oecd environmental performance review of the netherlands 2015 - highlights

the NetherlandshiGhliGhts

2015

What are eprs?

OECD Environmental Performance Reviews (EPRs) provide evidence-based analyses and assessments of countries’ progress towards their environmental policy objectives. They promote peer learning, enhance government accountability and provide targeted recommendations to help countries improve their environmental performance. They are supported by a broad range of economic and environmental data. Each EPR cycle covers all OECD member countries and selected partner countries.

the third epr of the netherlands

This is the third OECD review of the Netherlands’ environmental performance: the first was published in 1995, the second in 2003. The Review aims to identify where new or reinforced efforts might be needed to enhance the coherence and cost-effectiveness of policies. The process involved a mutually beneficial policy dialogue between the Netherlands and the countries participating in the OECD Working Party on Environmental Performance.

The Review presents 29 recommendations. These Highlights summarise the main findings, with a special emphasis on:

z Green growth

z environmental governance

z sustainable mobility

z Waste and materials management

“The Netherlands has long been recognised as a forerunner in environmental policy.The challenge for the future will be to push the frontier of environmental policy even further and in new ways.”simon UptonOECD Environment Director

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Net

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The Netherlands is the sixth-largest economy in the euro area and a

global transport hub, with the Port of Rotterdam the largest in Europe.

As a small, densely populated country with a very open economy, the

Netherlands became a forerunner in environmental policy decades

ago when it was confronted with acute environmental pressures. More

recently, the government has reined in ambitions for environmental

policy objectives to levels set by the European Union, with a view

to promoting a level playing field. The country has made important

strides in environmental performance, but still faces some persistent

challenges, including addressing diffuse pollution (such as nitrogen

deposition in nature areas) and securing significant improvements in

the quality of ecosystems and biodiversity. In addition, new challenges

continue to emerge.

opportunities

z a drive to streamline and modernise environmental governance, with a strong focus on public health.

z a significant amount of revenue is raised from environmental taxes.

z as a delta country, a strong tradition in water management and a comprehensive, long-term policy agenda for water.

z a comparative advantage in some green technologies, such as energy efficiency, energy generation from biofuels and waste and carbon capture and storage.

z a high share of environmentally friendly modes of transport, with inland waterways for freight, a cycling culture and the highest penetration of electric cars in the european Union.

z a strong track record in waste management and one of the most resource-efficient economies in the oeCd, developing new policies to transition towards a circular economy.

Challenges

z the fifth-highest share of fossil fuels in the energy mix among oeCd countries.

z Biodiversity is under pressure: 95% of habitat types and 75% of species are threatened.

z dense transport network, with congestion expected to rise in the randstand (the metropolitan area including amsterdam, rotterdam, the hague and Utrecht).

z some air pollution hot spots remain, despite overall progress in reducing air pollutant emissions.

z nutrient run-off from intensive livestock farming.

netherlands 2014

population 16.9 million

Gdp/capita(purchasing power parity) USD 47 600 (OECD average is 38 900)

total area 42 000 km2

population density407.7 inhabitants/km² (OECD average is 34.9)

CurrencyEuroUSD 1.00 = EUR 0.75

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the netherlands has been emerging from a protracted recession following the global economic crisis.

economic activity gradually recovered in 2014 and Gdp is expected to increase further in 2015 and 2016.

the netherlands is the second-most densely populated country in the oeCd after Korea, with 85% of the

population living in urban areas, which cover two-thirds of the country.

Government spending has generally been high, at around 47% of Gdp in 2013. the country made large-

scale investments in infrastructure, including road, rail, aviation and maritime transportation. dutch people

are generally satisfied with the quality of their surroundings and their environmental awareness is high.

oeCd ENviRONmENtal pERfORmaNCE REviEw Of thE NEthERlaNDS

environmental performance | key trends

z Fossil fuels account for more than 90% of total primary

energy supply; the fifth-highest share among OECD

countries (Figure 1).

z Since 2000, greenhouse gas (GHG) emissions decreased,

while the GDP grew, thus achieving absolute decoupling

from economic growth (Figure 2). This was due mainly

to energy savings, higher imports of electricity and the

impact of the economic crisis.

z The energy sector remains the largest emitter of GHGs,

and showed the smallest decrease in emissions over

2000-12. The Netherlands achieved its Kyoto targets

by buying carbon credits under the Protocol’s flexible

mechanisms, to complement domestic emissions

reductions.

z The 2013 Energy Agreement for Sustainable Growth

spearheaded the Dutch Social and Economic Council

(see page 6) targets savings of 1.5% of final energy

consumption each year by 2020 and a 16% share of

renewables by 2023.

resourCes and waste

z The Dutch economy is one of the most resource-

efficient in the OECD. Material productivity (economic

wealth generated per unit of material use) grew by

almost 50% between 2000 and 2013.

z Municipal solid waste decreased by 7% between 2000

and 2013, even though private final consumption

increased slightly. The country has very high levels

of waste recovery, including reuse, recycling and

incineration for energy recovery (see page 12).

biodiversity

z 95% of habitat types and 75% of species are threatened.

The bird population on farmland has dramatically

declined by almost 50% in 10 years, primarily due to

intensive agricultural practices.

z Pressure from urbanisation resulted in loss of natural

habitats and landscapes. Almost 20% of the territory is

under some form of nature protection, slightly lower

than the OECD average.

figure 1. 90% of the netherlands’ energy supply comes from fossil fuels

2000

2013Oil

29.7 MtoeNatural gas

33 MtoeCoal

8.1 MtoeNuclear

0.8 MtoeRenewables

3.3 Mtoe

Oil 25.9 Mtoe

Natural gas35 Mtoe

Coal7.9 Mtoe

Nuclear1 Mtoe

Renewables1.2 Mtoe

Climate Change and energy

Source: iEa (2014), iEa world Energy Statistics and Balances (database).

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luxembourg

sales of pesticides, 2009-11

t/km2 agricultural landSales of pesticides, 2009-11, t/km2 agricultural land

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nutrients

z The Netherlands is among the largest exporters

of agricultural products in the world, in terms of

value. Stringent application standards for fertilizers

contributed to a reduction of agricultural nutrient

surpluses (nitrogen and phosphorous), although from a

relatively high level.

z Despite positive developments, the amounts of

nitrogen fertiliser and the quantity of pesticides used

per km2 of agricultural land remain significantly higher

than the OECD average (Figure 3).

z Organic farming increased from 1.6% to 2.6% of total

agricultural land between 2000 and 2012.

water management

z As a delta country, the Netherlands has a sophisticated

system for water management, including flood

protection infrastructure. The country is classified

as medium water-stressed, abstracting 11.7% of total

available renewable freshwater in 2012.

z Non-point sources of pollution (from agriculture,

atmospheric deposition, traffic and infrastructure and

run-off) continue to strain water quality. Over 99% of

the population is connected to wastewater facilities

with tertiary (microbiological) treatment.

kEy tRENDS

air quality

z Emissions of all major air pollutants have been

decoupled from economic growth. Air quality in zones

with intensive road traffic has strongly improved,

although some hot spots remain around major cities

and transportation corridors.

z The number of deaths from outdoor air pollution

declined by 16% between 2005 and 2010. The OECD has

recently estimated that the social cost of mortalities

due to outdoor air pollution in the Netherlands was

about USD 25 billion in 2010.

figure 3. a large agricultural sector, using substantial amounts of fertilisers and pesticides

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figure 2. the netherlands achieved absolute decoupling of air pollutants from economic growth

Source: National Submissions to EmEp and UNfCCC, 2015.

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GhG 89

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NOx 59

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apparent consumption of nitrogenous fertilisers, 2010-12

t/km2 agricultural landapparent consumption of nitrogenous fertilisers, 2010-12, t/km2 agricultural land

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the netherlands made progress towards green growth over the review period at a moderate pace.

as part of the green growth toolbox, the netherlands continues to use a number of potentially cost-

effective economic instruments, but their design could be improved to enhance both their environmental

effectiveness and cost efficiency. there is also scope to further reduce environmentally harmful subsidies

in the agriculture sector.

greening the tax system

Energy tax rates are generally much higher in the Netherlands than elsewhere in the OECD, but rates are uneven across energy sources and users.

Large energy users benefit from lower tax rates, generally due to a fear that higher taxes could drive large companies out of the country. However, recent OECD studies demonstrated that these fears are not founded, at least for taxes not much higher than current levels. There are also a number of exemptions and refund mechanisms, mainly benefitting large-scale users.

Environmentally harmful subsidies were estimated to range between EUR 5 to 10 billion EUR in 2010 depending on the approach used to measure them. In spite of progress, one third of these subsidies still relate to agriculture, where a very intensive livestock sector contributes heavily to nutrient run-off.

Financial costs of water management are nearly all recovered through charges, levies and taxes. However, the contribution from the various sectors – households, agriculture and industry – are not clear, nor is the effiency of price incentives to stimulate efficient water use.

The 2013 Energy Agreement for Sustainable Growth is the cornerstone of Dutch climate and energy policy. The Dutch Social and Economic Council led negotiations among government, businesses, trade unions and NGOs to jointly set out targets and actions for climate and energy policy. Objectives include saving 1.5% in final energy consumption annually by 2020 and raising the share of renewable energy to 16% in 2023. A review is planned for 2016, but early assessments indicate that planned measures may not be enough to deliver on objectives.


Policies for green growth

figure 4. only 3 other oeCd countries raise more revenue from environmental tax as % Gdp in 2013

2013 or latest year available. Source: OECD Environment Statistics (database).

z Ensure an independent and transparent assessment of the Energy agreement in 2016 and step up efforts to improve Dutch climate and energy policy as needed.

z Consider taxing electricity less, and natural gas use in households more, which would lead to lower EU-wide GhG emissions. Consider contributing to making the “cap”of the EU Emissions trading System stricter by buying and retiring emission allowances. Reconsider the planned tax exemption for coal used in electricity generation. Reassess vehicle taxes to ensure their long-term fiscal sustainability.

z Consider the environmental advantages of environmentally related taxes along side their revenue potential and administrative costs; the environmental benefits may justify their implementation, even if the revenue generation potential is small.

z promote eco-innovation with a balanced and consistent mix of public support, demand-side measures and partnerships, with a focus on front runner small and medium-sized businesses; maintain a clear and stable policy framework.

z Ensure a focus on environment and climate, within increased official development assistance.

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Next steps | towards green growth

investing in the environment

Investments in clean energy, mainly biomass co-firing, until 2013, and onshore wind energy, were stimulated by a complex combination of instruments, such as feed-in tariffs, regulatory standards, tax incentives, etc. Yet, the Netherlands is still not on track to meet its targets for renewable energy.

The Top Sector policy, adopted in 2011, focuses public resources on nine sectors where the Netherlands has a comparative advantage. It aims to address barriers including lack of knowledge transfer and co-ordination, overly detailed sector regulation, and insufficient supply of skilled workers. The MIT scheme was introduced in 2013 to help smaller, or emerging, businesses gain better access to public support schemes for innovation.

The environmental goods and services sector could become a significant source of growth for the Netherlands. It grew faster than the rest of the economy over the past decade, to reach 2.1% of GDP and 1.8% of employment in 2012, equivalent to 130 000 full-time jobs. Renewable energy jobs expanded quickly.

Environment-focused aid decreased to 10% of total sector allocable bilateral aid in 2012-13, a very low share compared with the OECD Development Assistance Committee average of more than 30%. Dutch aid related to climate change has risen with a strong focus on adaptation.

pOliCiES fOR GREEN GROwth

20101996

Energy generation, transmission, distribution

patent application for climate mitigation technologies

all technologies

GhG capture, storage, sequestration, disposal

transportation

Note: Data refer to 3-year moving averages. Source: OECD Environment Statistics (database).

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the Netherlands developed a comparative advantage in energy efficiency in lighting, energy generation from biofuels and waste, CO2 capture and storage. it is still one of the world’s leaders in water technologies. however, it is lagging behind the most eco-innovative OECD countries. Budget cuts have affected world-class environment and energy research institutes.

figure 5. recent rise in patent applications for climate mitigation technologies

in 2012, the environmental goods and services sector in the Netherlands represented

130 000 full-time jobs

Case studies

Cash for trash ?

the 610 000 residents of Rotterdam produce an average of 475 kg of waste per person per year. less than a fourth of this waste is recycled. the city looked into the reasons for low performance. it identified lack of space in apartments, difficulties in separating waste in high-rise buildings, and social issues related to poverty. to boost recycling, the city is looking into “cash for trash” incentives and improving post-collection separation. Other cities, such as arnhem, are encouraging people to recycle by providing better service for the collection of recyclables than for residual waste.

“room for the river”

for decades, water management in the Netherlands has relied on large structural solutions and engineering approaches. Giving more space to rivers for possible floods, instead of building higher and higher dykes, is an alternative way to ensure safety from flooding. this is the approach of the Room for the River programme, which uses innovative architectural, urban design and landscape solutions to build with nature and live with water. Re-naturalising waterways and using multi-functional water management infrastructures can improve environmental benefits and be more cost-effective than traditional engineering approaches.


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“QUalified no” for Biodiversity

the long Dutch coastline and low lying delta create unique conditions for biodiversity. however, 95% of habitat types and 75% of species are threatened according to the 2013 monitoring results of the EU habitats Directive. to help address this challenge, the National Ecological Network (NEN) was created to extend and better connect Natura 2000 land areas and national parks, particularly where infrastructure has caused habitat fragmentation. permitting of economic activities in the NEN operates under a “qualified no” principle: actions with negative impacts on the environment actions are not permitted unless they are clearly in the public interest and there are no realistic alternatives. from July 2015, the impact of nitrogen deposition has to be assessed before allowing new economic activities around Natura 2000 areas.

amsterdam

the hague

Rotterdam

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CaSE StUDiES

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Green deals for inCineration ash

Given the central role of incineration in waste treatment in the Netherlands, it is also a major producer of residual “bottom ash”, a by-product of the incineration process. this ash contains a range of materials, including metals, and may only be reused under strict conditions.

to promote the efficient and sustainable reuse of this ash, the Dutch government and waste incineration sector signed a “Green Deal” (see page 15) : in return for reprocessing the bottom ash by 2020, the incinerators can market the non-metallic output as building material.

as a midpoint target, the deal aims to reprocess half of the ash by 2017. the government is working with industry on the development of the necessary reprocessing technology.

BiKe-friendly Cities

the Netherlands has long been a bike-friendly country, with an important share of trips by bike in major cities: 36% in Utrecht, 33% in amsterdam and 26% in the hague. the most bike-friendly city in Europe – the Dutch university city of Groningen – estimates 59% of trips are by bike. it is a compact city, due to strict land use plans that limit low-density developments, making travel distances short. Groningen’s strategy for improving cycling safety relies mainly on the provision of extensive bike lanes, priority traffic signals for cyclists, strict speed limits in residential neighbourhoods, and sharp restrictions on car use in the city centre.

“forGet oWnership” transitioning towards a circular economy requires supporting sustainable design and new business models. for example, turntoo, a Dutch company, has based its business model on renting out appliances, rather than selling them. appliances remain the property of the producer throughout their life cycles. for example, a company supplies high-efficiency washing machines to a social housing provider, which will pay for the use of the machines, including energy and water use. there are multiple benefits: tenants get to use top-end washing machine for a low cost per wash; housing providers have fewer tenants who cannot pay rent because of a high electricity bills; and the appliance producer gets a constant revenue stream and the opportunity to reuse parts of the machines at the end of their life cycle. appliance producers also have an incentive to make the product as durable and efficient as possible.

amsterdam

Utrecht

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modernisation

A new approach. Currently, there is a drive to modernise

environmental policy with a focus on public health,

particularly on new risks (from new substances and

technologies). The modernisation approach emphasises

more active international co-operation and continued

streamlining. It also advocates a new role for the government

as a facilitator of “new coalitions” to tap into the energy of

civil society and the private sector.

The Environment and Planning Act, to take effect in 2018,

will consolidate all of the Dutch environmental legislation,

dispersed across sectoral legislation, from land use planning

to cultural heritage or mining. The 2008 Activities Decree

drastictally reduced the number of installations that

required an environmental permit, relying to a greater

extent on general binding rules instead. Since 2010, “all-

in-one” permitting provides a single procedure, reducing

administrative burden, cost and time savings.

Green Deals are agreements between the government and

various private parties to remove non-financial barriers

related to regulations, legislations and licensing. Since the

programme was launched in 2011, over 200 Green Deals have

been concluded mostly in the energy sector, but also related

to water, mobility, biodiversity, the bio-based economy,

construction and food.

The polder approach. The Netherlands has a long

tradition of dialogue, negotiation and consensus-

based decision making known as the “polder approach”.

Voluntary agreements can be useful to engage industry in

environmental efforts, although they lack effective sanctions.

Lack of a long-term vision. The Netherlands was a

pioneer in developing long-term comprehensive visions for

environmental policy, but such a vision has been lacking

over the past decade. As a result, short-term actions may

not have been the most effective in light of longer-term

aims. The Delta programme on water management could

provide a good model for developing a long-term strategy

for environmental policy. It was established as the national

planning instrument to response to concerns about climate

change and long-term water security, with a horizon to 2100.

the netherlands have long been a forerunner in environmental policy, but it recently reined in ambitions

to levels set by the eU. in a drive to modernise environmental policy, the government is now looking to

further streamline policies and to act as a facilitator of “new coalitions” to tap into the energy of civil

society and the private sector.


maKe it WorK

80% of Dutch environmental legislation is linked

to European law. analysis of the EU environmental

directives showed that inconsistencies have appeared

over time in the EU acquis, with contradictory,

overlapping or accumulating obligations, different

timelines for reporting, and increasing complexity.

the Netherlands launched the “make it work” initiative

with nine other EU member countries, to exchange

experience and improve the coherence of legislation

in sectors such as chemicals, waste or water, while

maintaining the level of environmental protection.

Environmental governance and management

z Develop a clear, long-term vision for environmental policy to support short-term plans. the Environment and planning act is an opportunity to ensure a strong footing for environmental protection.

z Strengthen efforts related to external safety, including preventing chemical accidents, by improving guidance for companies, enforcing rules, and ensuring a transparent permitting process.

z Give greater weight to ecological considerations in water management.

z Support newly established Environmental Services by providing sustainable funding, strengthening

mechanisms for the exchange of good practice, putting into place mandatory performance quality criteria and effective monitoring.

z Use voluntary agreements selectively, in cases where win-win solutions can give results without relying on sanctions.

z improve the existing liability regime to better deal with emerging risks

z make better use of research outcomes and independent assessments in developing policy.

Next steps | governance

implementation

Local capacity. Municipalities and, to a lesser extent,

provinces, are in charge of permitting and supervision,

spatial planning and nature policy. Recent reforms have

given them authority to develop more tailored policies and to

experiment new approaches. However, they sometimes lack

the necessary managerial, human and technical capacity to

manage their new functions.

29 Environmental Services (ODs) were established in 2014

to bring together experience and expertise on environmental

licensing, compliance assurance and enforcement for

municipalities or provinces. This action was spurred

by alarming reports by the Dutch Safety Board on high

profile incidents that exposed major deficiencies in policy

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figure 6. the netherlands has relatively high stringency of select environmental policies, mostly related to the electricity sector

Source: Botta, E. and t. koźluk (2014), http://doi.org/84p. more information on http://bit.ly/1zif4Q6

implementation. Some large, experienced ODs perform very

well, while there is uncertaintly about the capacity of newer

ODs. Sustainable funding for and adequate monitoring of the

ODs must be ensured.

A risk-based approach to enforcement and compliance puts

limited and shrinking resources to best use. The Netherlands

also relies on covenants based on trust, combined with

regular oversight and periodic auditing. Spending cuts for

supervision and enforcement have raised concerns.

The government is exploring ways to make companies liable

for negligence, in the case of negative impacts arising from

new substances and technologies. This could encourage

firms to identify and control such risks themselves and save

resources for enforcement.

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landfill incineration without energy recovery incineration with energy recoveryComposting recycling landfill tax (right axis)*

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the netherlands is one of the oeCd’s best performers in the area of waste management. it has set and

achieved progressively ambitious targets while keeping charges at relatively low levels. over the past several

years, it has been laying the groundwork for a transition towards a circular economy.

opportunities

Comprehensive planning. The Netherlands has successfully

achieved progressively ambitious targets set in the first and

second National Waste Management Plans. A third plan,

expected in late 2016, will cover the period until 2022.

Waste reduction. Since 2000, the Netherlands has

considerably reduced the amount of waste it generated,

achieving absolute decoupling of waste generation from

GDP. Municipal solid waste produced per capita fell by

around 10% between 2000 and 2013, but remains just

slightly above the OECD average.

High levels of recovery. Over the review period, there has

been a continuous move towards re-use, recycling and

incineration for energy recovery across all waste streams.

Landfilling of municipal solid waste declined sharply due to

landfill taxes and a landfill ban for certain types of waste.

Half of municipal waste is now incinerated for energy

recovery (Figure 7). Recycling increased slowly.

Higher performance. The environmental performance of

the sector increased across most measures. Since 2000,

emissions of most air pollutants from the waste sector

declined, although nitrous oxide (NOx) emissions increased

from 2005.

in-depth | waste and materials management

pay as you throw

while almost all Dutch municipalities impose a waste

levy, charging systems vary from town to town. 40% of

municipalities use a “pay-as-you-throw” levy (called “Diftar”,

referring to “differentiated rate”). this levy varies based on

the amount of residual and separated waste collected,

encouraging households to separate and reduce waste.

in some areas, generally those using Diftar schemes,

separate waste collection accounted for more than 60% of all

household waste. when households do more work in waste

separation, municipalities have less to do. Costs decrease,

and the value of the waste increases.


figure 7. marked shift towards incineration with energy recovery municipal waste disposal and treatment

Note. * the tax was abolished in 2010 and reintroduced in 2013. waste collected by or for municipalities including household, bulky and commercial waste, and similar waste handled at the same facilities. includes separate collection for recycling purposes. Up to 2008, data for total treatment exclude amounts undergoing mechanical sorting before further treatment/dis-posal. Source: CBS (2015), Statline (database); OECD Environment Statistics (database).

Extended producer responsibility. The Netherlands

was one of the first OECD member countries to require

producers to manage waste generated by their products

from manufacturing to disposal. In the current system,

producer responsibility organisations collect or recycle

end-of-life products, or contract a third party to do so.

Overall, the current approach enjoys greater economies

of scope and lower administrative costs than previous

approaches that have been tried. However, some systems,

like the one for plastic packaging, remain very expensive.

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Next steps | waste & materials

z maintain absolute decoupling of waste generation from GDp as the economy recovers.

z Consider an emission-based (instead of input-based) waste tax.

z Encourage schemes such as Diftar and reverse collection to improve recycling rates.

z Explore ways for extended producer responsibility schemes to have an influence beyond waste management, on sourcing, design and consumption phases.

z Reinforce efforts against illegal waste trade with a risk-based approach, proper handling, and increased investments.

z Develop a roadmap to promote the circular economy, strengthen product policies such as labelling and design criteria, promote reuse and remanufacturing.

z Encourage innovation through the Green Deals approach. Overcome information and finance barriers.

z prioritise the development of indicators to monitor resource productivity and material flows.

towards a circular economy

in a circular economy, the aim is to broaden the focus from

strictly managing waste to minimising the environmental impact

of materials across entire product chains from “cradle to

cradle”, covering raw material extraction, production, use and

waste management, including reuse.

in 2014, the government set out an ambitious Waste to

Resource programme. One of its main objectives is to halve

the volume of material that leaves the economy within ten

years. the programme seeks to drastically cut the resources

lost in this way, through increased recycling (even in difficult

categories such as plastics) and more sustainable production

and consumption.

putting the vision for the circular economy into action will

require realistic targets informed by cost-benefit analysis and

new business models and approaches. the Netherlands is also

a major contributor to the EU policy on resource efficiency.

waStE aND matERialS maNaGEmENt

in 2012, an estimated

10 million tonnes

of waste went to incineration or landfill.

Challenges

Marginal improvements. As recycling rates are already

relatively high compared to other OECD member countries,

making further gains is difficult. Yet, results from several

local communities are promising.

The global economic crisis dampened overall consumption,

leading to reduced waste generation. As the economy

recovers, the Netherlands will have to ensure that waste

generation does not rebound.

Hazardous waste. The Netherlands is among the top

ten OECD countries in terms of production of hazardous

waste, with nearly 4.9 million tonnes in 2012. By 2009, the

Netherlands was the EU’s largest exporter of hazardous

waste and third-largest importer.

Circular economy. Transitioning towards a circular economy

will require developing new business models, finding new

ways of working across the whole product chain and dealing

with commodity price volatility. It will also be important to

find ways for extended producer responsibility schemes to

go beyond just waste management and promote systems

that have an influence on sourcing, design and consumption

phases, as well as improve the quality of recycling.

figure 8. the netherlands is one of the most material efficient members of the oeCd

Domestic material consumption (2011, tonnes/capita)

Source: OECD Environment Statistics (database); Eurostat (2014), Environment Statistics (database).

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the netherlands is a global transport hub at the heart of europe. it has managed to keep a high share of

environmentally friendly modes of mobility, thanks to its inland waterways for freight and a cycling culture

in cities. however, road traffic remains dense. While the country has benefitted from smart urban planning

and road improvements, re-considering a road pricing system could help address increasing congestion and

related environmental pressures.

in depth | sustainable mobility

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opportunities

Cycling culture. 10% of total distance travelled is by bicycle,

an exceptionally high share compared to other OECD

countries, equalled only by Denmark. This is due to the flat

geography, but also to a bicycle-friendly urban planning

(including continuous networks of separate bike paths

and even streets) and traffic regulation. Electric bikes are

increasingly popular. Among other means of transport,

kilometers travelled by car remained stable, with more and

more solo drivers. Rail use is increasing, but it reaches only

10% of total distance travelled.

Inland waterways. Freight volumes remained stable. Goods

transport on inland waterways is almost as important as road

freight. Between the Port of Rotterdam and the hinterland, the

trend has been more short sea shipping and less road. Each

mode now transports about 35% of freight volume.

Lower emissions and noise. Stricter emission standards

for cars, as well as the economic recession and subsidies for

more fuel-efficient cars, have driven a significant decline

in air pollution from transport (except for CO2 emissions,

which have decreased only slightly since 2008). Air quality

in zones with intensive road traffic has strongly improved,

despite some remaining hot spots in congested areas. The

number of houses exposed to “high noise levels” (more than

65 decibels) along national roads reduced by over one-third

between 2006 and 2011.

Better safety. Over the last 12 to 15 years, better car

technologies, road design and traffic regulation have

helped reduce car fatalities by more than half. Bicyclists

are the group with the slowest progress in terms of reduced

accidents; they are still 11 times more likely to be killed in a

road accident.

The share of diesel cars is low in the Netherlands, due

to higher purchase and annual taxes on diesel cars and

on high-emitting vehicles, while hybrid and electric cars

benefit from tax preferences. CO2 emissions of newly

registered passenger vehicles in the Netherlands were the

lowest across EU countries in 2014.

Electric vehicles. The Netherlands has set a target to put

15-20 000 electric vehicles on the road by the end of 2015

and one million by the end of 2025. In 2014, 31 000 low

polluting vehicles, most of them plug-in hybrids, were

already on the Dutch roads, the highest share in the EU.

Subsidising these vehicles is a costly approach to reduce

CO2 emissions, but it helps create an ecosystem that fosters

innovation and green growth.

figure 9. in some dutch cities, more than a third of trips are made by bike Share of trips in selected cities, 2011-2013

Amsterdam 33%The Hague 26% Utrecht 36%Rotterdam 22%

Source: kim (2013), mobiliteitsbeeld 2013 [mobility picture 2013].

z Reduce the CO2 emission differentiation in the vehicle purchase tax, to bring it more in line abatement costs in other parts of the economy.

z Road pricing, at least in the most congested zone of the country (the Randstad), could be an efficient alternative to high taxes on vehicles and motor fuels. the second-best option is to discourage car use in urban areas with high parking charges.

z Consider varying pricing of public transport (local and rail) according to levels of congestion, to cope with growing demand in the peak periods in the Randstad.

z introduce distance-based road charging for trucks.

z Consider introducing a passenger tax on extra-European aviation, together with neighbouring countries, taking into account potential competitiveness impacts.

z Reduce negative environmental impacts of transport, including noise and the remaining air pollution hot spots.

SUStaiNaBlE mOBility

Next steps | sustainable mobility

15

Challenges

Congestion. Fewer hours have been lost to congestion

in nearly all congestion-prone areas over the last three

years. Yet, in the coming years, the very densely populated

Randstad (the metropolitan area with the four largest cities

of Amsterdam, Rotterdam, The Hague and Utrecht) will

continue to attract more inhabitants and commuters, and

a further increase of road traffic is unlikely to be solved by

additional road capacity alone.

Climate. The Netherlands has to prepare the transport

sector for ambitious EU 2030-2050 carbon emission targets.

The reform of vehicle taxes into a progressive carbon tax

encouraged buying low-emitting vehicles, but it came at a

very high cost per tonne of CO2 abated.

Test cycles. The bulk of air pollution emissions from

transportation originate from road transport. According to

the European test cycle, nitrous oxide (NOx) emissions should

figure 10. shifting trends in car use since 1995

Source: kim (2013), mobiliteitsbeeld 2013 [mobility picture 2013].

-6

-4

-2

0

2

4

6

8

10

12

1995 2000 2005 2010

% trip purpose

workleisure

shopping

education

other

total

-6

-4

-2

0

2

4

6

8

10

12

1995 2000 2005 2010

% gender

women

men

total (driver+ passenger)

-6

-4

-2

0

2

4

6

8

10

12

1995 2000 2005 2010

% age group

0-17

18-29

30-39

40-59

60+

total (driver + passenger)

have gone down for diesel cars, but studies have shown that

actual emissions are much higher than test cycle results.

Further, actual CO2 emission reductions turned out to be only

half of what was estimated by test values.

Road pricing. Now that the easy wins in terms of better road

management have likely been exhausted, road pricing could

be re-considered. It could replace high fixed charges on cars

(at the time of purchase and every year for ownership) with

a variable charge per kilometre, based on place and time of

travel. The 2013 Energy Agreement includes plans to begin

studying road pricing as of June 2016.

Trucks. Trucks pay for their road use through diesel excises

and the fixed Eurovighette charge. However, the Netherlands

will soon be surrounded by countries that apply distance

charging, once Belgium puts its system into place in 2016.

Countries with a distance charge can undercut the diesel

excise tax of their neighbours without distance charging, as

international trucks can decide where to buy fuel.

www.oecd.org/environment/country-reviews

more inFormation

OECD Environmental Performance Reviews: The Netherlands 2015

The report and all data are available online


or

http://doi.org/839

Environmental Performance Review programme


ContaCts

Head of the Environmental Performance and Information division

Nathalie Girouard

[email protected]

Co-ordinator of the EPR of the Netherlands

Kathleen Dominique

[email protected]

Communications

Clara Tomasini

[email protected]

image Credits Cover: gigra/Fotolia, ValES1989/Fotolia. p.2-3: JacobH/iStockPhotop.4-5: Vorn/Flickr CreativeCommons. Icons by David Chapman, Edward Boatman, Thomas Uebe, Waleed Al Alami, Marie Van den Broeck, Francesca Ameglio/TheNounProject.com. p.6-7: ErikdeGraaf, Nishangha/iStockPhotop.8-9: Courtesy Room for the River, Turntoo, AlbyDeTweede,ErikdeGraaf, AlanPhillips/iStockphoto, AuthenticCreations/Shutterstock. p.10-11: NickNick_ko/iStockPhotop.12-13: PeterdeKievith/iStockPhoto, Icon by Sascha Elmers/TheNounProject.comp.14-15: Olivier Lantzendorffer and The Hague/iStockPhoto, Icons by Creative Stall,Vicons Design, Misirlou/TheNounProject.com

This document and any map included herein are without prejudice

to the status of or sovereignty over any territory, to the delimitation

of international frontiers and boundaries and to the name of any

territory, city or area.

oecd environmental performance review of the netherlands 2015 - highlights

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