The pensions industry in the Netherlands has called on the Dutch government to create a “stable investment climate” and take a “leading role” in climate policy so that pension funds can contribute even more to the energy transition in the Netherlands.

This forms the Dutch Federation of Pension Funds’ response to the consultation on the government’s Climate Plan for 2025-2035. The Dutch Climate Act stipulates that that country’s climate policy must be updated every five years, setting out a 10-year plan.

The federation noted that issues of climate and energy transition do not stand alone, as they are “inextricably linked to other challenges, such as preventing and restoring biodiversity loss”. It is therefore supportive of the integrated approach in the draft Climate Plan.

It particularly welcomed the phrase from the draft plan that stated: "To grow green and increase our energy independence, we need to make the right choices now. With the creation of the right framework conditions and stable government policies, we maintain momentum in the energy transition and accelerate the commodity and food transition."

The federation is convinced that pension funds can contribute even more to accelerating the energy transition in the Netherlands. However, it said this requires consistent government policy resulting in a stable investment climate.

“It is necessary that the government takes the leading role to create and maintain this stability and shows itself in the short and long term to be a partner one can rely on,” the federation stated.

However, the federation warned that there are “fundamental inconsistencies” between climate ambitions and reality. For example, it said there was a failure to get the mix of regulatory and pricing policy instruments in place in combination with subsidies.

“This creates an uneven playing field that often makes the fossil business case more attractive than that for green energy,” the federation stated.

Furthermore, it warned that changing regulations create inconsistency and uncertainty and delay the transition.

The federation also said that while the Dutch government has previously committed to the Paris Climate Agreement, it is not yet known what new measures will be announced to bring the 55 per cent CO2 reduction target within reach.

“A consistent and adequate implementation of the Climate Accord is helpful for a stable investment climate,” it stated.

---