Energy Efficiency Benchmarking Covenant

Last updated: 5 November 2017
On 6 July 1999, the Dutch government concluded the Energy Efficiency Benchmarking Covenant with industry. In it, energy-intensive industry pledges to be among the world leaders in terms of energy efficiency for processing installations by no later than 2012. In exchange for this undertaking, the government has agreed not to impose any extra specific national measures governing energy conservation or CO2 reduction on the participating companies. Nearly all energy-intensive Dutch enterprises have signed the Covenant, including the Federation of Netherlands Industry (VNO-NCW) and five sector organisations, including the Association of Dutch Chemical Industry (VNCI), the Association of Dutch Paper and Cardboard Manufacturers (VNP), the Dutch Electricity Generating Board (SEP), and the bodies representing the metallurgical industry and refineries. The covenant requires member companies to systematically improve their energy efficiency rate per unit of product and to monitor their energy use more scrupulously. Companies acting under the covenants may offset some taxes. Its scope is significant - member companies of the five sector organisations that have an annual energy use greater than 0.5 petajoules are expected to join the covenant, meaning that it will eventually apply to 80 percent of Dutch industrial energy use.

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