Climate and circular economy policies are not identical but are complementary

Climate policy aims to substantially lower greenhouse gas emissions in the Netherlands. Circular economy policy also wants this, through different (and less?) use of resources (and thereby also tackling other environmental problems), but then both in the Netherlands and elsewhere, specifically for the Dutch economy. This is an important difference between both policy areas to keep in mind. In April this year, Minister Jetten presented a package of 121 measures to achieve the Dutch climate goals in 2030. These measures are additional to previously presented measures. A portion of the additional measures also aims to contribute to the transition to the circular economy. This article provides a general consideration of whether these measures can actually deliver on that. The table below shows a few key differences between climate and circular economy policy. This article first explains these differences with a brief description of both policy areas. Next, the Dutch climate policy is described slightly more extensively but still in main outlines. Finally, the aforementioned 121 climate measures are discussed, along with the extent to which they align with the circular economy policy. A few key differences between climate and circular economy policy * The main goals in the 2016 policy programme 'Netherlands circular in 2050' were still halving by 2030 and minimising by 2050 the Dutch resource use. The more recent 'National Circular Economy Programme' (NPCE) has as its main goals to counteract climate change, biodiversity loss and environmental pressure, and to secure the supply of resources for the Dutch economy. Less resource use is at best a means in the NPCE to achieve the new main goals, and is no longer put forward as a main goal. Fair sharing of resources with future generations is still mentioned by the NPCE, but fair sharing with less wealthy countries is not. In 'Netherlands circular in 2050', that was still a prominent part of the problem analysis. Dutch climate policy in brief Dutch climate policy is aimed at protecting the Netherlands from the consequences of climate change (adaptation), and substantially reducing greenhouse gas emissions in the Netherlands to halt climate change (mitigation). The Dutch Climate Act, just like the European Climate Law, focuses on mitigation. Adaptation is central to the national Delta Programme and the National Climate Adaptation Strategy (NAS). The rest of this article approaches climate policy from the perspective of mitigation policy. The Dutch Climate Act contains climate targets for the reduction of greenhouse gases in 2030 and 2050. The current targets in the Dutch Climate Act will shortly be adapted to those in the European Climate Law (see below). In both climate laws, the climate targets relate to so-called CO2 equivalents with which the emission of each greenhouse gas can be converted to an equivalent emission of CO2. The Dutch climate targets only apply to emissions in the Netherlands, and do not relate to emissions elsewhere for the benefit of the Dutch economy. As far as Recycling Netwerk Benelux (RNB) is concerned, that is a blind spot in this policy. Because of this, we could achieve the targets by moving our production, and the associated greenhouse gas emissions, elsewhere. Just as many an (energy- and labour-intensive) industrial sector has already been relocated from the Netherlands to elsewhere in recent decades. Worldwide and also in the Netherlands, the greenhouse gases CO2 and methane contribute the most to climate change. Statistics Netherlands (CBS) maps our emissions annually (see below). CO2 is mainly the result of burning oil, natural gas and coal for our heat and electricity supply. Livestock farming is responsible for a significant portion of methane emissions. Dutch circular economy policy in brief The Dutch climate targets are therefore about emissions in the Netherlands and not about the emissions that take place outside our borders for the Dutch economy. Dutch circular economy policy wants, through different (and less?) resource use, also less greenhouse gas emissions, but then both in the Netherlands and elsewhere for the benefit of the Dutch economy. Resources must be extracted here or elsewhere before being processed into new materials and products, and after use, discarded products must be processed as waste. In all these actions, greenhouse gases are released, but nature and the environment are also burdened in other ways. Besides climate change, this includes, among other things, biodiversity loss, landscape degradation, nitrogen issues, health damage from water and air pollution, and litter as a problem in itself and with consequences such as dead cows from eating sharp waste and the plastic soup in fresh and salt water

Climate policy aims for a substantially lower emission of greenhouse gases in the Netherlands. Circular economy policy also wants this, through different (and less?) resource use (and thereby also tackling other environmental problems), but then both in the Netherlands and elsewhere for the Dutch economy. This is an important difference between both policy areas to keep in mind.

In April this year, Minister Jetten presented a package of 121 measures to achieve the Dutch climate goals in 2030. These measures are additional to previously presented measures. A portion of the additional measures also aims to contribute to the transition to the circular economy. This article provides a general consideration of whether these measures can actually deliver on that.

The table below shows a few key differences between climate and circular economy policy. This article first explains these differences with a brief description of both policy areas. Next, the Dutch climate policy is described slightly more extensively but still in main outlines. Finally, the aforementioned 121 climate measures are discussed, along with the extent to which they align with the circular economy policy.

A few key differences between climate and circular economy policy

* The main goals in the 2016 policy programme ‘ Netherlands circular in 2050 ’ were still halving by 2030 and minimising by 2050 the Dutch resource use. The more recent ‘ National Circular Economy Programme ’ (NPCE) has as its main goals to counteract climate change, biodiversity loss and environmental pressure, and to secure the supply of resources for the Dutch economy. Less resource use is at best a means in the NPCE to achieve the new main goals, and is no longer put forward as a main goal. Fair sharing of resources with future generations is still mentioned by the NPCE, but fair sharing with less wealthy countries is not. In ‘ Netherlands circular in 2050 ’, that was still a prominent part of the problem analysis.

Dutch climate policy in brief

The Dutch climate policy is aimed at protecting the Netherlands from the consequences of climate change (adaptation), and substantially reducing greenhouse gas emissions in the Netherlands to halt climate change (mitigation). The Dutch Climate Act, just like the European Climate Law, focuses on mitigation. Adaptation is central to the national Delta Programme and the National Climate Adaptation Strategy (NAS). The rest of this article approaches climate policy from the perspective of mitigation policy.

The Dutch Climate Act contains climate targets for the reduction of greenhouse gases in 2030 and 2050. The current targets in the Dutch Climate Act will shortly be adapted to those in the European Climate Law (see below). In both climate laws, the climate targets relate to so-called CO2 equivalents with which the emission of each greenhouse gas can be converted to an equivalent emission of CO2.

The Dutch climate targets only apply to emissions in the Netherlands, and do not relate to emissions elsewhere for the benefit of the Dutch economy. As far as Recycling Netwerk Benelux (RNB) is concerned, that is a blind spot in this policy. Because of this, we could achieve the targets by moving our production, and the associated greenhouse gas emissions, elsewhere. Just as many an (energy- and labour-intensive) industrial sector has already been relocated from the Netherlands to elsewhere in recent decades.

Worldwide and also in the Netherlands, the greenhouse gases CO2 and methane contribute the most to climate change. Statistics Netherlands (CBS) maps our emissions annually (see below). CO2 is mainly the result of burning oil, natural gas and coal for our heat and electricity supply. Livestock farming is responsible for a significant portion of methane emissions.

Dutch circular economy policy in brief

The Dutch climate targets are therefore about emissions in the Netherlands and not about the emissions that take place outside our borders for the Dutch economy. Dutch circular economy policy wants, through different (and less?) resource use, also less greenhouse gas emissions, but then both in the Netherlands and elsewhere for the benefit of the Dutch economy.

Resources must be extracted here or elsewhere before being processed into new materials and products, and after use, discarded products must be processed as waste. In all these actions, greenhouse gases are released, but nature and the environment are also burdened in other ways. Besides climate change, this includes, among other things, biodiversity loss, landscape degradation, nitrogen issues, health damage from water and air pollution, and litter as a problem in itself and with consequences such as dead cows from eating sharp waste and the plastic soup in fresh and salt water. Many people see climate change as the most urgent environmental problem of our time. If climate change continues at the current pace, the continued existence of humanity is at stake.

Our resource use is currently not sustainable and, moreover, excessive. Earth Overshoot Day, the day on which we have consumed the earth's carrying capacity for a whole year, fell for the Netherlands this year already on 23 April. Furthermore, the Netherlands, like other wealthy countries, currently uses far more resources than less wealthy countries. According to the International Resource Panel, the use of resources by wealthy countries must and can decrease to such an extent that less wealthy countries and future generations can share proportionally in a still-growing prosperity, but then within planetary boundaries (as a measure of the earth's carrying capacity).

In the 2016 policy programme ‘Netherlands circular in 2050’, fair sharing with less wealthy countries and future generations is still a prominent part of the problem analysis. Main goals of this policy programme are therefore halving before 2030 and minimising before 2050 our use of minerals, metals and fossil resources (also referred to as abiotic resources). The more recent National Circular Economy Programme (NPCE) pays little attention to fair sharing with less wealthy countries. Reduction of resource use is also no longer a main goal in the NPCE, and according to the introduction, the Netherlands of the future will actually use more resources.

The four main goals in the NPCE are counteracting climate change, biodiversity loss and other environmental problems, and securing the security of supply of (all) resources for the Dutch economy. For the security of supply of critical resources, there is additional policy through the National Raw Materials Strategy. Critical resources are metals and minerals of significant economic value and for which there is a potential supply risk.

In both the NPCE and the National Raw Materials Strategy, less resource use is at best a means, alongside a different resource use, to achieve the main goals (for example, replacing metals, minerals or fossil resources with bio-based resources). It is not clear to RNB to what extent the resource reduction targets from ‘Netherlands circular in 2050’ still stand (ergo, how the targets in ‘Netherlands circular in 2050’ and the NPCE relate to each other). Therefore, in this article, brackets are consistently placed around ‘less’ with a question mark behind it in relation to the Dutch circular economy policy.

Differences between climate and circular economy policy

The wealth gap between the ‘rich North’ and the ‘poor South’, whilst the latter especially suffers the consequences of climate change, is a major stumbling block in reaching effective agreements in international climate policy. Indeed, the ‘poor South’ wants the ‘rich North’ to pay for tackling the climate-related disasters they are confronted with (such as extreme heat, drought, floods, disease, etc.). Movement seems to have finally entered this protracted discussion with the agreement to establish a climate fund.

Shifting the environmental problems of Dutch resource use onto less wealthy countries is indeed addressed in the NPCE, but fair sharing of wealth is therefore not. According to RNB, less (critical) resource use is necessary for sustainable prosperity and well-being, and to be able to share this with both other countries and future generations.

RNB primarily commits itself to a fair and sustainable resource use by the Netherlands (and similar wealthy countries). From this background, RNB also pays attention to climate change and climate policy when it relates to resources. However, the emphasis for RNB lies on circular economy policy, in which using other and especially fewer resources is central for RNB. Only in this way is a good level of prosperity worldwide, now and in the future, possible within the boundaries of the earth's carrying capacity.

RNB has already published many articles on circular economy policy and its reflections on it (see here for RNB news items). Therefore, this article does not delve deeper into circular economy policy, and the rest of this article focuses on climate policy and the 121 climate measures.

Climate targets in the Dutch and European Climate Law

The (first) Dutch Climate Act from summer 2019 aims for a 95% lower emission of greenhouse gases by 2050 compared to 1990 (binding target). Furthermore, this Climate Act aims for a greenhouse gas reduction of 49% in 2030 compared to 1990, and a CO2-neutral electricity production by 2050. CO2 is the most important greenhouse gas for climate change, and 32.4% of Dutch emissions of this are accounted for by electricity production (see graph above).

Since 29 July 2019, a European Climate Law has also been in force. This sets out binding targets that the European Union must have reduced its greenhouse gas emissions by 55% in 2030 compared to 1990, and that it must be climate neutral by 2050. The European Climate Law aims for negative greenhouse gas emissions after 2050.

The reduction targets for greenhouse gas emissions in the European Climate Law do not apply directly to individual European member states, but to the European Union as a whole. To achieve the 55% reduction across Europe in 2030, the “Fit for 55 package” was introduced. The “Fit for 55 package” consists of (proposals for revision of) European legislation.

Arising from the “Fit for 55 package”, adjustments were implemented in early 2023 for the European system for trading CO2 emission allowances, the “European Trading System” (ETS). This has increased the emission reduction to be achieved compared to 2005 for the economic sectors falling under ETS to 62%. Those ETS sectors already included electricity and heat production, energy-intensive industry (such as petrochemistry and the metals sector), and aviation. Maritime transport has now been added to this. Together, these sectors represent about 40% of total European CO2 emissions. For (energy distributors to) buildings, road transport and some other sectors (mainly small industry), a new, separate ETS system has been established.

Domestic transport (excluding aviation), buildings, agriculture, and waste management together account for nearly 60% of European greenhouse gas emissions. For these sectors, which do not fall under the old ETS, targets have also been tightened in the context of the “Fit for 55 package”. Their CO2 emissions must be reduced across Europe by 40% in 2030 compared to 2005. This Europe-wide reduction target has been worked out into binding reduction targets for individual member states.

The aforementioned and other legislative amendments have already been realised, but negotiations on the “Fit for 55 package” are still ongoing. All in all, this must lead across Europe to 55% fewer emissions of all greenhouse gases combined in 2030 compared to 1990.

Upcoming amendment to the Dutch Climate Act

The Dutch Climate Act from summer 2019 has since been modified in a number of points, but the climate targets in it remain unchanged for now. The current Dutch Climate Act still contains an aim for CO2-neutral electricity production by 2050 and 49% fewer greenhouse gases in 2030, and an obligation to 95% fewer greenhouse gases in 2050 (both percentages compared to 1990).

In July 2022, the government did start a process to bring the current Dutch Climate Act into line with the European Climate Law. In February 2023, the House of Representatives voted in majority for the agreed legislative amendment. This amendment has yet to be published in the Government Gazette, and will only enter into force the day after. With the adopted amendment, climate neutrality by 2050 becomes binding, and 55% fewer greenhouse gases in 2030 compared to 1990 and negative greenhouse gas emissions after 2050 become the aim in the Dutch Climate Act.

It is still highly questionable whether the upcoming amendment indeed brings the Dutch Climate Act into line with the European Climate Law. The Council of State points out that the climate targets in the European Climate Law apply to the European Union as a whole, and not to the member states individually.

The binding reduction target of 55% therefore applies to the entire European Union. It has not been worked out into reduction percentages for individual member states, but in a package of measures with which the 55% reduction for Europe as a whole must be achieved (although the European Court of Auditors doubts whether that will succeed). That package of measures can lead to different reduction percentages between member states. For the Netherlands, this could turn out both lower and higher than 55%. If the “Fit for 55 package” were to turn out lower than 55% for the Netherlands, then it is unclear what the status is of the target of 55% in the upcoming amendment to the Dutch Climate Act, according to the Council of State.

The Council of State has proposed to prevent ambiguity in the Dutch Climate Act by including a binding reduction target of at least 55% in 2030 in it. This proposal was not adopted. Legally, this is also not necessary because the European Climate Law, and the obligations arising from it for member states, are binding on all member states and therefore also on the Netherlands. Incidentally, the Council of State recalls that the coalition agreement says to direct policy at a 60% reduction in greenhouse gas emissions in 2030 in order to be sure of a 55% reduction.

Dutch policy framework for climate policy

The Dutch Climate Act presents, in addition to the Dutch climate targets, also the policy framework for this. The policy framework was modified in earlier legislative amendments and remains unchanged in the upcoming amendment to the Dutch Climate Act. This policy framework is the basis for the Netherlands to achieve its own and European policy targets. Apparently, it is in line with the European policy framework as arising from the European Climate Law (to which the Dutch Climate Act is subordinate).

The policy framework in the Dutch Climate Act contains obligations for the government and for the PBL Netherlands Environmental Assessment Agency. The obligations for the government are the preparation of a five-yearly Climate Plan, a two-yearly report on the progress of its implementation, and an annual Climate Memorandum with an overview of the effectiveness and efficiency of the policy conducted. The PBL is obliged to make an annual outlook, the Climate and Energy Outlook (KEV), of the developments of greenhouse gas emissions and the energy system in the Netherlands. According to the Dutch Climate Act, the Climate Memorandum and PBL outlook must then be sent simultaneously to the Senate and House of Representatives.

The European Climate Law obliges member states to report their climate policy to the European Commission. The Netherlands does this through the Integrated National Energy and Climate Plan (NECP). The NECP includes the content of the Climate Plan. The content of this is determined to a significant degree by the Climate Agreement between more than a hundred public and private parties. The 2019 Climate Agreement, which also includes the 2013 Energy Agreement on energy policy, comprises 600 agreements to counteract greenhouse gas emissions in the Netherlands.