CO2 tax hits the target, not the farmer

The deputy prime minister of our government has managed to gain broad support for the vision paper on circular agriculture. It appears that this achievement has inspired the government to energetically present a climate policy that can count on broad support.

Be that as it may, the announced introduction of a CO₂levy for industry can count on broad support; both inside and outside politics. Leading practitioners of the economic sciences also support the proposed policy measure. This is evident from one brief of 71 top economists, including 2 from Wageningen, which appeared at the beginning of this week. This letter contains all the arguments in favor of the levy and is therefore worth reading. It is therefore to be expected that the levy will be imposed.

Big consequences
The levy for industry has major consequences for the Dutch nitrogen fertilizer industry. The production of nitrogen fertilizer is still accompanied by substantial greenhouse gas emissions, which means that the amount of the levy to be paid will be high. This results in a high cost price. The nitrogen fertilizer industry is therefore losing its most important weapon in the fierce competition within and outside Europe.

This is a favorable cost price, as a result of a low purchase price of natural gas. This was obtained in the 60s. Due to the circumstances, interest group Meststoffen Nederland foresees the closure of various factories. This vision is shared by the works council of fertilizer producer Yara.

No hindrance
However, the Dutch agricultural sector is not affected much. The supply of alternative and affordable fertilizers from the circular economy has grown rapidly in recent years. These fertilizers are quantitatively and qualitatively more than sufficient to meet the demand for nitrogen fertilizers. It mainly comes down to good information about the best agricultural practices for circular precision fertilization.

Herre Bartlema

Herre Bartlema is chairman of the NCOK: Netherlands Center for the Development of Circular Precision Agriculture. The aim: to promote the application of practical precision farming techniques to contribute to a clean sector.

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