|Policy Type:||Voluntary Approaches|
|Agency:||Ministry of Economic Affairs|
Long-term agreements between the government (Ministry of Economic Affairs) and representatives from industrial, commercial, agricultural and freight transport sectors are a key instrument in Dutch energy conservation policy. The agreements usually take the form of a Covenant or a Long-Term Agreement (LTA). The first energy LTAs were signed in 1992 and as of mid-1998 the status was as follows: - 30 LTAS with industry associations. - About 1 200 industrial companies participate in LTAS. - Over 90% coverage of industrial primary energy consumption. - 11 LTAS with groups of users in services sectors. The Minister of Economic Affairs supported the programme through: - Financial instruments aimed at industry: tax abatement can be granted if investments in Novemicient (or clean) technologies are realised. This scheme, however, applies to all companies, whether they are signatories to an LTA or not. - Financial assistance within the framework of the LTA, including various subsidy schemes. - Increase of the above financial assistance if the programme is more promising than expected. - Support in the form of a detailed audit of the industries? facilities. - Co-ordination of regulatory measures aimed at energy efficiency in industry, including requirements to obtain permit and energy taxes. Part of the agreement involves a yearly monitoring system based on an annual report of individual members of the sector. The aggregated reports are submitted to NOVEM as operating agent and quantified in an energy efficiency index for the sector. After some years the parties will evaluate the results achieved and review the effectiveness of the agreement. Many of the original LTAs expired in 2000. Since December 2001 new "second generation" Long Term Agreements on Energy Efficiency (LTA2) have been defined with the 20 largest industrial sectors. Besides LTA2 there are still old LTAs in place with the 9 largest non-industrial sectors. New aspects covered within the new LTA2 include: - Participation of the environmental license-granting authority (competent authorities) - Attention for non-process measures - Energy management systems - A Benchmarking Covenent (see related policies) In order to oblige companies to only consider economically profitable measures, long-term agreements will only be defined with companies that have an internal rate of return of at least 15%, corresponding to a recovery period of 5 years or less for investments. The new LTAs run until 2012.
Last modified: Mon, 08 Apr 2013 21:15:07 CEST