Transition for climate and energy threat or opportunity?

Climate policy and the energy transition are closely linked and have a major impact on your business operations. That is why it is such a shame that the debate on this has become so polarised.

In her column in the NRC, Louise O. Fresco, scientist and former chairman of the board of Wageningen University, gave a striking description of this phenomenon: "In some circles, 'climate' has become a religion - complete with sin (human consumption drive), damnation (catastrophe as soon as 1,5, XNUMX degrees of warming is exceeded) and evangelists (supporters of radical transition). This makes conversations about climate issues increasingly difficult. Those who are not in favor of the 'climate' (read: for immediate far-reaching solutions) or who ask questions are against".

It's about the pace of implementation
Rob Jetten and Frans Timmermans are also guilty of this. They try to make us afraid of the terrible things that will happen if we do nothing or don't do enough. At the same time, they tell us about all the great benefits of fast action. But what they don't tell you is that such speed is at the expense of our prosperity. I think most people do see the need to reduce greenhouse gas emissions, but what matters is the pace at which it is implemented. It is completely unclear to me why all this can be arranged through smart policy in one generation and not in two or three generations.

A good illustration of the current technocratic administrative culture in the Netherlands is what is an abomination and an insult to every potato grower of their professional competence as a farmer: the potatoes must be off the land by 1 October at the latest. To make room for catch crops to store the nitrogen. A rule devised by professional politicians and top civil servants with a good knowledge of administrative processes and laws, but who completely lack a deep insight into practice.

Technocrats adhere to strict rules
Whether for potatoes that have to be harvested earlier than the farmer wants or for all kinds of energy or climate measures, it just turns out that the technocrats strictly follow the rules and listen to the fear that is prevalent among part of the population that the earth is going to hell. Anyone who is really concerned about global warming can even vent to a climate psychologist these days, as we know from actress Carice van Houten.  

An additional problem is that for many possible solutions it is not at all clear what they will yield. For example, reducing methane in the agricultural sector. Farming cows releases a lot of this greenhouse gas. There are technologies that allow for a different digestion of food in the stomach, but they are not developed enough to be sure that they reduce enough methane.

Is it all doom and gloom?
Nevertheless, under pressure from the EU, the judiciary and climate alarmists, there is an urgency that ensures that measures must be introduced as soon as possible. Without taking into account the practical problems and certainly not the consequences for our economy. Forcing companies to electrify despite the overloaded power grid. Companies are asking to switch to green hydrogen, without sufficient supply already being available. I can go on like this for a while.

Is it now all doom and gloom for farmers and agricultural companies? Certainly not. There are sufficient opportunities and possibilities to also benefit from the changing situation. The agricultural sector has a major role to play in the energy transition. Such as with the application of small-scale wind energy, driving tractors on hydrogen, storing carbon in pastures and small-scale production of green ammonia. With the innovative and entrepreneurial power of the sector, this is certainly not utopia. More on this in my next columns.

Kasper Walter

Kasper Walet is a former board member of the agricultural futures market. He has now been working under the name Maycroft for years as an independent adviser on energy and climate to governments and companies from all over the world.

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.