Energy Policies of IEA Countries: The Netherlands 2014 Review

The Netherlands plays an important role in Europe as a hub for global energy trade due to its open market and integrated supply chains. However, the outlook for Europe’s second-largest producer of natural gas is challenging amid declining production and uncertain prospects for unconventional gas. Developing the remaining natural gas potential, market integration, and ensuring the security of supply and resilience of energy infrastructure during the transition should be top priorities. The Netherlands stimulates energy efficiency and innovation in energy-intensive industries along the whole supply chain, notably in the Dutch refining, petrochemical and agriculture sectors, a practice that contributes to industrial competitiveness. Despite successful decoupling of greenhouse-gas emissions from economic growth between 1990 and 2012, however, the Netherlands remains one of the most fossil fuel and CO2-intensive economies among IEA member countries. In September 2013, the Netherlands reached an Energy Agreement with key stakeholders on priority actions to support sustainable economic growth through 2020. In addition to implementing the agreement, the government must set the scene for a stable policy framework up to 2030, which is also crucial for renewable energies. This review analyses the energy policy challenges currently facing the Netherlands and provides recommendations for each sector. It gives advice on implementing the Energy Agreement and how to leverage international opportunities from clean energy technologies.