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OECD Environmental Performance Reviews NETHERLANDS
This book is part of the OECD Environmental Performance Reviews Programme which conducts peer reviews of environmental conditions and progress in each member country. It scrutinises efforts to meet both domestic objectives and international commitments. The analyses presented are supported by a broad range of economic and environmental data and lead to recommendations for further environmental and sustainable development progress.
1998 1998 1998 1998 1999 1999 1999 1999 2000 2000 2000 2000 2001 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003
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NETHERLANDS
A first cycle of Environmental Performance Reviews, covering all member countries, was completed in 2000. The second cycle focuses on environmental management, sustainable development and international commitments.
Latest reviews available • Mexico • Australia • Switzerland • Belgium • Czech Republic • Denmark • Russian Federation* • Turkey • Hungary • Greece • Ireland • Luxembourg • OECD countries • Germany • Iceland • Norway • Portugal • Slovak Republic • Japan • United Kingdom • Italy • Netherlands • Poland
OECD Environmental Performance Reviews
Topics covered: Environmental Management Air and Water Management Nature Conservation and Biodiversity Economy, Society and Environment Sectoral Integration: Transport International Co-operation
OECD Environmental Performance Reviews NETHERLANDS
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OECD Environmental Performance Reviews
NETHERLANDS
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote policies designed: – to achieve the highest sustainable economic growth and employment and a rising standard of living in member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, nondiscriminatory basis in accordance with international obligations. The original member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries became members subsequently through accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland (22nd November 1996), Korea (12th December 1996) and the Slovak Republic (14th December 2000). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD Convention).
Publié en français sous le titre : Examens environnementaux de l’OCDE PAYS-BAS
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FOREWORD The principal aim of the OECD’s Environmental Performance Reviews is to help member countries improve their individual and collective performances in environmental management. The primary goals for this programme are: – to help individual governments assess progress; – to promote a continuous policy dialogue among member countries, through a peer review process; and – to stimulate greater accountability from member countries’ governments towards their public opinion, within developed countries and beyond. Environmental performance is assessed with regard to the degree of achievement of domestic objectives and international commitments. Such objectives and commitments may be broad aims, specific qualitative goals, precise quantitative targets or a commitment to a set of measures to be taken. Assessment of environmental performance is also placed within the context of historical environmental records, the present state of the environment, the physical endowment of the country in natural resources, its economic conditions and demographic trends. These systematic and independent reviews have been conducted for all member countries as part of the first cycle of reviews. The OECD is now engaged in the second cycle of reviews directed at promoting sustainable development, with emphasis on implementation of domestic and international environmental policy, as well as on the integration of economic, social and environmental decision-making. The report was peer-reviewed by the Working Party on Environmental Performance (Paris, January 2003). The conclusions and recommendations of the report are approved by the Working Party.
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GENERAL INTRODUCTION This review of the Netherlands’ environmental performance examines results in the light of domestic objectives and international commitments. It reviews progress since the previous OECD Environmental Performance Review of 1995. It also evaluates progress with respect to objectives of the 2001 “OECD Environmental Strategy for the First Decade of the 21st Century”. The report is organised in three parts: – Part I is entitled: “Environmental Management” and focuses on air, water as well as nature conservation and biodiversity; – Part II is entitled: “Sustainable Development” and focuses on environment and the economy, environmental-social interface and integration in the transport sector; – Part III is entitled: “International Commitments” and focuses on international co-operation. The OECD extends its most sincere thanks to all those who helped in the course of this review, to the representatives of member countries to the Working Party on Environmental Performance, and especially to the examining countries (Mexico, New Zealand and Sweden) and their experts. The OECD is particularly indebted to the Government of the Netherlands for its co-operation in expediting the provision of information and the organisation of the experts’ mission to the Netherlands, and in facilitating contacts with many individuals both inside and outside administrative and governmental structures of the country. The OECD Working Party on Environmental Performance conducted the review of the Netherlands at its meeting on 20-22 January 2003 and approved its conclusions and recommendations. This report is published under the authority of the SecretaryGeneral of the OECD.
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TABLE OF CONTENTS 1. CONCLUSIONS AND RECOMMENDATIONS ........................................
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1. Environmental Management ........................................................................ Implementing cost-effective environmental policies ................................... Air................................................................................................................. Water ............................................................................................................ Biodiversity, nature and landscape conservation ......................................... 2. Towards Sustainable Development .............................................................. Integration of environmental concerns in economic decisions .................... Integration of environmental and social concerns........................................ Integration of environmental concerns in transport decisions ..................... 3. International Co-operation ...........................................................................
20 20 22 24 25 28 28 30 31 33
Part I ENVIRONMENTAL MANAGEMENT 2. AIR MANAGEMENT.....................................................................................
37
Recommendations.............................................................................................. Conclusions ....................................................................................................... 1. Evaluation of Performance........................................................................... 1.1 Policy objectives................................................................................. 1.2 Trends in air emissions ....................................................................... 1.3 Trends in air quality............................................................................ 1.4 Integration of air pollution concerns into sectoral policies ................ 2. Focus on Selected Topics ............................................................................. 2.1 Energy trends ...................................................................................... 2.2 Reducing ammonia emissions from agriculture ................................. 2.3 The Energy Efficiency Benchmarking Agreement.............................
37 37 38 38 40 43 46 54 54 56 57
3. WATER MANAGEMENT .............................................................................
59
Recommendations.............................................................................................. 59 Conclusions ....................................................................................................... 60 1. Evaluation of Performance........................................................................... 61 1.1 Policy objectives in the 1990s ............................................................ 61
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1.2 Performance concerning emission reductions .................................... 1.3 Performance concerning water quality ............................................... 1.4 Performance concerning water quantity issues .................................. 1.5 Expenditure, financing and water charges.......................................... 1.6 Decoupling performance .................................................................... 2. Focus on Selected Topics ............................................................................. 2.1 Modernising the institutional framework ........................................... 2.2 Integrating water management and spatial planning .......................... 2.3 Trends in water use.............................................................................
64 70 73 74 77 79 79 80 80
4. NATURE CONSERVATION AND BIODIVERSITY.................................
83
Recommendations.............................................................................................. Conclusions ....................................................................................................... 1. Evaluation of Performance........................................................................... 1.1 Policy objectives................................................................................. 1.2 State of nature and biodiversity .......................................................... 1.3 Pressures on nature and biodiversity .................................................. 1.4 Policy responses ................................................................................. 2. Focus on Selected Topics ............................................................................. 2.1 Outlook for pollution pressures .......................................................... 2.2 International agreements.....................................................................
83 84 85 85 87 89 93 101 101 103
Part II SUSTAINABLE DEVELOPMENT 5. ENVIRONMENTAL – ECONOMIC INTERFACE ................................... 107 Recommendations.............................................................................................. Conclusions ....................................................................................................... Integration of environmental concerns in economic decisions .................... Implementing cost-effective environmental policies ................................... 1. Towards Sustainable Development .............................................................. 1.1 Policy objectives................................................................................. 1.2 Decoupling environmental pressures from economic growth............ 1.3 Production and consumption patterns ................................................ 1.4 Policy integration................................................................................ 1.5 Sustainable development strategy ...................................................... 1.6 An evolution towards sustainable development in national environmental policy planning ........................................................... 1.7 Environmental expenditure and financing..........................................
107 108 108 109 111 111 113 117 118 121 128 129
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2. Environmental Policy Implementation......................................................... 2.1 Regulatory instruments....................................................................... 2.2 Environmental agreements ................................................................. 2.3 Economic instruments ........................................................................ 2.4 Environmental impact assessment of projects.................................... 2.5 Land use planning............................................................................... 3. Focus on Selected Topics ............................................................................. 3.1 Environmental policy objectives ........................................................ 3.2 Economic context ............................................................................... 3.3 Environmentally related fiscal measures............................................ 3.4 Institutional context ............................................................................
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132 132 139 142 144 145 146 146 149 151 152
6. ENVIRONMENTAL-SOCIAL INTERFACE.............................................. 157 Recommendations.............................................................................................. Conclusions ....................................................................................................... 1. Evaluation of Performance........................................................................... 1.1 Environmental democracy: information, participation and access..... 1.2 Environmental awareness and education............................................ 1.3 Environmental employment ............................................................... 1.4 Environment, health and safety .......................................................... 2. Focus on Selected Topics ............................................................................. 2.1 Social context ..................................................................................... 2.2 Access to nature and recreation areas.................................................
157 158 158 158 163 165 166 170 170 172
7. SECTORAL INTEGRATION: TRANSPORT............................................. 175 Recommendations.............................................................................................. Conclusions ....................................................................................................... 1. Evaluation of Performance........................................................................... 1.1 Policy objectives................................................................................. 1.2 Integration of policies......................................................................... 1.3 Trends in the environmental effects of transport ................................ 1.4 Traffic management............................................................................ 1.5 Vehicles and fuels ............................................................................... 1.6 Infrastructure development................................................................. 2. Focus on Selected Topics ............................................................................. 2.1 Environmentally sustainable transport ............................................... 2.2 The port of Rotterdam ........................................................................
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175 176 177 177 178 180 183 185 188 188 188 189
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Part III INTERNATIONAL COMMITMENTS 8. INTERNATIONAL COMMITMENTS AND CO-OPERATION.............. 193 Recommendations.............................................................................................. Conclusions ....................................................................................................... 1. Evaluation of Performance........................................................................... 1.1 Objectives ........................................................................................... 1.2 Official development assistance ......................................................... 1.3 Climate protection .............................................................................. 1.4 Transboundary pollution..................................................................... 1.5 Marine pollution ................................................................................. 1.6 Management of living marine resources ............................................ 1.7 International trade and the environment............................................. 2. Focus on Selected Topics ............................................................................. 2.1 The National Climate Policy Implementation Plan (NCPIP)............. 2.2 International co-operation for protection of the Rhine.......................
193 194 195 195 196 198 203 205 212 214 218 218 221
ANNEXES I.A I.B I.C II.A II.B III. IV. V.
Selected environmental data........................................................................... Selected economic data .................................................................................. Selected social data ........................................................................................ Selected multilateral agreements (worldwide) ............................................... Selected multilateral agreements (regional) ................................................... Selected environmental events (1992-2002) .................................................. Physical context.............................................................................................. Selected environmental web sites...................................................................
224 226 228 230 234 239 245 247
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LIST OF FIGURES AND TABLES Figures 2.1 2.2 2.3 3.1 3.2 3.3 3.4 3.5 3.6 4.1 4.2 4.3 4.4 5.1 6.1 6.2 6.3 7.1 7.2 7.3 7.4 8.1 8.2 8.3
Air pollutant emissions................................................................................... Trends in air quality........................................................................................ Energy structure and intensity ........................................................................ Performance in meeting North Sea targets for micropollutants and heavy metal emissions ............................................................................. Public waste water treatment plants ............................................................... Agricultural inputs.......................................................................................... Freshwater quality in the Netherlands............................................................ Decoupling ..................................................................................................... Water use ........................................................................................................ Fauna and flora ............................................................................................... Eutrophying and potential acidifying deposition ........................................... Agriculture...................................................................................................... Major protected areas ..................................................................................... Economic structure and trends ....................................................................... Environmentally related impacts on health .................................................... Distribution of environmental pressures by income group ............................ Social indicators ............................................................................................. CO2 emissions from traffic ............................................................................. Expected transport emissions of CO2, NOx and SO2 ...................................... Trends in the transport sector ......................................................................... Road fuel prices and taxes.............................................................................. Official development assistance ..................................................................... Port state control............................................................................................. Trade and environment trends ........................................................................
42 44 55 65 67 69 71 78 81 88 90 95 98 114 168 168 171 181 181 184 186 197 207 215
Map of the Netherlands........................................................................................... 246 Tables 2.1 2.2 2.3 2.4 2.5
Emissions of traditional air pollutants by source ........................................... Emissions of toxic air contaminants............................................................... Legal ambient air quality standards................................................................ Energy prices in selected OECD countries .................................................... Energy prices and average energy consumption ............................................
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3.1 4.1 4.2 4.3 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 7.1 8.1 8.2 8.3
Achievement of water management objectives.............................................. Achievement of nature conservation objectives............................................. Land use ......................................................................................................... Protected areas................................................................................................ Economic trends and environmental pressures .............................................. Environmentally related economic and fiscal instruments............................. Revenue from environmentally related taxes ................................................. Examples of support for sustainability investments by the private sector ..... Pollution abatement and control (PAC) expenditure...................................... Planned national government environmental expenditure ............................. Planned environmental expenditure by other governmental bodies .............. Revenue from environmental charges ............................................................ Selected environmental legislation................................................................. Enforcement of environmental legislation outside the VROM Inspectorate . Enforcement of environmental legislation by the VROM Inspectorate......... Key environmental policy objectives and achievements ............................... Transport and environmental targets for 2000 and 2010................................ Summary of Dutch international environmental aid ...................................... CO2 emissions from fuel combustion by source and sector ........................... Progress and performance compared to international targets for reduction of emissions to air........................................................................................... 8.4 Oil pollution surveillance in the North Sea .................................................... 8.5 Nutrient inputs to the North Sea..................................................................... 8.6 Biological status of key North Sea stocks exploited in Dutch fisheries.........
62 86 93 98 115 122 126 127 130 131 131 132 134 138 138 148 182 198 200
I.A I.B I.C II.A II.B
224 226 228 230 234
Selected environmental data........................................................................... Selected economic data .................................................................................. Selected social data ........................................................................................ Selected multilateral agreements (worldwide) ............................................... Selected multilateral agreements (regional) ...................................................
204 210 211 213
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ABBREVIATIONS AND SIGNS Abbreviations a.e. AEWA AIJ ALARA ANWB AQFD ASCOBANS BAFH BAT BOD BREFs BuZa CBS CCO CDM CEP CER CFP CITES CIW CLEEN CO COD COST CPB CSD CSR EA ECN EEA EEBA
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Acid equivalents African-Eurasian Migrating Waterbird Agreement Activities Implemented Jointly As low as reasonably achievable Royal Dutch Touring Club EU Air Quality Framework Directive Conservation of Small Cetaceans of the Baltic and North Seas Bonn Agreement Flight Hour Best available technology Biochemical oxygen demand BAT reference documents Ministry of Foreign Affairs Statistics Netherlands Committee for Environmental Policy Monitoring Clean Development Mechanism Company environmental plan Certified Emission Reduction Common Fisheries Policy Convention on International Trade in Endangered Species of Wild Fauna and Flora Commission on Integrated Water Management Chemical Legislation European Enforcement Network Carbon monoxide Chemical oxygen demand European Co-operation in the Field of Scientific and Technical Research Central Economic Planning Agency Commission on Sustainable Development (UN) Corporate social responsibility Environmental agreement Energy Research Institute Energy Efficiency Agreement Energy Efficiency Benchmarking Agreement
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EEZ EHS EIA EIA EIC EMA EMAS EMEP EPR ERT ERU ERUPT EST EU-NEC EZ FAO FSC GEF GH GHG HCFCs HFCs ICAO ICES ICPR IEA IETP IFC IMO IMPEL INECE InfoMil IPPC IPO IRF ISO ITTO
OECD Environmental Performance Reviews: Netherlands
Exclusive Economic Zone National Ecological Network Energy Investment Allowance Scheme Environmental impact assessment Environmental Integration Committee Environmental Management Act Eco-Management and Audit Scheme (EU) Co-operative Programme for Monitoring and Evaluation of the Long-range Transmission of Air Pollutants in Europe Environmental Performance Review (OECD) Environmentally related tax(es) Emission reduction unit Emission Reduction Unit Procurement Tender Environmentally sustainable transport EU Directive on National Emissions Ceilings Ministry of Economic Affairs Food and Agriculture Organisation of the UN Forest Stewardship Council Global Environment Facility Good Wood Foundation Greenhouse gas(es) Hydrochlorofluorocarbons Hydrofluorocarbons International Civil Aviation Organisation International Council for the Exploration of the Sea International Commission for the Protection of the Rhine International Energy Agency Integrated Environmental Target Plan International Finance Corporation International Maritime Organisation EU Network for the Implementation and Enforcement of Environmental Law International Network for Environmental Compliance and Enforcement Information Centre for Environmental Licensing Integrated Pollution Prevention and Control Association of Provincial Authorities International Road Federation International Organisation for Standardisation International Tropical Timber Organisation
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IUCN JI KWS2000 LPG LNV LRTAP MAR MARPOL MILIEV MIA MINAS MOU MtC NCDO NCPIP NEC NEPP NGO NH3 NIDO NMVOCs NOx NOVEM NPK NPSP5 NSD NVVP NW3 NW4 ODA ODP ODS ORET OS
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World Conservation Union Joint Implementation Hydrocarbons 2000 programme Liquefied petroleum gas Ministry of Agriculture, Nature Management and Fisheries UNECE Convention on Long-range Transboundary Air Pollution Maximum admissible risk International Convention for the Prevention of Pollution from Ships Environmental and Economic Self-reliance (ORET/MILIEV Programme) Environmental Investment Allowance Minerals Accounting System Memorandum of Understanding Million tonnes (megatonnes) of CO2 equivalent National Committee for International Co-operation and Sustainable Development National Climate Policy Implementation Plan National Emissions Ceiling (EU) National Environmental Policy Plan Non-governmental organisation Ammonia National Sustainable Development Initiative Non-methane volatile organic compounds Nitrogen oxides Agency for Energy and the Environment Nitrogen phosphorous potassium Fifth National Policy Document on Spatial Planning (draft) North Sea Directorate National Traffic and Transport Plan (draft) Third National Policy Document on Water Management Fourth National Policy Document on Water Management Official development assistance Ozone depletion potential Ozone depleting substances Export Transactions Relevant to Environment (ORET/MILIEV Programme) Ministry for Development Co-operation
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OSPAR PAC PAHs PCBs p.e. PFC PGO PIC PM10 POPs PPDIWS PPP PPPs PRTR RAP REB RIVM RIZA ROM SAC SEA SERIDA SF6 SMEs SMP SPA SVV2 TBT TFC TFS TGEA TSP UNCED UNECE UNFCCC USD VAT
OECD Environmental Performance Reviews: Netherlands
Convention for the Protection of the Marine Environment of the North-East Atlantic Pollution abatement and control Polycyclic aromatic hydrocarbons Polychlorinated biphenyls Person equivalent Perfluorocarbon Private Data Management Organisation Prior informed consent Particulate matter < 10 microns in diameter Persistent organic pollutants Policy Plan for Domestic and Industrial Water Supplies Polluter pays principle Purchasing power parities Pollutant Release and Transfer Register Rhine Action Programme Regulatory energy tax National Institute of Public Health and Environmental Protection National Institute for Inland Water Management and Waste Water Treatment Regional development agency Special Area of Conservation Strategic environmental assessment Safety Environmental Risk Database Sulphur hexafluoride Small and medium-sized enterprises Seal Management Plan Special Protection Area Second Transport Structure Plan Tributyltin Total final energy consumption Transboundary Shipments of Waste (network) Target Group Environmental Agreement Total suspended particulate matter UN Conference on Environment and Development UN Economic Council for Europe UN Framework Convention on Climate Change United States dollar Value added tax
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VNG VOCs VOGM VROM V&W
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Association of Netherlands Municipalities Volatile organic compounds Supplementary Municipality Policy Scheme Ministry of Housing, Spatial Planning and the Environment Ministry of Transport, Public Works and Water Management
Signs The following signs are used in Figures and Tables: . .: not available – : nil or negligible . : decimal point
Country Aggregates OECD Europe: All European member countries of the OECD, i.e. countries of the European Union plus the Czech Republic, Hungary, Iceland, Norway, Poland, the Slovak Republic, Switzerland and Turkey. OECD:
The countries of OECD Europe plus Australia, Canada, Japan, the Republic of Korea, Mexico, New Zealand and the United States.
Country aggregates may include Secretariat estimates. The sign * indicates that not all countries are included.
Currency Monetary unit: Euro (EUR) In 2002, EUR 1.139 = USD 1.
Cut-off Date This report is based on information and data available up to December 2002.
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LIST OF TEAM MEMBERS Mr. Ralph Chapman Ms. Ingrid Hasselsten Mr. Rodolfo Lacy Tamayo Mr. José Antonio Moreno Mendoza
Expert from reviewing country: New Zealand Expert from reviewing country: Sweden Expert from reviewing country: Mexico Expert from reviewing country: Mexico
Mr. Christian Avérous Mr. Gérard Bonnis Ms. Martha Heitzmann Mr. Heikki Sisula Mr. Eduard Goldberg
OECD Secretariat OECD Secretariat OECD Secretariat OECD Secretariat OECD Secretariat (Consultant)
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1
CONCLUSIONS AND RECOMMENDATIONS* The Netherlands, which has a very open economy, experienced rapid expansion during the last ten years. It is the world’s sixth largest exporting country, and its gross domestic product (GDP) is the world’s 14th highest. The Netherlands has become a hub of international commerce, with a transport infrastructure centred on the port of Rotterdam (the busiest port in the world) and Amsterdam-Schiphol airport. Very high densities of both population and economic activities have led to very intense pressures on the country’s environment. Together with the delicate geographical balance between land and water, these pressures have made environmental protection a matter of serious public concern. Environmental issues have a strong international dimension in the Netherlands, reflecting regional environmental interdependencies (e.g. transboundary air and water pollution, North Sea pollution), regional economic interdependencies (EU membership, the country’s role as a gateway to Europe) and global environmental issues (e.g. vulnerability to climate change and sea level rise, the importance of trade and environmental aid). Since the early 1990s, the Netherlands has made considerable progress in decoupling a number of environmental pressures from economic growth and meeting several of its ambitious environmental targets. This progress reflects the reshaping of the Dutch economy and the strengthening of environmental policies, including in the EU context. Today priority environmental issues include: loss of biodiversity, climate change, over-exploitation of natural resources, threats to human health and external safety, damage to the quality of life, and possible unmanageable risks. Several of these issues reflect pressures on the environment deriving from the Netherlands’ development choices, such as intensive agriculture and transport. * Conclusions and Recommendations reviewed and approved by the Working Party on Environmental Performance at its January 2003 meeting.
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It will be necessary for the Netherlands to: i) improve the cost-effectiveness of its environmental policies; ii) further integrate environmental concerns into economic and social decisions; and iii) reinforce its international environmental co-operation on environmental issues. This report examines progress made by the Netherlands since the previous OECD Environmental Performance Review in 1995, and the extent to which the country’s domestic objectives and international commitments are being met. It also reviews progress in the context of the OECD Environmental Strategy.* Some 52 recommendations are made that could help strengthen the Netherlands’ environmental performance in the context of sustainable development.
1.
Environmental Management Implementing cost-effective environmental policies
In the last ten years the Netherlands has met or come close to meeting a number of its domestic objectives (e.g. concerning SO2 emissions, toxic air contaminants, groundwater depletion, flood protection, phosphorus concentrations in water, expansion of the ecological network) and international commitments (e.g. transboundary air pollution and North Sea targets). The Environmental Management Act (EMA) provides a framework for co-ordinating environmental legislation, though water, soil and nature management are subject to specific legislation. New regulations establish corporate financial liability for environmental damage. At the central level enforcement staff recently increased by 10%, following regrouping of the environmental, spatial planning and housing inspectorates; the number of inspections has also increased and penal sanctions have been applied. To maintain their incentive function, fine levels have been made proportionate to the size of the company. As a result, compliance levels have increased. Inspection and prosecution pay particular attention to the movement of dangerous goods. Environmental taxes (e.g. on groundwater, landfill) and a regulatory energy tax have been introduced and other taxes are under discussion. Charges apply to point and diffuse water pollution, and producer responsibility has been extended to a range of waste streams. Overall, economic and fiscal instruments are used widely in the Netherlands. A new spatial planning policy to control urban * The Objectives of the “OECD Environmental Strategy for the First Decade of the 21st Century” are covered in the following sections of these Conclusions and Recommendations: maintaining the integrity of ecosystems (Section 1), decoupling of environmental pressures from economic growth (Sections 2.1 and 2.3), integration of social and environmental concerns (Section 2.2) and global environmental interdependence (Section 3).
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development and protect landscape areas was issued in 2000. Overall, industry has been responsive and often proactive in improving its environmental performance, particularly through environmental agreements (e.g. covenants) and environmental management and auditing; there are also environmental reporting obligations for companies. The customised licensing system introduced in 1995 reflects a shift from regulatory approaches to monitored self-regulation. Environmental agreements, which are more or less binding substitutes for regulation, have been successful in a number of areas in the Netherlands; long-term environmental objectives have been agreed with industry in a series of branch agreements, and the contributions expected from individual companies have been included in their operating permits. Flexibility in meeting objectives, and a stable investment context, have made these schemes attractive to firms. The characteristic policy mix of regulation/licensing plus economic instruments plus environmental agreements continues to be productive. The gradual move to de-emphasise environmental agreements and regulation (arising from economic liberalisation and greater European and international integration) and to place more emphasis on economic instruments has merit, especially as it takes advantage of the government’s strength in establishing frameworks rather than micro-managing. However, despite this positive picture the Netherlands has not met several of its commitments or is not on the way to meeting them (e.g. for CO2, NH3, NOx and VOC emissions, nitrogen inputs to water, nature protection, green space in urban areas). Many of the previous NEPP targets for emission reductions and for environmental quality have been postponed or revised. Water management and nature conservation objectives are being addressed separately, reflecting the institutional setting. As a result, integration of nature and water management initiatives in central and local land use planning (e.g. water areas for flood prevention, green areas for nature conservation) has been weak. Licensing of groundwater abstraction and waste water discharge is not covered by the EMA and has remained separate from integrated air, noise and waste licensing. There is a somewhat unclear split of enforcement and licensing responsibilities among the central, provincial and municipal levels in this relatively small country, though administrative agreements have been signed to enhance co-operation among enforcement partners. Customised licensing (based on overall pollution reduction targets) applying to the 100 top companies (mostly multinational) conflicts with the IPPC logic that requires BAT standards for each individual production process. Fines are too low to prevent illegal traffic linked to international trade (e.g. CITES, Basel Convention). There has been a tendency to focus on fiscal rather than economic instruments, with no air emission charges, user charge levels with little effect on water consumption, and flat rates applied to municipal waste collection charges. Implementation of environmental
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agreements should be accompanied more systematically by transparency mechanisms and the threat of penalties, such as levying of an energy tax, in cases of non-compliance with targets. The move towards market-based instruments may be difficult to make in all areas. Increased emphasis on market based instruments should not come at the expense of experimentation with other approaches such as labelling and support for eco-design.
It is recommended to: • retain and refine quantitative policy targets for reducing environmental pressures, and strengthen efforts to see that they are attained without slippage; • enhance the role of provinces as a key level of policy integration, including environmental policy planning, land use planning and water management planning; • improve the split of enforcement and licensing, especially at local level, and clarify the responsibilities of the central, provincial and local levels; possibly broaden the scope of inspection and enforcement by the VROM Inspectorate to include IPPC companies; • take steps toward implementing the IPPC Directive for large companies, in such a way that emission trading can be applied in the best possible way; • reinforce integration of nature and water management objectives in central and local land use planning; establish periodicity in the preparation of land use plans; • extend the use of economic instruments (e.g. waste, water and transport management) and their incentive effects, in line with the user and polluter pays principles.
Air The Netherlands has successfully decoupled emissions of most traditional air pollutants from economic growth, improving urban air quality and reducing the Dutch contribution to transboundary air pollution. For most of the 50 priority air pollutants, emissions have been reduced to (or even below) targets set domestically and internationally to protect human health and the environment. This has been accomplished with a mix of instruments. Substantial reductions in emissions of toxic chemicals have also been achieved. Taxes on energy and
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transport have played a role, as well as active participation by the industrial sector in environmental agreements on reducing air pollutant emissions and improving energy efficiency. Air pollutant emission trading schemes are being developed. Ammonia emissions from agriculture were reduced by 15% between 1996 and 2002, partly due to the introduction of standards for manure storage facilities and manure spreading techniques. The proposed NOx emission trading scheme should be implemented. However, greenhouse gas emissions have not yet been decoupled from economic growth. Ozone, NOx and fine particles still contribute to regional problems of photochemical pollution and acidification of ecosystems. Environmental agreements have not succeeded in meeting industry targets for NOx. New policy measures will be needed to address these concerns, particularly in the energy, transport and agricultural sectors. Despite some improvements in recent years, final energy consumption per unit of GDP in the Netherlands remains above the OECD Europe average. Measures taken have not been effective enough to increase the use of renewable energy sources. Limited progress in reducing air pollutant emissions has been made by small and medium-sized firms. There has been too little progress in the transport sector. N2O (nitrous oxide) emissions from agriculture have not been reduced.
It is recommended to: • continue efforts to reduce emissions of NOx, particulate matter and NMVOCs (e.g. from transport, energy and industry) in light of persistent problems with concentrations of NO2, PM10 and ozone in some areas; implement the proposed NOx emission trading scheme; • pursue efforts to reduce ammonia emissions from agriculture; • provide small businesses with appropriate enforcement mechanisms to address long-term emission objectives, particularly for ozone precursors and priority substances; • continue to work towards increased energy efficiency; • expand the use of renewable energy sources (e.g. in municipalities and large firms).
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Water The Netherlands has a large delta area at the estuary of several main European rivers. This clearly increases pressure on water pollution and flood management. The Netherlands’ performance in reducing pressures on its water environment in the last ten years has been very good. In general, it has more than met the deadlines in the EU Urban Waste Water Treatment Directive for connections to the sewerage system and secondary treatment of waste water; 98% of the Dutch population is served by sewerage networks, all of which are connected to waste water treatment. The rate of removal of oxygen-demanding substances at public waste water treatment installations increased from 92 to 96% during the 1990s. Phosphorus and nitrogen removal is widespread. These achievements have required sustained financial efforts, particularly from households. The Netherlands has met North Sea targets for phosphorus and for most micropollutants and heavy metals. The 50% national reduction target for pesticide use has almost been met (47%). The Netherlands had the best overall performance among OECD countries with respect to decoupling pressures on the water environment from economic development and population growth. Strengthening of flood protection along major rivers, which repeatedly threatened to overflow their banks in the mid-1990s, is almost complete. Substantial progress has been made regarding most of the recommendations of the 1995 OECD Environmental Performance Review. Yet the Netherlands’ performance in reducing environmental pressures has still not been adequate to sustain the positive water quality trends of the 1980s and early 1990s. This partly reflects the high intensity of pressures on the water environment, which are often several times above the OECD average. These pressures in turn reflect the high intensity and density of economic activities such as agriculture and transport. Improvement of water quality stagnated during the latter part of the decade, mainly due to difficulties in tackling diffuse sources of pollution. Few surface or groundwater bodies meet basic water quality standards for several pollutants. The Netherlands did not quite meet the North Sea reduction targets for nitrogen. The impact of diffuse discharges, such as nutrients and pesticides from agriculture, emergency overflows from combined sewage systems and run-off from paved areas, remains severe. Nitrate standards for shallow groundwater are exceeded throughout the higher parts of the country. Implementation of measures to remedy groundwater depletion, which affects one-seventh of the total land area, has fallen short of targets. Further reduction of pressures cannot be achieved without a transition towards sustainable production processes, especially in agriculture. To achieve this transition, inter-sectoral economic efficiency should be given greater attention than in the past. If nothing
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more is done, sediments in watercourses contaminated by micropollutants and heavy metals will affect water quality for many decades to come. Safety issues remain paramount: expected rises in sea level, increasing discharges and continued land subsidence mean that the struggle to protect a population of which a large proportion lives below sea level can never be won once and for all.
It is recommended to: • strongly pursue implementation of policies to allocate “more space for water”, establish ecological networks and better protect areas at risk (e.g. from floods); in particular, integrate water management, nature management and spatial planning; • reinforce actions to combat groundwater depletion; complete and implement comprehensive provincial groundwater plans; • further reduce nitrogen loads from intensive agriculture (livestock and crop production) in line with related international commitments (EU Nitrates Directive, North Sea action programme); • strengthen efforts to achieve further progress in dealing with emergency overflows from combined sewers; • continue efforts to safely dispose of and/or treat contaminated dredging spoil; • continue to modernise the institutional framework for water management in line with the EU Water Framework Directive; • give more attention to economic analysis of water management measures in different sectors (e.g. municipal, industrial, agricultural); • strengthen inspection and enforcement relating to illegal discharges into the sewage system.
Biodiversity, nature and landscape conservation Nature management is subject to comprehensive national policy planning (Nature Policy Plan) under the Ministry of Agriculture, Nature Management and Fisheries (LNV). The National Ecological Network (EHS) being established will include fragmented protected areas throughout the Netherlands, corridors to connect them, and large bodies of water such as North Sea coastal waters, the Wadden Sea, the IJssel Lake and the Delta. The annual rate of realisation of the EHS is increasing, but it remains below the target set by LNV to meet the objective
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of completion by 2018. Failure to meet the LNV target was mainly due to land scarcity and high land prices, as the network was largely created through land purchase and restoration by LNV. The emphasis is now moving from land acquisition to the signing of management contracts with landowners. Fourteen national parks have been established, and 50 000 additional hectares were given protected status in the 1990s. This, too, is below target. National protected areas are managed by the Dutch Forest Service (200 000 hectares) and NGOs (160 000 hectares). Forested areas increased by 23 000 hectares over the last decade. Phosphorous concentrations in surface water have decreased and are now in line with the NEPP target, mainly as a result of industry efforts. Biodiversity loss has been halted in some ecosystems, such as breeding habitats for migrating birds on farmland and woodland. Volunteers, often highly specialised, actively contribute to biodiversity monitoring. Open landscapes (polders in the west, cultivated grassland on peat soil in the north and west) are still relatively intact, but they are experiencing increasing pressure from urbanisation. Targets have recently been established to protect these areas. Awareness of nature conservation has grown over the decade, especially regarding demand for green areas in and around cities and for recreation in protected areas. The Netherlands has signed and ratified international agreements relating to nature and biodiversity. However, these efforts are not always commensurate with the intense pressures on biodiversity, nature and landscapes from economic activities; in some cases they do not appear to lead to results consistent with national targets. This may require reviewing and possibly revising the institutional setting for biodiversity, nature and landscape conservation. Many species are still threatened, and biodiversity conservation has continued to deteriorate in ecosystems subject to eutrophic deposition and eutrophication (e.g. open dunes, heaths and coastal waters). Nitrogen deposition (the main component of eutrophic deposition) is still far above NEPP targets, reflecting high emissions of NOx from transport and ammonia from agriculture. Acid deposition has been reduced but is still above the NEPP target. Overall, only 10% of Dutch natural areas are fully protected against acidification and eutrophication compared with a 2010 NEPP target of 20 to 30%. Desiccation due to agricultural drainage still affects 500 000 hectares, and restoration activities have been limited and are below target. Biodiversity is also under strong pressure from pollution by toxic substances: intensity of pesticide use remains largely above the OECD average; ambitious reduction targets were set recently. Water pollution by heavy metals and by hormone disruptors, as well as a lack of connections between water systems, affect aquatic life. In coastal areas little has been done to protect nature effectively; despite the 1995 OECD recommendation, there are no established marine reserves (plans are in discussion). Mud fishing (bottom trawling) is still
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practised in the North Sea, which has an impact on sea floor habitats. Residential areas have continued to be developed at the expense of natural areas, leading to the adoption of additional spatial planning regulations. It is unclear whether the objective of devoting one-third of the inland EHS entirely to nature conservation will be met. Further efforts are needed to fully implement the EU Birds and Habitats Directives. Amendment of the Nature Conservation Act to fully transpose the Birds and Habitats Directives was submitted to Parliament. Nature management has been integrated into agricultural policy with mixed results. While they fall under the same parent ministry, EU farm subsidies targeted at supporting agricultural production are much larger than public expenditure on nature protection. Agri-environmental measures have focused more on controlling diffuse water pollution than on converting farmland to wildlife habitats (mainly meadows), though payments to farmers are being increased to meet the conversion target of 110 000 hectares by 2020.
It is recommended to: • complete establishment of the national ecological network according to targets, taking account of requirements of the EU Birds and Habitats Directives; • achieve the target of 20 to 30% of natural areas fully protected against acidification and eutrophication, particularly by reducing pressures from agriculture and the waste water industry; • reinforce implementation of nature conservation objectives in agricultural policy, particularly by meeting reduction targets for pesticide use, ammonia emissions and desiccation, speeding up farmland conversion in natural areas, and tackling diffuse water pollution by nitrogen compounds; • reinforce implementation of nature conservation objectives in water policy, particularly by reducing water pollution by toxic substances, developing connections among water systems and setting ecological quality objectives for water bodies; • enhance nature protection in coastal areas, particularly through better control of mud fishing and establishment of marine reserves, in the framework of the OSPAR Convention; • strengthen efforts to integrate biodiversity, nature and landscape conservation among themselves and with spatial planning.
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2.
OECD Environmental Performance Reviews: Netherlands
Towards Sustainable Development Integration of environmental concerns in economic decisions
Dutch performance in terms of reducing emissions and environmental pressures over the last decade has been strong. This performance should be seen in the context of sustained GDP growth of 35%, and of liberalisation and greater European and international integration of the country’s economy. Overall, pollution abatement and control expenditure has been growing, from 1.9% of GDP in 1990 to 2.6% in 2000. This share, which is expected to remain stable during the next three years based on existing and proposed policy measures, is large by OECD standards and reflects a high level of environmental pressure and readiness to commit resources to mitigation. There is no evidence that this expenditure has affected the competitiveness of the Dutch economy. Concerning institutional integration, there has been good progress with respect to integration of sustainability into the thinking and activities of a range of government and private sector actors (as demonstrated, for example, in the 1997 policy document on Environment and Economy). Considerable reliance is now being placed on some high-level guiding principles set out in the fourth National Environmental Policy Plan (NEPP4), some high-level sustainable development principles, and the concept of “transition management” and “transition processes” within a sustainable development goal-setting and backcasting framework. The characteristically Dutch “polder model” approach of dialogue between the government and stakeholders to develop environmental policy has been successful. There is recognition of the need to address areas in which progress remains to be made, as shown in environmental and sustainable development planning documents. Concerning market-based integration, the Netherlands has expanded its use of economic and fiscal instruments and, overall, is implementing the polluter pays and user pays principles despite the exemption of many companies from environmental taxes (e.g. energy taxes) in an attempt to preserve competitiveness. The recent ecological tax reform represents significant progress, with a shift from taxation of labour and income. The various environmentally related Dutch fiscal instruments now account for 14% of total tax revenue. However, decoupling environmental pressures from economic growth has proven elusive, particularly for CO2 emissions, municipal waste and the impacts of urban sprawl, including continuing pressures on biodiversity. Among other residual problems are the levels of particulate matter and ozone, the backlog of contaminated sites, groundwater quality and noise. Also of concern is the review or postponement of some targets that have been hard to meet (e.g. for NOx and ammonia), as well as the risk that some more difficult targets (e.g. for
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groundwater) may not be met. The Dutch Central Economic Planning Agency has noted that goals with respect to the country’s manure problem were not met due to a reluctance to implement policy forcefully enough. The general planning approach used in the Netherlands requires a very high degree of co-ordination among national ministries. Environmental plans must be co-ordinated with a number of national sectoral plans, the more so as the Ministry of Housing, Spatial Planning and the Environment (VROM) is responsible for only some environmental policy areas. Integration of environmental policies into other national policies is laid down in the NEPPs. However, policy integration has not yet been reflected in markedly better environmental performance in key sectors such as agriculture and transport. The high levels of production and consumption of the Netherlands continue to lead to large environmental effects outside of the Netherlands. Overall, the government’s goal of reaching sustainability by 2010 (i.e. within one generation at the time this goal was set) appears increasingly difficult to achieve, particularly for the agriculture and transport sectors. Strong and continuing political determination and support by the public will be indispensable in this respect.
It is recommended to: • implement environmental plans and objectives with determination; • strengthen institutional integration, particularly to ensure that a sustainable development framework is firmly embedded in central, provincial and local government and across key sectors, notably energy, agriculture and transport; • refine the market based instruments and extend the environmental tax system, having regard to simplicity, effectiveness, transaction costs and carrying out cost-benefit analysis; • couple the regulatory energy tax with pollutant emissions (carbon tax) and consider its extension to large companies in the case of non-compliance with environmental targets; • undertake environmental assessment earlier in the decision-making process to influence choices concerning plans, policies and programmes; • extend the use of spatial planning and regulation to serve pollution abatement, nature, biodiversity and landscape conservation as well as risk prevention; • maintain investment and efforts in environmental research and development.
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Integration of environmental and social concerns The Netherlands is making strong efforts to inform and educate the public about environmental protection. The quality of environmental information is high, and reporting activities and access to this information are well established. The public also has good access to the courts concerning environmental matters. Public debate and public participation in decision-making are quite well developed. Dutch environmental research and development are influential at the national and international levels, with respect to both technical matters and policy issues. A tradition of openness and transparency in policy-making and goal setting is maintained for the benefit of civil society. Key documents like the National Strategy for Sustainable Development, the National Environmental Policy Plans (NEPPs) and the annual “balance” reports present environmental issues using a forward looking approach. However, environmental employment represents only 1.3% of total employment, a figure which could be higher if there were a more active environmental employment policy. Local Agenda 21 initiatives have produced mixed results.
It is recommended to: • strengthen measures to improve external safety in relation to transport (e.g. air traffic, railways, transport of hazardous substances) and chemical installations; • strengthen efforts to improve the quality of the living environment with respect to noise nuisance, air pollution and access to green areas for recreation, especially in the case of low-income groups; • further maintain a high-quality environmental information base and ensure continuity in environmental reporting activities; • make further efforts to increase environmental awareness and sustainable behaviour, particularly regarding car and energy use; • continue to promote public participation in decision-making and goal-setting processes (e.g. at an early stage), both at national and local levels; • ensure that national environmental policy links up with relevant local sustainable development initiatives; • encourage sustainable development initiatives in the framework of Local Agenda 21, particularly in relation to mainstream local activities (e.g. housing, infrastructure, etc.).
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Low-income groups experience above average severe noise nuisance and local air pollution, while their neighbourhoods often do not have as much green space as more prosperous areas. The number of large-scale accidents has increased in recent years; thus so have threats to external safety. People living near airports and large chemical installations are particularly exposed to risks of accidents. Health risks related to air pollutants have decreased but still remain a problem; 2.5% of the population is exposed to levels of NO2 above the limit value (4% for fine particles PM10). Noise nuisance has remained a health concern in the Netherlands. Natural habitats and valuable landscapes have been lost to urban development, reducing public access to natural resources, recreation and silence.
Integration of environmental concerns in transport decisions Until recently, the level of integration of environmental, transport and spatial planning in the Netherlands has been commendable. Environmental concerns have been incorporated into transport policies. Regarding vehicles and fuels, air emissions have been reduced in line with EU Directives. The Netherlands has introduced fuel efficiency labelling. In 2002 purchase tax discounts were granted for the most fuel-efficient (lowest CO2 emitting) cars. Introduction of more environmentally friendly fuels and other technological innovations have contributed to the reduction of some harmful emissions (e.g. lead, SO2 and NOx). Despite a significant increase in traffic volume, emission reductions have been notable. With respect to traffic management, car-restricted and bicycle- and pedestrian-friendly town centres have a long tradition and are still favoured in local land use planning. In some cases only delivery vehicles and buses are allowed to enter urban zones. Speed limit enforcement has been stepped up considerably, for safety and pollution reasons. Eco-driving (fuel-efficient driving) has been encouraged through training of drivers and incentives to buy vehicles equipped with devices to enhance fuel efficiency. Innovative parking policy is based on pricing and regulations (e.g. a limited number of parking spaces for employees). The level of service provided by the Dutch public transport system could serve as a model for a number of other OECD countries. Fuel taxation has been reviewed and revised, and fiscal advantages for those commuting by car have been eliminated. Concerning infrastructure, EIA is used with extended consultation. However, the Netherlands is not yet moving towards sustainable transport. Integration of environmental concerns, land use planning and sustainable development in transport policy and planning is not commensurate with the country’s ambitious transport development plans and efforts to maintain the Dutch share in
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international transport. Compared with the early 1990s, there are currently fewer environmental targets, and most are less ambitious; some targets have been abolished (e.g. for CO2 emissions) or postponed (e.g. noise), and others have been extended (e.g. NOx) or strengthened (e.g. VOCs). Implementation and enforcement of environmentally beneficial transport policies and measures have not always been coherent and resolute. CO2 emissions from road traffic have increased dramatically, despite the wide range of economic instruments adopted to discourage private car use. Urban and transport development strategies have not succeeded in reducing traffic volumes for passenger cars. To reduce transport emissions, the Netherlands mainly relies on technological innovations by nonDutch vehicle and airplane manufacturers. Noise emissions from road vehicles, rail and aviation are spreading. The 1998 agreement on lowering the speed limit in the Randstad area has not been implemented. There is no political consensus on road pricing nor on a per-kilometre tax. Attempts to develop instruments to better control emissions from inland and ocean shipping and aviation have had marginal results while awaiting common or technology-related standards and effective agreements at international level (e.g. on taxation of aviation and bunker fuels, emission standards for heavy-duty diesel engines used in locomotives and ships).
It is recommended to: • strengthen or revive efforts to integrate environmental and sustainable development concerns into transport policy; • further internalise externalities into transport operation and pricing: strengthen the use of existing economic instruments and introduce new ones, such as the suggested per-kilometre tax on lorries and cars (with differentiated rates according to time, place and the environmental impact of each vehicle) or other relevant instruments; • work towards eliminating domestic and international distortions in competition among transport modes (e.g. subsidisation, taxation, standards), including within the EU, IMO and ICAO; • pursue efforts to reduce noise emissions from road, rail and air traffic (e.g. emission reduction at source); • urgently define and implement a package of measures to reduce CO2 emissions from freight and passenger transport; • continue to improve accident prevention and preparedness in the transport of hazardous substances.
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33
International Co-operation
The Netherlands has continued to play a leading, proactive role in the development and implementation of international environmental laws reflecting the regional and global interdependencies of its environment and economy. These efforts have been carried out in the interest of the international community, as well as in the Netherlands’ own interest. Concerning climate change, the Netherlands was very active in helping to achieve progress towards the entry into force of the Kyoto Protocol. It succeeded in bringing about a relative decoupling of its CO2 emissions from GDP growth, largely due to a 14% decrease in the energy intensity of the Dutch economy between 1990 and 2000. By significantly reducing emissions of NOx, SOx and NMVOCs, the Netherlands has more than met its reduction targets under the Oslo, Sofia and Geneva Protocols to the LRTAP Convention. It continues active enforcement of marine agreements. It carries out regular surveillance and enforcement in its Exclusive Economic Zone (EEZ) against illegal dumping or discharges from ships. At least 25% of foreign ships calling at Dutch ports are consistently inspected for compliance with MARPOL standards. The Netherlands reduced point source discharges of nitrogen and phosphorous to the North Sea to the extent of being on track to meet its North Sea Conference targets. Partly due to a successful environmental agreement with offshore oil and gas producers, the frequency and magnitude of oil spills and flaring have been reduced; fugitive methane emissions have been limited and compliance with OSPAR limits on oil in effluents has improved. Based on its experience with a prior informed consent (PIC) system to regulate exports of dangerous chemicals to developing countries, the Netherlands played a key role in developing the 1998 Rotterdam PIC Convention. It is one of the few countries that consistently meet UN targets for official development assistance; it also meets its own national commitment regarding the environmental component of its ODA. Despite these impressive achievements, the Netherlands could improve its performance in meeting several international environmental commitments. It failed to meet its national target for stabilising CO2 emissions at their 1990 level by 2000. The ancillary benefits of domestic climate protection measures were not taken into account when preliminary targets were established for realising 50% of the country’s Kyoto commitment through domestic measures. The polluter pays principle (PPP) has not been integrated into early plans to use the Kyoto mechanisms. New reduction targets concerning transboundary air pollutants under the Gothenburg Protocol and the EU National Emission Ceilings (NEC) Directive will require implementation of additional domestic control measures. Stricter
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standards established in 2000 under MARPOL Annex VI are likely to necessitate tighter control of atmospheric SOx emissions in the offshore zone. To comply with the EU Nitrates Directive, the Netherlands will need to strengthen control of nitrogen emissions from agriculture. It should accelerate efforts to designate marine protected areas, so as to implement the Habitats Directive fully in its 200-mile EEZ. In line with FAO recommendations, it has attempted to implement vessel decommissioning schemes to reduce fishing capacity but with little success thus far. Shared and straddling marine fish stocks in the North and Wadden Seas need to be restored: many of these stocks are classified as “outside biologically sustainable limits”. Progress towards Objective 2000 of the International Tropical Timber Organisation (ensuring that all imported hardwood comes from sustainably managed forests) appears to have lost momentum. While development assistance projects are expected to comply with host country requirements concerning the application of environmental impact assessment, the Dutch government does not require systematic application of EIA for these projects.
It is recommended to: • take into account ancillary benefits of reducing SOx and VOC emissions when assessing the cost-effectiveness of potential greenhouse gas (GHG) reduction measures, and develop means to implement the polluter pays principle through the Kyoto mechanisms; • take steps to ensure full implementation and enforcement of new international commitments concerning port reception and ship-generated wastes and cargo residues; • continue to work in international fora to promote management of shared and straddling marine stocks in the North Sea following an ecosystem management approach; • put an end to illegal trade in ozone depleting substances; • co-operate internationally to develop means of ensuring that timber and wood products imported to the Netherlands originate from sustainably managed tropical and boreal forests; • strengthen and generalise requirements concerning environmental impact assessment, to apply to all major projects financed through international assistance (ODA and non-ODA); • ratify and implement recent international environmental agreements.
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Part I
ENVIRONMENTAL MANAGEMENT
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2
AIR MANAGEMENT*
Recommendations The following recommendations are part of the overall conclusions and recommendations of the OECD Environmental Performance Review of the Netherlands: • continue efforts to reduce emissions of NOx, particulate matter and NMVOCs (e.g. from transport, energy and industry) in light of persistent problems with concentrations of NO2, PM10 and ozone in some areas; implement the proposed NOx emission trading scheme; • pursue efforts to reduce ammonia emissions from agriculture; • provide small businesses with appropriate enforcement mechanisms to address long-term emission objectives, particularly for ozone precursors and priority substances; • continue to work towards increased energy efficiency; • expand the use of renewable energy sources (e.g. in municipalities and large firms).
Conclusions The Netherlands has successfully decoupled emissions of most traditional air pollutants from economic growth, improving urban air quality and reducing the Dutch contribution to transboundary air pollution. For most of the 50 priority air * The present chapter reviews progress in the last ten years, and particularly since the previous OECD Environmental Performance Review of 1995. It also reviews progress with respect to the objective “maintaining the integrity of ecosystems” of the 2001 OECD Environmental Strategy. It takes into account the latest IEA Energy Policy Review of the Netherlands.
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pollutants, emissions have been reduced to (or even below) targets set domestically and internationally to protect human health and the environment. This has been accomplished with a mix of instruments. Substantial reductions in emissions of toxic chemicals have also been achieved. Taxes on energy and transport have played a role, as well as active participation by the industrial sector in environmental agreements on reducing air pollutant emissions and improving energy efficiency. Air pollutant emission trading schemes are being developed. Ammonia emissions from agriculture were reduced by 15% between 1996 and 2002, partly due to the introduction of standards for manure storage facilities and manure spreading techniques. The proposed NOx emission trading scheme should be implemented. However, greenhouse gas emissions have not yet been decoupled from economic growth. Ozone, NOx and fine particles still contribute to regional problems of photochemical pollution and acidification of ecosystems. Environmental agreements have not succeeded in meeting industry targets for NOx. New policy measures will be needed to address these concerns, particularly in the energy, transport and agricultural sectors. Despite some improvements in recent years, final energy consumption per unit of GDP in the Netherlands remains above the OECD Europe average. Measures taken have not been effective enough to increase the use of renewable energy sources. Limited progress in reducing air pollutant emissions has been made by small and medium-sized firms. There has been too little progress in the transport sector. N2O (nitrous oxide) emissions from agriculture have not been reduced.
1.
Evaluation of Performance 1.1
Policy objectives
The Netherlands’ main policy objectives in the area of air management are to achieve its domestic air quality standards and to reduce polluting emissions, in conformity with EU Directives and international agreements such as the Gothenburg and Kyoto Protocols. Air quality objectives for priority substances have been set, as well as emission reduction objectives to reduce acid deposition and greenhouse gas concentrations. The fourth National Environmental Policy Plan (NEPP4) set new targets for emissions and deposition of acidifying substances (SO2, NOx, NH3 and VOCs) by 2010. The emission reduction targets are less ambitious than those under NEPP3. In particular, it was estimated that immense efforts would be needed to meet the 2010 NEPP3 emission targets for nitrogen oxides (NOx) and ammonia (NH3). In NEPP3 it was determined that emissions of all these substances should be maintained at 2000 levels until 2005. The 2000 emission target for sulphur dioxide (SO2) has been
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achieved; the target for volatile organic compounds (VOCs) has been exceeded by almost 50% (partly reflecting a change in the calculation method since the target was set). The NEPP4 deposition targets for 2010 are also less ambitious for nitrogen and potential acid deposition. This means there will be less effective protection of nature than had been envisaged; while the NEPP3 targets focused on complete protection of some 80% of natural areas, the new targets are intended to provide complete protection of only 20 to 30% of these areas. Nonetheless, the national emission reduction targets proposed for 2010 in NEPP4 are more demanding than those proposed in the 2001 EU Directive on National Emission Ceilings (EU-NEC) or in the 1999 Gothenburg Protocol. The Dutch point out that there are three explanations for this: i) a safety margin can ensure that international agreements to which the Netherlands is committed are met, even in the event of disappointing results; ii) more ambitious targets are appropriate to the pioneering role the Netherlands and several other countries have sought to play in Europe; iii) greater emission reductions offer greater nature protection. The 1996 EU Air Quality Framework Directive (AQFD) established air quality objectives. Its first Daughter Directive (1999) set quality standards for NOx, SO2, lead and particulate matter (PM10). The second Daughter Directive (2000) set standards for CO and benzene. There will be new ozone standards in the third Daughter Directive, which is under preparation. The 1995 OECD Environmental Performance Review recommended that the Netherlands: – step up efforts to increase the effectiveness of permitting and enforcement procedures at provincial and municipal levels, building on progress already accomplished; – ensure the monitoring and effectiveness of existing voluntary agreements; encourage industrial branches and individual facilities to draw up their own programmes of emission reduction; – review the potential of using economic instruments more widely; – continue efforts to lower the energy intensity of the Dutch economy, through progress in energy efficiency and energy consumption patterns; – strengthen measures to reduce the emission of priority substances and VOCs from stationary sources; – strengthen the contribution of the agricultural sector (e.g. by further reducing ammonia emissions) and the transport sector (e.g. emissions of NOx, VOCs, CO2).
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1.2
Trends in air emissions
Overall, Dutch environmental policy has been successful with respect to air emissions. Emissions of most of the Netherlands’ 50 priority pollutants have been reduced close to or even below target values. Thus they pose no or a very limited threat to human health and the environment. Even in the case of substances that continue to present problems, emissions have been reduced significantly. However, concentrations of the following substances substantially exceed the target values: acrolein, benzene, ethylene, toluene and polycyclic aromatic hydrocarbons (PAHs). Maximum permissible concentrations of some substances are even exceeded. These substances include fluorides (near industrial sources), NOx (in urban areas with high traffic density), particulate matter (PM10) and tetrachloroethylene (near dry cleaners).
Traditional pollutants In the 1990s the Netherlands realised large emission reductions for a range of traditional pollutants (Table 2.1). All its international commitments to reduce emissions of traditional air pollutants have been met so far. It has also made good
Table 2.1
Emissions of traditional air pollutants by source, 1990-2000 (1 000 tonnes) SO2
(%)
NOX
(%)
NMVOCs
(%)
1990 2000 Industrial combustion 1990 2000 Non-industrial combustion 1990 2000 Industrial processes 1990 2000 Mobile sources 1990 2000 Miscellaneous 1990 2000
112.6 48.3 44.2 14.7 8.1 1.2 6.7 2.6 29.4 23.6 1.4 0.7
55.7 53.0 21.8 16.2 4.0 1.3 3.3 2.9 14.5 25.9 0.7 0.7
101.1 58.8 77.2 43.3 41.9 34.7 1.5 0.6 350.2 282.9 1.9 0.7
17.6 14.0 13.5 10.3 7.3 8.2 0.3 0.1 61.0 67.2 0.3 0.2
25.9 20.7 3.9 3.2 15.8 11.1 60.5 25.7 200.4 114.9 197.1 105.0
5.1 7.4 0.8 1.2 3.1 4.0 12.0 9.2 39.8 40.9 39.1 37.4
21.8 31.9 224.4 115.5 117.1 53.1 42.4 35.3 754.2 461.8 4.6 3.5
1.9 4.5 19.3 16.5 10.1 7.6 3.6 5.0 64.8 65.9 0.4 0.5
Total
202.3 91.2
100.0 100.0
573.8 421.0
100.0 100.0
503.5 280.7
100.0 100.0
1 164.5 701.0
100.0 100.0
Power stations
1990 2000
Change 2000/90 (%) Source:
–54.9
–26.6
–44.2
CO
(%)
–39.8
EMEP.
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progress towards meeting pending international commitments, except in the case of NOx emissions (Table 8.3). The situation is different with regard to the more ambitious domestic objectives in the NEPPs. In 2000 these objectives were met for SO2 emissions but not for emissions of NOx and VOCs (Table 5.12). Since 1990 national emissions of SOx have been reduced by over 50%, those of NMVOCs and CO by over 40% and those of NOx by less than 30%. These emission reductions are mainly attributable to technological changes. SOx and NOx emissions were strongly decoupled from economic growth in the 1990s (Figure 2.1). This decoupling built on significant progress in the 1980s for SOx but marked a change with respect to NOx emissions, which had been stagnating or even increasing until the early 1990s. Emission intensities (kg/unit GDP) of SOx and NOx are well below the OECD and OECD Europe averages (Figure 2.1). For SOx emissions the Netherlands is among the best performing OECD countries; for NOx emissions its performance is surpassed by only a few other European countries and Japan. Emissions of particulate matter have been substantially reduced (by 60% in industry and by 30% in transport) over the past decade. However, the major share of decreases in PM10 concentrations have resulted from measures taken in other countries to reduce emissions of SO2 and primary particulate matter. It is estimated that domestic sources contribute only about one-quarter of total Dutch PM10 concentrations. Traffic contributes around one-third.
CO2 emissions CO2 emission intensity is higher than the OECD Europe average and ranks 15th among OECD countries. CO2 emissions increased by nearly 11% between 1990 and 2000. The Netherlands therefore failed to meet its national target of stabilising CO2 emissions during this period (Chapter 8, Section 1.3). Meeting the Kyoto target will clearly require additional measures (Table 8.2). The Dutch commitment under the Kyoto Protocol (and as part of the EU’s burden-sharing agreement) is to reduce its GHG emissions by 6% compared with 1990 levels by 2008-12. National CO2 emissions were not decoupled from GDP until 1996 and have been only weakly decoupled since (Figure 2.1). Decoupling has mainly resulted from improvements in energy efficiency, especially in the energy-intensive industry and power production sectors (Chapter 2, Section 2.1).
Ammonia and toxics Emissions of ammonia (NH3) were reduced by one-third in the 1990s, reflecting a decrease in the number of livestock as well as implementation of reduction measures (Table 8.3). This is far below national targets, but indicates progress towards meeting the pending Gothenburg and EU-NEC commitments.
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OECD Environmental Performance Reviews: Netherlands
Figure 2.1 Air pollutant emissions SOx State, 2000a per unit of GDPb
Trends in the Netherlands Index 1990 = 100
GDPb
120 Fossil fuel supply
100 80 60 40
SOx emissions
Netherlands
0.2
United States Japan Denmark France Germany Italy United Kingdom
2.0 0.3 0.2 0.7 0.4 0.8 1.0
OECD Europe OECD
20 0 1990
1992
1994
1996
1998
2000
1.3 1.5 0.0
1.0
2.0
3.0
kg/USD 1 000
NOx State, 2000a per unit of GDPb
Trends in the Netherlands Index 1990 = 100
GDPb
120 Fossil fuel supply
100 80
NOx emissions
60 40
Netherlands
1.1
United States Japan Denmark France Germany Italy United Kingdom
2.7 0.5
1.5 1.3 0.9 1.2 1.3
OECD Europe OECD
20 0 1990
1992
1994
1996
1998
2000
1.4 1.9 0.0
1.0
2.0
3.0
kg/USD 1 000
CO2c Trends in the Netherlands Index 1990 = 100
State, 2000 per unit of GDPb GDPb Fossil fuel supply
120 100 80
CO2 emissions
60 40
0.44 0.38 0.37 0.26 0.43 0.34 0.44
0.63
OECD Europe OECD
20 0
Netherlands United States Japan Denmark France Germany Italy United Kingdom
1990
1992
1994
1996
1998
2000
0.41 0.51 0.0
0.2
0.4
0.6
0.8
tonnes/USD 1 000
a) Or latest available year. b) GDP at 1995 prices and purchasing power parities. c) Emissions from energy use only; excludes international marine and aviation bunkers. Source: OECD; IEA.
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Emissions of toxic air contaminants except copper fell dramatically in the 1990s (Table 2.2). Per capita dioxin emissions are now the lowest in the EU. Emissions of heavy metals and persistent organic pollutants (POPs) are already well below those established in the Netherlands’ provisional commitments under the Aarhus protocols to the Convention on Long-range Transboundary Air Pollution (Table 8.3).
Table 2.2
Emissions of toxic air contaminants, 1990-98 (tonnes) 1990
Organic compounds PAHs Dioxina
1 759 611
Heavy metals Cadmium Chromium Copper Mercury Lead Nickel Zinc
1.9 11 19 3.0 333 84 221
1995
1998
929 67
713 44
1.0 8.2 20 1.1 159 96 144
1.2 5.4 21 0.6 44 53 100
a) In grams of international toxicity equivalent (I-TEQ). Source: CBS.
1.3
Trends in air quality
The Netherlands does meet the EU air quality standards introduced in 1999 for SO2 and lead (Figure 2.2 and Table 2.3). Reduction of emissions from traffic has brought about a decrease in NO2 concentrations. However, quality standards for NO2 concentrations are still exceeded, especially where there is high traffic intensity (e.g. the Rhine estuary, Amsterdam and its surrounding area, urban areas near motorways). The annual average NO2 concentration of 40 µg/m3 has been exceeded along 1 700 kilometres of road, 40% of which is located within one of the four major urban areas. In over 50% of cases exceedance is by less than 5 µg/m3, though there have been exceedances of up to 25 µg/m3.
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Figure 2.2 Trends in air quality, selected cities, 1990-2001
SO2a
NO2a
µg/m3
µg/m3
WHO guideline
50
60 50
40 40 30
30
20
20
10
0
WHO guideline
10
1990
1992
1994
1996
1998
0
2000
1990
1992
1994
1996
1998
2000
1998
2000
PM10a Oxidantsb ppb
µg/m3
200
50
180 National standard
160
40
140 120
30
100 80
20
60 40
10
20 0
0 1990
1992
1994
1996
1998
Rotterdam (Schiedamsevest)
2000 The Hague (Rebecquestraat)
1990
1992
1994
Vlaardingen (Lyceumlaan)
1996
Witteveen (Talmaweg)
a) Annual averages. b) Annual maximum hourly concentrations. Source: RIVM.
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Concentrations of particulate matter (PM10) have been monitored since 1992. The average annual concentration fell from 43 µg/m3 in 1992 to less than 35 µg/m3 in 2000. The annual threshold value of 40 µg/m3 is still slightly exceeded in some urban and highly industrialised areas, mainly in the southern part of the country. High background concentrations mean that a slight increase in emissions from local sources in large cities or around large industrial complexes is sufficient to raise concentrations above the air quality standard. The annual average target for 2005 is within reach under a business as usual scenario; the target for 2010 (and a stricter EU target for 2010, which was expected to come into force in 2003) are not within reach. The 2010 target will be especially difficult to achieve, even in the very long term. The daily average target for PM10 in 2005 will probably be exceeded in some parts of the Netherlands, though the number of exceedances fell in the 1990s. Meeting the stricter target for 2010 does not appear feasible on the basis of current policy. The number of days on which the eight-hour average standard for ozone (110 µg/m3) was exceeded fell by half in the 1990s. This is now 15 days per year, or 10 days per year if the proposed EU target for 2010 of 120 µg/m3 were in effect. Human exposure to high
Table 2.3
Legal ambient air quality standards (µg/m3)
Pollutant
Parameter
Limit value
Maximum number of exceedances allowed per year
Year of compliance
SO2a
Daily mean value 1-hr mean value Annual mean value Daily mean value Annual mean value 1-hr mean value 8-hr mean value Annual mean value Annual mean value 8-hr mean value
125 350 40b 50 40 200 10 000 5 0.5 120
3 24 0 35c 0 18 0 0 0 20
2001 2001 2005 2005 2010 2010 2005 2010 2001 2010
PM10 NO2a COd Benzened Lead Ozonea, e
a) Human health standards. 2010 standards for nature are 20 µg/m3 in winter, an annual mean of 30 µg/m3 (NOx) and a 1-hr mean of 80 µg/m3 in May, June and July (ozone). b) 20 µg/m3 by 2010. c) Maximum of 7 exceedances per year allowed by 2010. d) EU standards not yet transposed in Dutch legislation. e) Proposed EU standard. Source: VROM.
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ozone concentrations has decreased, from 65 to 40% of the population. Implementation of the forthcoming Daughter Directive on ozone (Chapter 2, Section 1.1) will have a limited impact on Dutch policies already in place. The NEPP4 long-term ambient air quality target for nature (less than 6 000 hours exceeding 80 µg/m3 in spring) is exceeded in many parts of the Netherlands. Further actions are needed to reduce emissions of ozone precursors in the transport and energy sectors.
1.4
Integration of air pollution concerns into sectoral policies
The major sources of SO2, NO2, VOC and particulate matter emissions in the Netherlands are road traffic and the industrial and energy sectors. Agriculture is the main contributor of NH3 emissions. National emission targets have been translated into targets for these sectors. Substantial reductions in air pollutant emissions have been achieved despite increases in primary energy supply and final energy consumption (both around 15%) and road traffic (increases in vehicle-kilometres of nearly 20% for passenger cars and of nearly 25% for freight). To meet domestic emission targets for 2010, the Netherlands will need to achieve substantially higher emission reductions than at present. Many emission targets will be met using the proposed policy mix (i.e. based mainly on regulations, environmental agreements and fiscal instruments). However, additional reduction measures will be needed if domestic targets are to be met in their entirety.
Agriculture Ammonia (NH3) emissions largely contribute to acidification of the soil and eutrophication of natural areas (by causing grass invasions) (Figure 4.2). Agriculture is the largest producer of ammonia (94%); little is generated by households (4%) or industry (2%). Most agricultural emissions (90 to 95%) originate from livestock manure and the rest from fertilisers. Emissions from animal manure have been reduced significantly since 1990. Total ammonia emissions from agriculture decreased by one-third between 1990 and 2000. Even greater reductions were achieved in areas with the highest ammonia emissions. The Netherlands has made good progress towards meeting its international commitments to reduce NH3 emissions under the 1999 Gothenburg Protocol to the Convention on Long-range Transboundary Air Pollution and the 2001 EU Directive on National Emission Ceilings (Table 8.3). Domestic objectives are more ambitious; in 2000 the NEPP target for NH3 emissions was not met (Table 5.12). The Dutch policy for addressing mineral surpluses in agriculture was introduced in the 1980s. The first measures were aimed at minimising their negative effects. Over the years there have been progressively tighter and more comprehensive regulations and standards. The policy on mineral surpluses became considerably more
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rigorous in 1999, when priority was given to meeting environmental targets on farms. The Minerals Accounting System (MINAS) was fully implemented well ahead of schedule; all farms are required to submit a minerals return. A system of manure transfer contracting was to be introduced in 2002. Livestock farmers with manure surpluses would be required to sign contracts with farms that have a manure shortage or with manure processors. Those unable to dispose of all their surplus manure in this manner might have to reduce the number of their livestock. Other more specific instruments have been used to tackle ammonia emissions. These include regulations on spreading of manure and other types of organic fertiliser on land, and regulations intended to reduce emissions from manure storage (Chapter 2, Section 2.2). The new EU requirement to reduce emissions from livestock housing is expected to have the greatest effect in reducing ammonia emissions to acceptable levels in the Netherlands.
Energy and industry While the greatest reductions of SO2 emissions have been achieved by refineries, which met their emission target (36 million kg in 2000), the industrial sector has not meet its target (15 million kg in 2000) although it has made good progress through technological innovation. Coal-fired power stations met their emission target for 2000 despite a slight increase in emissions attributable to use of coal with high sulphur content. Industry and the energy sector have not planned new SO2 emission reduction measures before 2005; growth in the energy sector will probably be offset by reduced use of oil-based fuels. The 2010 NEPP4 emission target for the industrial, energy and refinery sectors is 30 million kg. NOx emissions from the industrial, energy and refinery sectors and from waste incineration facilities fell from 120 million kg in 1995 to 90 million kg in 2000. To meet the 2010 NEPP4 target (55 million kg), a NOx emission trading scheme will be put into effect by late 2004. This scheme should encourage all actors involved to take the most cost-effective measures. However, transition to this new policy instrument is currently slowing implementation of other emission reduction measures. For example, very limited use has been made of incentive schemes for end-of-pipe technology and the number of such measures proposed up to 2004 is also limited. It is important that the trading scheme be established in time to prevent further delays in NOx reductions. The need to amend the Environmental Management Act to bring it into conformity with EU legislation is one factor to be considered. The government and the business community have agreed on the principle of introducing NOx emission trading. Design of this scheme is well advanced. For large companies emission trading would replace the current use of environmental agreements
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and permits. The NOx emissions scheme owes much to the United States’ experience with tradable emission rights. Approximately 200 Dutch firms (large players) would participate, ensuring an adequate market and trading volume. It is uncertain how implementation of this scheme would affect development of the power generation capacity of the electricity industry. At the time the scheme was initiated, it was assumed that the electricity sector with its relatively high potential for cost-effective emission reduction would be a net supplier of NOx emission rights. However, if electricity imports increased as a result of deregulation, there could be fewer possibilities to achieve reductions and NOx credits would therefore be more expensive. NEPP4 states that if the trade of NOx emission permits for energy-intensive industry, refineries and power plants is successful, the scheme could be expanded to other sectors. Measures to reduce VOC emissions from stationary sources over the last 15 years were established in the Hydrocarbons 2000 programme (KWS2000). VOC emissions in the industrial sector have fallen by approximately 50% compared with 1981, in line with the KWS2000 objective; they now contribute 25% of total VOC emissions. More proactive implementation and better enforcement could lead to further reductions in sectors where KWS measures have not yet been adequately implemented (e.g. industrial printing and solvent applications). The 2010 NEPP4 emission target for the industrial, energy and refinery sectors is 60 million kg. Industry has also substantially reduced emissions of particulate matter in recent years (Chapter 2, Section 1.3). KWS2000 assigned an important role to environmental agreements between government and industry, in which emission reductions to be achieved by 2000 were set out. These agreements, combined with proper inspection and enforcement of permits, have provided good results using tested techniques that are easy to adopt and commercially affordable. This is the case for the majority of measures taken in the chemicals, refining, storage and transhipment sectors and under the Energy Efficiency Benchmarking Agreement (EEBA) (Chapter 2, Section 2.3). EAs do not guarantee how quickly new technologies will be introduced, and SMEs are not involved in these agreements. Adoption of new technologies tends to take longer than expected despite financial incentives. EAs are less effective when high costs are involved, as they can adversely affect the competitiveness of the companies concerned.
Energy prices and taxation The Netherlands has the highest level of gas penetration in the world. It accounts for 8.5% of total gas consumption in Europe. As the second largest natural gas producer in western Europe after the UK. and the second largest exporter after Norway, it is more than self-sufficient. Since the Netherlands is a large natural gas producer, it may appear surprising that natural gas prices for Dutch industry and households are higher than the OECD Europe averages (by 6% in 2001) (Table 2.4).
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Dutch gas pricing policy was established following the discovery of the Groningen gas field in 1959. The Ministry of Finance sets gas prices according to the “market value” principle. To generate maximum revenue for the State and the concession holder (i.e. a 50/50 public-private joint venture with Shell and Exxon), the consumer price of gas is linked to the prices of alternative fuels. These fuels include domestic heating oil and diesel for households and small-scale users, and heavy fuel oil for industrial and other large-scale users. Consumers never pay more for gas than they would for alternative fuels. The market value principle also ensures that they do not pay less. Applying this principle has raised much more revenue than if consumer prices had reflected low production costs. To avoid disruptions of the energy market, control of the gas supply is a government responsibility. Despite some adjustments, the institutional set-up and principles governing gas production, marketing, pricing and profit distribution have prevailed up until now. From the mid-1970s, in addition to the Groningen supplies, increasing volumes of gas were supplied by Dutch on-shore and off-shore fields (large and small); the 50/50 publicprivate joint venture was given exclusive responsibility for co-ordinating the trade and distribution of Dutch natural gas resources. Following liberalisation of gas supply to large consumers in 1998, and enactment of the 2000 Natural Gas Act, the holder of trade and distribution rights lost a 15% share of the industrial market. However, the EU Gas Directive liberalises only trade and distribution; it does not interfere with the structure or organisation of production. Co-ordination among the few large joint ventures to control supply in the EU’s four producing countries has avoided large-scale competition and maintained oil parity pricing. The Minister of Finance approves the selling prices charged by the holder of trade and distribution rights, and is authorised to establish maximum prices if selling prices are considered not to reflect market value. The Minister also has the power to make binding recommendations to individual gas companies concerning their tariffs. In principle, no legal restrictions apply to prices charged by local distribution companies. This pricing policy has contributed to economic growth and to maintenance of the generous Dutch welfare system. In the early 1980s aggregate State revenue from exploitation of gas reserves represented some 15 to 16% of overall State revenue (exclusive of social security contributions). Currently this share is below 5%. Since competition was introduced in the power market in 1998, the necessary institutions and secondary legislation have been put in place to make this market highly competitive. Three of the Netherlands’ four large generators have been sold to foreign utility investors. As in the gas industry, full market competition is to be introduced in the electricity industry in 2004 according to an accelerated schedule. In 2001 electricity prices for Dutch industry were 10% higher than the average for OECD Europe; prices were significantly higher (by 17%) for households (Table 2.4).
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The six Dutch power utilities offer a “green energy scheme”. Businesses that are large consumers can choose to receive a portion of their power from renewable sources. This scheme, introduced in 1995, currently represents about 1% of consumption. Customers pay an extra EUR .04 to EUR .06/kWh on top of the basic EUR .21. The Dutch World Wildlife Fund for Nature monitors how utilities spend this additional revenue. In 1996 a Regulatory Energy Tax (REB) on natural gas, electricity, fuel oil and heating oil was introduced, with the object of changing consumer behaviour by creating energy efficiency incentives. To maintain sectoral competitiveness, major energy users are exempted; 60% of revenue from these taxes comes from households, and income taxes have been lowered to offset this burden. The 40% of the revenue from businesses is recycled using three mechanisms: reduced employer contributions to social security, reduced corporate income taxes, and a higher tax exemption for the self-employed. A small portion (8%) of the revenue from the REB has been used to encourage specific energy saving measures (e.g. insulation, A-label refrigerators and washing machines). A general fuel tax, originally implemented as a charge in 1988 and modified as a tax in 1992, is levied on fossil fuels including natural gas. While this tax was designed principally for revenue generation, rates are based on fuels’ carbon and energy content. These two taxes (the REB and general fuel tax) have not always encouraged use of energy with low environmental externalities. Household use of natural gas fell by 6% between 1992 and 2000; consumer use of electricity increased by 3% between 1996 and 2000 (Table 2.5). The price increase undoubtedly contributed to more economical use of natural gas. Contributing factors include switching to double-paned windows and high-efficiency boilers. Electricity consumption rose because the increase in the REB was largely offset by a fall in net prices. Moreover, household electrical appliances have become less expensive to own. The excise duty on fuels increases annually according to inflation. This has not prevented greater consumption of road fuels, despite simultaneous increases in their net prices (Table 2.5). Fuel price differentials have remained virtually unchanged since the early 1990s, with diesel costing some EUR 0.40 less per litre than petrol (Figure 7.4). Tax differentials favouring diesel over petrol for motor vehicles are among the highest in the OECD. Sale of leaded petrol ceased in 1998.
Transport Road traffic volume, as measured in vehicle-kilometres, increased by 36% between 1986 and 1999, already exceeding the Second Transport Structure Plan
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Table 2.4
51
Energy prices in selected OECD countries, 2001 Electricity a
Oil
Households Industry (USDb/kWh) (USDc/kWh)
Netherlands United Statesf Japan Denmark France Germany Italy United Kingdom OECD Europe OECD Dutch price/OECD Europe (%) Dutch price/OECD (%)
0.059 0.042 0.143h 0.060 0.036g 0.041g 0.089g 0.048 0.052g 0.047g 110g 121g
Industry (USDb, d/t)
0.173 0.085 0.148g 0.192 0.115g 0.138g 0.183g 0.108 0.134g 0.107g 117g 147g
.. 146.8 217.2 .. 154.4 .. 197.5 177.4 195.7 189.0 .. ..
Natural gas
Households Industrya Households (USDc, e/1 000 l) (USDb/107 kcal) (USDc/107 kcal)
652.8 340.4 331.6 668.7 417.4 394.3 1 013.0 295.6 477.8 435.3 137 150
175.6 191.5 452.7g .. 187.1 187.9g .. 133.6 157.7g 168.6g 106g 99g
480.6 375.3 895.3g 698.5 470.5 425.6g 746.5h 306.4 405.0g 392.7 106g 122
a) Average prices; actual prices depend on amounts purchased by individual enterprises. b) At current exchange rates. c) At current purchasing power parities. d) High-sulphur oil. e) Light fuel oil. f) Electricity prices exclude tax. g) 2000 data. h) 1999 data. Source: OECD; IEA.
Table 2.5
Energy prices and average energy consumption Diesel
b
Net price Fuel taxc Regulatory energy taxb VATb Total priceb Consumptiond
Natural gasa
Unleaded petrol
1990
2000
1990
26 20 .. .. 46 3.5
32 30 .. .. 63 4.9
31 55 .. .. 86 3.7
2000
Electricitya
1990
1992
2000
35 19 70 .. .. .. .. 2 105 21 4.3 2 300
19 1 .. 4 24 2 100
14 1 9 3 27 1 965
1990
2000
8.5 8 7.5 .. .. .. .. 1.5 3 1.5 1.5 1.5 10 11 12 2 800 3 200 3 300
a) Households. b) Eurocents/litre (diesel and gasoline); eurocents/m3 (natural gas); eurocents/kWh (electricity); prices in 1990. c) Includes excise duty on fuels (diesel and petrol). d) Mtoe (diesel and petrol); m3/year (natural gas); kWh/year (electricity). Source: Green Tax Commission.
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(SVV2) target of a 35% maximum increase between 1986 and 2010. Private cars remain the dominant mode for passenger traffic (142 billion passenger-kilometres in 2001, an 8% increase compared with 1990). Inland waterway shipping of heavy loads (e.g. construction materials, coal) remains – in tonne-kilometres – the dominant mode of freight traffic (42 billion tonne-kilometres in 2001, an 18% increase compared with 1990). However, the rate of growth of road freight transport, mainly across the Belgian and German borders, has exceeded that of GDP since the early 1990s as it has continued to take market share away from inland waterway shipping (Figure 7.3). Road freight transport is the dominant mode as a share of GDP, totalling 31 billion tonne-kilometres in 2001; pipelines and rail transport accounted for 6 billion and 4 billion tonne-kilometres, respectively. The predominance of freight transport by road has probably had negative impacts on both energy efficiency and air pollutant emission reductions. Energy consumption by the transport sector, which increased by 34% between 1990 and 2000, accounts for 23.5% of total final energy consumption (compared with 20.4% in 1990); road transport represents 69% of the transport sector. The Dutch rate of motorisation (40 cars per 100 people) is rather low. Despite increased road traffic volume, emission performance in the transport sector has improved except for CO2. In the last decade NOx, NMVOC, CO and SO2 emissions from mobile sources decreased by 19, 43, 39 and 19% (Table 2.1); CO2 emissions increased by 19%. The decreases are still far below the NEPP2/SVV2 targets of reducing NOx and CO2 emissions from road traffic by 75% and 10%, respectively, between 1990 and 2010. Considerable progress still needs to be made to meet the NEPP4 sectoral transport emission targets of 13 million kg of SO2, 150 million kg of NOx and 49 million kg of NMVOCs by 2010. The transport sector remains one of the largest sources of national emissions of NOx (67%), CO (66%), PM10 (50%) and NMVOCs (41%). SO2 emissions from road transport are decreasing, but those from sea and river shipping are increasing and there are no international agreements with respect to reducing them. Emission reductions essentially reflect renewal of the car fleet. Over 80% of petrol fuelled cars are fitted with catalytic converters, a large share by EU standards. Petrol accounts for 44% of energy consumed by road vehicles (50% is diesel and 6% LPG). Sectoral targets for CO, NOx, PM10 and NMVOCs are derived from (the agreed further) tightening of EU (Euro) emission standards for passenger cars. The highest reductions up to 2005 should be in NOx emissions. A sharp fall in emissions per kilometre in recent years was already attributable to early introduction of fiscal measures under stricter EU legislation. In some cases NO2 exceedances can be addressed through implementing specific local government policies (e.g. reducing traffic in city centres and lowering highway speed limits near built-up areas), but considerable efforts may be required to do so. EU legislation will also lead to phased reductions of NMVOC emissions.
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To meet the 2005 objectives for SO2 emissions, low-sulphur diesel was introduced in 2000 in anticipation of new EU quality standards. Following the government’s decision in 2001 to reduce taxes on it by 6% to compensate for higher oil prices, introduction of low-sulphur diesel proceeded much more rapidly than expected. In 2002 reduced taxes were also introduced on low-sulphur petrol, with similar effects on consumers. Fiscal measures have been implemented to curtail increases in road traffic volume, but with little effect. The Netherlands imposes much higher registration taxes (close to 50% of the purchase price, VAT included) than most other EU countries and its petrol taxes are also high (Figure 7.4). Motor vehicle taxes are among the highest in Europe, ranging from EUR 300 to EUR 800 for most private passenger cars, according to weight (Table 5.2). Both registration and motor vehicle taxes are higher for diesel cars. Commuting by public transport is encouraged, especially over long distances (more than 30 kilometres). Employees are reimbursed the full cost of public transport tickets (whatever the distance travelled) and employers may claim a significant tax deduction (for a maximum of 80 kilometres travelled). Employees commuting by private car are also reimbursed with a moderate lump sum for distances between 10 and 30 kilometres; deductions are much less favourable to employers. There are more advantageous deductions for car pooling (the car owner may be reimbursed an extra EUR 0.34 per kilometre). Until the end of 2002, commuting by bicycle was also encouraged fiscally (the Netherlands has 15 million bicycles). Employers offering bicycles to their employees could claim a tax deduction of up to EUR 68 per bicycle every three years. This measure was abolished in 2003. Since 1999 all EU member States have been required to label cars according to fuel efficiency and CO2 emissions relative to vehicle size. In 2002, under a scheme intended to encourage the purchase of fuel-efficient cars, the Dutch government rewarded those who chose a low CO2 emitting car with a tax reduction of up to EUR 1 000 (Chapter 5). This measure was abolished in 2003 for budgetary reasons. More should be done to reduce emissions from the existing fleet. Some 20% of passenger cars do not comply with air pollutant emission standards. Cars three years old are subject to annual emission inspections. The 1999 EU Directive on charging heavy goods vehicles for infrastructure use (“Eurovignette”) introduced charges for the use of motorways. It imposes a maximum road user charge for various vehicle categories, differentiated according to number of axles and emission class. Along with Belgium, Denmark Germany, Luxembourg and Sweden, the Netherlands is participating in the Eurovignette scheme. A speed limit of 100 km/h (instead of 120 km/h) applies to vehicles on 17% of the total length of motorways and highways (the busiest stretches accounting for 33% of traffic
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volume). Reversion to the general speed limit in effect before 1988 (100 km/h on all motorways and highways) would reduce CO2 emissions by 1 million tonnes per year if it were fully enforced (total CO2 emissions from fuel combustion are currently some 177 million tonnes). The Passenger Transport Act of 2000, which empowers local authorities to require improved environmental performance by vehicles in use, established a new institutional framework for public transport services. The purpose of this reform has been to attract more customers, with less expenditure of public money, through tendering of urban and regional transport services by the 35 local transport authorities created in 1998. As a first step, urban and regional transport services representing at least 35% of turnover were to be tendered in 2003. The Ministry of Transport, Public Works and Water Management will carry out an evaluation in 2004; if the results are positive, this process will continue with the aim of tendering 100% of urban and regional transport services by 2006. Reducing congestion (e.g. through designating bus lanes) would encourage use of public transport rather than private cars. New infrastructure for the high-speed train (TGV) between Brussels and Amsterdam will shorten the journey between Rotterdam, The Hague and Schiphol once it is completed in 2007. SVV2, in place since 1990, included quantified targets, particularly for growth in road traffic volume. In 2001 the draft National Traffic and Transport Plan (NVVP) was introduced to replace the SVV2. The draft NVVP no longer sets explicit mobility targets; it focuses more on road pricing (per-kilometre) policies, although without translating pricing into emission reduction levels. The introduction of road pricing was announced in 1989 (NEPP1) but has since met with considerable resistance. A recent attempt to introduce a per-kilometre tax was rejected by Parliament (Chapter 5, Section 2.3). The effect would be similar to that of increased fuel prices, except that high-mileage drivers of diesel or LPG fuelled vehicles would no longer benefit from differentiated fuel taxes. More advanced versions of the per-kilometre tax might make possible differentiation based on fuel consumption, exhaust emissions, noise, accident risk and congestion.
2.
Focus on Selected Topics 2.1
Energy trends
In 2000 the Dutch economy’s energy intensity was still slightly higher than the OECD Europe average, although it had decreased by 14% since 1990 (Figure 2.3). Total final energy consumption (TFC) increased by 16% over the decade. TFC increases have been limited in the residential and industry sectors but have been
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Figure 2.3
55
Energy structure and intensity
Energya per unit of GDPb State, 2000
Trend in the Netherlands, 1990-2000 1990 = 100
Netherlands 100
0.19 0.25
United States Japan Denmark France Germany Italy United Kingdom
75
50
0.17 0.14 0.19 0.18 0.14 0.18
25
0.18 0.22
OECD Europe OECD 0 1990
1992
1994
1996
1998
0.00
2000
0.10
0.20
0.30 toe/USD 1 000
Total final energy consumption by sector, 2000
Energy supply by source,c 1990-2000 Nuclear
Mtoe Hydro., geo., solar, wind,
Residential/ commercial 24.0%
combustible renewables and waste
70
Non-specified 7.0%
60 Natural gas
50
Transport 23.5%
Agriculture 6.5%
40
Non-energy use 4.9%
30 Oil
20
Industry 34.1%
10 Coal and coal products 0 1990
1992
1994
1996
1998
2000
a) Total primary energy supply. b) GDP at 1995 prices and purchasing power parities. c) Breakdown excludes electricity trade. Source: OECD; IEA.
© OECD 2003
Total 60.4 Mtoe
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significant in transport, commercial services and agriculture. In 2000 the industrial sector remained the largest energy consumer (34% of TFC), followed by transport (24%) and the residential sector (17%). The Netherlands has a large, energy-intensive industrial sector compared with other EU countries; there is heavy penetration of natural gas and relatively high energy efficiency. Primary energy supply is dominated by fossil fuels (97%): 47% natural gas, 39% oil and 11% coal in 2000. Since 1990 some fuel switching has occurred in the power production, industrial and residential/commercial sectors. Coal supply has decreased by 11%, while supply of natural gas and oil has increased by 13 and 16%, respectively. Reliance on nuclear power has remained virtually unchanged. The Netherlands met its goal of increasing combined heat and power capacity to 8 000 MW by 2000. However, the target of increasing the share of renewable energy to 3% of total energy supply by 2000 was not reached; in that year renewables supplied 2.6% of the energy supply. The 1996 Third White Paper on Energy Policy sets a target of 10% renewable energy by 2020. The main renewable sources are wood, municipal solid waste, small hydro and wind. The share of electricity in total energy demand (around 12% in 2000) is still one of the lowest in the EU, partly reflecting heavy penetration of gas as a household fuel. Between 1990 and 2000 annual electricity use by industry increased by 4%, outstripping the rate of economic growth. In contrast, electricity consumption by the residential/commercial sector was stable in the 1990s following a period of rapid growth (8% per year) from 1985 to 1990. Since the mid-1990s the increase in demand for electricity has largely been satisfied by cogeneration; imported electricity from Germany and France has played an expanding role since 1999. Use of coal to generate electricity declined from 38 to 29% between 1990 and 2000, while the share of gas in electricity production increased from 51 to nearly 60%.
2.2
Reducing ammonia emissions from agriculture
Measures to limit ammonia emissions have been pursued along two tracks. There are general rules for manure storage and for manure spreading methods and periods. Stricter requirements for livestock housing are under preparation. There are rules addressing specific agricultural situations (e.g. assessment of environmental permit applications). To reduce emissions from manure application, farmers may not spread livestock manure on top of soil. The spreading period is to be relatively brief, roughly in spring and summer. Application methods that minimise emissions are described in the Decree on the Use of Livestock Manure. On grassland farmers must inject manure into the ground; on arable land they must either inject it or plough it in right away. To
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reduce emissions from manure storage, farmers must have sufficient storage capacity in fall and winter. Storing manure next to livestock housing rather than under it leads to higher ammonia emissions. Outdoor storage is therefore allowed only if manure silos are covered. There are plans to make low-emission livestock housing, which has been encouraged through incentives in recent years, compulsory. Municipal building permits for new livestock housing often prescribe lower emission rates. Tax incentives will encourage use of even cleaner animal-friendly housing. Ammonia emission requirements apply per animal housed based on the as-low-as-reasonably-achievable principle, which balances economic costs and environmental benefits. Low-emission housing will be compulsory for all pig and poultry installations in 2008. Stricter requirements are being drawn up for installations near sensitive natural areas. Farmers who keep livestock must apply for an environmental licence from municipal authorities. Licences are granted on condition that farms satisfy all environmental criteria set by local authorities, including those for ammonia emissions. Local authorities are also responsible for drawing up zoning plans indicating where livestock housing is allowed.
2.3
The Energy Efficiency Benchmarking Agreement
In 1999 VROM, the Ministry of Economic Affairs and the 12 provinces reached an agreement with trade unions, industry associations (chemicals, base metals, refineries, paper and electricity) and several dozen individual companies. Companies participating in the Energy Efficiency Benchmarking Agreement (EEBA) committed themselves to ensure that they are among the world’s best in terms of energy efficiency by 2012, thereby contributing to meeting Dutch GHG reduction commitments under the Kyoto Protocol. In return, the government has undertaken to ensure that no specific additional measures such as an energy tax or a CO2 emission ceiling are imposed on these companies until 2012. Participating companies have agreed to ask an independent expert to evaluate their world ranking once every four years. This expert must also ascertain whether each participant is in the top 10%. Companies must draw up an energy efficiency plan specifying measures to be taken. During the first five years a company can make economically viable investments; if appropriate, during the subsequent three-year period it must seek additional investments to improve its environmental performance. If these measures are insufficient to bring energy efficiency to the required level, the company can opt to use Joint Implementation, Clean Development or emission trading mechanisms during the last four years.
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There is a very high level of participation in the EEBA. The 103 participating companies (232 plants) account for 94% of energy consumption by the industrial sector and 100% of that by the power generation sector. Almost all these companies have finalised an energy efficiency plan, although doing so took longer than expected. The Dutch industrial sector as a whole is already in the world’s top ten with respect to energy efficiency. However, some companies are lagging behind. Others are implementing more measures than are necessary to remain in the top ten. On average, the industrial sector’s energy efficiency improved between 1999 and 2002 and is expected to continue to improve between now and 2012.
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3
WATER MANAGEMENT*
Recommendations The following recommendations are part of the overall conclusions and recommendations of the OECD Environmental Performance Review of the Netherlands: • strongly pursue implementation of policies to allocate “more space for water”, establish ecological networks and better protect areas at risk (e.g. from floods); in particular, integrate water management, nature management and spatial planning; • reinforce actions to combat groundwater depletion; complete and implement comprehensive provincial groundwater plans; • further reduce nitrogen loads from intensive agriculture (livestock and crop production) in line with related international commitments (EU Nitrates Directive, North Sea action programme); • strengthen efforts to achieve further progress in dealing with emergency overflows from combined sewers; • continue efforts to safely dispose of and/or treat contaminated dredging spoil; • continue to modernise the institutional framework for water management in line with the EU Water Framework Directive; • give more attention to economic analysis of water management measures in different sectors (e.g. municipal, industrial, agricultural); • strengthen inspection and enforcement relating to illegal discharges into the sewage system.
* The present chapter reviews progress in the last ten years, and particularly since the previous OECD Environmental Performance Review of 1995. It also reviews progress with respect to the objective “maintaining the integrity of ecosystems” of the 2001 OECD Environmental Strategy.
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Conclusions The Netherlands has a large delta area at the estuary of several main European rivers. This clearly increases pressure on water pollution and flood management. The Netherlands’ performance in reducing pressures on its water environment in the last ten years has been very good. In general, it has more than met the deadlines in the EU Urban Waste Water Treatment Directive for connections to the sewerage system and secondary treatment of waste water; 98% of the Dutch population is served by sewerage networks, all of which are connected to waste water treatment. The rate of removal of oxygen-demanding substances at public waste water treatment installations increased from 92 to 96% during the 1990s. Phosphorus and nitrogen removal is widespread. These achievements have required sustained financial efforts, particularly from households. The Netherlands has met North Sea targets for phosphorus and for most micropollutants and heavy metals. The 50% national reduction target for pesticide use has almost been met (47%). The Netherlands had the best overall performance among OECD countries with respect to decoupling pressures on the water environment from economic development and population growth. Strengthening of flood protection along major rivers, which repeatedly threatened to overflow their banks in the mid-1990s, is almost complete. Substantial progress has been made regarding most of the recommendations of the 1995 OECD Environmental Performance Review. Yet the Netherlands’ performance in reducing environmental pressures has still not been adequate to sustain the positive water quality trends of the 1980s and early 1990s. This partly reflects the high intensity of pressures on the water environment, which are often several times above the OECD average. These pressures in turn reflect the high intensity and density of economic activities such as agriculture and transport. Improvement of water quality stagnated during the latter part of the decade, mainly due to difficulties in tackling diffuse sources of pollution. Few surface or groundwater bodies meet basic water quality standards for several pollutants. The Netherlands did not quite meet the North Sea reduction targets for nitrogen. The impact of diffuse discharges, such as nutrients and pesticides from agriculture, emergency overflows from combined sewage systems and run-off from paved areas, remains severe. Nitrate standards for shallow groundwater are exceeded throughout the higher parts of the country. Implementation of measures to remedy groundwater depletion, which affects one-seventh of the total land area, has fallen short of targets. Further reduction of pressures cannot be achieved without a transition towards sustainable production processes, especially in agriculture. To achieve this transition, inter-sectoral economic efficiency should be given greater attention than in the past. If nothing more is done, sediments in watercourses contaminated by micropollutants and heavy metals will affect water quality for many decades to come. Safety issues
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remain paramount: expected rises in sea level, increasing discharges and continued land subsidence mean that the struggle to protect a population of which a large proportion lives below sea level can never be won once and for all.
1.
Evaluation of Performance 1.1
Policy objectives in the 1990s
The Netherlands’ water management policy is largely driven by the Ministry of Transport, Public Works and Water Management (V&W) and implemented by municipalities and a range of agencies (e.g. water boards). The institutional framework for water management has undergone significant changes in the last ten years (Chapter 3, Section 2.1). The main water management policies relevant to the period covered by this performance review are contained in the third and fourth National Policy Documents on Water Management (NW3, adopted in 1989, and NW4, adopted in 1998). The objectives of NW3 remain valid unless explicitly superseded by those of NW4. Successive versions of the National Environmental Policy Plan (NEPP) also contain water-related objectives for ten target groups (e.g. agriculture, industry, transport). The aim of NW3 is above all to “have and maintain a safe and habitable country as the first condition, and to develop and maintain healthy water systems which guarantee sustained use”. NW4’s aim is largely the same, but it refers to healthy and resilient water systems. Qualitative objectives are formulated for seven types of water systems. These objectives are very general and resemble vision statements, describing ideal conditions to be achieved at some time in the future. More specific quantitative objectives are contained in NW3 and 4, NEPP3 and 4, and other documents such as the Policy Plan for Domestic and Industrial Water Supply (PPDIWS) (Table 3.1). Water management performance can further be assessed against the 1995 OECD Environmental Performance Review recommendations that the Netherlands: – urgently implement further measures to halt and reverse water depletion under nature areas; – pursue efforts to implement integrated water management policies in a costeffective way, taking into account the relative contribution of various sources of pollution; – ensure that water resources are priced effectively, in line with the user pays principle;
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Table 3.1
Achievement of water management objectives
Objective/target
Performance
Sourcea
Flood protection Complete flood protection (Rhine and Meuse)
88% complete
NW4
Oxygen-demanding substance discharges Reduction to 2.1 million p.e. of discharges to State waters by 1996 Nitrogen emissions (compared to 1985) 50% reduction by 2000 of emissions from households, industry and agriculture Long-term goal of 70% reduction of emissions from households, industry and agriculture Removal rate of 75% by 1998 as average for all municipal sewage plants per water board, with interim target of 70% in 1995 Phosphorus emissions (compared to 1985) 50% reduction by 2000 of emissions from households, industry and agriculture Long-term goal of 75% reduction of emissions from households, industry and agriculture Average removal rate of 75% for municipal treatment plants
Probably achieved, as discharges to all (State and regional) surface waters were 3.5 million p.e. in 1998 Not achieved; actual reduction 44% by 1999 NEPP3, NW3, North Sea Not yet achieved NW3 Not achieved; removal rate increased from 57% in 1995 to 65% in 2000
NW3
Achieved; 63% reduction by 1999
NEPP3, NW3, North Sea NW3
Not yet achieved 75% removal rate achieved in 1996; improved to 78% by 2000
Heavy metal discharges (compared to 1985) Decrease of 50 to 90% depending 50% reduction target achieved by 1999 on substance under consideration, for Ni, Cr, As, Zn, Cu; 70% reduction target with interim goal of 50% reduction by 1995 achieved for Cd but not for Pb and Hg Organic micropollutant emissions (compared to 1985) Reduction of 90%, with interim goal of 50% (90% for certain materials) by 1995 Quality objective surface waters Max. 0.15 mg total P/litre (annual average); 2.2 mg total N/litre (summer average) for stagnant eutrophication-prone waters Urban Waste Water Directive (91/271) Connect all urban agglomerations to a collecting system by: 2001 for centres with > 15 000 p.e. 2006 for centres with 2 000 to 15 000 p.e.
NW3
NW3, North Sea
50% reduction target achieved by 1999 for 18 substances but not for 5 others; 70% target achieved by 1999 for dioxins
NW3, North Sea
Objectives far from being achieved in great majority of water bodies
NW3
EU Achieved Already achieved
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Achievement of water management objectives (cont.)
Objective/target
Performance
Sourcea
Ensure secondary treatment of waste water by: 2001 for centres with > 15 000 p.e. Achieved 2006 for centres with 10 000 to 15 000 p.e. Already achieved 2006 for discharges to fresh water Already achieved and estuaries for centres with 2 000 to 10 000 p.e. Implement nutrient removal in sensitive areas by 1999 for centres with > 10 000 p.e. (the entire Netherlands has been designated a sensitive area)
Achieved for phosphorus
Implement appropriate treatment of discharges to fresh water and estuaries by 2006 for centres with < 2 000 p.e.
On target (only nitrogen removal to be completed)
Groundwater depletion Situation should not be worse in 2000 than in 1985 25% reduction by 2000 (40% by 2010) of total area suffering from water depletion, compared with 1985 Halt increase in overall groundwater abstraction 40% reduction by 2000 of industrial groundwater abstraction relative to forecast Provinces to set groundwater levels by 2002 Pesticide use (base year 1984-88) 50% reduction in agriculture by 2000 Sewer overflows Establish priority (hazardous to public and animal health) by end of 2002 Drinking water intakes (compared to 1984-88) 50% reduction by 1995 in number of days intakes must be closed due to pollution spillage
Achieved
NEPP1
Not achieved
NEPP2, NW4
Achieved
PPDIWS
Probably achieved, but no precise figures available Not achieved
PPDIWS, NEPP3 NW4
Almost achieved; actual reduction was just below 47%
NEPP1
Efforts made; unclear whether deadline was met
Informal agreement
No data
NW3
a) NW3 and 4 = Third and Fourth National Policy Documents on Water Management; NEPP1, 2, 3 = First, Second and Third National Environmental Policy Plan; PPDIWS = Policy Plan for Domestic and Industrial Water Supplies. Source: VROM; V&W; OECD.
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– pursue the renewal of sewerage networks and the installation of dephosphating and denitrification facilities in waste water treatment plants, in as much as need be; – ensure progress in reducing diffuse emissions (e.g. nitrogen load from manure and excessive fertiliser use contributing to eutrophication), in line with international agreements (EC Directives, Rhine Action programme, North Sea action programme), through cleaner production techniques and changes in production patterns; – pursue further cost-effective action concerning contaminated bottom sediments, with due regard to risk for human and ecosystem health. There has been substantial progress with respect to all these recommendations. However, political and technical feasibility appears to have had greater weight than cost-effectiveness in the search for solutions. Now that large (point) sources of pollution have been cleaned up, it is becoming more important to determine how to achieve further emission reductions at least cost. As an economic analysis of alternative policy measures is required by the EU Water Framework Directive, this issue can be expected to receive greater emphasis in the future.
1.2
Performance concerning emission reductions
North Sea targets Good performance was recorded with respect to the 1995 North Sea emission reduction targets, which were met for most (but not all) specified substances by 1999, often with reductions considerably in excess of the 50% or 70% required (Figure 3.1): targets were met for six of eight heavy metals, as well as for 19 of 24 micropollutants. These results can largely be attributed to the success of environmental agreements agreed between the Dutch government and various industries, as well as to pesticide control regulations. Among the substances for which targets were not met were three pesticides (lindane, atrazine and simazine), tributyltin, trichlorobenzene, lead and mercury. Since lindane and atrazine have been prohibited, compliance for these substances can be expected soon (Chapter 8). The Netherlands intends to meet the goals of the 1995 Esbjerg Declaration (i.e. the “one generation” target of completely eliminating discharges of hazardous substances by 2020) through implementing product policies and promoting a life-cycle approach to production. With a 71% reduction since 1985, the Netherlands met the 2000 reduction target of 50% for phosphorus discharges to the North Sea from all sources (households, industry and agriculture) in areas draining to defined problem areas. With a reduction of 31%, the 50% reduction target for nitrogen discharges was not met (Table 8.5).
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Figure 3.1
65
Performance in meeting North Sea targets for micropollutants and heavy metal emissions
Target 50% reduction 1985-1995 Trifluralin
Trichloroethane
Chloroform
1, 2-dichlororethane
Carbon tetrachloride
Trichlorobenzene
Hexachlorobutadiene
Tetrachloroethene
Hexachlorobenzene
Trichloroethene
PCP
Dichlorovos
DDT
Parathion
HCH Drinsa
Fenitrothion Azinphos-methyl
Ni
Triphenyltin (TPT)
Cr
Tributyltin (TBT)
As
Atrazine
Zn
Simazine
Cu
Endosulphan 0
25
50
75
100
0
reduction achieved 1985-99
Target 70% reduction 1985-1999
Hg Cd Pb Dioxines 0
25
50
75
100
reduction achieved 1985-99
a) Aldrin, dieldrin, endrin and isodrin. Source: RIZA.
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25
50
75
100
reduction achieved 1985-99
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Removal of pollutants at public waste water treatment plants The share of the population connected to a sewerage system increased by 4% in the 1990s, to reach 98% (Figure 3.2). The Netherlands completed connection of sewerage networks to treatment stations in 1998. There are about 400 communal waste water treatment stations, with a combined capacity of over 26 million p.e. Despite growing inflows from households, the volume of waste water actually treated (about 16-17 million p.e.) showed a declining trend in the 1990s due to reduced inflows from industry; about 95% of influent is treated in installations with over 10 000 p.e. capacity. In the period 1990-99 the removal rate for oxygen-demanding substances at public waste water treatment installations increased from 92 to 96% for BOD and from 85 to 89% for COD. Discharges of most heavy metals from sewage treatment stations decreased significantly over the decade, with the exception of arsenic and (since 1995) nickel. Most sewage sludge is incinerated, as the sludge can no longer be deposited in landfills or used in agriculture owing to high concentrations of contaminants (e.g. copper from water pipes or zinc from roof gutters). The North Sea/NW3 targets for removal of nutrients from public sewage treatment plants have been partly met. A large proportion of the country’s waste water treatment plants were equipped with phosphorus removal equipment during the 1990s (Figure 3.2). The required 75% removal rate for phosphorus was achieved by 1996; by 2000 the removal rate was 78% (Table 3.1). The 70% (1995) and 75% (1998) targets for nitrogen were not met. Actual removal rates were 57% and 60%. By 2000 the nitrogen removal rate was 65%; the Dutch authorities expect that the 1998 target will be achieved by 2005. The above figures also mean the Netherlands met the December 1998 and December 2000 deadlines of the EU Urban Waste Water Treatment Directive and is on target to meet the December 2005 deadline for treatment of discharges in agglomerations with fewer than 2 000 p.e. For the 2% of the population whose connection to communal sewerage and waste water treatment systems is not economical, individual systems (septic tanks, biorotors) are subject to regulation and certification. Individual treatment solutions are often quite costly; the costs must be compared with those of connection to a communal sewerage system.
Emergency overflows Problems are still encountered with an estimated 15 000 emergency overflows from combined sewers, resulting in water pollution during periods of heavy rainfall. Apart from being a health risk to the public and livestock, at times these overflows also contaminate stock water supplies. An administrative agreement between various
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Figure 3.2 Public waste water treatment plants Removal of nutrients from public waste water treatment plants, 1981-2000 Phosphorous
million kg P/year
removal rate (%)
30
100 80
20
60 40
10
20 0
0 1981
1983
1985
1987
1989
1991
influent
1993
1995
effluent
1997
Nitrogen
million kg N/year
1999
removal rate
removal rate (%)
100 90 80 70 60 50 40 30 20 10 0
100 80 60 40 20 0 1981
1983
1985
1987
1989
influent
1991 effluent
1993
1995
1997
1999
removal rate
Population connected to public waste water treatment plant, 2000a 98
Netherlands 71 62
United States Japan Denmark France Germany Italy United Kingdom
89 77
Secondary and/or tertiary treatment 91
63 92 65 63
OECD Europeb *OECDb 0
30
60
90
% of total population
a) Or latest available year. b) Secretariat estimates. Source: OECD.
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Primary treatment only All treatment
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authorities was intended to address around 1 000 of the most hazardous overflows by the end of 2002; progress has been made, but it is unclear whether the deadline will be met. Minimum standards have been set for the required temporary storage and pumping capacity of sewerage systems. Other measures include separating rainwater from sewage using double sewerage systems (one for rainwater and the other for waste water) and reducing stormwater inflows to combined sewers (e.g. by allowing rainwater from down pipes to infiltrate soil directly). Experiments with the use of rainwater as “household water” for toilet flushing, laundry and garden sprinkling are also being conducted in several newly developed urban areas. While many local authorities are working on the problem of emergency overflows, closer oversight at provincial level could ensure that overall progress continues.
Reducing pollution from agriculture Towards the end of the 1990s agriculture was responsible for almost 40% of domestic (non-imported) phosphate pollution of Dutch surface waters and almost 56% of total domestic nitrate pollution. In general, environmental pressures from agriculture decreased during the 1990s. Phosphate discharges to water from agri/ horticulture fell from about 600 tonnes to below 440 tonnes, and nitrogen discharges to water from almost 9 000 tonnes to just over 6 000 tonnes. The objective of halving pesticide use in agriculture by 2000 (compared with the 1984-88 average) was almost met: it was reduced from 19.9 million kg active ingredient to an estimated 9.6 million kg, below the target of 10.65 million kg. The number of permitted pesticides fell from 300 to 200 in the 1990s. However, there are countervailing trends such as the shift towards pollution-intensive crops (e.g. potatoes, onions, flower bulbs) or methods of cultivation (e.g. use of greenhouses). While land use changes require planning consent, current spatial planning procedures take little account of impacts on water quality. Overall intensity of use of pesticides and nitrogenous fertilisers remains very high, five times the OECD average for both (Figure 3.3). The earliest measures adopted to deal with the nutrient problem date to 1984. Since then, increasingly stringent and complex measures (which are also highly intrusive and doubtless expensive to comply with) have been introduced. Farmers with over three stock units or 3 hectares must now account for nutrient inputs and outputs (the so-called MINAS mineral accounting system, introduced in 1998) and are subject to heavy levies on excess nutrient loads to soil. As of January 2002, animal husbandry enterprises must show every year – before manure is produced – that they have contracted for proper disposal of any surplus. This system leads to the transport of large amounts of manure (about 15 million tonnes per year in the late 1990s) from regions with surpluses to regions with a capacity to receive the manure. Several thousand tonnes of poultry manure is exported. It is too early to draw
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Figure 3.3 Use of nitrogenous fertilisers, 2000 Netherlands
Agricultural inputs Use of pesticides, 2000a Netherlands
30.5
United States
69
United States
5.7
Japan
11.3
Japan
Denmark
10.3
Denmark
France Italy
15.3
Germany
16.0
United Kingdom
Italy
7.6
United Kingdom OECD Europe
*OECD Europe
8.8 6.2
OECD 0
10
*OECD 20
0.20 1.50 0.12
France
12.4
Germany
0.98
30
40
tonnes/km2 of arable and permanent crop land
0.0
0.51 0.26 0.44 0.52 0.29 0.21 0.5
1.0
1.5
2.0
tonnes/km2 of arable and permanent crop land
a) Or latest available year. Source: FAO; OECD.
definite conclusions, but early indications are that MINAS is having some success; between 1999 and 2000 the nitrogen surplus fell from 223 kg to 181 kg per hectare of arable land and the phosphate surplus from 70 kg to 62 kg. The EU Nitrate Directive (91/676/EEC) requires countries to designate vulnerable zones and to take action to reduce nitrogen discharges in those zones. The Netherlands has declared the whole of its territory a vulnerable zone. The Nitrate Directive also restricts the amount of manure that can be applied to agricultural land (170 kg N/ha as of December 2002). The Netherlands has requested a derogation for application on grassland, arguing that conditions (in combination with specific measures) allow safe application in excess of this amount. The decrease in nutrient discharges cannot be wholly attributed to environmental measures. Until 1995 it was mainly due to the reduction in the number of dairy cows (EU milk quota). Further progress will partly depend on reducing and restructuring the pig and poultry sectors. Thus the key to meeting surface and groundwater quality objectives is for Dutch agriculture to become sustainable. NEPP4, which states that the issue is not whether the country’s agriculture should become sustainable, but how
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and how quickly, contains an extensive transition agenda setting out salient points associated with moving towards sustainable agriculture by 2030. Water quantity issues are also relevant; both the “more space for water” and water depletion policies will impact land now in agricultural use, as will implementation of the National Ecological Network (Chapter 4). All these factors will eventually lead to transformation of rural areas. In achieving this transformation, effective spatial planning and reparcelling of land will be among the most important instruments.
1.3
Performance concerning water quality
While commitments such as those of the International Conferences on the Protection of the North Sea (“North Sea targets”), the OSPAR Convention and EU Directives continue to drive water quality management, these commitments are evolving as well. In particular, implementation of the new EU Water Framework Directive (2000/60/EC), with its emphasis on river basin management and good ecological status, will require changes in water management practices and institutions. The short-term (2006) water quality objective for receiving waters is reduction of pollutant concentrations to below the Maximum Admissible Risk (MAR) level, which is the basic quality standard. The MAR standard is broadly equivalent to “good surface water chemical status” as defined in the EU Water Framework Directive. In the longer term (2010-20) the objective is to reduce concentrations below the negligible risk or target value. Despite considerable success in reducing discharges of most pollutants, improvements in receiving water quality have tended to stagnate in recent years (Figure 3.4). In many State waters (the main water bodies such as the Rhine and the IJssel Lake, which are managed by Rijkswaterstaat, the national water agency), concentrations of phosphates, nitrates, pesticides and heavy metals (notably copper, nickel and, to a lesser extent, zinc and cadmium) still exceed basic MAR quality standards. Annual (summer-averaged) nitrate and phosphate concentrations in surface waters are often twice the MAR values. Phosphate concentrations have generally declined since the mid-1980s, but there is no clear trend for nitrogen inputs and concentrations. Reductions in pesticide concentrations observed in surface waters and rainwater, attributed to improvements in application methods and to reduced use, have not continued in the past few years. Water quality in the Dutch reaches of the two main rivers – the Rhine and Meuse – partly depends on clean-up efforts in upstream countries. Pollutant concentrations (chlorides, nitrogen, phosphates) in both rivers where they enter the Netherlands fell significantly in the 1990s, but concentrations of some substances still
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Figure 3.4 Freshwater quality in the Netherlands, 1985-2000 Total nitrogen concentration
Total phosphorous concentration
Summer average (mg N/litre)
Summer average (mg P/litre)
8
0.8
6
0.6
4
0.4
Guideline value for MARa
2
0.2
0
Guideline value for MARa
0 1985
1990
1995
2000
1985
1990
1995
2000
Regionally managed water bodies Nationally managed water bodies (including Ijssel Lake) Ijssel Lake a) Maximum admissible risk. Source: RIVM.
exceed basic Dutch quality standards. Discharges of untreated sewage to the Meuse upstream of Maastricht contribute to the problem of low dissolved oxygen levels downstream, hampering ecological recovery. Although there has been some progress on phosphate levels, phosphorus and nitrogen concentrations in regional waters (water bodies managed by water boards) were higher than in national waters, two or three times the MAR on average (Figure 3.4). The same is true for concentrations of copper and, to a lesser extent, zinc. About 60% of regional measuring stations recorded exceedences of the MAR for pesticides. The inferior quality of regional (compared with national) waters is due to the fact that they are often closer to pollutant sources, both diffuse (agriculture) and point (most waste water treatment plants discharge to regional waters). The ecological quality of 33 lakes (in terms of vegetation and phytoplankton) in the period 1996-98 was inferior to the lowest quality class at over three-quarters of measuring locations.
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In the 1990s a start was made towards achieving the NW4 long-/medium-term objective for bottom sediments dredged from canals and other water bodies (i.e. to improve their quality so that dredging spoil is suitable for purposes such as fill). The preferred long-term solution, clean-up of contaminated sediments, is difficult and costly. Sediments are now mostly stored at special dumping sites. Some measures have been taken (e.g. a ten-year plan, central government financial assistance, identification of suitable dumping sites). However, progress is slow for various reasons, including the difficulty of identifying suitable dumping sites, the time required to carry out associated environmental impact assessments, and uncertainty about the amounts of dredging spoil that need to be handled. Given that the quality of bottom sediments is of basic importance for water quality, this issue should be given high priority. Average nitrate concentrations in shallow groundwater in sandy soil have fallen in recent years, from about 150 to 125 mg/litre. However, a 1998 study found that the EU Nitrate Directive’s environmental quality standard (50 mg/litre) was exceeded in shallow groundwater lying under 77 to 85% of the Netherlands’ total land area in sandy regions (94 to 99% in agricultural areas, 21 to 30% in forest and heath areas). Sandy soil is found at higher elevations in the Netherlands, where most maize cropping and intensive animal farming take place. In natural areas where atmospheric deposition is the main source of nitrogen, nitrate levels in shallow groundwater in sandy soil have fallen in the past decade from an average of 30 to around 20 mg/litre. In deep groundwater, the source of most drinking water, nitrate levels are usually below the target value (25 mg/litre) and are stable or slowly increasing. In low-lying clay soil in the western Netherlands, nitrate concentrations fluctuate around 50 mg/litre; groundwater in some of these areas is naturally saline and therefore not suitable for drinking water. Drinking water quality is generally excellent. In 2000 a survey of the 15 largest drinking water supply companies (mostly owned by provincial and municipal governments) showed that 97% of drinking water delivered by these companies satisfied a drinking water quality index, largely surpassing minimum regulatory requirements. In some provinces concentrations of nitrates, pesticides (e.g. the herbicides bentazon and diuron), anti-fouling paints and heavy metals at times exceed standards for both raw and tap water. Improved management and purification methods gradually reduced the incidence of non-compliance for tap water during the 1990s. Dutch monitoring (in the context of the OSPAR Convention) has generally shown a decreasing trend for concentrations of phosphates and inorganic contaminants in the North Sea over the past decade. Concentrations of phosphates and dissolved inorganic nitrogen are also decreasing in coastal waters. Almost all contaminant concentrations in biota show a downward trend. The common seal population on the south-west coast greatly increased during the 1990s. However, cadmium
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levels in flounder and mussels in the western Scheldt estuary showed an upward trend. There is concern about high levels of tributyl and triphenyltin in the sediments of all Dutch marine waters, which can exceed target values by up to 300 times at some hot spots.
1.4
Performance concerning water quantity issues
The approach to water quantity management in the Netherlands has evolved considerably since the 1994 OECD Environmental Performance Review. Water quantity management is driven by national policy, which reflects specific demands related to the country’s geographical position in the delta of four European rivers (the Rhine, Meuse, Scheldt and Eems). The current approach is: i) to allow more space for water, landscapes and ecosystems; and ii) to reduce human vulnerability to nature. Large engineering projects remain important, but small-scale, adaptive and “soft” solutions are to be considered where appropriate. Safety remains paramount. Expected sea level rise, increasing discharges and continued land subsidence mean that the struggle to protect a population that lives partly below sea level can never be won once and for all.
Protection against flooding from rivers and the sea In the mid-1990s actual and threatened flooding of the Rhine and Meuse (and the evacuation to higher ground of thousands of people) was an important if rare reminder that much of the population lives in a flood plain. These events, as well as the anticipated consequences of climate change (sea level rise and an increase in winter-average river discharges of up to 40%) and the problem of land subsidence (expected to average between 0.02 and 0.6 metres by 2050), prompted a change in priorities with respect to safety in the Fourth National Policy Document on Water Management (NW4) published in 1998. Flood protection is one of NW4’s four main themes, whereas NW3 (adopted less than a decade earlier) contained no such objectives. Events in the 1990s gave new impetus to a large engineering project (the “Delta Plan for the Great Rivers”) to strengthen flood protection along the main rivers, which was 88% complete by the end of 2001. Renewed emphasis on safety was accompanied by a change of approach, requiring more space for water retention (i.e. retaining rainwater where it falls) and detention (i.e. directing overflows from streams and rivers to temporary storage). In a country where space is at a premium such an approach is more expensive than purely engineering solutions. However, in the long run this combination will reduce vulnerability and exposure. It will also create new opportunities for reconstruction of rural areas to meet needs related to recreation and nature as well as to agriculture. At the same time, flood protection will become more dependent on effective spatial planning (Chapter 3, Section 2.2).
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More space is also required in coastal zones, where development in areas at risk is to be restricted. The aims of coastal policy are to maintain the coastline at its 1990 position, and to preserve valuable dune areas and the natural dynamic character of the Dutch coast. In practice, this requires bringing sand to the foreshore to ensure that dunes can withstand the impact of storms. Sea level rise is expected to increase the need for sand replenishment.
Groundwater depletion Since the previous OECD Environmental Performance Review, Dutch water managers have made progress in addressing the problem of groundwater depletion. Vegetation is damaged when the water table falls as a result of excessive groundwater abstraction or agricultural drainage. About 507 000 hectares (one-seventh of total land area) is affected, of which about half is in natural areas. The objective of a 25% reduction in total area affected by water depletion by 2000 (compared with 1986) has not been met. Only 3% of the affected area (15 000 hectares) has been completely restored to date; 30% (150 000 ha) has been partially restored. Measures have been initiated concerning an additional 20% (Chapter 3, Section 2.3). Solving the problem of groundwater depletion is key to the success of Dutch nature policy. However, progress will also partly depend on individual provinces formulating and implementing comprehensive groundwater plans, as they are required to do under NW4. These plans were due to become operational in 2002, but only three provincial governments out of 12 met the deadline. Although withdrawals from larger groundwater abstractions no longer appear to be increasing (in accordance with the objectives of NW4), other issues (e.g. agricultural abstractions, lowering of water tables for large infrastructure projects) still need to be addressed. Groundwater depletion should therefore remain at the top of the Dutch water management agenda. Measures taken so far have already met with significant success from the point of view of nature conservation, as hundreds of endangered or locally extinct plant species have been reintroduced or are thriving again (Chapter 4). These measures may also have contributed to an increase in the number of spoonbill breeding in the Netherlands, which doubled in the period 1994-98. The Netherlands now supports almost half Western Europe’s spoonbill population.
1.5
Expenditure, financing and water charges
Expenditure Public expenditure on management of water quantity and quality is in the order of EUR 5.4 billion per year, or 1.3% of GDP. Central government expenditure is
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about EUR 1 billion, an amount that has remained broadly constant since 1996 and represents most of the expenditure on flood protection. Combined expenditure by water boards is in the order of EUR 1.6 billion for waste water treatment and water quality management (about 70%), water quantity management (25%) and flood control (less than 5%). Expenditure by municipalities is in the order of EUR 0.7 billion (mainly for storm and waste water sewerage networks). Provinces generally have a strategic planning role and are not responsible for significant expenditure. Business expenditure in this area is in the order of EUR 0.4 billion per year, of which some 20% is new investment. There is considerable expenditure by the water industry (consisting of enterprises that provide water supply and sewage treatment services) on implementation of National Environmental Policy Plan (NEPP) targets; this expenditure increased from EUR 1.42 billion to EUR 1.76 billion in the period 1990-2000 (at constant 2001 prices) or almost one-quarter in real terms. Water industry expenditure represented 0.44% of GDP in 2000. Country-wide expenditure on water management rose significantly in the 1990s, a trend likely to continue until at least 2005. Increases were particularly marked in the case of expenditure on sewerage networks. The main reasons for these increases were the need to address emergency overflows from combined sewers, connection of outlying dischargers to the sewerage system, and a maintenance backlog. Waste water treatment costs also rose due to the shift towards tertiary treatment and incineration of sewage sludge. Further increases are expected until completion of the nitrogen removal programme in 2005. Other items (contaminated sediments, groundwater depletion) have also required additional expenditure. Expenditure by industry, which made the bulk of its waste water treatment investment in the first half of the 1990s, continued to grow in the second half of the decade as a result of existing emission reduction agreements. Further emission reductions are required to meet domestic objectives as well as international commitments. The government allows firms some latitude in scheduling expenditure to coincide with major investment cycles for process and product changes.
Financing Growing expenditure has increasingly been financed through user charges. Revenue from these charges has increased considerably over the past decade. In 1994 municipalities recovered 79% of the cost of maintaining sewerage networks directly through user charges (the remainder was financed from other municipal funds); by 2005 this share is expected to reach 90%. Sewerage charges collected by municipalities increased from EUR 313 million to EUR 1 435 million in the period 1990-2001. Waste
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water treatment charges collected by water boards increased from EUR 386 million to EUR 987 million during the same period. Much of the burden of continuing increases in water management expenditure is borne by households (e.g. about two-thirds of the cost of waste water treatment by water boards). On average, it is expected that individual households’ annual water bill will increase by EUR 40 between 1998 and 2006. Some relief is available for citizens with little ability to pay; in most municipalities low-income families are exempt from sewerage charges. The water supply company of Groningen province does not require a volumetric charge to be paid for the first 30 cubic metres of water delivered to each dwelling.
Structure of household water charges Households pay fees and charges for three distinct water services, each provided by a different agency. The tariff structure for tap water is set by each of the 16 water supply companies. In metered dwellings (where the great majority of the population lives), household water bills usually have a fixed component (EUR 15 to EUR 60) and a volumetric component (EUR 0.78 to EUR 1.40 per cubic metre, not including VAT and the tap water tax). The price of tap water has risen steadily over the past few decades. Sewerage fees are paid to the local body responsible for maintaining the sewerage infrastructure. Municipal sewerage charges for households are not based on the amount of waste water collected (unlike charges for industry, which are usually proportional to water use). Waste water treatment charges, levied by water boards, are based on a unit charge per p.e. One-person households count as one p.e., multipleperson households as three p.e. Households also pay a per capita charge (“head tax”) to water boards, which finances a number of water quality and quantity measures (e.g. combating groundwater depletion). Revenue from this charge was some EUR 268 million in 1998. Some regions have experimented with basing the fee for all water-related services on drinking water usage. However, legal technicalities (e.g. boundary issues and the need to amend the Pollution of Surface Waters Act) and hesitation by various authorities still stand in the way of country-wide adoption of such a pricing system. Results of current experiments will be taken into consideration in developing further policy.
Environmental taxes In 1995 a groundwater tax was introduced to raise general revenue and to reduce groundwater depletion. This tax reduces the cost difference between drinking water produced from surface water (which is normally more expensive) and that produced
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from groundwater. The general rate is EUR 0.1631 per cubic metre; lower rates apply where extraction is accompanied by artificial recharge of the same aquifer. Revenue raised by the groundwater tax, estimated at EUR 163 million per year, is not earmarked. Exemptions apply to groundwater abstraction for land drainage, and for irrigation if less than 40 000 cubic metres per year is abstracted. Under the Groundwater Act, provinces may levy a separate charge to finance activities related to implementation of water resources policy. This charge is small, with revenue countrywide in the order of EUR 20 million. As of 2001 a water supply tax of EUR 0.29 per cubic metre is being levied on water produced by water supply companies, which can pass this tax on to customers. The tax was introduced to raise revenue (currently about EUR 111 million per year) and is not earmarked. Exemptions apply to water supplied to meet emergencies (e.g. from fire hydrants) and to sprinkler installations. Dischargers of effluents to surface waters (i.e. waste water treatment utilities and industry, but not agricultural dischargers) are subject to a tax on surface water pollution, measured in units of oxidisable matter (BOD, COD) or in pollution units. The rate per pollution unit is about EUR 43. Revenue is earmarked for financing of measures to prevent or remediate surface water pollution.
1.6
Decoupling performance
While the population of the Netherlands has been growing, the number of people not connected to a waste water treatment plant has fallen. For this indicator, the Netherlands not only recorded absolute decoupling but the best performance among OECD countries in the period 1975-98. In the same period it was among the top performers in decoupling households’ nitrogen and phosphorus discharges from population growth (Figure 3.5). Absolute decoupling can also be observed for some environmental pressures exerted by agriculture. Apparent consumption of pesticides and commercial NPK fertilisers was decoupled from final crop output in the period 1985-97, but absolute consumption levels remain very high compared with other OECD countries. There was also decoupling of soil surface nitrogen balance per unit of agricultural output (nitrogen input from fertilisers minus output through crop harvesting) in 1995-97, although the balance in the Netherlands remains among the highest among OECD countries. Accumulation of nitrogen in soil over the years has also been among the highest in the OECD.
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Figure 3.5 Decoupling
Population not connected to public waste water treatment plants versus total population, 1975-2000 1975 = 100
125 Total population 100 75 50 25 Population not connected 0 1975
1980
1985
1990
1995
2000
Discharges of nutrients from households to the environmenta versus total population, 1975-2000 Nitrogen
Phosphorus
1975 = 100
1975 = 100
125
Total population
125
100
100
75
75 Discharges of nitrogen
50
Total population
Discharges of phosphorus
50
25
25
0
0 1975
1980
1985
1990
1995
2000
1975
1980
1985
1990
1995
2000
a) Amount of phosphorus and nitrogen per capita discharged to ambient waters and not removed by collective or individual treatment facilities. Source: OECD.
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Focus on Selected Topics 2.1
Modernising the institutional framework
Co-operative water management in the Netherlands existed in the Middle Ages. The present-day institutional framework evolved significantly during the 1990s. By 2000 water boards had taken over from the provinces the operational responsibility for management of regional surface waters throughout the country. The governing bodies of water boards were dominated by rural interests in the past, but today they often represent a wider range of views leading to a more holistic approach. Consolidation and amalgamation of water boards continued throughout the decade (there were about 120 in 1990 compared with 57 in 2000; it is expected that by 2005 there will be about 25). Many water boards are responsible for dike and waterway maintenance, drainage, water quality management and waste water treatment. The provinces’ responsibility is now limited to establishing a strategic framework (e.g. through provincial hydrological planning) and overseeing the results (e.g. through monitoring). As of February 2002, Rijkswaterstaat policy functions were transferred to the Ministry of Transport, Public Works and Water Management (V&W) and the national water agency now has a purely executive role. The Commission on Integrated Water Management (CIW), created in 1995 to replace earlier bodies, fulfils an important integrative role within the institutional framework. Chaired by H.R.H. the Prince of Orange, it is a statutory body made up of representatives of the water boards, provinces and municipalities. Central government is represented by the Ministry of Housing, Spatial Planning and the Environment (VROM), V&W and the Ministry of Agriculture, Nature Management and Fisheries. The CIW’s main task is to co-ordinate implementation of water policy (including the EU Water Framework Directive). It also considers economic and social aspects of water policy. The CIW publishes an annual review of progress covering all major water management issues. One innovation is the proposed establishment of water-chain companies, whose purpose would be the integration of water services for the general public (drinking water delivery, sewage collection and waste water treatment). Only one water-chain company is operational so far; legal problems concerning public authorities’ delegation of responsibility to such companies must be resolved before the experiment can be extended. Implementation of the EU Water Framework Directive will require changes in Dutch water legislation (notably that concerned with ecological water quality standards). It may also reveal the need for further institutional changes, although none is envisaged at present. The requirement under this Directive to formulate
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management plans at river basin level should present an opportunity to drastically reduce the obligation of the over 650 agencies with water-related responsibilities to produce individual water management plans. The Directive’s requirement (article 9) that economic analyses of river basin plans be carried out should assist those with responsibilities for water management to determine the most cost-effective solutions to the Netherlands’ water problems.
2.2
Integrating water management and spatial planning
New water management approaches (e.g. “more space for water”, measures to reduce groundwater depletion) give spatial planning an important role with respect to water retention and detention. The needed integration of water and planning policies has already been accomplished through implementation of national policies for water, spatial planning and nature (i.e. NW4, the draft Fifth National Policy Document on Spatial Planning 2000/20, the Policy Document for Nature, Forest and Landscape in the 21st Century). The Dutch Cabinet has taken two further, more specific decisions that confirm and reinforce the new approaches. The water boards and the central, provincial and municipal governments have come to an administrative agreement (which may receive legal status at a later stage) to adopt a new policy instrument, the water check: all plans and decisions related to spatial planning must consequently be assessed for potential impacts in terms of flooding and overflows, water quality and groundwater depletion. This co-ordination among various levels of government is promising, but it will not be easy to implement the spatial planning approach. Competition for space in the Netherlands is intense, and water management issues have had little influence so far in determining land use. It is crucial that national level policy intentions be translated into local land use decisions. Provinces should closely monitor performance of the spatial planning system at the local level, to ensure that municipal plans take due account of water issues, that municipalities adhere to their own land use plans, and that land use is consistent with planning maps.
2.3
Trends in water use
The Netherlands is well on the way to meeting its objective of reducing freshwater withdrawals and halting increases in groundwater abstraction. Water withdrawal per capita and intensity of water use are well below the OECD and OECD Europe averages (Figure 3.6). Total water withdrawal fell by about 40% in the period 1990-96. This decrease mainly reflected more efficient use of cooling water in electricity generation (from over 6 billion to around 3 billion cubic metres per year), which represents some
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Figure 3.6 Water use, 2000a Intensity of use
Withdrawal per capita Netherlands
Netherlands
290
United States Japan Denmark France Germany Italy United Kingdom
1 870 710 140 520 490 980 210
OECD Europe
950 0
Unites States Japan Denmark France Germany Italy United Kingdom
19.9 21.2 12.3 15.9 22.3 32.1 17.4
OECD Europe
560
OECD
4.9
1 000
14.0 11.8
OECD 2 000 m3/capita
0
10
20
30
40
withdrawal as % of available resources
a) Or latest available year. Source: OECD.
two-thirds of total use. The volume of drinking water produced by water supply companies (of which about 60% comes from groundwater) decreased by a much smaller percentage, from 1 227 to 1 183 million cubic metres between 1990 and 2000. Several experiments are being made to limit tap water consumption by using rainwater for toilet flushing, gardening and car washing. Agri/horticulture consumes about 60 to 100 million cubic metres of the water produced by water supply companies; direct abstraction for agri/horticulture is between 50 and 250 million cubic metres per year, depending on rainfall during the growing season. Measures to limit groundwater abstraction are part of efforts to halt groundwater depletion. Sometimes it is possible to transfer large-scale drinking water abstraction to alternative locations where environmental impacts are less serious. Direct abstraction of groundwater by industry has shown a declining trend since the 1980s. The groundwater tax, which reduces the price difference between drinking water produced from surface water and that produced from groundwater, contributes to limiting groundwater abstraction.
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4
NATURE CONSERVATION AND BIODIVERSITY*
Recommendations The following recommendations are part of the overall conclusions and recommendations of the OECD Environmental Performance Review of the Netherlands: • complete establishment of the national ecological network according to targets, taking account of requirements of the EU Birds and Habitats Directives; • achieve the target of 20 to 30% of natural areas fully protected against acidification and eutrophication, particularly by reducing pressures from agriculture and the waste water industry; • reinforce implementation of nature conservation objectives in agricultural policy, particularly by meeting reduction targets for pesticide use, ammonia emissions and desiccation, speeding up farmland conversion in natural areas, and tackling diffuse water pollution by nitrogen compounds; • reinforce implementation of nature conservation objectives in water policy, particularly by reducing water pollution by toxic substances, developing connections among water systems and setting ecological quality objectives for water bodies; • enhance nature protection in coastal areas, particularly through better control of mud fishing and establishment of marine reserves, in the framework of the OSPAR Convention; • strengthen efforts to integrate biodiversity, nature and landscape conservation among themselves and with spatial planning.
* The present chapter reviews progress in the last ten years, and particularly since the previous OECD Environmental Performance Review of 1995. It also reviews progress with respect to the objective “maintaining the integrity of ecosystems” of the 2001 OECD Environmental Strategy.
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Conclusions Nature management is subject to comprehensive national policy planning (Nature Policy Plan) under the Ministry of Agriculture, Nature Management and Fisheries (LNV). The National Ecological Network (EHS) being established will include fragmented protected areas throughout the Netherlands, corridors to connect them, and large bodies of water such as North Sea coastal waters, the Wadden Sea, the IJssel Lake and the Delta. The annual rate of realisation of the EHS is increasing, but it remains below the target set by LNV to meet the objective of completion by 2018. Failure to meet the LNV target was mainly due to land scarcity and high land prices, as the network was largely created through land purchase and restoration by LNV. The emphasis is now moving from land acquisition to the signing of management contracts with landowners. Fourteen national parks have been established, and 50 000 additional hectares were given protected status in the 1990s. This, too, is below target. National protected areas are managed by the Dutch Forest Service (200 000 hectares) and NGOs (160 000 hectares). Forested areas increased by 23 000 hectares over the last decade. Phosphorous concentrations in surface water have decreased and are now in line with the NEPP target, mainly as a result of industry efforts. Biodiversity loss has been halted in some ecosystems, such as breeding habitats for migrating birds on farmland and woodland. Volunteers, often highly specialised, actively contribute to biodiversity monitoring. Open landscapes (polders in the west, cultivated grassland on peat soil in the north and west) are still relatively intact, but they are experiencing increasing pressure from urbanisation. Targets have recently been established to protect these areas. Awareness of nature conservation has grown over the decade, especially regarding demand for green areas in and around cities and for recreation in protected areas. The Netherlands has signed and ratified international agreements relating to nature and biodiversity. However, these efforts are not always commensurate with the intense pressures on biodiversity, nature and landscapes from economic activities; in some cases they do not appear to lead to results consistent with national targets. This may require reviewing and possibly revising the institutional setting for biodiversity, nature and landscape conservation. Many species are still threatened, and biodiversity conservation has continued to deteriorate in ecosystems subject to eutrophic deposition and eutrophication (e.g. open dunes, heaths and coastal waters). Nitrogen deposition (the main component of eutrophic deposition) is still far above NEPP targets, reflecting high emissions of NOx from transport and ammonia from agriculture. Acid deposition has been reduced but is still above the NEPP target. Overall, only 10% of Dutch natural areas are fully protected against acidification and eutrophication compared with a 2010 NEPP target of 20 to 30%. Desiccation due to agricultural drainage still affects 500 000 hectares, and restoration activities have been limited and are below
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target. Biodiversity is also under strong pressure from pollution by toxic substances: intensity of pesticide use remains largely above the OECD average; ambitious reduction targets were set recently. Water pollution by heavy metals and by hormone disruptors, as well as a lack of connections between water systems, affect aquatic life. In coastal areas little has been done to protect nature effectively; despite the 1995 OECD recommendation, there are no established marine reserves (plans are in discussion). Mud fishing (bottom trawling) is still practised in the North Sea, which has an impact on sea floor habitats. Residential areas have continued to be developed at the expense of natural areas, leading to the adoption of additional spatial planning regulations. It is unclear whether the objective of devoting one-third of the inland EHS entirely to nature conservation will be met. Further efforts are needed to fully implement the EU Birds and Habitats Directives. Amendment of the Nature Conservation Act to fully transpose the Birds and Habitats Directives was submitted to Parliament. Nature management has been integrated into agricultural policy with mixed results. While they fall under the same parent ministry, EU farm subsidies targeted at supporting agricultural production are much larger than public expenditure on nature protection. Agri-environmental measures have focused more on controlling diffuse water pollution than on converting farmland to wildlife habitats (mainly meadows), though payments to farmers are being increased to meet the conversion target of 110 000 hectares by 2020.
1.
Evaluation of Performance 1.1
Policy objectives
The Ministry of Agriculture, Nature Management and Fisheries (LNV) supervises nature conservation in the Netherlands. Policy objectives for nature conservation and biodiversity were included in the 1990 Nature Policy Plan. The 1992 Landscape Memorandum, the 1994 Forest Policy Plan and the 1995 Strategic Action Plan for Biodiversity also contain nature conservation objectives. For the period 2000-10, policy objectives in all these areas (nature, biodiversity, forests and landscape) have been regrouped in a policy document released in 2000, Nature for People, People for Nature. The successive National Environmental Policy Plans (NEPPs) have set objectives for reducing eutrophication, desiccation and acidification, thereby reducing pressures on nature and biodiversity. By 2020 the Netherlands’ key national objectives are to establish a National Ecological Network (EHS), enhance nature conservation in rural areas and expand green areas in cities (Table 4.1). One-third of the inland EHS must include large-scale natural areas (e.g. sandy woodland, dunes and marshy landscapes) and vulnerable
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habitats (various types of woodland, marshy grassland and heaths) connected by ecological corridors. The remaining two-thirds are to consist of woodland and grassland with a multifunctional role. By the end of 2003, 18 national parks must be created including one transboundary park. The 1995 OECD Environmental Performance Review recommended that the Netherlands: – vigorously pursue the programme for protecting areas as national parks and in the National Ecological Network: ensure that targets are met, management plans are adopted and implemented, and rules applying within protected areas are enforced;
Table 4.1
Achievement of nature conservation objectives
Objectives
Expansion of the National Ecological Network Land Acquisition of forests and other natural areasa Changing land use designation in spatial planninga Without changing land use designationa Ecological corridorsa Water North Sea and other large coastal water areasb Wet landscapesc Outside the National Ecological Network Rural areas Forest and other natural areas Agricultural areasd Bird protection areas Afforestation Rural landscapese Green space in urban areas In the Randstad Outside the Randstad Urban landscapes
Target by 2018 (ha)
Completed by end 1999 (%)
744 500
70
453 500 188 500 90 000 13 500
95 48 43 0
6 300 000 5 000
100 0
219 900 96 500 15 000 30 000 38 400 40 000 31 685 18 685 3 000 10 000
59 100 45 73 14 0 20 31 23 0
a) Includes inland water, Ramsar and Natura 2000 sites. b) Includes the Wadden Sea, IJssel Lake and Delta. c) Includes 500 km of natural banks and fish ladders along and in waterways. d) Consists of countryside stewardship (10 000 hectares) and agri-environmental schemes (5 000 hectares). e) Network of nature (green) and water (blue) areas of man-made landscape. Source: LNV.
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– continue action, with appropriate consultation with other North Sea riparian countries, to protect the coastal and marine environment further and to establish a number of marine reserves; – better protect landscapes through the formulation of regional landscape plans and their effective implementation; – integrate nature and landscape protection concerns further in agricultural policies and intensify measures to improve the vitality of forests; – intensify measures to control the lowering of groundwater levels and consequent desiccation in nature areas; – extend measures to control and reduce the fragmentation of habitats, particularly with respect to existing and new transport infrastructure.
1.2
State of nature and biodiversity
The natural environment and biodiversity in the Netherlands have deteriorated sharply since 1950, though there has been some stabilisation since 1990 (Chapter 4, Section 2.1). Species diversity has declined sharply in recent decades; the share of species now under threat is one of the highest among OECD countries for birds, amphibians, reptiles and vascular plants. It is much the highest for freshwater fish (Figure 4.1). The state of the natural environment in the Netherlands is assessed every year by the National Institute of Public Health and Environmental Protection (RIVM) in the Nature Balance. The Nature Compendium provides background data. Occurrence of so-called focal species (referred to in the IUCN Red List, the EU Birds and Habitats Directives, the Bonn Convention on the Conservation of Migratory Species of Wild Animals, and the Ministry of Agriculture, Nature Management and Fisheries’ list of target species) and of species characteristic of particular types of vegetation are compared with the reference year 1950. The number of locations where species are found is affected by factors such as eutrophication, acidification, desiccation and pollution by toxic substances (environmental stress), as well as land use change and fragmentation (non-environmental stress). Concerning animal species, the decline in terrestrial macrofauna and fishes has been due more to environmental stress than to other factors. In contrast, nonenvironmental stress has been the main pressure on amphibians and reptiles. In the case of mammals, birds and butterflies, non-environmental stress is at least as significant as environmental stress. The Netherlands is the temporary habitat of a large number of migratory bird species. Compared with 1950, the types of birds that breed in woodlands on high sandy soil have on average remained the same with some population increases
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Figure 4.1 Fauna and flora
State in the Netherlands, late 1990s total number of speciesa
Mammals
64
Birds
170
Freshwater fish
28
Reptiles
7
Amphibians
16
Vascular plants
1 392 0
20
40
60
80
100 Percentages
Threatened
Not threatened
Threatened speciesb
Mammals Netherlands
United States Japan
16
82
7
11
2 13
Denmark
22
13
France
20
14
Germany
37
Italy
Vascular plants
27
24
United Kingdom
Fishc
Birds
1 24 16
10 6 68
26
32
18
22
24
7 29
41
35
6
5 9
11
0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100 %
%
%
%
a) Excludes extinct species. b) IUCN categories “critically endangered”, “endangered” and “vulnerable” in % of known species. c) Freshwater fish only, except in USA and France. Source: OECD.
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(e.g. buzzards, goshawks and some woodpeckers). Ageing of woodlands has contributed to these increases, as well as to increases in live stocks (in total size and per hectare) and a greater share of mixed forest. Compared with 1950, breeding birds have declined sharply in agricultural areas on high sandy soil. More intensive use of arable land and grassland, and large scale agricultural production resulting in economies of scale have brought about the loss of many small landscape features (e.g. hedgerows, windbreaks). The number of breeding pairs of small owls has fallen by over 50% in the last 15 years. On balance, the situation has stabilised since 1990. Breeding of bird species associated with open dunes and heathland has fallen since 1950; these species have been declining steadily since 1990 due to the intrusion of scrubland and grasses, mainly as a consequence of an increased supply of nutrients via air deposition. Butterflies have declined even more sharply. Deterioration of environmental quality is a major cause of the decline in plant species. With eutrophication, a wide variety of species typically found in nutrientpoor conditions are displaced by species that thrive in a nutrient-rich environment (e.g. intrusion of grasses on heathland). With acidification, the original flora are displaced by those that grow best in acid conditions. Desiccation has similar negative impacts. Between 1950 and 1995, there was a 50% reduction in the occurrence of plant species. It is expected that most of these environmental pressures will decrease in decades to come, though their effects may persist longer (Chapter 4, Section 2.2). Eutrophication of brackish coastal waters has led to increased production of biomass and to changes in the species composition of phytoplankton. Occurrence of foaming algae has increased sharply in coastal waters over the last few decades. In the Wadden Sea and the Delta there have been positive and negative developments. The seal population continues to increase, some shellfish species are recovering, and there has been a drop in the number of sea birds that are victims of oil spills. However, eelgrass has become virtually extinct, the area of salt meadows and sand bars along the eastern Scheldt is decreasing, and there is a severe oyster shortage.
1.3
Pressures on nature and biodiversity
The Netherlands is characterised by high population density (the second highest in the OECD area), high livestock density (the highest in the OECD) and high road network density (the second highest in the OECD). Population density, which implies density of human activity, is often related to environmental stress and pressure on available land resources. Nutrients and ammonia emissions from livestock contribute to eutrophication. Transport infrastructure exerts pressures on the natural environment through use of space and habitat fragmentation.
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Eutrophication Eutrophication results from discharges of phosphorus and nitrogen to inland and coastal waters. Phosphorus concentrations in surface water decreased significantly (by over 50%) between 1990 and 2000: at 0.1 to 0.3 mg P/litre, they are now in line with the NEPP target (Table 5.12 and Figure 3.4). This reflects a 34% reduction in phosphorus emissions, achieved through the introduction of phosphate-free detergents and measures taken by industry. In contrast, nitrogen concentrations in surface water remained virtually unchanged during this period despite a 17% reduction in nitrogen emissions. At 4 to 5.5 mg N/litre, they are well above the 2.2 mg/litre NEPP target (Table 5.12 and Figure 3.4). Agriculture is the main source of nitrogen emissions. Urban waste water treatment plants increasingly use dephosphorisation and denitrification; it is intended that most plants will switch to intensive nitrogen removal by 2006 (Chapter 3, Section 1.2). Eutrophication also results from air pollution. Eutrophic deposition remained high throughout the decade (Figure 4.2). Nitrogen deposition decreased by only 17% between 1990 and 2000. At 2 400 mol N/hectare, it remains well above the NEPP target (Table 5.12). NOx and ammonia (NH3) emissions decreased by only 27% (NOx) and 32% (NH3) during this period, also remaining far above the NEPP targets. The source of most ammonia emissions is agriculture. Decreased NOx emissions in recent years mainly reflect a reduction in emissions from traffic and transport.
Figure 4.2
Eutrophying and potential acidifying deposition, 1980-2001
acid equivalents/ha per year
8 000 Potential acidifying deposition
7 000 6 000 5 000
Eutrophying deposition
4 000 3 000 2 000 1 000 0 1980
1982
1984
1986 SOx
Source:
1988
1990 NOx
1992
1994
1996
1998
2000
NH3
RIVM.
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Acidification Following a significant decrease in the 1980s, emissions of acidifying substances continued to fall (by 32%) in the 1990s (Figure 4.2). However, at 3 140 a.e./hectare acid deposition is still far above the NEPP interim objective set in the 1989 Acidification Prevention Plan (Table 3.1). The decrease has primarily been due to sharply reduced SO2 emissions (by 54% in the 1990s), which now comply with the 2000 NEPP target. Domestic reduction of SO2 emissions was mainly achieved in manufacturing industry, electric companies and refineries. Reducing acidification also requires international co-operation. The 1999 Gothenburg Protocol, signed by most UNECE countries, targets further emission reductions by 2010 (Chapter 8). The objective of fully protecting 20 to 30% of Dutch natural areas against acidification and eutrophication by 2010 was adopted in NEPP4; only 10% of these areas is now so protected. Full protection entails not damaging specific vulnerable elements of the environment (based on current knowledge).
Desiccation Desiccation of natural areas mainly results from drainage of agricultural land and, to a lesser extent, from groundwater extraction (particularly for drinking water supply) and drainage of expanding urban areas. Over the years water tables have been lowered as part of efforts to increase agricultural productivity. One reason groundwater levels were allowed to fall was to make it possible for heavy agricultural machinery to be used as early as possible in the spring. Between 1950 and 1965, water tables across the country fell by an average of 30 cm. They appear to have stabilised at this level for some time. In the last ten years they have tended to continue to fall, though there is no clear explanation. Water tables are calculated to have fallen by 10 to 40 cm at higher elevations in the Netherlands and by as much as 40 to 120 cm at some locations. Water tables have risen again in some protected areas, but only occasionally to the 1950-65 level. About 40% of native plant species require high water tables and are therefore threatened with desiccation. Many plants characteristic of wet and moist environments have already disappeared or face extinction. Some animal species, such as insects that depend on specific plant species to reproduce, are also threatened. The objective for 2000 was a 25% reduction in total desiccated area (to 450 000 hectares, compared with 600 000 hectares in 1986). It is estimated that around 500 000 hectares is still affected by desiccation; on about 15 000 hectares the hydrological regime has been fully restored and 85 000 hectares is no longer classified as desiccated as a result of changes in designated land use. On about 275 000 hectares of desiccated land, nature conservation is now the main land use objective. The hydrological regime has been partially restored on almost 150 000 hectares. “Partial restoration”
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may refer to the spatial extent of restoration (e.g. 20% of the designated natural area) or the degree of restoration (e.g. raising the water table by 15 cm when the objective is 20 cm). An evaluation in 2001 of the restoration programme’s lack of success has led to the conclusion that it must be improved. Specific actions are being identified.
Toxic substances For a number of years reproductive disturbance has been observed in several species of aquatic fauna. It has been attributed to hormone disruptors (pesticides and natural and synthetic hormones). Substantial quantities of hormones excreted by humans and animals enter surface water through leaching or via waste water treatment plants. Concentrations in large rivers appear to be high enough to impact fish species. Even higher concentrations of natural hormones can be assumed to occur in surface water in regions with intensive livestock farming. Use of tributyltin (TBT) compounds in anti-fouling paints has contributed to the decline of mollusc species. Since 1990 the use of TBT-based paints has been prohibited on vessels less than 25 metres long. Birds are especially vulnerable to pesticides. For example, the number of Sandwich terns fell sharply as a result of discharges of organochloro compounds via the Nieuwe Waterweg; there were only 900 breeding pairs in 1965, compared with 40 000 to 50 000 in the 1950s. Once discharges ceased, the number of pairs began to increase. There are over 14 000 today. Use of plant protection products has fallen by 58% since the early 1990s, but this has been achieved mainly through reducing applications of soil sterilisation products. Insecticide use has fallen by almost 70%, while use of fungicides has remained stable. Intensity of pesticide use in the Netherlands remains well above the OECD and OECD Europe averages (Figure 3.3).
Land use changes The surface area of suitable biotopes has declined in the last few decades following changes in land use. The most significant land use trends in the last 20 years have been the expansion of developed land and woodland and a decrease in natural areas and agricultural land (Table 4.2). The extent of natural habitats of high botanical quality has been reduced dramatically over the last 50 years (e.g. loss of 50% of heathland and 75% of oligotrophic pastures and meadows).
Transport infrastructure Road construction and widening has contributed to habitat fragmentation, which together with the disappearance of natural areas has negatively impacted plant and animal populations. Most remaining valuable natural areas are small in size. Large
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Table 4.2
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Land use
(km2) Natural areas
1977 1985 1996 Change 1977-96 (%)
Forest Recrea- AgriDeveloped Transportb Otherc and other tional cultural landa wooded land areas land
Dry
Wet
Total
834 839 839
808 659 539
1 641 1 497 1 379
2 905 3 003 3 233
647 782 827
1
–33
–16
11
28
24 372 2 660 23 974 2 950 23 508 3 201 –4
20
1 269 1 328 1 340
451 387 385
6
–15
Inland water
Total
3 243 37 187 3 414 37 334 7 653 41 526 136d
12
a) Mainly residential areas. b) Mainly roads. c) Mainly construction sites. d) The inland water area greatly increased after completion of the Delta Works in the south-west in 1987. Source: RIVM.
single areas are of great importance as they often contain highly diverse ecosystems, reflecting rapid transitions between high and low water tables or between rich and poor soil. Many species of international importance are totally dependent on these areas. In 1994 a target for 2010 was established to respond to fragmentation of the National Ecological Network by roads. As of 2002, four “eco-ducts” had been constructed and 20 more were planned or under construction, 600 “fauna tunnels” had been built, and 200 existing tunnels and viaducts had been adapted to allow safe passage of small animals (e.g. badgers). Through these measures, the 2010 target had been 45% achieved at a cost of EUR 40 million. The Netherlands is chairing Programme 341 of the European Co-operation in the Field of Scientific and Technical Research (COST). The main objective of COST 341 is to promote a safe and sustainable pan-European transport infrastructure which will conserve biodiversity and reduce vehicular accidents and resulting deaths of fauna.
1.4
Policy responses
Integration of nature protection concerns in sectoral policies Measures to address environmental and other pressures on nature have been taken in the agriculture, industry and transport sectors. Despite its small size, the
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Netherlands is one of the world’s three largest exporters of agricultural produce. With dairy farming and market gardening its main activities, agriculture employs around 3% of the workforce and accounts for about 3% of the country’s GDP. Following a rapid increase in the 1970s and the 1980s, particularly in the number of pigs and poultry, livestock numbers decreased in the 1990s by 18% for cattle (4 million in 2001), 6% for pigs (13.1 million in 2001), though there has been a 29% increase for laying hens (42.7 million in 2001). The decrease reflected adjustment of the farm sector to market and policy conditions (notably milk quotas introduced in 1984), as well as the need to meet environmental requirements (in particular, manure quotas introduced in 1987 and tightened since). However, livestock density remains the highest in the OECD area (Figure 4.3). Agri-environmental measures have focused on better control of use of farm inputs to minimise diffuse pollution and to reduce eutrophication and acidification by nitrates, phosphates and ammonia. Many such measures are recent; among them, a government programme was initiated in 2000 to purchase pig and poultry farms and take them out of production (the outgoers scheme). Measures have also included a mineral accounting system, involving a tax on farm mineral surpluses, and a compulsory manure delivery system to address farm manure surpluses (Chapter 3). It is unclear how successful these measures will be in reducing the current manure surplus and high intensity of fertiliser use. There are proposals to establish limits on the number of animals per hectare and to increase support for organic farming (in which farmers appear to be losing interest to some extent). In 2001 the government released a policy document, Vision for Healthy Crop Production, which establishes the goal of reducing pollution from plant protection products by 95% by 2010 compared with 1998. This is to be achieved through encouraging farmers to move towards integrated crop production. Policy instruments to be used include education, farm certification, tightening of regulations on the sale and use of farm pesticides, and a pesticide tax from 2003. More generally, the total amount of farmland has been decreasing in the last two decades (some of it being replaced by woodland), partly as a result of the European Common Agricultural Policy in recent years. In 2001 the budget of the Ministry of Agriculture, Nature Management and Fisheries (LNV) was EUR 1.8 billion. The EU contributed 62%; the national contribution was 38%. Around EUR 0.4 billion of the LNV budget has been allocated to development and management of nature reserves. Over two years the total cost of the outgoers scheme has been almost EUR 0.9 billion. However, most agricultural policy support remains associated with agricultural production. Measures taken by industry to control eutrophication and acidification have included the imposition of tighter standards and closer monitoring and control by firms of direct discharges of nitrogen and phosphorus to water, with good results
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Figure 4.3
95
Agriculture
Trends in the Netherlands, 1990-2001
Land use
1990 = 100
Arable and permanent crop land 29.0%
Energy consumption
125
Other land 31.5% Production
100
Employment
75
Machinerya Forest and other wooded land 9.2%
50 25
Permanent grassland 30.4%
0 1990 1992 1994 1996 1998 2000
Livestock Density, 2001
Trends in the Netherlands, 1990-2001 million head of sheep equivalentb
60
2 271
Netherlands
50
Hens
40 Pigs Horses
30 20
Sheep Cattle
10
United States Japan Denmark France Germany Italy United Kingdom
188 1 110 934 533 718 461 672
OECD Europe
473 206
OECD 0 1990
1992
1994
1996
1998
2000
0
1000
2000
head of sheep equivalentb/km2c
a) Tractors and combined harvester-threshers in use. b) Based on equivalent coefficients in terms of manure: 1 horse = 4.8 sheep; 1 pig = 1 goat = 1 sheep; 1 hen = 0.1 sheep; 1 cattle = 6 sheep. c) Of arable, permanent crop land and permanent grassland. Source: FAO; OECD.
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(Chapter 3). Progress has also been made on reducing air emissions of SO2, particularly through environmental agreements (Chapter 2). The water industry is making efforts to reduce eutrophication due to nitrogen and phosphorus inputs by upgrading municipal waste water treatment infrastructure (Chapter 3). Water contamination by heavy metals remains a major threat to freshwater fish populations. In the transport sector measures have been taken to reduce NOX emissions and to avoid habitat fragmentation by regulating the development of road infrastructure, but with limited success (Chapter 7). Efforts have also been made to integrate nature protection concerns in spatial and environmental policy while creating new regional development opportunities. In 1989 VROM introduced regional development agencies (ROMs). Ten ROM areas have been designated at national level. Provincial authorities have designated areas with integrated objectives, as well as environmental protection areas such as groundwater protection areas (1 450 km2), nature conservation areas and noise sanctuaries (1 780 km2). In several cases groundwater protection areas have been integrated with nature conservation areas; many conservation areas are also designated as noise sanctuaries. Such environmental protection areas are often located wholly or partly within a ROM area or within a provincial area with integrated objectives. Spatial policy in the Netherlands plays an important role in facilitating the implementation of nature policy. Recent examples are limiting the extent of agricultural land lying within nature conservation areas (“reconstruction policy”) and allowing more space for water for flood control (“space for water policy”).
Protecting terrestrial ecosystems One of the main goals of nature policy in the Netherlands is the creation of a coherent network of nature reserves, the National Ecological Network (EHS), including coastal areas and marine ecosystems. The 1990 LNV Nature Policy Plan established the objective that this network should encompass nearly 750 000 hectares by 2018 (an increase of some 40% in the amount of land designated as natural areas). This objective was reaffirmed in the 2000 policy document, Nature for People, People for Nature. To create a coherent EHS: i) the amount of land devoted to nature reserves is being increased; and ii) agricultural land is being converted to a natural environment through habitat development. By the end of 1999, 518 000 hectares or nearly 70% of the land needed for the EHS had been purchased or was being managed under contract (Table 4.1). In 2000 another 4 200 hectares was added to the EHS, more than in previous years but still well below the 5 700 hectare annual target set by LNV. Based on the present rate of realisation, it will take until 2030 (instead of 2018) for the EHS to be fully developed and handed over to nature management organisations. This delay is
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mainly related to the amount of time needed to swap land acquired outside the EHS for land inside the network, and to create new natural habitats. Because of the increasing costs of land acquisition and lack of funding, the government is changing the emphasis from land purchase for nature conservation towards management agreements with land owners (mainly farmers). Protected areas (according to IUCN classification) accounted for 482 000 hectares or some 11.6% of total area, a little above the OECD Europe average (Figure 4.4). Most protected areas are nature reserves. Fourteen national parks have been created, covering 97 000 hectares (Table 4.3). Four additional parks should be established by the end of 2003, covering another 30 000 hectares. Two “autonomous” national parks were created in the 1930s, covering 10 200 hectares. Few farmers have converted any of their land to natural areas (mainly meadows), despite the target of conversion of 110 000 hectares by 2018. This situation is changing, however, following adjustment of the compensation level to reflect income loss (pursuant to Article 6 of the EU Habitats Directive). Transposition of this article was the main reason for delay in updating the 1975 Nature Conservation Act. It is unclear whether the objective of devoting one-third of inland EHS to nature conservation will be met. In particular, a number of important differences exist between Dutch nature policy and provisions of the EU Birds and Habitats Directives, which apply to a considerable extent to the same areas (40% of inland EHS). For example, in the Netherlands nature objectives are not set until the boundaries of protected areas are determined, whereas under the EU Directives they are a determining factor in the designation of such areas. Moreover, in the Netherlands more emphasis is placed on the eventual quality of existing and future natural environments, which is subject to negotiation in order to agree trade-offs among social (residential, employment, infrastructure, recreation), economic (land use) and environmental (water management) considerations. In contrast, European law gives considerable legal protection to the natural values of designated areas under the Birds and Habitats Directives. It is therefore important that the Netherlands specifically implement habitat development and environmental and water policies to enhance the quality of nature in areas designated under these Directives. A proposal to amend the Nature Conservation Act to incorporate requirements of the EU Birds and Habitats Directives has been submitted to Parliament. Designation of 79 Special Protection Areas (SPAs) under the Birds Directive, as well as 76 Special Areas of Conservation (SACs) under the Habitats Directive, has been announced and designation of further areas is under discussion. Legal instruments are in force to protect nature conservation (natural) areas. The most important are the 1967 Nature Conservation Act (amended in 1975 and 1998), the 2002 Flora and Fauna Act (replacing the Birds Act, the Hunting Act, the Endangered Exotic Animal and Plant Species Act, and part of the 1967 Nature Conservation Act), the 1961 Forestry Act, the 1965 Spatial Planning Act (amended
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Figure 4.4
Major protected areas,a late 1990s
Netherlands
11.6
United States
21.2
Japan
6.8
Denmark
32.0
France
10.1
Germany
26.9
Italy
9.1
United Kingdom
Categories I-II (strict nature reserves, wilderness areas and national parks)
20.4 Categories III-VI
OECD Europe
10.4 12.4
OECD 0
10
20
30
% of total area
a) IUCN management categories I to VI; national classifications may differ. Source: IUCN; OECD.
Table 4.3
Protected areas
(‘000 hectares)
National parks Special Protection Areas Special Areas of Conservation Ramsar sitesa
1980-90
1991-95
1996-2000
2001-03
Total
5 53 –
21 275 –
11 713 1 000
60 – –
97 1 041 1 000
306
19
–
366b
691
a) On the Ramsar List of Wetlands of International Importance. b) An additional 126 000 hectares are in the process of designation. Source: LNV.
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in 1994) and procedures for designating an area as a national park. Water areas are protected mainly under the Ramsar Convention (44 such sites have been designated); in 2002 the Netherlands submitted a report on its wetlands of international importance to the Convention. Areas may be protected wholly or in part under several different laws and/or regulations. De Weerribben National Park, for example, is protected under the Nature Conservation Act, the Ramsar Convention and the EU Birds and Habitats Directives. Land purchase, one of the most important instruments for protecting natural areas, is carried out primarily by the State (80% of all purchases) and private conservation organisations (20% of all purchases). These organisations include the Dutch Society for the Preservation of Nature (Nature Monuments). The land purchased by LNV is managed by the (recently privatised) National Forestry Service (50%), Nature Monuments (25%) and the provincial nature conservation agencies (25%), which together manage a considerable share of Dutch nature reserves (73% in 2000) and receive associated government financial support. LNV, the National Forestry Service and NGOs also jointly manage national parks, through a joint foundation, with the combined objectives of ecosystem conservation, education, tourism and research. Natural areas are also managed by the Ministry of Defence, the Directorate General for Public Works and Water Management, water companies, forest owners and some municipalities. A government decision was taken in 2002 to focus less on land purchase and instead to encourage third party management of nature reserves (protection of nature values, within and outside the EHS). Financial support can be obtained either for management of nature reserves (SN) or for nature management in agricultural areas (SAN). Remuneration is based on the ecological outcome and on management costs (SN) or income loss (SAN). NGOs and individuals, including farmers, are eligible for both schemes. The schemes cover management of existing natural areas and development of new ones. Provincial plans determine the location of these areas and the type of areas to be developed. In a country as densely settled as the Netherlands land use planning instruments also play a key role. To discourage development of residential areas and transport infrastructure at the expense of natural areas, steps have been taken to increase the number and extent of protected areas and to carry out land use planning. The draft Fifth National Policy Document on Spatial Planning (NPSP5) designates areas where the most urbanisation is likely to take place in the next 20 years, assuming a Dutch population of 18 million by 2030. Red perimeters to control city development and prevent urbanisation of rural areas have been introduced, as well as green ones to protect natural areas and key landscapes. Provinces and municipalities are required to
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establish red perimeters around all built-up areas, including necessary extensions already being planned. Expansion beyond one of these would be allowed only if it were shown that the built-up area could not accommodate housing and employment. To use urban space more efficiently, co-operation among cities is to be promoted by creating urban networks. The Delta Metropolis (Amsterdam, Rotterdam, The Hague, Utrecht and Almere) is the largest.
Protecting inland and marine water ecosystems Increasing attention has been paid in recent years to integrating biodiversity objectives into water policy. The policy document Nature for People, People for Nature aims to define good ecological quality as a target for most fresh and salt water bodies as part of implementation of the EU Water Framework Directive (Chapter 3). There is an urgent need to develop connections between water systems to improve the accessibility of rivers from the sea and the habitats of freshwater fish populations. Both fresh and salt water bodies are of great importance for bird life and as traditional features of the Dutch landscape. Considerable shares of large fresh and salt water bodies are part of the National Ecological Network and have been designated in line with the EU Birds and Habitats Directives. Ecologically, the coastal zone is the most valuable part of the North Sea. There is a wide range of pressures on marine ecosystems in coastal areas. The greatest pressures on the North Sea’s natural ecosystems are shipping and over-supply of nutrients along its coasts. Fishing has impacts on seabed fauna, fish and birds. Most fishing regulations (season lengths, catch quotas) have been adopted in an international context (e.g. EU fisheries policy) and are readjusted annually. Regulations in the framework of the Rhine Action Plan, North Sea Action Plan and OSPAR Convention are primarily aimed at limiting the flow of contaminating substances to the North Sea, increasing shipping and mining safety, and reducing over-fishing. Oil and gas extraction takes place on the continental shelf, where there are about 130 production platforms. Along with undersea telecommunication cables, oil and gas pipelines form a network on the seabed. Potential impacts of oil extraction in the Wadden Sea have been controversial. Mining of surface minerals (sand, shells, gravel) is regulated; approximately 25 million cubic metres of sand is extracted annually. Dredging deposit areas are designated by the government. Military training areas and new wind farms and transmission towers also require designated areas. There have been proposals to build a new offshore airport in the longer term. NPSP5 describes spatial planning policy for the Netherlands’ portion of the North Sea. Its stated policy goal is that “economic functions will make room for the natural system in a sound and sustainable way, in order to preserve and maintain it”.
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In 1998 the OSPAR Convention was expanded to cover conservation of coastal and marine ecosystems. Proposals have recently been made to set Ecological Quality Objectives for the North Sea. The Dutch project on Ecosystem Objectives for the North Sea will define economic uses (e.g. fishing and mining) that could be better oriented to requirements imposed by the need for biodiversity conservation in the future. Until now this has not been sufficiently the case. For example, the EU’s Common Fisheries Policy has not yet succeeded in adequately protecting marine biodiversity in the North Sea. Despite the recommendation in the 1995 OECD Environmental Performance Review, no marine reserves have been created, though plans are being discussed.
Landscape protection The most characteristic Dutch landscapes of international significance are polders in low-lying areas and reclaimed peatland in higher areas. Some landscapes of national significance are still relatively intact, but many are in danger of losing their unique character, particularly open cultivated grassland on peat soil. Urbanisation is one of the main reasons for the disappearance of open landscapes. At the international level, great emphasis is placed on conserving existing landscapes (cultural heritage) and less on developing new ones. To protect Dutch landscapes, government spatial planning policy is to impose restrictions on undesirable types of development (e.g. urbanisation) while, at the same time, encouraging conservation or restructuring of rural areas. Such restrictions, combined with incentives, are applied to old agricultural landscapes and areas whose cultural identity is taken into account in spatial planning (known as Belvedere zones). The document Nature for People, People for Nature includes the target of restoring landscape features on about 40 000 hectares. There is the intention to purchase 10 000 hectares and to conclude management agreements concerning 30 000 more. This is a far greater commitment than in the previous (1990) nature policy document. NPSP5 provides for the selection of National Landscapes and the preservation of hedges, river meanders and bicycle paths.
2.
Focus on Selected Topics 2.1
Outlook for pollution pressures
The outlook for nature and biodiversity in the period 2000-30 indicates that environmental pressures on nature would remain high under a business-as-usual scenario. In 2030 acidification, water deficits and eutrophication would have a less limiting effect on the occurrence of plant species than today, but environmental
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pressures would still result in 45% fewer potential sites for these species compared with 1950. The impacts of acidification and large-scale air pollution would persist through 2030. This situation would scarcely improve in agricultural areas, while the expected environmental quality of regional surface waters shows little promise of improving the overall quality of nature. Acid deposition would be sharply reduced through implementation of international agreements but would remain too high, especially in areas where there is intensive livestock raising. Despite improvements in air quality, deposition of acidifying substances and nitrogen in 2030 would be about 60 to 70% above the NEPP3 targets for 2010. Following implementation of a number of EU Directives, the supply of phosphorus and nitrogen in the Netherlands from other countries via the Rhine would decrease by 15% in 2030 compared with 1996. The water quality of the IJssel Lake, which depends on that of the Rhine, would thus improve. Concentrations of nitrogen and phosphorus at the mouth of European rivers would decrease in the next ten years, as would marine pollution. The phosphorus load in 2010 would be about one-quarter what it was in the early 1980s, when pollution reached a maximum level. The load of nitrogen compounds in 2010 would be reduced by about one-half relative to the early 1980s; the likelihood of undesirable algal blooms in the North Sea coastal zone would decrease after 2010. In 2030 natural areas with a water deficit would decrease by about 2 300 km3 as a result of raising the water table at least 10 cm. The amount of the future manure surplus will depend on co-operation by farmers. Measures proposed in the Integrated Approach to the Manure Problem (letter to the Lower House of Parliament, 1999) would lead to considerable reduction of nitrogen and phosphorus losses to the environment. The effects on total manure surplus and livestock numbers would greatly depend on the willingness of cropproducing farmers to replace chemical fertilisers with manure via disposal contracts, continued lowering of phosphorus content in feed, and increasing manure exports. If 90 to 95% of excess manure were sold through disposal contracts, a national manure surplus of 19 million kg of phosphorus per year would remain. It is unclear how such a surplus could be dealt with in regard to the Dutch phosphorus loss standard. The nitrogen loss standard would be met mainly through reducing the need to use nitrogenous fertiliser. Ammonia emissions in 2030 would decrease by 30%, but additional measures would be needed (low-emission stalls and low-emission application of manure) to attain a level below the national emission ceiling of 128 million kg NH3 per year as agreed under the Gothenburg Protocol. However, the effects of over-fertilisation will continue for years. The phosphorus loss standard is insufficient to counteract further phosphorus accumulation in soil and associated run-off to surface water. The rate of soil loading is decreasing as a result of
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this policy. In many small regional water bodies (e.g. dikes) large amounts of phosphorus still negatively impact biodiversity and rehabilitation of the ecosystem. The proposed fertiliser policy would almost halve nitrate concentrations in upper groundwater. Groundwater used for water supply, which is extracted from deeper aquifers, would satisfy nitrate concentration standards for drinking water at most locations. Locally, nutrient run-off from farmland upstream will continue to put pressure on the environment downstream.
2.2
International agreements
The Netherlands has ratified all major international agreements concerning nature protection and biodiversity. These include the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) (1975), the Bern Convention on the Conservation of European Wildlife and Natural Habitats (1982), the Bonn Convention on the Conservation of Migratory Species (1983) and the Ramsar Convention on Wetlands of International Importance (1986). The Bern Convention does not apply to the Netherlands Antilles and Aruba, which are party to the Convention for the Protection and Development of the Marine Environment of the Wider Caribbean Region (Cartagena Convention) and its Kingston Protocol concerning Special Protected Areas and Wildlife. The Netherlands is party to four agreements under the Bonn Convention: Conservation of Seals in the Wadden Sea (1991), Conservation of Bats in Europe (1991), Conservation of Small Cetaceans of the Baltic and North Sea (ASCOBANS) (1994) and the AfricanEurasian Waterbird (AEWA) (1999). The Netherlands is lead country for the AEWA. The 1991 Seal Agreement between Denmark, Germany and the Netherlands was in response to a 1988 virus epidemic that reduced the Wadden Sea’s common seal population by approximately 60% (from 10 000 to 4 000). The seal population has recovered following implementation of a series of measures. Seal reserves have been established, and taking of seals is prohibited under the 1991-95 Seal Management Plan (SMP). The Second SMP (1996-2001) introduced targets for marine mammals (viable stocks). In the Third SMP (2001-06), regulation of human use is part of a system of ecological targets for all typical Wadden Sea habitats. Implementation of the Seal Agreement is progressing smoothly. There is good co-operation among the three countries, including trilateral governmental conferences and scientific symposia held every three years. In 2002 another virus epidemic killed over 2 200 seals in Dutch coastal areas (almost 22 000 seals in northwestern European waters). Experts are confident that the seal population will recover naturally. In 1994 the Netherlands ratified the UN Convention on Biological Diversity. Parliament approved the first National Biodiversity Strategy, the Strategic Action Plan for Biodiversity, in 1995. The first National Report on the Implementation Status
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of the Convention was presented at the third Session of the Conference of the Parties (COP3) in 1996. The second National Biodiversity Strategy is incorporated in the 2000 Nature Policy Plan. The Netherlands hosted COP6 in 2002. A national action plan for agricultural biodiversity was to be presented in 2003. In the 1980s and 1990s 19 Ramsar sites were designated, covering 325 000 hectares and including major peatland and inter-tidal areas. In 2003 the Ramsar Bureau announced the designation of 14 additional sites and the considerable expansion of one site, more than doubling the total Dutch area of wetlands of international importance (Table 4.3). The Wadden Sea, one of the most important wetlands in Europe, is shared by Denmark, Germany and the Netherlands and administered co-operatively by the Common Wadden Sea Secretariat. The three Parties have designated separate sections as Ramsar sites. The new Dutch site Waddeneilanden, Noordzeekustzone, Breebaart (135 000 hectares) helps unite a large portion of the southwestern sections into a more coherent Ramsar network. The Ramsar Bureau is co-operating with Dutch authorities concerning 11 more sites (126 000 hectares) that are in the process of being designated. In the Netherlands Antilles and Aruba, 2 000 hectares of coral reefs and inter-tidal areas have been designated as Ramsar sites and new areas are being investigated. It is intended for all Ramsar sites to become Special Protection Areas under the EU Birds Directive or Special Areas of Conservation under the EU Habitats Directive.
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Part II
SUSTAINABLE DEVELOPMENT
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5
ENVIRONMENTAL – ECONOMIC INTERFACE*
Recommendations The following recommendations are part of the overall conclusions and recommendations of the OECD Environmental Performance Review of the Netherlands: • implement environmental plans and objectives with determination; • strengthen institutional integration, particularly to ensure that a sustainable development framework is firmly embedded in central, provincial and local government and across key sectors, notably energy, agriculture and transport; • refine the market based instruments and extend the environmental tax system, having regard to simplicity, effectiveness, transaction costs and carrying out cost-benefit analysis; • couple the regulatory energy tax with pollutant emissions (carbon tax) and consider its extension to large companies in the case of non-compliance with environmental targets; • undertake environmental assessment earlier in the decision-making process to influence choices concerning plans, policies and programmes; • extend the use of spatial planning and regulation to serve pollution abatement, nature, biodiversity and landscape conservation as well as risk prevention; • maintain investment and efforts in environmental research and development;
* The present chapter reviews progress in the last ten years, and particularly since the previous OECD Environmental Performance Review of 1995. It also reviews progress with respect to the objective “decoupling environmental pressures from economic growth” of the 2001 OECD Environmental Strategy. It takes into account the latest OECD Economic Surveys of the Netherlands.
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• retain and refine quantitative policy targets for reducing environmental pressures, and strengthen efforts to see that they are attained without slippage; • enhance the role of provinces as a key level of policy integration, including environmental policy planning, land use planning and water management planning; • improve the split of enforcement and licensing, especially at local level, and clarify the responsibilities of the central, provincial and local levels; possibly broaden the scope of inspection and enforcement by the VROM Inspectorate to include IPPC companies; • take steps toward implementing the IPPC Directive for large companies, in such a way that emission trading can be applied in the best possible way; • reinforce integration of nature and water management objectives in central and local land use planning; establish periodicity in the preparation of land use plans; • extend the use of economic instruments (e.g. waste, water and transport management) and their incentive effects, in line with the user and polluter pays principles.
Conclusions Integration of environmental concerns in economic decisions Dutch performance in terms of reducing emissions and environmental pressures over the last decade has been strong. This performance should be seen in the context of sustained GDP growth of 35%, and of liberalisation and greater European and international integration of the country’s economy. Overall, pollution abatement and control expenditure has been growing, from 1.9% of GDP in 1990 to 2.6% in 2000. This share, which is expected to remain stable during the next three years based on existing and proposed policy measures, is large by OECD standards and reflects a high level of environmental pressure and readiness to commit resources to mitigation. There is no evidence that this expenditure has affected the competitiveness of the Dutch economy. Concerning institutional integration, there has been good progress with respect to integration of sustainability into the thinking and activities of a range of government and private sector actors (as demonstrated, for example, in the 1997 policy document on Environment and Economy). Considerable reliance is now being placed on some high-level guiding principles set out in the fourth National Environmental Policy Plan (NEPP4), some high-level sustainable development principles, and the concept of “transition management” and “transition processes”
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within a sustainable development goal-setting and backcasting framework. The characteristically Dutch “polder model” approach of dialogue between the government and stakeholders to develop environmental policy has been successful. There is recognition of the need to address areas in which progress remains to be made, as shown in environmental and sustainable development planning documents. Concerning market-based integration, the Netherlands has expanded its use of economic and fiscal instruments and, overall, is implementing the polluter pays and user pays principles despite the exemption of many companies from environmental taxes (e.g. energy taxes) in an attempt to preserve competitiveness. The recent ecological tax reform represents significant progress, with a shift from taxation of labour and income. The various environmentally related Dutch fiscal instruments now account for 14% of total tax revenue. However, decoupling environmental pressures from economic growth has proven elusive, particularly for CO2 emissions, municipal waste and the impacts of urban sprawl, including continuing pressures on biodiversity. Among other residual problems are the levels of particulate matter and ozone, the backlog of contaminated sites, groundwater quality and noise. Also of concern is the review or postponement of some targets that have been hard to meet (e.g. for NOx and ammonia), as well as the risk that some more difficult targets (e.g. for groundwater) may not be met. The Dutch Central Economic Planning Agency has noted that goals with respect to the country’s manure problem were not met due to a reluctance to implement policy forcefully enough. The general planning approach used in the Netherlands requires a very high degree of co-ordination among national ministries. Environmental plans must be co-ordinated with a number of national sectoral plans, the more so as the Ministry of Housing, Spatial Planning and the Environment (VROM) is responsible for only some environmental policy areas. Integration of environmental policies into other national policies is laid down in the NEPPs. However, policy integration has not yet been reflected in markedly better environmental performance in key sectors such as agriculture and transport. The high levels of production and consumption of the Netherlands continue to lead to large environmental effects outside of the Netherlands. Overall, the government’s goal of reaching sustainability by 2010 (i.e. within one generation at the time this goal was set) appears increasingly difficult to achieve, particularly for the agriculture and transport sectors. Strong and continuing political determination and support by the public will be indispensable in this respect.
Implementing cost-effective environmental policies In the last ten years the Netherlands has met or come close to meeting a number of its domestic objectives (e.g. concerning SO2 emissions, toxic air contaminants,
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groundwater depletion, flood protection, phosphorus concentrations in water, expansion of the ecological network) and international commitments (e.g. transboundary air pollution and North Sea targets). The Environmental Management Act (EMA) provides a framework for co-ordinating environmental legislation, though water, soil and nature management are subject to specific legislation. New regulations establish corporate financial liability for environmental damage. At the central level enforcement staff recently increased by 10%, following regrouping of the environmental, spatial planning and housing inspectorates; the number of inspections has also increased and penal sanctions have been applied. To maintain their incentive function, fine levels have been made proportionate to the size of the company. As a result, compliance levels have increased. Inspection and prosecution pay particular attention to the movement of dangerous goods. Environmental taxes (e.g. on groundwater, landfill) and a regulatory energy tax have been introduced and other taxes are under discussion. Charges apply to point and diffuse water pollution, and producer responsibility has been extended to a range of waste streams. Overall, economic and fiscal instruments are used widely in the Netherlands. A new spatial planning policy to control urban development and protect landscape areas was issued in 2000. Overall, industry has been responsive and often proactive in improving its environmental performance, particularly through environmental agreements (e.g. covenants) and environmental management and auditing; there are also environmental reporting obligations for companies. The customised licensing system introduced in 1995 reflects a shift from regulatory approaches to monitored self-regulation. Environmental agreements, which are more or less binding substitutes for regulation, have been successful in a number of areas in the Netherlands; long-term environmental objectives have been agreed with industry in a series of branch agreements, and the contributions expected from individual companies have been included in their operating permits. Flexibility in meeting objectives, and a stable investment context, have made these schemes attractive to firms. The characteristic policy mix of regulation/licensing plus economic instruments plus environmental agreements continues to be productive. The gradual move to de-emphasise environmental agreements and regulation (arising from economic liberalisation and greater European and international integration) and to place more emphasis on economic instruments has merit, especially as it takes advantage of the government’s strength in establishing frameworks rather than micro-managing. However, despite this positive picture the Netherlands has not met several of its commitments or is not on the way to meeting them (e.g. for CO2, NH3, NOx and VOC emissions, nitrogen inputs to water, nature protection, green space in urban areas). Many of the previous NEPP targets for emission reductions and for environmental quality have been postponed or revised. Water management and nature conservation objectives are being addressed separately, reflecting the institutional setting. As a
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result, integration of nature and water management initiatives in central and local land use planning (e.g. water areas for flood prevention, green areas for nature conservation) has been weak. Licensing of groundwater abstraction and waste water discharge is not covered by the EMA and has remained separate from integrated air, noise and waste licensing. There is a somewhat unclear split of enforcement and licensing responsibilities among the central, provincial and municipal levels in this relatively small country, though administrative agreements have been signed to enhance co-operation among enforcement partners. Customised licensing (based on overall pollution reduction targets) applying to the 100 top companies (mostly multinational) conflicts with the IPPC logic that requires BAT standards for each individual production process. Fines are too low to prevent illegal traffic linked to international trade (e.g. CITES, Basel Convention). There has been a tendency to focus on fiscal rather than economic instruments, with no air emission charges, user charge levels with little effect on water consumption, and flat rates applied to municipal waste collection charges. Implementation of environmental agreements should be accompanied more systematically by transparency mechanisms and the threat of penalties, such as levying of an energy tax, in cases of non-compliance with targets. The move towards market-based instruments may be difficult to make in all areas. Increased emphasis on market based instruments should not come at the expense of experimentation with other approaches such as labelling and support for eco-design.
1.
Towards Sustainable Development 1.1
Policy objectives
The aim of the first National Environmental Policy Plan (NEPP1) in 1989 was to reduce the burden on the environment by 2010 to a negligible risk for both human health and ecosystems. Over time, environmental objectives have evolved away from simple statements concerning “environmental hygiene” to more sophisticated formulations that take sustainable development into account. The government’s 1997 Policy Document on the Environment and the Economy included the goal of complete decoupling of environmental pressures from economic growth through significant changes in production, prices, taxes and governmental policy. Perhaps the most potentially significant evolution in environmental objective setting was signalled in NEPP4 – a move towards long-term “transition management”. However, 20- to 30-year objectives will not take the place of specific shorter-term objectives. By 1999 the government had determined that some pollution reduction objectives were too stringent and had made some targets less difficult to meet. In a review of environmental policy, the Central Economic Planning Agency noted that the most dangerous pitfall is to draft objectives without making clear how these objectives can be achieved and their consequences.
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Although some new, less ambitious targets for 2010 were established in the latest environmental policy plan, NEPP4, which was endorsed by Parliament in 2001, most of the targets in earlier NEPPs remain in effect. Making targets less stringent is likely to have considerable flow-on effects for the protection of natural areas against acid deposition, with consequences for biodiversity conservation. Environmental objectives are also included in separate national policy plans on water and nature, as well as in sectoral planning documents (Chapter 5, Section 3.1). Protecting international competitiveness has been a major objective within the broader policy area surrounding environmental policy. For example, this objective has influenced the impetus towards a greener tax system and, more broadly, the momentum towards ensuring that prices reflect environmental costs. It is conceivable that levies such as the regulatory energy tax could be co-ordinated internationally, or at least within the EU, but the practical difficulties would be considerable. Objectives with respect to changing production and consumption patterns include greater use of renewable energy and reduced waste and use of materials (dematerialisation). These objectives would be advanced through more environmentally friendly technologies on the production side (e.g. assisted by eco-design and life cycle analysis) and better informed consumer choices (e.g. assisted by better labelling). No formal objective has been adopted for reducing the extent of the Netherlands’ environmental footprint. This is not surprising given the elasticity of the concept. There is increased acceptance of the need to develop policies to minimise the Netherlands’ environmental impacts in other countries. This evolution in Dutch policy is evident in recent government policy documents and in some operational policies, such as the Green Fund System. Sustainable development objectives have taken some time to emerge. In 1999 the government released a document on sustainable development which stated that “objectives have been deepened and broadened, and policy is [now] directed towards sustainable development”. This policy subsumes pollution abatement and shifts the focus towards preservation of key natural resources (energy, biodiversity, space), on the basis that use of key resources provides a means of evaluating the sustainability of alternative strategies. The most recent statement on objectives is the Review of Government Policy in the Light of the National Strategy for Sustainable Development. This document does not set out a new strategy as such, but it notes that the Dutch sustainable development strategy is articulated in “many policy documents, plans and initiatives” of the last decade. It is unclear whether such a range of documents and initiatives presents fully cohesive objectives, but in any case a number of principles have been adopted to “underlie the further development of a strategy for sustainable development”. These principles are: international and domestic co-operation; coherent policy-making based on integrated assessment of economic, social and environmental factors; and a long-term view.
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Decoupling environmental pressures from economic growth
Major economic and environmental trends The Dutch economy grew by 34% in the period 1990-2001, or an average of about 3% per year (Chapter 5, Section 3.2). GDP growth exceeded the average for OECD Europe and for the OECD as a whole (Figure 5.1). By European standards there was also fairly rapid population growth (7% over the decade) (Figure 6.3). Strong economic growth has meant that, despite population growth, average income per capita increased by 26% over the decade – above the average rate for the OECD (20%). Major sources of direct environmental pressures include road traffic, industrial production, agricultural production, and energy production and consumption. Road freight traffic and industrial production increased by 36 and 21%, respectively; agricultural output was static over the decade. Despite a 14% decline in energy intensity (per unit of GDP), energy supply rose by 14%. In terms of environmental performance, some key environmental indicators (i.e. acidification and eutrophication) have continued to be strongly decoupled from economic growth (Table 5.1). However, decoupling is becoming more difficult. The rate of improvement in the latter half of the 1990s has slowed, and has even perhaps begun to be reversed in the case of eutrophication and waste disposal. Relative rather than absolute decoupling was achieved for CO2 emissions from energy use, which in 2000 were some 11% above 1990 levels and remain a major management challenge. While the trend for disturbance was positive in the early 1990s, performance over the decade as a whole was only marginally positive (i.e. a minor reduction); noise levels, important for quality of life in the densely populated Netherlands, remain a problem especially in areas exposed to the effects of vehicle and air traffic.
Performance of major sectors The Dutch government acknowledges that the present energy system is unsustainable. Efficiency of energy use has improved substantially, as rapid economic growth in the last decade stimulated capital replacement. Energy use per unit of GDP has fallen. However, compared with the government’s 1990-2000 performance target for energy saving of 1.6% per year, energy efficiency performance was disappointing at 1.3 to 1.5% per year. With the liberalisation of European electricity markets (particularly the Dutch market), electricity imports have increased rapidly. Clearly national emission figures no longer accurately represent the extent of environmental pressures arising from energy demand. Transport sector emissions of CO2 are considerably higher than the NEPP2 target for 2000 and this trend is expected to continue. A sector-specific target
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Figure 5.1 Economic structure and trends GDPa in the Netherlands, 1980-2001 EUR billion
400 300 200 100 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
GDPb growth, 1990-2001
GDPb per capita, 2001
34.4
Netherlands
39.1
United States Japan Denmark France Germany Italy United Kingdom
14.6 26.9 22.0 19.0 19.0 28.3
OECD Europe OECD 20
Netherlands G-7 countries OECD
16.9 21.6
Netherlands G-7 countries OECD
17.9 22.1
24.9
United States Japan Denmark France Germany Italy United Kingdom
24.6 25.8 23.5 23.3 22.2 21.6
32.1
OECD Europe OECD
24.8 30.6 0
Netherlands
60 %
40
18.7 22.0 0
10
40 20 30 USD 1 000/capita
65.8 Exports as % of GDP, 2001 60.8 Imports as % of GDP, 2001
2.2 5.9 6.4
Netherlands G-7 countries OECD 0
20
Unemployment rates,c 2001
40
60
80 %
a) GDP at 1995 prices. b) GDP at 1995 prices and purchasing power parities. c) Per cent of total labour force. Source: OECD.
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for 2010 was not included in NEEP3 or NEPP4 (Table 7.1). Standards for pollutants including, NO2, benzene, ozone and particulate matter are exceeded in many parts of the Netherlands. Serious noise nuisance, especially from road and air traffic, is increasingly treated as an important issue. Urbanisation is closely associated with transport growth. Development continues to fragment and homogenise the landscape. Over 20% of landscape areas designated as of national importance are strongly threatened by urban development.
Table 5.1
Economic trends and environmental pressures, 1980-2001 (% change) 1980-90
1990-2001
Selected economic trends GDPa Population GDPa/capita Agricultural production Industrial productionb Total primary energy supply Energy intensity (per GDP) Total final energy consumption Road freight trafficd Passenger car traffic volumee
24 6 17 18 15 2 –18 2 30 32
34 7 26 –1 21 14c –14c 16c 36 19f
Selected environmental pressures CO2 emissions from energy useg Emissions of SOx Emissions of NOx Water abstractionsh Nitrogenous fertiliser use Pesticide use Municipal waste
1 –59 –1 –15 –19 –5 5
11c –55c –27c –43 –23c –58 31
a) At 1995 prices and PPPs. b) Includes mining and quarrying, manufacturing, gas, electricity and water. c) 1990-2000. d) Based on values expressed in tonne-kilometres. e) Based on values expressed in vehicle-kilometres. f) 1990-1999. g) Excluding marine and aviation bunkers. h) 1980 to 1991, 1991 to 1996. Source: OECD; IEA.
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Agriculture in the Netherlands remains unsustainable despite considerable policy efforts and some improvements in performance during the last decade. The agriculture sector is still a major contributor to acidification, eutrophication and groundwater depletion. The target of reducing the surface area subject to desiccation by 25% has not been met. The pace of adjustment in the agriculture sector has slowed the reduction of ammonia emissions, though the less stringent NEPP4 targets are likely to be met. High nitrate concentrations in groundwater in sandy soil are of concern; these concentrations are falling but are still well above limit levels. Phosphates continue to accumulate, though at a slower rate reflecting tighter standards.
Outlook The Netherlands has a robust process for developing environmental outlook studies and ensuring that they are integrated with the views of governmental bodies that have responsibilities in other policy areas. Environmental outlook studies used by the government are based on the work of the National Institute of Public Health and Environmental Protection (RIVM), the Energy Research Institute (ECN) and similar bodies. Several ministries are closely involved in translating these assessments into policy outlook documents. An innovative feature of NEPP4 is the presentation of outlooks for the year 2030, in very clear and detailed terms, as the basis for medium-term policy decisions. Concerning the outlook for the coming decade, some environmental performance targets are likely to be difficult to attain. Transport targets are a good example. Emissions of many substances will not meet the relevant standards by 2010 (particularly levels of particulate matter and NO2 emissions). Tensions relating to the direction of transport policy must still be resolved; as increasing congestion puts pressures on infrastructure, it may be difficult to adhere to the planned strategy of charging for road use first and afterward continuing with road construction. Similarly, the rate of progress in reforming environmentally harmful EU agricultural subsidies will be a main source of uncertainty with respect to agriculture related environmental targets. The 1989-90 ministerial policy target of reducing emissions of the most serious pollutants by 70 to 90% by 2010 is at great risk of not being met (e.g. for CO2, NOx, VOCs and exposure to fine particles). A more realistic assessment is contained in the 2002 report to the Johannesburg Summit: “Real, structural unlinking of pollution trends from economic growth seems out of reach for such issues as nitrate, greenhouse gases and NOx”. Nor are environmental problems such as groundwater depletion likely to be resolved by 2010, despite major efforts. The period in which specific targets for 2010 are to be met grows shorter every year. In view of implementation risks associated with the introduction of complex schemes (e.g. NOx emission trading, a differentiated vehicle-kilometre levy), further delays in meeting some targets are possible.
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117
Production and consumption patterns
The most important patterns of production and drivers of consumption patterns remain broadly the same as those addressed in the previous OECD Environmental Performance Review of the Netherlands. These include total private consumption spending (up by 35% in the period 1990-2000), energy use, increasing mobility and expanding urbanisation, and agricultural activities, especially intensive livestock production. Expansion of the commercial service sector (from 65 to 70%) and reduction of the industry sector (from 30 to 27%) are clearly major trends. Transport, storage and communication have expanded rapidly within the service sector, while in industry minerals and metals have declined most rapidly as a share of GDP. Production and consumption patterns are changing, but in such a way that hard-won gains are often offset by growth-induced increases in environmental pressures. Desirable trends do not appear to be occurring rapidly enough to achieve all the goals for 2010 set in NEPP1. This appears to have been one factor behind the relaxation of some targets (e.g. some were postponed until 2030). Along with other strategic considerations, it has probably influenced other targets (e.g. for CO2).
Energy The Netherlands has made considerable efforts to modernise its energy consumption patterns. Energy per unit of national income fell significantly in the 1990s despite a growth-driven increase in overall energy use. Electricity use is often associated with rising incomes, a pattern which is evident in the Netherlands. While use of energy-efficient products increased, overall electricity consumption rose by 34% between 1990 and 2000. The real price of electricity increased gradually in the early 1990s, and then more sharply at the end of the decade following introduction of the 1996 regulatory energy tax. Nonetheless, the high rate of purchasing of electrical appliances (e.g. the percentage of households with a personal computer was 26% in 1990 and 62% in 1998) contributed to significant growth in residential electricity consumption. Meanwhile, growth in electricity demand in the service sector fell to zero. On the energy supply side, incentives aimed at promoting combined heat and power (CHP) installations led to a doubling of installed CHP capacity over the decade. There was also a trend towards increased efficiency at large power plants, though use of pollution-intensive coal-fired plants continued. Renewable energy use increased almost five-fold, to a 2.6% share of the energy supply in 2000. A trend of continually growing electricity use is compatible in principle with gradual transition to a sustainable energy system. However, such a trend would require a fundamental overhaul of the energy infrastructure in the next few decades (e.g. so that hydrogen
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could be produced for fuel cell powered cars). Concerning future energy consumption patterns, the government’s assessment that significantly changing behavioural patterns would be difficult in practice appears realistic.
Transport The consumption pattern in the transport sector in the 1990s was again one of growth in volume in the face of policy measures. Over the decade passenger car vehicle-kilometres increased by 20%, though this rate slowed in the late 1990s. Heavy-duty vehicle-kilometre growth was similar to the GDP trend, but light-duty (vans) vehicle-kilometres increased by over 100%. Greater vehicle efficiency (fuel consumption reductions of up to 15% since 1985, depending on vehicle class) has been partly offset by increased vehicle weight and more powerful performance. Some success in implementing transport policy may be demonstrated by the fact that vehicle-kilometres per inhabitant have increased less in the Netherlands than in other EU countries. This could be due to different trends in real fuel prices for end-users, which fell less in the Netherlands, reflecting the government’s levy policy. By the end of the decade transport accounted for about 24% of final energy consumption. One reason for such high levels is increased holiday travel, especially by air.
Housing and land use Demographic and social change also contributes to continuing changes in production and consumption patterns with respect to housing and land use. Recent estimates put the need for additional space for housing in the near future at 85 000 hectares. This figure partly reflects the widespread trend towards smaller households, but also the desire for greater freedom of choice and quality of life. The draft Fifth National Policy Document on Spatial Planning (NPSP5) delegates responsibility for drawing demarcation lines around residential areas to municipalities. This could place green areas around cities at risk if local ambitions prevail over wider public interest. NEPP4 indicates that urban renewal will require major investment of resources in the coming years, particularly as improvements are made to low-quality post-war housing. Benefiting from this opportunity to realise environmental improvements (e.g. regarding air quality, noise and external safety) is clearly of great importance.
1.4
Policy integration
One basic issue is the extent to which environmental objectives are considered in developing a range of strategic choices in society, particularly strategic economic planning, design of long-term investments, budgeting and land use planning. The 1995 OECD Environmental Performance Review recommended that the Netherlands
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intensify its efforts to integrate environmental concerns into policies and budgets formulated in different administrations and economic sectors. In particular, it recommended that this integration be strengthened in the transport and agricultural sectors and in fiscal policies, and that specific attention be given to environmentally harmful subsidies and fiscal deductions.
Strategic economic planning The 1995 OECD Environmental Performance Review stated that “integration of environmental policies with other policies is in most cases voluntary”. This remains true to a large extent. The 1997 Dutch Policy Document on the Environment and the Economy was a landmark with respect to integration of policies in the two domains. There is now extensive involvement in environmental policy issues by other government ministries and vice versa. Concerning issues such as trade and environment, industrial policy and climate change, there are high levels of integration. Growing awareness of the need for sustainable development is demonstrated in a range of public sector agencies and provincial and municipal governments. However, the policy institutions involved are not well enough organised to look for consistent and sustainable solutions; solution-seeking and implementation are often lacking. Major strategic issues, such as energy markets liberalisation and EU agricultural policies, are still inadequately assessed from an environmental standpoint. Transport policy could give greater attention to environmental and sustainability considerations. For example, in view of the critical impact of transport growth on NOx emissions and other environmental pressures, the environment is not as prominent a driver of the draft National Traffic and Transport Plan (NVVP) as it should be. At the European level, at its meeting in Cardiff in 1998 the European Council ordered sectoral councils to prepare strategies and programmes for integrating environmental concerns into sectoral policies. This initiative was discussed at the Gothenburg summit meeting in 2001, where the Netherlands indicated that transport and agriculture were its priorities. At the international level, continuing efforts by the Netherlands and other OECD countries will be needed to find ways to reduce or eliminate environmentally harmful subsidies.
The design of long-term investments A key public sector development has been the creation of a group to assess the environmental costs and benefits of major policy and investment proposals (along with compliance costs). Across governmental layers there is still too much compartmentalisation of policies for land use planning, water and nature management, and environmental monitoring and enforcement.
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In the private sector environmental considerations have assumed an increasingly important place in investment design. This process is not complete, nor did it begin overnight. It is the result of gradual transition over the last decade, partly led by the development of environmental agreements (covenants) such as the 19 multi-year agreements with medium-sized Dutch energy consuming manufacturers. Also significant is the development with industry of initiatives such as “sustainable entrepreneurship”, sustainable industrial sites (a system for co-operation at sites to reduce energy use, waste and effluent purification costs), cleaner production and eco-design.
Government budgeting The main opportunity for environmental considerations to become part of the budget process is at the beginning of each new government’s four-year term, when revenue and expenditure are estimated and programmes are negotiated. Subsequent expenditure on environmental issues depends on whether a surplus exists on the expenditure side (e.g. arising from lower than expected expenditure on some programmes). In the past, some of this surplus was allocated to measures such as sustainable housing under the Green Fund System, sustainable energy investments and transport sector research. Major allocation decisions for the period 2003-06, including priorities for the large economic restructuring budget, have not been taken. Proposals made in NEPP4 were to remain provisional until the new government’s decisions became known. In 2000 the Ministry of Housing, Spatial Planning and the Environment (VROM) commissioned a study on the environmentally harmful effects of subsidies by the central government (excluding EU and local subsidies). The study addressed budgetary transfers (“direct subsidies”) and fiscal deductions (“fiscal subsidies”). Case studies were carried out on nine of the 35 direct subsidies identified as potentially environmentally harmful, including those to local airports and subsidisation of rent for those with low incomes. Some of these subsidies had already been modified prior to or during the study, i.e. either lowered or based on new restrictions, including environmental ones. Moreover, as the social and economic effects of the subsidies were not considered in the study, it was difficult to draw final conclusions. However, it was concluded that the negative environmental effects of direct central government subsidies were limited. The list of fiscal subsidies that could be environmentally harmful was handed over to the Environmental Integration Committee (EIC) for further examination. The EIC is made up of VROM, the Ministry of Finance and other ministries, and independent experts and representatives from industry, trade unions and NGOs. Its role is to review current and proposed fiscal measures, evaluate their effects, and issue an opinion regarding their introduction or revision. Two EICs have been set up, reporting in 1997 (EIC I) and 2001 (EIC II). EIC II recommended that some fiscal subsidies be amended.
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In 2001-02 VROM developed a method for assessing the environmental effects of indirect subsidies (i.e. all subsidies that are not budgetary transfers). This method deals with fiscal as well as capital subsidies, price or quantity regulation, public provision of goods below cost (e.g. infrastructure) and trade measures.
1.5
Sustainable development strategy
The government considers that Dutch policy has been oriented towards sustainable development for at least a decade, as demonstrated in a wide range of policy documents. Sustainable development has certainly been a central component of environmental planning since NEPP2, which was prepared in 1993 following the UN Conference on Environment and Development (UNCED). The sustainable development concept has become familiar to the public; the government has taken a low-key approach, presenting some new policy principles to help shape an emerging strategy but otherwise limiting itself to practical actions such as consultation and a survey of public opinion. Key elements of government efforts to promote sustainable development include increasing the use of economic instruments (e.g. a relatively high level of “green taxes”) and a mix of policy instruments to complement market based measures. They also include consensual policy development in areas such as industrial policies and airport and railway development, agricultural policies and development of rural areas, integration of sustainability concepts into the activities of other institutions and actors (e.g. research institutes), and international co-operation.
Increasing use of economic instruments Use of price based instruments has become familiar and is increasing (Table 5.2). The Netherlands has introduced water and other types of charges (e.g. charges intended to recover operating costs rather than to have incentive effects), manure trading and vehicle tax differentiation. Work is proceeding on trading of both NOx and GHG emissions – the latter in the context of the draft EU Directive on GHG emission trading and the Kyoto Protocol. Pricing would still be difficult to introduce in some areas. A pricing system in which a charge for all water services (water use, sewage collection and treatment) would be based on drinking water usage has encountered legal problems as well as political opposition. More significantly, there is political resistance to the per-kilometre tax. Opposition to taxation of infrastructure development (housing, industry) on open spaces also exists. Sustainable development efforts were considerably advanced by major fiscal reform initiatives in the 1990s. The Netherlands has a relatively high level of “green taxes” compared with most other European and OECD countries (Chapter 5,
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Table 5.2 Instrument
Environmentally related economic and fiscal instruments, 2001 Rate
Remarks
Fuel tax (since 1992)
EUR 0.01329/litre (diesel) EUR 0.01319/litre (light fuel oil) EUR 0.01204/litre (petrol) EUR 0.01586/kg (LPG) EUR 0.01551/kg (heavy fuel oil) EUR 0.01122/kg (coal) EUR 0.01034/m3 (natural gas up to 10 million m3/year) EUR 0.068/m3 (natural gas above 10 million m3/year)
Revenue (EUR 627 million) goes to general budget. Tax is levied on fuel producers and importers. The fuel tax replaces the fuel charge introduced in 1988. Between 1988 and 1992, revenue produced by the fuel charge was earmarked for financing environmental activities.
Excise duty on fuel
EUR 0.65880/litre (leaded petrol) EUR 0.59037/litre (unleaded petrol) EUR 0.3975/litre (diesel) EUR 0.04656/ litre (light fuel oil, gasoil for heating) EUR 0.01554/kg (heavy fuel oil) EUR 0.01037/kg (LPG)
Revenue (EUR 5.6 billion) goes to general budget. Fuel producers and importers are subject to this tax.
Regulatory energy tax (REB) (since 1996)
EUR 0.12756/litre (gasoil for heating) EUR 0.12649/litre (light fuel oil) EUR 0.15088/kg (LPG) EUR 0.1203/m3 (natural gas up to 5 000 m3/year EUR 0.0562/m3 (natural gas between 5 000 and 170 000 m3/year) EUR 0.0104/m3 (natural gas between 170 000 and 1 million m3/year) EUR 0.0583/kWh (electricity up to 10 000 kWh/year) EUR 0.0194/kWh (electricity between 10 000 and 50 000 kWh/year) EUR 0.0059/kWh (electricity between 50 000 and 10 million kWh/year)
Revenue (EUR 2 484 million) is returned to households and industry through reduction of labour taxes. REB is levied on energy distribution companies, and producers and wholesalers of mineral oils, and passed on to small energy consumers (households, small commercial establishments). Natural gas and electricity are taxed up to a maximum amount consumed (1 million m3/year and 10 million kWh/year). Decreasing-block tariffs were introduced in September 2001 (replacing a single volumetric rate of EUR 0.1203/m3 and EUR 0.0583/kWh, respectively). Consumers receive an annual rebate of EUR 142. They benefit from an additional premium if they invest in energy-saving equipment, renewable energy and insulation. Producers get refunds for green electricity (EUR 0.02/kWh), electricity produced by cogeneration delivered to the grid (EUR 0.0057/kWh), and electricity from waste incineration (EUR 0.016/kWh). Companies investing in energy conservation get a corporate tax concession. Large-scale energy consumers (some industries) and natural gas used to produce electricity are exempted.
ENERGY
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Table 5.2 Environmentally related economic and fiscal instruments, 2001 (cont.) Instrument
TRANSPORT Registration tax
Purchase bonus for clean vehicles (in 2001 and 2002 only) Direct payment for purchase of fuel-efficient cars (in 2002 only)
Motor vehicle tax
Road tax on heavy vehicles (Eurovignette)
Per-kilometre tax (under discussion)
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Rate
45.2% plus EUR 328 (diesel passenger car) 45.2% minus EUR 1540.7735 (petrol and LPG passenger car) 20.7% minus EUR 224.2611 (motorcycle)
Remarks
Tax on purchase of a new vehicle based on net market price (VAT excluded), levied on car producers and importers and passed on to consumers. Reduced rate for second-hand imported cars according to age (minimum of 10%). Imported cars over 25 years old are exempted. EUR 325 (petrol and LPG passenger car Refund on the registration tax after purchase and delivery van) of a vehicle that fulfils the 2005 requirements EUR 550 (diesel passenger car) for exhaust gas emissions (EURO 4). The EUR 625 (diesel delivery van) bonus rate was decreased in 2002 (by 1520%). This measure was abolished in 2003. EUR 1 000 (A-rated vehicle) Applies to purchase of low carbon emitting EUR 500 (B-rated vehicle) (petrol and diesel) vehicles by individuals. Cars are rated from A to G according to their GHG emissions (in CO2 equivalent). Premiums are granted only to cars rated A and B. This measure was abolished in 2003. EUR 0.5970/kg + 0.7999/kg Annual tax on vehicle ownership (or use (LPG passenger car) of roads in the case of buses) based on net EUR 0.5407/kg + 0.7427/kg (diesel weight. The first rate is for the first 1 000 kg passenger car) (passenger car, delivery van, trailer), 2 700 kg EUR 0.1961/kg + 0.4158/kg (petrol (bus) or 11 000 kg (lorry). The second rate passenger car) applies to extra weight calculated in blocks EUR 0.1239/kg + 0.1792/kg (delivery van) of 100 kg (passenger car, delivery van, bus, EUR 0.1084/kg + 0.0203/kg (bus) trailer) or 1 000 kg (lorry). For motorcycles, EUR 0.0440/kg + 0.0454/kg (trailer) a single rate applies (EUR 81.8235/year). EUR 0.0297/kg + 0.0220/kg (lorry) Rates vary according to provinces. This tax could be replaced by a per-kilometre tax. Tax levied (daily, weekly, monthly or annually) for the use of Dutch motorways. Applies to foreign lorries of over 12 000 kg gross weight. Rates based on number of axles (up to 3; 4 and more) and engine type (non-Euro, Euro I, Euro II and cleaner). Would replace the motor vehicle tax. Based on number of kilometres driven as measured by in-car device. Tax would be levied first on lorries (in 2004) and progressively on other road users (by 2006). It would also apply to heavy foreign lorries. The tax is expected to vary according to type of road and time of day (variable road pricing system) to help shift traffic patterns. In 2003 it was decided not to proceed with this measure.
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Table 5.2 Environmentally related economic and fiscal instruments, 2001 (cont.) Instrument
Rate
Remarks
WATER User charge for public water supply (PWS), sewerage (S) and public waste water treatment (WWT)
From EUR 0.5/m3 (Drenthe province) to EUR 1.5/m3 (Duin, Zuid-Holland province) (PWS for industrial users)
Abstraction tax for fresh groundwater (since 1995)
EUR 0.163/m3
Revenue (EUR 170 million) goes to general budget. Tax is levied on major users (over 100 000 m3/year) including water companies, farmers and industry. Rebates apply if surface water was injected into aquifers prior to abstraction. Use for irrigation is exempted. Groundwater accounts for 60% of public water supply.
Abstraction charge for groundwater
EUR 0.01-0.06/m3
Revenue goes to provinces to finance groundwater research activities.
Tax drinking water supply (since 2000)
EUR 0.132/m3
Revenue (EUR 100 million) goes to general budget. Tax is levied on water companies up to a maximum of 300 m3/year.
Pollution charge
EUR 43.5811/p.e.
Revenue goes to central government (V&W) to finance water and waste water management activities. Applies to industrial and municipal discharges to state waters. Pollution load based on coefficients and converted into population equivalent (p.e.); measured for large polluters (more than 1 000 p.e.). Rate varies according to provinces (to reflect pollution abatement cost).
Charge on farm mineral surplus (since 2001)
EUR 4.54/kg/hectare (phosphorus) EUR 0.68/kg/hectare (nitrogen)
Revenue goes to central government (LNV) to finance agri-environmental activities. Applies to kgs of surplus (based on mineral accounts). For phosphorus, first 10 kg per hectare is exempted.
Water companies set PWS charges at different rates for households and industry. 90% of the Dutch population is subject to volumetric pricing plus a fixed element (5From EUR 30/pollution unit 10% of the bill), 7% pay a flat fee and 3% (De Aa, Noord-Brabant province) to an increasing-block tariff. EUR 60/pollution unit (Het Vrije van Sluis, S charges are fixed per dwelling (by utility). Zeeland province) (WWT) Water boards set WWT charges based on full cost recovery. For households, charges based on family size (one pollution unit for bachelors, 3 units for families).
WASTE User charge for municipal waste collection and disposal
Municipalities set charges based on family size (single person or family) for households and on type and size of activity for industry. Rates set to allow full cost recovery. In some cities, poor households are exempted. Some municipalities finance waste paper collection by NGOs.
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Table 5.2 Environmentally related economic and fiscal instruments, 2001 (cont.) Instrument
Rate
Remarks
Landfill tax (since 1995)
EUR 12.61/t (landfill waste) EUR 65.46/t (incinerable waste)
Revenue (EUR 239 million) goes to general budget. Tax levied on landfill operators. The rate is set according to average incineration cost. Polluted dredging sludge and soil are exempted (provided they cannot be treated), as is asbestos (provided it is delivered separately).
Product charge EUR 68.06/vehicle on passenger vehicles (since 1994)
Revenue goes to a national fund used to pay for demolition and recycling of old vehicles. Due to efficiency gains in dismantling of cars, the rate has been reduced twice since the charge was introduced.
Product charge on farm plastics (since 1996)
EUR 0.03/kg
Revenue goes to a national fund used to recycle old farm plastics.
Product charge on batteries (since 1996)
EUR 0.004-0.54/piece
Revenue goes to national fund used to recycle old batteries.
Product charge on waste paper (since 1997)
Variable
Revenue goes to national fund used to recycle waste paper. Paid by paper producers only in years when price for waste paper is too low to pay for collection and sorting.
Product charge on electrical appliances (since 1998)
Up to EUR 17/piece
Revenue goes to a national fund which transfers a portion to municipalities for separate collection and another portion to recycling companies.
Product charge on plastic blinds (since 2000)
EUR 0.08/kg
Revenue goes to national fund used to recycle old PVC window frames.
Deposit refund on bottles
EUR 0.45/plastic (PET) bottle EUR 0.07/glass (beer) bottle
Deposit refunded at time of refill at shops.
NATURE Entrance fee
Applies to entrance, transit and parking of motor vehicles in some protected areas.
Fishing licence Hunting licence NOISE Aviation noise charge
Source:
OECD.
© OECD 2003
Revenue goes to central government (VROM) to compensate population living near airports. Airline companies pay charges for each landing and take-off. Rates vary according to type of aircraft.
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Section 3.3). These taxes generate around 14% of total government revenue. An increase in the share of revenue from green taxes since 1996 is mainly the result of taxes on waste, groundwater use and fuels, as well as the regulatory energy tax (Table 5.3). Increasing the REB has made it possible to lower other taxes (particularly income and social security taxes) in such a way that each affected sector could be compensated. However, it seems unlikely that use of environmentally related taxes can be extended much further, especially if key proposals such as the per-kilometre tax fail to be adopted. Given the environmental significance of the per-kilometre tax, it would be particularly regrettable from a sustainable development standpoint if this measure were not implemented.
Table 5.3 Revenue from environmentally related taxes, 1985-2002 (EUR billion)
Energy (excise duty on mineral oil/derivates) Transport (vehicle taxes) Environmental taxes Total ERTb Total government taxation GDP against market prices ERTb as % government taxation ERTb as % GDP
1985
1990
1995
1998
1999
2000
2001
2002a
1.8 2.1 0.0 3.9
2.5 2.9 0.0 5.4
4.3 3.9 0.9 9.1
4.9 4.2 1.7 10.8
5.2 4.8 2.2 12.3
5.3 5.1 2.8 13.1
5.2 5.1 3.4 13.7
5.8 5.0 3.4 14.2
44.6 61.9 69.7 81.5 87.8 94.3 101.2 108.2 193.1 234.5 333.7 354.2 373.9 400.6 433.9 454.5 8.7 8.6 13.0 13.3 14.0 13.9 13.5 13.1 2.0 2.3 2.7 3.1 3.3 3.3 3.2 3.1
a) Forecast. b) Environmentally related taxes. Source: Ministry of Economic Affairs.
It can be argued that the potential for significant behavioural change is limited by the fact that environmental costs are not fully incorporated into prices. Potential extension of the REB to large energy users (exempted largely due to international competitiveness concerns) has also been constrained by perceived inconsistency with long-term energy agreements and with the agreement on energy efficiency benchmarking. Thus opportunities for price-driven energy efficiency reductions have been neglected to minimise perceived risks of “leakage” and maintain good co-operative relations with business and industry. Environmental agreements and free depreciation of environmentally efficient equipment may be more effective in influencing
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consumer and producer behaviour than green price signals (e.g. fuel prices). However, careful consideration should be given to whether environmental targets are being met at the lowest possible economic costs.
A mix of policy instruments supporting market based measures to move towards sustainable development The Netherlands has used an eclectic mix of measures to move towards more sustainable industry, transport and agriculture, as well as more sustainable investment in other areas such as housing. Fiscal incentives for sustainability investments by the
Table 5.4
Examples of support for sustainability investments by the private sector
Type of support
Means and extent of support
For eco-labelling – including car efficiency labelling
Foundation established in 1992 by VROM and Ministry of Economic Affairs (EZ) to set up a national environmental labelling system. Energy labels for new cars introduced in January 2001 indicate both absolute and relative fuel consumption (by size of car).
For eco-driving
Registration tax rebates for new cars equipped with devices to improve fuel efficiency (econometer, dashboard computer or cruise control). Subsidies for eco-driving training programmes.
For cleaner production
Energy efficiency and environmental advice for SMEs (< 250 employees): 50% subsidy. Support for government authorities/consultants undertaking joint environmental projects for SMEs: 67% subsidy.
For environmental management Foundation (SCCM) established to co-ordinate certification systems (ISO 14001 certification/EMAS of environmental management systems (provides interpretations of ISO registration) and EMAS standards; sets requirements for certification organisations). For eco-design and dematerialisation
Credit scheme for environmentally oriented product development. Support available through “Promise” and “Ecodesign” projects. Activities have included an environmental innovation survey of 600 SMEs.
For research and development Under Economy, Ecology, Technology programme, EUR 127 million of innovative environmental technology in subsidies was provided in the period 1996-2000 to research institutes and small/medium research companies for projects to develop innovative environmental technology. For innovative projects
Source:
VROM.
© OECD 2003
The National Sustainable Development Initiative (NIDO) grants shortterm (two-year) financial support to small-size innovative projects that bring sustainability benefits (such as the shift to low-energy use systems or a more environmentally friendly transport system). In 2001 NIDO awarded EUR 3.9 million in grants.
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private sector were diversified and increased overall during the 1990s. “Green investment” by business has included the Scheme for Free Depreciation on Environmental Investments (VAMIL) and the Environmental Investment Allowance (MIA). VAMIL investment reached EUR 970 million in 2000; MIA investment in that year was EUR 520 million. Investment in energy conservation has included the Energy Investment Allowance Scheme (EIA), which is intended to stimulate business investments in energy conservation and renewable energy. The Green Investment Fund has been used to stimulate investment in projects concerning the environment, nature and energy. Moreover, part of the revenue from the regulatory energy tax (REB) is used to finance premiums for consumers who buy energy-saving appliances. The REB is refunded to green electricity producers, cogenerators and waste incinerators. Other types of financial support have also been put in place to promote sustainability investments by the private sector (Table 5.4).
1.6
An evolution towards sustainable development in national environmental policy planning
Several main trends are evident in the evolution of integrated policy planning over the last decade towards sustainable development with respect to the environment and the economy. First is the gradual increase in the emphasis on economic instruments, taking advantage of the government’s strength in establishing frameworks rather than micro-managing. However, moving towards the use of market-based instruments in all areas may be difficult. Some of the benefits of negotiating a consensual approach and focusing the attention of firms and other players on environmental objectives (and ways to reduce environmental impacts) could also be lost. With effective monitoring, increased transparency and intervention where results have been disappointing, environmental agreements can be made more effective. Another trend was articulated in the 1997 policy document on Environment and Economy: the emphasis on business’s responsibility for environmental protection and the need for business to be increasingly aware of this responsibility. Government’s role was seen as facilitating the meeting of this responsibility to the greatest possible extent. For example, industry and government had expressed a joint desire to take steps to develop the concept of integrating environmental considerations into company management (e.g. through research, workshops, pilot projects, information campaigns). NEPP4 reported that implementation of the 1997 policy document in the industry and service cluster and in the agriculture and rural areas cluster had gained momentum, while in other areas (e.g. transport and infrastructure) this was not the case. In general, fostering business sector “ownership” to a point at which absolute decoupling is achievable is likely to be a long and far from easy process.
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There has also been a trend towards articulating “transition processes” and “transition management” within a framework of sustainable development goal-setting and backcasting. The idea has been to present a vision of the situation 30 years from now, especially environmental consequences. This is the basis on which long-term ambitions, objectives and transition possibilities are assessed. In the energy domain three possible approaches for transition to a sustainable energy system are indicated. While such a means of proceeding is laudable, whether it proves realistic will largely depend on how effectively stakeholders can be brought to the table and convinced to agree to necessary changes. As emphasised in NEPP4, social factors can be critical to realising behavioural changes. A fourth trend concerns attainment of targets. One impressive feature of Dutch environmental policy (which includes the formulation of sustainable development goals) has been the ability to set targets for reducing critical environmental pressures with the support of the target groups involved. While targets for most pollutants remain in place and are generally attainable, difficulties have arisen – mainly in the case of transport and agriculture related targets. Targets in general give plans real tangibility, and there is a good argument for continuing to establish and maintain them. However, the target-setting approach in these two areas may need reassessment, with greater attention given to creative implementation strategies. As noted above, with the relinquishing of a mobility target and a new focus on the use of economic instruments to address environmentally related aspects of transport, efforts should be made to obtain a reasonable balance between the benefits of additional environmental improvements and their costs. Climate and air quality policy issues are largely international in scope. NOx related activities are now focused on the development of emission trading, which is considerably delayed compared with expectations two years ago. Targets for critical sustainable development objectives such as GHG emission reductions are central to the evolving policy debate. The Netherlands’ climate change implementation plan includes a reserve package (a back-up action plan and a long-term emission reduction strategy) that allows much greater confidence that targets in this vital area will be attained.
1.7
Environmental expenditure and financing
Trends in pollution abatement and control expenditure Dutch pollution abatement and control (PAC) expenditure is high by European standards, reflecting a high level of environmental pressure and preparedness to commit resources to mitigation. Cost data include direct government, company and household costs, including those of air, waste and waste water disposal, of dealing with
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soil contamination, and of implementation and enforcement (Table 5.5). GDP growth has meant that PAC expenditure, despite cost increases, has not risen above 2.5% of GDP to date; it is projected to remain at about this level during the next three years. PAC government expenditure gradually increased in relation to GDP during the last decade, but increased quite sharply compared with government expenditure (its share more than doubling). The fastest growing areas of expenditure in the last decade (by theme) have been climate change, soil pollution, eutrophication, and research and development. Waste disposal and waste water treatment remain by far the largest environmental cost areas.
Overall environmental expenditure Figures on environmental expenditure by central government ministries illustrate the cross-cutting nature of environmental policy and its significance for a range of governmental bodies, especially the Ministry of Foreign Affairs and increasingly the Ministry of Economic Affairs. A drop in funding was projected for 2003 (Table 5.6). Environmental expenditure by other areas of government mainly consists of expenditure on waste and water management (Table 5.7).
Financing environmental expenditure The main types of environmental revenue accruing to municipalities, provinces and central government from environmental charges (excluding taxes) are used to finance environmental measures. Sewage, solid waste, waste water and water charges predominate (Table 5.8).
Table 5.5 Pollution abatement and control (PAC) expenditure, 1990-2005 (EUR billion) 1990
PAC expenditure Gross domestic product (GDP) PAC expenditure/GDP (%) PAC government expenditure/total government expenditure (%)
1995
2000
2001
6.0 314.9 1.9
8.8 349.4 2.5
10.8 420.2 2.5
10.4
