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Policies for a climate-neutral industry: Lessons from the Netherlands

Author

Listed:
  • Brilé Anderson

    (OECD)

  • Emile Cammeraat

    (OECD)

  • Antoine Dechezleprêtre

    (OECD)

  • Luisa Dressler

    (OECD)

  • Nicolas Gonne

    (OECD)

  • Guy Lalanne

    (OECD)

  • Joaquim Martins Guilhoto

    (OECD)

  • Konstantinos Theodoropoulos

    (OECD)

Abstract

This paper presents a comprehensive assessment of the policy instruments adopted by the Netherlands to reach carbon neutrality in its manufacturing sector by 2050. The analysis illustrates the strength of combining a strong commitment to raising carbon prices with ambitious technology support, uncovers the pervasiveness of competitiveness provisions, and highlights the trade-off between short-term emissions cuts and longer-term technology shift. The Netherlands’ carbon levy sets an ambitious price trajectory to 2030, but is tempered by extensive preferential treatment to energy-intensive users, yielding a highly unequal carbon price across firms and sectors. The country’s technology support focuses on the cost-effective deployment of low-carbon options, which ensures least-cost decarbonisation in the short run but favours relatively mature technologies. The paper offers recommendations for policy adjustments to reach the country’s carbon neutrality objective, including the gradual removal of exemptions, enhanced support for emerging technologies and greater visibility over future infrastructure plans.

Suggested Citation

  • Brilé Anderson & Emile Cammeraat & Antoine Dechezleprêtre & Luisa Dressler & Nicolas Gonne & Guy Lalanne & Joaquim Martins Guilhoto & Konstantinos Theodoropoulos, 2021. "Policies for a climate-neutral industry: Lessons from the Netherlands," OECD Science, Technology and Industry Policy Papers 108, OECD Publishing.
    • Handle: RePEc:oec:stiaac:108-en
    DOI: 10.1787/a3a1f953-en
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    Cited by:

    1. Bofinger, Peter & Geißendörfer, Lisa & Haas, Thomas & Mayer, Fabian, 2023. "Credit as an instrument for growth: A monetary explanation of the Chinese growth story," W.E.P. - Würzburg Economic Papers 107, University of Würzburg, Department of Economics.

    More about this item

    Keywords

    Carbon pricing; Climate change policy; Technology support;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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