The Netherlands and Aruba are organising a climate conference on Aruba

Source: Government of the Netherlands

Small islands, like those in the Caribbean Netherlands, are particularly vulnerable to climate change and are already experiencing its negative effects. The Netherlands and Aruba want to encourage cooperation on climate action between small islands world-wide. From the 10th to the 12th of May they will be organising the first Caribbean Climate & Energy Conference (CCEC) on Aruba.

The Netherlands and Aruba want to make the islands in the Caribbean a model for tackling climate action in small island states. Upon invitation of the Prime Minister of Aruba, Evelyn Wever-Croes, and the Minister for Climate and Energy Policy, Rob Jetten, representatives from countries and organisations will meet on Aruba. It regards representatives coming from islands in the Caribbean region itself, but also from relevant parties elsewhere, such as island states in the Pacific Ocean, UN organisations, knowledge and financial institutions.

The first day of the conference will be devoted to the climate and energy transition within the Kingdom of the Netherlands. The Caribbean islands in the Kingdom will discuss what kind of corporation is needed in order to achieve the climate goals laid down in the Paris Agreement. Day two of the conference will have an international focus, during which a broad panel of countries and organisations will discuss the climate action that is needed for islands worldwide. On the third day the participants will visit energy-related projects on Aruba and they will meet young people to discuss the climate and energy transition on the island.

During the climate summit in Sharm-el-Sheikh (COP27) the Netherlands committed to accelerating the climate and energy transition on small island states like those in the Caribbean part of the Kingdom. To this end the Netherlands is participating in initiatives such as the Local2030 Islands Network and the SIDS Lighthouse Initiative. The government wants the Caribbean Climate & Energy Conference on Aruba to be a continuation of this work.

Dutch Minister Adriaansens: Internet toll will ultimately penalize consumers

Source: Government of the Netherlands

Large European telecom operators are considering to charge an Internet toll for the internet traffic that online service providers, such as video streaming services, send to subscribers. Recently the European Commission has announced a consultation on plans to allow this. Ultimately these costs will likely be passed on to consumers within the EU. The Government of the Netherlands is concerned about these plans as such an Internet toll implies that large telecom operators want to get paid twice.

Together with other member states, the Netherlands has expressed concerns about the argumentations for these plans in the past. The Ministry of Economic Affairs and Climate Policy of the Netherlands will therefore contribute to the consultation with a commissioned research which concludes that an Internet toll doesn’t give a sufficient boost to extra network investments as well. Today, Minister Micky Adriaansens of Economic Affairs and Climate Policy of the Netherlands, has published both a paper and a commissioned research on this matter. 

The Netherlands has always argued against an Internet toll and has played a leading role in designing EU legislation that prohibits telecom providers from blocking, slowing down or charging separately for internet traffic. Net neutrality is regulated within the EU Open Internet Regulation from 2015.

“Telecom operators want to get paid twice with an extra EU Internet toll. A consumer chooses whether or not to subscribe to streaming and video services like Netflix, Spotify, Viaplay or YouTube. Moreover they pay subscription costs to the telecom provider for this as well. Consumers are likely expected to pay more for streaming services, because these companies will pass on extra costs, in whole or in part, to their customers. In addition we believe that an Internet toll might not be compatible with net neutrality,” states Minister Adriaansens about the Dutch concerns.

The minister continues: “The Netherlands has also commissioned economists to investigate whether this proposed Internet toll will actually boost new or additional network investments. That doesn’t seem to be the case. All things considered, the Netherlands argues that this is not the right way to realize the EU Digital ambitions. It’s imperative that any policy affecting the Internet ecosystem is evidence-based and is putting the consumer first.”

Netherlands no longer dependent on Russian energy

Source: Government of the Netherlands

Almost a year after Russia invaded Ukraine, the Netherlands has virtually stopped importing energy from Russia. The only exception is Russian liquified natural gas (LNG), which is transported not by pipeline but by ship. After the outbreak of the war in Ukraine, the European Union agreed to phase out Russian energy imports as quickly as possible. The Netherlands has worked hard to avert the shortages that this threatened to cause. Last Sunday, sanctions on Russian petroleum products took effect. In combination with the existing sanctions on coal and crude oil, this means that virtually no Russian petroleum products, crude oil or coal are now entering the Netherlands. Russian gas through pipelines has also virtually dried up.

‘Shortly after the outbreak of the war in Ukraine, we set ourselves the objective of curbing energy imports from Russia to the greatest extent possible, as quickly as possible, in order to stop contributing to Russia’s war chest,’ commented Rob Jetten, Minister for Climate and Energy Policy. ‘That’s because more than 60% of Russia’s government revenues were derived from exports of fossil fuels. We’ve been making strenuous efforts since then to find alternative sources, save energy, accelerate the energy transition and mitigate energy price rises where possible. We continue to work hard to ensure that the current demand for gas is met, for instance by facilitating increased imports of LNG from diversified, more stable regions, ensuring that gas storage facilities are adequately filled, organising joint gas purchasing at EU level and saving energy.’

Russian oil and coal imports phased out

The ban on importing Russian crude oil took effect on 5 December 2022, followed by a ban on importing Russian petroleum products such as diesel and kerosine on 5 February 2023. Since December 2022, Russian crude oil has stopped entering the Netherlands, having accounted for 30% of crude oil imports in 2022 as a whole. The possibility of Russian crude oil or petroleum products entering Europe indirectly cannot be completely excluded, because supplies are sometimes mixed elsewhere and the origins are difficult to trace. In addition to a ban on importing Russian crude oil and petroleum products, the EU member states have also decided to set a price cap: businesses in the EU are not permitted to transport, insure or render any other services whatsoever in relation to Russian crude oil and petroleum products purchased in excess of that price. The main aim of the sanctions is to hit the finances of the Russian government. The sanctions on crude oil alone are estimated to be costing it around EUR 160 million in lost revenue on a daily basis. The estimated loss will be higher once the effects of the sanctions on petroleum products become known.

The Netherlands is not expected to experience any supply shortages in the short term because stocks have already been purchased and refineries in the Netherlands are switching to oil from other countries. Furthermore, the Netherlands has carefully managed its strategic reserves of oil and petroleum products, with supply for 90 days of domestic consumption.

Imports of Russian coal have been banned since 10 Augustus 2022, and Russian coal is no longer entering the Netherlands. Alternative suppliers have been found in Australia and South Africa to fill the shortfalls, which means that coal-fired power stations in the Netherlands (and elsewhere in northwestern Europe) remain able to make up for electricity that would otherwise have been generated by gas-powered stations.

Reduction in Russian gas imports

Although it is not subject to any sanctions, there is virtually no Russian gas entering the Netherlands through pipelines. Prior to the war in Ukraine, Russian gas accounted for 25% of Dutch imports. Europe as a whole has also cut its Russian gas imports considerably. Before the war, Russian gas accounted for around 45% of imports, whereas it now accounts for around 10%.

The percentage of LNG imported from Russia has also halved, from 30% in 2021 to 15% now. [1] The reduction in gas imports from Russia has largely been offset by importing LNG, but also by doubling gas imports from Belgium and increasing gas imports from the United Kingdom.

A number of measures are being implemented in order to ensure sufficient gas supplies for next winter. The gas storage facilities will once again be required to be at least 90% full, enough for around a third of the Netherlands’ annual use. That gas will however also be used by other European countries. Efforts are also being made to further increase the capacity for importing LNG, following last year’s doubling of capacity. Both the new Eems Energy Terminal and the Gate terminal offer scope for such further expansion. The possibility of establishing new LNG terminals in the Netherlands from 2024 onwards is also being examined. When it comes to imports, including of LNG, the Netherlands is working at EU level on a joint purchasing action plan.

[1] The volume of LNG imported from Russia remained roughly the same in 2022 as in 2021. But the doubling of LNG imports as a whole – including LNG from countries other than Russia – meant that the percentage of LNG imported from Russia decreased.

The Netherlands provides equipment and parts to Ukraine to help repair its energy infrastructure

Source: Government of the Netherlands

This winter the Netherlands is supporting Ukraine by providing a shipment of materials so the country can repair crucial energy infrastructure. It includes transformers, switch components and cables needed to repair the electricity grid. The contribution is part of the €180 million the Dutch government has set aside to help Ukraine make it through the winter, of which €18 million is for helping the country repair its infrastructure. Recent Russian bombing has further increased the damage done to the electricity grid and other critical infrastructure. As a result, a portion of the Ukrainian population is regularly without electricity, heating and/or water.

Equipment and parts for making repairs

Since October, Russia has carried out countless attacks on Ukraine’s energy grid. Despite Ukrainians’ best efforts, a shortage of equipment and parts is among the factors making repairs increasingly difficult. Various talks with Ukraine and the European Commission have recently taken place to establish what equipment and parts Ukraine needs most. The Netherlands’ contribution worth some €6 million includes materials that can be used to help Ukraine repair its electricity grid. For security reasons, the details of the shipment – including the final destination – will not be made public.

The Netherlands is working with the European Commission on the logistical side of the operation, and transport to Ukraine will be covered by the EU’s humanitarian aid organisation. An international initiative is now up and running to assist Ukraine by providing equipment so that repairs to the country’s energy infrastructure can continue to the fullest possible extent.

Ed Nijpels appointed as climate table quartermaster Bonaire

Source: Government of the Netherlands

Climate change has global effects, but certainly in the Caribbean Netherlands the impact of climate change is large and directly felt. At the same time, there are also great opportunities on the islands to show how we can cope with climate change. It is with this ambition that the Bonaire climate table (in Dutch, klimaattafel Bonaire) is established. Mr E.H.T.M. (Ed) Nijpels, given his extensive experience as former chairman of the Energy Agreement and Climate Agreement Progress Committee, has been selected to help set up this climate table.

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Minister Jetten, Island Commissioner Kroon and Ed Nijpels

Small islands like Bonaire are often the first to notice the consequences of climate change. It is therefore extra important for the islands in the Caribbean Netherlands to become more sustainable and resilient to the changing climate. There is a need for a central platform where all relevant knowledge and policy aimed at adaptation and mitigation are brought together and from which policy decisions are prepared. This need has made the executive council of Bonaire decide to set up a Bonaire climate table.

Ed Nijpels quartermaster

The cabinet has asked Mr. Nijpels to facilitate the setting up of the climate table as quartermaster. He will examine how and in what form the Bonaire climate table can be set up. This work will be initiated together with a local project leader, with support from the public entity and the Central Government, among others. The aim is to realise a proposal for an organisational plan and strategic agenda after six months. The quartermaster will also investigate the possibilities for a climate table on Saba and St. Eustatius.

Minister Jetten: “We must not forget that the Caribbean Netherlands is already on the frontline of climate change. I want to ensure, in good cooperation with Mr Nijpels and the executive council of Bonaire, that we really take steps now to make the islands in the Caribbean part of our Kingdom more sustainable and resilient to the effects of climate change. With Dutch knowledge and expertise, we can make the Caribbean Netherlands an example for vulnerable island states around the world.”

Island Commissioner Kroon: “Recent studies once again underline the vulnerability of islands like Bonaire and the need and urgency to take measures now. We are particularly pleased with the arrival of Ed Nijpels to help us set up a climate table to achieve a coordinated approach.”

Government takes measures against possible oil shortages caused by sanctions against Russia

Source: Government of the Netherlands

The government has a strategic oil stock that will provide 90 days of domestic consumption. That means that the stock of oil is enough to support vital processes for 90 days. Such a stock is necessary because on 5 December EU sanctions on Russian crude oil will take effect. From then on, the purchase, import and transfer of seaborne crude oil from Russia to the EU will be prohibited. Last year about 33% of the crude oil in the Netherlands came from Russia. Since the announcement of the sanctions, the market has been attempting to switch to importing non-Russian oil. 

As of 5 February 2023, all Russian petroleum products will be banned. Partly as a result of this, it is expected that global oil prices will remain high for the time being and may rise further. No acute shortages of diesel or oil are expected.

Measures

The Netherlands uses Russian oil for a range of things, including the production of diesel and kerosene. Because the effects of the sanctions on the global market are hard to predict, this past summer the government preventively tasked the Netherlands Petroleum Stockpiling Agency (COVA) with increasing its strategic diesel stock.  

Various ministries are now developing measures for the sectors that fall under their responsibility in the event that an oil shortage occurs and prices rise as a result. In particular, this includes the transport and shipping sectors, which rely on diesel. These measures are aimed primarily at lowering demand among individuals and businesses. 
 

National oil crisis plan

In addition to increasing the oil stock, the Netherlands’ oil crisis plan is being updated. The current oil crisis plan was established in 2016 and will enter into force if shortages unexpectedly occur. The plan focuses on managing oil or diesel shortages for vital processes and provides insight into the downstream risks and social impact of such shortages. It puts forward different scenarios and sets out what can be done in each one. The process involves the various ministries and COVA, and also the relevant industry associations. The draft crisis plan will be completed in early December 2022.

Oil market

The oil market is not regulated and is much more globalised than the gas and electricity markets. The options for managing a potential crisis situation are therefore limited. On the other hand, the oil market is very adaptable, owing in part to the many suppliers. As such, it is better able to deal with shortages. 

The government has put together a list of tips (in Dutch) on how to conserve fuel in the face of rising prices.

Business owners can contact the Netherlands Enterprise Agency (RVO) sanctions helpdesk (in Dutch) with their questions and for advice regarding the sanctions against Russia and Belarus.

Cabinet takes energy security measures

Source: Government of the Netherlands

  • Gas Protection and Recovery Plan (BH-G) triggered
  • Urgent call to save energy and national energy saving target
  • Output restriction coal-fired power stations lifted with immediate effect
  • Temporary gas saving scheme major gas consumers
  • Groningen gas field on the back burner as planned; production sites not yet closed

The Cabinet today decided to announce the first phase of a gas crisis: the ‘early warning’. Thus triggering the Gas Protection and Recovery Plan (BH-G). Russia is currently supplying far less gas to Europe than the agreed level, thereby increasing the risk of gas shortages in Europe. There is currently no gas shortage in the Netherlands.

The Cabinet is taking this step to ensure that the Netherlands is well-prepared for the winter period. The Gas Protection and Recovery Plan coming into force means that gas firms will have to share detailed information on gas supplies with the Government on a daily basis. This will enable the Cabinet to monitor the gas market even more tightly and take additional measures as the situation requires. Furthermore, the Cabinet is lifting the output restriction for coal-fired power stations with immediate effect to save gas for the purposes of filling gas storage facilities, and is announcing a national energy saving target and a temporary gas saving tender.

Early warning

The Gas Protection and Recovery Plan contains measures that the Netherlands can take in the event of a gas shortage risk. The ‘early warning’ is the first of a total of three crisis levels. Currently there are no acute gas shortages in the Netherlands, but falling gas supplies could have consequences, including for energy prices and for filling gas storage facilities in the Netherlands and in north-western Europe, which is necessary to ensure there will be sufficient gas available for the coming winter period. The announcement of the first level of a gas crisis means that gas firms will have to provide additional, detailed information on current gas supplies and stocks on a daily basis. This will enable the Cabinet to monitor the gas market even more tightly and take additional measures promptly as the situation requires.

Call to reduce gas consumption

Falling supplies of Russian gas have made the need to save energy more pressing. Consequently, the Cabinet is exhorting businesses and households to save (or continue to save) as much energy as possible, including during the summer. The ‘dial it down’ (‘Zet ook de knop om’) energy saving campaign will continue on 4 July 2022 with new energy saving advice for businesses and households that is geared towards the summer period. The campaign for businesses includes a tool for SMEs that will provide entrepreneurs with immediate insight into the energy saving and sustainability measures that they can take in their own business and what subsidies are available for that purpose. In addition, the Cabinet is tightening the energy saving requirement for businesses and will establish a national energy saving target.

Coal-fired power stations and gas saving scheme

The increased risk of gas shortages has prompted the Cabinet to decide today to lift the output restriction for coal-fired power stations for 2022-2024 with immediate effect. Consequently, coal-fired power stations will be entitled to operate at full capacity again, driving down gas-fired power stations’ need for gas for the purposes of generating electricity. This will reduce the risk of gas shortages and could make it easier to fill gas storage facilities in the Netherlands and Europe. The aim in that regard is to fill gas storage facilities in the Netherlands by more than has been agreed at European level. The Cabinet will soon be announcing additional measures to compensate for the extra CO2 emissions released by the coal-fired power stations. It will also be developing a temporary gas saving tender in the near future that will provide major gas consumers with a financial incentive to reduce their gas consumption.

Groningen

Secretary of State for Mining Hans Vijlbrief today informed the House of Representatives of the Netherlands that the Groningen gas field will be put on the back burner in October this year, as promised. The Cabinet would like to be in a position to close the Groningen gas field in 2023. However, the uncertain geopolitical developments have prompted Vijlbrief to refrain from permanently closing down any wells this year.

Rob Jetten, Minister for Climate and Energy Policy: “Russia is clearly weaponising energy. Whereas previously it was the case that the gas supply to specific businesses or countries was being shut off, we are now seeing sharp falls in the overall levels of gas supplies from Russia to Europe. In the absence of additional measures, we will no longer be capable of guaranteeing that we can adequately fill gas storage facilities in Europe and the Netherlands in preparation for the winter. Hence, the Cabinet is announcing an ‘early warning’ to enable us to monitor gas supplies even more tightly. In that respect, I would like to stress that there are currently no gas shortages. We are taking these measures to ensure that we are as prepared as possible. This entailed having to make some tough decisions, including revoking the output limit for coal-fired power stations. This will increase CO2 emissions in the Netherlands, which we intend to compensate for by means of additional measures. As every cubic metre of gas counts going forward, the Cabinet has also issued an urgent call to businesses and households to save as much energy as possible, including during the summer.”

Groningen gas field on the back burner in October

Source: Government of the Netherlands

  • All wells to remain open for the sake of flexibility

Secretary of State for Mining Hans Vijlbrief today informed the House of Representatives of the Netherlands that the Groningen gas field will be put on the back burner in October this year, as promised. The Cabinet would like to be in a position to close down the Groningen gas field in 2023, as this is the only way to restore safety in Groningen and to reassure residents in the long run. However, the uncertain geopolitical developments have prompted Vijlbrief to refrain from permanently closing down any wells this year. What this means is that the current level of extraction will be approximately 2.8 billion Nm3.

Current gas year

Gas extraction from the Groningen gas field was below the expected level over the period spanning 1 April to the present time. Reasons for this include reduced actual consumption, in part due to the warm weather, and increased usage of existing nitrogen plants. The upshot is that the extraction level at the end of the gas year could end up being below the 4.5 billion Nm3 expected on 1 April 2022. This will make it possible to compensate for the disappointing delay in the construction of the Zuidbroek nitrogen plant and keep the gas extraction at the previously set level of 4.5 billion Nm³. Hence, the delay in Zuidbroek will not adversely affect the filling of gas storage facilities.

Security of supply

The Cabinet is doing its utmost to guarantee security of supply for the coming winter. Minister for Climate and Energy Policy Rob Jetten today announced the initial phase of a gas crisis: the ‘early warning’. Thus triggering the Gas Protection and Recovery Plan and compelling gas firms to share detailed information on gas supplies with the Government on a daily basis. Furthermore, the Cabinet has lifted the output restriction for coal-fired power stations for 2022-2024 with immediate effect. Consequently, coal-fired power stations will be entitled to operate at full capacity again, driving down gas-fired power stations’ need for gas for the purposes of generating electricity.

Secretary of State for Mining Hans Vijlbrief: “We are doing what we can to ensure that there will be sufficient gas this coming winter. For example, we will be using coal-fired power stations to save gas and will refrain from closing any wells in October to maximise flexibility. In view of the geopolitical situation, I think that is prudent. But as I have always said, it is important for us to continue using the Groningen gas field solely as a reserve resource from October onwards. Only in the worst-case scenario, if people’s safety is at risk because we have run out of gas to heat hospitals, cook or produce diesel fuel, for example, will we consider using the Groningen gas field.”

The Cabinet’s desire to maximise flexibility means that all wells are to remain open for the time being, which will result in a minimum flow of approximately 2.8 billion Nm³. It will be possible to completely shut down the gas field in October 2023 or 2024, once the geopolitical situation permits this.

NATO Innovation Fund to Establish its Headquarters in the Netherlands

Source: Government of the Netherlands

The headquarters of the NATO Innovation Fund (NIF) will be located in the Netherlands, the NIF has announced today. The NIF is one of NATO’s initiatives to drive innovation within the alliance. The Netherlands had proposed within NATO that the offices for the fund be established in the Netherlands. That was a close collaboration between the Netherlands Foreign Investment Agency (NFIA), Techleap.nl and the Ministry of Defence. The NIF will be officially launched during the NATO summit in Vilnius in July this year.

It is expected that the establishment of this fund in the Netherlands will increase the possibility for innovative Dutch start-ups to gain access to capital. This stimulates the development of innovative complex technologies that offer solutions for both societal and security issues.

Minister Micky Adriaansens of Economic Affairs and Climate Policy therefore welcomes the announcement: “The NATO Innovation Fund positions the Netherlands even more firmly among investment funds for innovative companies. This helps start-ups to develop further in the Netherlands. In this way, we are strengthening what our country is good at, namely working on solutions for the future.”

The fund is in line with the ambitions of the Ministry of Defence to innovate in the field of so-called Emerging & Disruptive Technologies (EDTs). The NIF invests in startups and funds that are focused on EDTs, among other things. The application of EDTs and cooperation with the technology sector are crucial, according to Minister of Defence Kajsa Ollongren. “More investment in high-tech is urgently needed. For example, we are working with our NATO allies to defend against new threats. That is also why the Netherlands has already decided to substantially increase the budget for research, technology and innovation. The arrival of the headquarters of the NATO Innovation Fund is an important milestone to this end. It’s great that the Netherlands, as a knowledge nation, can host the fund. ”

Maurice van Tilburg, Managing Director of Techleap.nl adds: “The deep tech industry is essential for the societal transitions and the current challenges with regard to autonomy for the Netherlands and Europe. From universities and research institutes, to incubators and investors, the Netherlands is pleased to contribute to setting up this fund to further the development of key enabling technologies in Europe.” 

Together, NATO allies are making at least €1 billion available for the NIF, which has a term of 15 years. The Netherlands has pledged to contribute more than €55 million in that period.

Call to action on responsible use of AI in the military domain

Source: Government of the Netherlands

Government representatives meeting at the REAIM summit have agreed a joint call to action on the responsible development, deployment and use of artificial intelligence (AI) in the military domain. The two-day summit was organised by the Dutch Ministry of Foreign Affairs and Ministry of Defence. South Korea was the co-host.

Enlarge image

Image: ©Ministry of Foreign Affairs / Phil Nijhuis

The summit brought together some 2000 delegates from governments, businesses, civil society organisations, academia and thinktanks from all over the world. With their joint call to action (see the CtA attachment and the country list), the participating countries and other stakeholders underlined the need to put the responsible use of AI higher on the political agenda and to further promote initiatives that make a contribution in this respect.

Establishment of Global Commission on AI

A Global Commission on AI is to be established to raise all-round awareness, clarify how to define AI in the military domain and determine how this technology can be developed, manufactured and deployed responsibly. The Commission will also set out the conditions for the effective governance of AI.

Summit host Wopke Hoekstra, the Minister of Foreign Affairs, commented: ‘With this REAIM summit we’ve clearly established the urgent nature of this subject. We now need to take further steps. I’m delighted that we’ve been able to reach agreement on this. The Netherlands will remain a driving force behind efforts to conclude international agreements in this area.’

Host Kajsa Ollongren, the Minister of Defence, said: ‘AI is of crucial importance to the armed forces of the future. With the right frameworks and legislation in place, using AI will make our operational and logistical processes simpler and more efficient. AI also enables us to take faster, better-informed decisions. In this way we not only protect our own troops, but we can also limit harm and casualties to the greatest extent possible. In order to ensure that we use AI in a responsible manner, we will continue to work closely with our partners within existing alliances, such as the EU and NATO, but also with NGOs, thinktanks, educational and knowledge institutions and businesses. By doing so, we will be investing in our freedom.’

The REAIM summit was co-hosted by South Korea. Like the Netherlands, South Korea has been encouraging countries to contribute actively to the dialogue on the responsible use of AI in the military domain. This has helped to ensure contributions to the summit from participants and government representatives from all over the world.

A varied summit programme

The REAIM summit featured contributions from leading experts on AI in the military domain. In a wide-ranging programme, it offered break-out sessions, workshops, interviews, talkshows, an academic forum and a student hub. It also included a ‘Responsible Innovation Hub’, enabling companies to showcase their products and responsible innovations.