.’
  • Do a self-test before visiting others or receiving visitors.
  • Take extra care in situations where people aged 70 and over come into contact with children aged 12 and under.

A complete overview of measures, conditions and exceptions can be found at government.nl/coronavirus.

The rules and advice already in place continue to apply. This includes the basic rules, the advice to receive no more than 4 visitors per day, face mask requirements, the ban on spectators at sports events, the maximum number of 1,250 people at large venues, and the coronavirus entry pass rules and assigned seating requirement in the hospitality and cultural sectors. 

Education

Schools will remain open. However, extra rules and arrangements are necessary to prevent the spread of the virus (in Dutch only) as much as possible. These include fixed routes in schools, a face mask requirement in hallways for pupils in primary years 6 to 8 and at secondary schools, as well as regular self-testing. Children aged 12 and under with cold symptoms – such as a runny nose – must stay at home and get tested by the municipal health service (GGD), even if their symptoms are mild. 

Financial support

The government realises that these stricter measures will have a significant impact on businesses and workers, and is therefore significantly expanding the support package (in Dutch only). The Temporary Emergency Scheme for Job Retention (NOW) will be reintroduced and the fixed costs grant will be raised. This expansion of the support package will total almost €2.2 billion.

Booster offensive

As many older people as possible will receive a vaccine booster before the end of 2021. The GGDs, the National Institute for Public Health and the Environment (RIVM) and other parties are launching a booster offensive to this end (in Dutch only). Assistance will be provided by 750 Ministry of Defence personnel and by students. The rollout of vaccine boosters for older people who cannot travel to a vaccination location,  originally scheduled to begin in January 2022, has been brought forward and will start next week.

Why strong EU competition and state aid rules matter

Source: Government of the Netherlands

The European economy is at a crossroads. It is recovering from a pandemic and has embarked on two essential transitions: towards carbon neutrality and a digital economy. At the same time, the world has changed.

Enlarge image

Image: ©EZK / EZK

Geopolitical developments drive the EU to think in lines of open strategic autonomy. This means identifying our strengths and weaknesses such as a lack of commodities or unfair competition in the Single Market based on subsidies from non-EU countries. It requires us to decide where we need to uphold and where we need to target our efforts and spearhead innovation and technology at the global stage. This ensures our safety and prosperity against those operators that do not play the game according to a rules-based multilateral order. Not only on the short term but rather for the longer term.  

But we can only do this, by not forgetting that the cornerstone of our economic success is the EU’s Single Market. Fair and open competition ensures a level playing field in a home market of hundreds of millions of consumers. It provides ample opportunities for businesses big and small to grow far beyond EU borders. It has and will provide for the jobs and wellbeing of our European citizens and its future generations. The strength of that Single Market is our key leverage in a geopoliticised world.

In a few weeks’ time, the Commission is expected to publish a review of the EU’s competition toolbox in light of efforts to boost Europe’s economic recovery and tackling the challenges described above. Ensuring that our existing rulebook is fit for new challenges is very important. We need to adapt to enable structural changes such as digitalisation and fighting climate change. However, when modernising the rules, we must not jeopardise the effectiveness and politically independent character of our competition and state aid framework. Relaxation of our rules, as some suggest, is not the right way to tackle new challenges. It could easily lead to negative effects on competition, markets and growth on the Single Market as well as a harmful subsidy race that benefits few and hurts many. It will not strengthen the global competitiveness of European companies and will harm our level playing field at home.

So how should the European Commission protect the level playing field and strengthen the Single Market?
 

  • First, it should preserve evidence-based and independent enforcement of the competition rules and maintain the strong competition framework on mergers and antitrust. To ensure high quality products and choice at the best possible price, the fundamental principles on which competition rules rest must be upheld. Relaxing the competition framework on mergers and anti-trust is not the solution to deal with global developments or strengthen the EU’s competitiveness and resilience. The Commission has put forward targeted solutions to ensure that the competition toolbox is fit for new challenges. We should await the full effect of these efforts before proceeding with new initiatives.
     
  • Second, it should ensure that the so-called Important Projects of Common European Interest (IPCEI) target clear market failures and address a restrictive number of strategic objectives and challenges of the Union. IPCEI is an instrument that, in a smart and selective manner, enables member states to provide state aid for projects of broad European importance. It is a justified instrument which we support and participate in, but it also poses risks for the level playing field in the EU. Excessive and non-targeted use of the instrument would lead to subsidy races and unfair competition within the EU. That is why, IPCEIs should be used proportionately, carried out in a fully open and transparent manner, target clear market failures, involve support for neither mass production nor commercial activities, and result from clear and balanced EU long-term strategies. We, therefore, support a larger role for the Commission to streamline the IPCEI processes and to ensure the projects benefit the whole of the EU.
     
  • Finally, the Commission should formulate the conditions for an exit path from the Temporary State Aid Framework for Covid-19. The Temporary Framework has proved useful to allow support for our economies during the unprecedented coronavirus pandemic – also now with increasing infection rates that require restrictive measures. But once large parts of Europe will return to ‘normal’ life, restrictions will no longer be necessary and our economies will recover from the pandemic, an exit strategy from the temporary framework needs to be in place.

Maintaining a robust competition and state aid framework matters to ensure a level playing field on the Single Market. If we as the EU preach a global level playing field, we should lead by example and set the stage with suitable policies. If we do so, we have the best chance of strengthening our competitiveness, realising sustainable growth through innovation and aspiring to prosperity for all EU citizens. 

By Denmark’s Minister for Industry, Business and Financial Affairs Simon Kollerup, Dutch Minister of Economic Affairs and Climate Policy Stef Blok, Finnish Minister of Employment Tuula Haatainen, Irish Tánaiste and Minster for Enterprise, Trade and Employment Leo Varadkar, Romania’s Chairman of the Competition Authority Bogdan Chiritoiu, and Swedish Minister for Business, Industry and Innovation Ibrahim Baylan.

End of support package for jobs and economy

Source: Government of the Netherlands

With effect from 1 October, the government will discontinue the generic support measures that have helped the Dutch economy as much as possible through the coronavirus pandemic over the past 18 months. This means that the Emergency Measure for the Preservation of Jobs (NOW), Reimbursement of Fixed Costs (TVL), Temporary Emergency Measure for Self-employed Persons (Tozo), Temporary Support for Essential Costs (TONK) and various tax measures will not be extended beyond that date. The restrictive coronavirus measures have largely been lifted, the economy is up and running again and unemployment is low. Continuing with the support packages would hamper economic recovery. A number of specific support measures will remain in place in the fourth quarter, as will the additional measures aimed at retraining and economic adaptability. The government is working on a scheme for nightlife venues, which are expected to remain closed after 1 October.

The government has great respect for the resilience, creativity and perseverance that companies, business owners, self-employed professionals and workers have shown during this exceptionally difficult period. It has been a tough time in which entire industries came to a standstill and people sometimes lost their jobs or businesses. However, thanks in part to the support packages for jobs and the economy, the number of bankruptcies has been kept to a minimum and unemployment rates are low. The economic figures are encouraging: the Netherlands Bureau for Economic Policy Analysis expects growth of 3.8% in 2021 and 3.2% in 2022. Continuing with the generic measures in the support package would disrupt this recovery. The rising shortage on the labour market is a clear indication of this. The support package will therefore end on 1 October 2021. 

The government realises that the situation for certain groups will be difficult in the period ahead. Nightlife venues must still remain closed, and some businesses are facing a different world compared to the beginning of 2020. A number of support schemes will therefore remain in effect in the fourth quarter to promote labour market dynamism and economic adaptability. A total of over €80 billion has been disbursed since the introduction of the support package in March 2020. 

Guarantee schemes

The coronavirus funding schemes KKC, Qredits bridging credit, BMKB-C and GO-C will remain in place throughout the rest of the year to continue facilitating market financing. Businesses in need of liquidity can make use of these schemes. The Events Guarantee Fund will also continue in the fourth quarter.

Tax

As previously announced, the possibility of requesting a tax deferral will end on 1 October. Since the beginning of the crisis, 369,000 business owners have taken advantage of this option, amounting to €40.4 billion in deferred taxes. A large part of the tax debt has already been repaid (€16.6 billion) or reduced if, for example, the tax assessment was incorrect (€4.6 billion). There is currently a net balance of €19.2 billion in outstanding tax debt, representing the tax deferrals of 270,000 business owners. Business owners are expected to start paying taxes again as of 1 October 2021. The date for business owners to begin repaying their deferred taxes has already been pushed back to 1 October 2022, with a five-year repayment term. This applies to all debts of business owners who have been granted a deferral of payment due to the pandemic, including debts for which business owners did not request an extension. 

A number of other tax measures implemented due to the pandemic will continue until 1 January 2022, such as the untaxed travel allowance and the payment freeze for mortgages. In addition, the Netherlands is consulting with Germany and Belgium to continue the agreements on the taxation of cross-border workers until 1 January 2022.

Nightclubs and discos

As previously announced, the government is working on a targeted compensation scheme for nightclubs and discos if they are still unable to reopen after 1 October. These businesses are in an exceptional situation, because they represent the only sector that remains completely closed under government orders. The implementation of such a targeted scheme is very complex and requires a lot of work from the implementing organisations. The government is therefore taking a careful look at what is technically and legally possible.

Discontinuation of Tozo

From 1 October, business owners who need financial support can once again apply for financial support for self-employed professionals (Bbz scheme). To ensure that municipalities can handle this, the government has decided to simplify the implementation of the scheme until the end of this year. Under these changes, municipalities will not have to carry out means-testing, entrepreneurs can apply for Bbz benefits with retroactive effect of up to two months and the municipality will determine the income and the amount of the Bbz benefit per calendar month (instead of per financial year). From 1 January 2022 onwards, municipalities will once again implement the Bbz scheme without any changes.

Return of Regulation for Reduction in Working Hours

The Regulation for Reduction in Working Hours (WTV) was suspended due to the introduction of the NOW scheme. Once the NOW scheme is discontinued, the WTV will be reintroduced on 1 October. This regulation provides assistance to employers who are affected by exceptional circumstances that fall outside the scope of entrepreneurial risk. The reintroduced WTV is explicitly not intended for coronavirus-related circumstances, but for short-term exceptional circumstances.

Supplementary social package

With the introduction of a supplementary social package, the government has made additional funds available to provide new prospects for people who are facing uncertainty due to the coronavirus pandemic. 
As part of this package, municipalities, the Employment Insurance Agency and regional mobility teams will help those in need find a new job, new business activities and an income by offering intensive guidance, career advice and practical training at the secondary vocational education (MBO) level. These efforts will help people receiving social assistance or unemployment benefits, people who are at risk of losing their job due to the organisation’s bankruptcy and self-employed professionals receiving Tozo benefits who are looking for work. Municipalities, schools and regional mobility teams will help young people find work or continue their education. The package also includes help for people who are facing financial problems due to the pandemic. 

Caribbean region and the Netherlands to join forces to deal more effectively with climate change

Source: Government of the Netherlands

The Minister of Infrastructure and Water Management, Mark Harbers, has invited the countries of the Caribbean region to take part in the Champions Group, a Dutch initiative in which participating countries will share their expertise with a view to adapting more quickly and effectively to the changing climate. Ten Caribbean countries responded positively to the invitation at a regional conference on climate adaptation and water management in Curaçao.

In addition to Curaçao itself, conference attendees Aruba, Grenada, Montserrat, St Kitts and Nevis, the British Virgin Islands, St Maarten, St Eustatius en Bonaire also expressed interest in taking part in the group. Besides government representatives, the conference in Curaçao was also attended by regional development banks (CDB and IADB), regional networks (including CARICOM CCCCC, UNECLAC and IWEco) and experts (including the KNMI, Meteo Curaçao and GWP Caribbean).

The Champions Group is made up of countries and islands that face major climate challenges, such as flooding, drought, fresh-water shortages or sea-level rise, and therefore need to invest a great deal in relative terms in adaptation measures. The group will form the political component of the International Panel on Deltas and Coastal Areas (IPDC), which will be formally established at the UN Water Conference in March 2023. Financial and knowledge institutions can also join the partnership, ensuring coherence between the scientific, technological, financial and political aspects of this issue.

Prime Minister Gilmar Pisas (Curacao) states: “The Earth is our home; a place that we need to cherish and protect. We can only achieve this if we are committed to work together.”

Minister Harbers (Infrastructure and Water Management) states: “Climate change is causing more extreme weather events and sea-level rise. That brings all kinds of water-related challenges, and not only for the European and Caribbean Netherlands, but also for other islands in the Caribbean. In the Netherlands we are working hard to prepare climate adaptation plans. I believe flood safety should be a priority all over the world. So it is essential to join forces and to share knowledge.”

Achieving the Sustainable Development Goal on water

Countries and islands can commit to join the IPDC up until the UN Water Conference begins next March. Taking part will make it easier for them to develop a climate change strategy. Earlier committed Bangladesh, India, Colombia, Egypt and Vietnam to joint the panel.

At the UN Water Conference the first recommendations on climate adaptation will be presented for several member countries. Also, the Netherlands Environmental Assessment Agency (PBL) will publish a report on climate scenarios and how to respond to these trends.

The UN Water Conference is aimed at accelerating the achievement of the Sustainable Development Goal on water (SDG 6). The Netherlands is co-hosting the conference with Tajikistan.

COP27: United States and Ukraine become signatories to agreement to increase numbers of zero-emission heavy road transport vehicles

Source: Government of the Netherlands

Ten more countries have given their support to a Dutch initiative for cleaner heavy road transport vehicles like buses and lorries. The countries in question are Ukraine, The United States, Aruba,  Belgium, Ireland, the Dominican Republic, Curacao, Croatia, Liechtenstein and Lithuania. Today they signed an agreement to aim to ensure that all new lorries and buses from 2040 onwards in their countries are zero-emission vehicles, running on electricity or hydrogen for example. This is the next step towards ensuring all vehicles on the roads are zero-emission by 2050. Twenty six countries in total have now signed the agreement.

Clean vehicles mean fewer emissions

Heavy road transport plays a vital role in transporting goods and people. And the Netherlands is a major transport hub. However, heavy road transport also causes a significant amount of pollution. In fact, it is responsible for more than third of carbon emissions and 70% of nitrogen emissions from all road transport. It also produces a significant amount of harmful gases which people breathe in.

The Netherlands had already expressed its intention to ensure that all heavy road transport is zero-emission by 2050. Given that the average lifespan of a lorry is around ten years, this means that all new heavy road transport vehicles will need to be zero-emission from 2040 onwards. At COP26 in Glasgow last year, the Netherlands launched an agreement to this effect. Today, ten new countries signed up to that agreement.

‘It’s great that this agreement is really gaining momentum and that more and more countries are signing up,’ says Minister for the Environment Vivianne Heijnen. ‘Together, we can make the difference. By sending a clear signal to the market that, in the near future, there’ll be more options for transport companies wishing to make the switch to electric or hydrogen vehicles. That’s good for them and good for the climate. I’d like to call on other countries to join us in this endeavour.’

Global cooperation vital

In addition to the 26 countries that have already signed up, a large number of states, banks, companies and heavy goods vehicle manufactures have also become signatories. Examples include California, DHL, Heineken, Scania and BYD. One pressing issue that signatories are working together on is the question of how to bridge the price gap between diesel and electric or hydrogen vehicles. At present, the difference is still significant, which means that businesses are reluctant to make the switch. The Netherlands has a grant scheme for the purchase of zero-emission lorries. And in India, where a state is a co-signatory to the agreement, major contract award procedures for electric buses are financed with private money, which is also helping to close the price gap.

Climate agreement

The Netherlands wants all road transport to be zero-emission by 2050. That has been set out in the National Climate Agreement. In order to achieve this, all new cars will need to be zero-emission by around 2030 and all heavy transport by around 2040. As more countries pursue similar aims, there will be a greater incentive for manufacturers to offer cleaner models of buses and lorries. This will create more choice and mean that making the switch to a cleaner alternative becomes cheaper. One challenge in this regard is ensuring that enough infrastructure like charging points and hydrogen refuelling stations are built. The Netherlands is working hard on this, both at home and in an EU context. Minister Heijnen expects to announce a grant scheme for hydrogen refuelling stations later this year.

Participating countries
In addition to the Netherlands, the following countries are signatories to the agreement: Aruba, Austria, Belgium, Canada, Chile, Curacao, Croatia, Denmark, the Dominican Republic, Finland, Ireland, Liechtenstein, Lithuania, Luxembourg, New Zealand, Norway, Portugal, Scotland, Switzerland Türkiye, Ukraine, Uruguay, the United Kingdom, the United States and Wales.

Dutch COP initiative for more cycling worldwide

Source: Government of the Netherlands

The Netherlands hopes to see 10,000 cycling experts trained and deployed in countries worldwide over the next decade. This will be beneficial for the climate and for people’s quality of life. Many countries lack the knowledge and expertise needed to create a safe and comfortable bicycle infrastructure. Minister for the Environment Vivianne Heijnen is signing new agreements today at a cycling event at the COP27 climate summit in Egypt. The first cycling experts training is expected to start next year.

Training

The Dutch Cycling Embassy, a Dutch organisation working to promote cycling, will be teaming up with the Transport Decarbonisation Alliance, a public-private partnership making transport more sustainable, to organise training for people in developing countries who want to become cycling experts. Also involved will be the UN Environment Programme (UNEP), which has a great deal of experience with similar projects in Africa. Potential participants include traffic experts and urban planners, who will learn how to encourage people to cycle and how infrastructure can help create a safe and enjoyable environment for cyclists in cities. This benefits the climate and our health, as well as public spaces and clean air in cities. Moreover, cycling and cycling infrastructure are relatively cheap. The Dutch government will cover the start-up costs of the training programme, which amount to €150,000. The ultimate goal is to train 40 groups of 25 participants in 10 regions worldwide. This will result in a total of 10,000 experts in ten years.

‘We’re lucky in the Netherlands,’ Ms Heijnen says. ‘We’ve known about the benefits of cycling for years, and we have the money to invest in good cycle paths and bicycle parking. I want the same for other countries, in their interests and in the interests of the environment. This is why we’re signing agreements today to create more cycling expertise worldwide, and why at the climate summit I’m calling on banks, governments and development organisations to invest in cycling.’

Manuel de Araujo, mayor of Quelimane, Mozambique:
“Quelimane could not have become the cycling city it is today if required knowledge and skill to transform attitudes and to build roads for walking and cycling was not developed first. Education and capacity-building are crucial for building safe and high-quality infrastructure for active mobility. That is why I sincerely hope more countries and financial institutions will support this call to action.”  

Institutions like the World Bank are also increasingly recognizing the importance of investing in active mobility, according to Global Director Transport Nicolas Peltier-Thiberge: “The World Bank is committed to decarbonizing the transport sector, and promoting active mobility is a crucial element to this transition.”

Cycling at the COP27 climate summit

This is the first time that cycling has been given such a prominent role at a climate summit, with three sessions on the subject. The Dutch session is about international funding for cycling infrastructure being made available by development banks and through climate finance. This is particularly important for developing countries, where money is not always available. In many of these countries there is increasing demand for transportation and there are many good reasons for turning to cycling to meet that need. The World Bank, the World Resources Institute, the European Cyclists’ Federation, UNEP and many cities including Utrecht and Quelimane, Mozambique, will be participating in the Netherlands’ event. Last Monday Ms Heijnen announced a government investment of €780 million in cycling infrastructure in the Netherlands.