Ministerie van Financiën

News million dollar bill

'Making choices about CO2 sequestration and land use'

21 September 2021 - Linda van Eekeres

According to the outgoing cabinet, clear political choices must be made about land use and the potential for carbon sequestration. That is stated in the million dollar bill presented today (Tuesday 21 September).

In the coming years, according to the cabinet, investments must be made in carbon sinks, such as the maintenance and construction of new forests.

"The cabinet has already taken important steps towards a sustainable Netherlands, but more is needed," according to the Budget Memorandum. "Not only must the policy aimed at 2030 be tightened up. In order to keep climate neutrality within reach in 2050, the policy must also have an eye for the long term in the coming years."

This applies, for example, to the energy infrastructure. According to the cabinet, we must start with this in the coming years, 'because necessary investments have a long lead time'. Choices have to be made about the transport capacity of emission-free energy carriers, such as electricity and hydrogen. Infrastructure and new technologies are needed to make industry and the built environment more sustainable, says the cabinet. "These may not be profitable yet, but they are necessary for the future."

Sustainable mobility requires 'emission-free vehicles, infrastructure, CO2-free fuels and behavioral change'.

Earlier on already leaked out that the outgoing cabinet would not come up with a new nitrogen policy on Budget Day, because the coalition parties cannot agree on additional nitrogen rules to limit emissions.

Budget LNV just under 2 billion
The budget of the Ministry of LNV will amount to just under €2 billion next year. In the budget for 2022, farmers, horticulturists, arable farmers, fishermen and nature managers will receive support - in policy and in finance - to get started with the tasks in the field of nitrogen, climate and water quality, LNV states in a press release.

In the context of the transition to circular agriculture, the ministry is developing 'a set of critical performance indicators (KPIs), which provide clarity about the sustainable performance expected of entrepreneurs and the way in which they are rewarded for that performance'. These KPIs will be applied from 2022 (first in regional pilots). With the Conversion Program (175 million euros), LNV offers support in the financing necessary for making the switch to future-proof agriculture.

The effect of the 7e Nitrates Directive action program has an impact, the ministry endorses. LNV says it is looking together with the chain at how the consequences of this package of measures can be absorbed.

In the field of animal welfare, the ministry will make efforts in the coming year to tackle barn fires, heat stress and improve the slaughter system. LNV, together with the Ministry of Health, Welfare and Sport (VWS), is also strengthening the zoonosis policy.

The challenges within the agricultural sector are insufficiently answered in the budget of the outgoing cabinet, finds LTO Netherlands.

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Linda van Eekeres

Linda van Eekeres is co-writing editor-in-chief. She mainly focuses on macro-economic developments and the influence of politics on the agricultural sector.

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