Eco-innovationinTheNetherlands

EIOCountryProfile

2014-2015

Eco-InnovationObservatory

The Eco-Innovation Observatory functions as a platform for the structured collection and

analysis of an extensive range of eco-innovation information, gathered from across theEuropean Union and key economic regions around the globe, providing a much-neededintegrated information source on eco-innovation for companies and innovation serviceproviders,aswellasprovidingasoliddecision-makingbasisforpolicydevelopment.

The Observatory approaches eco-innovation as a persuasive phenomenon present in alleconomicsectorsandthereforerelevantforalltypesofinnovation,definingeco-innovationas:

“Eco-innovation isany innovationthatreducestheuseofnaturalresourcesanddecreasesthereleaseofharmfulsubstancesacrossthewholelife-cycle”.

Tofindoutmore,visitwww.eco-innovation.euandec.europa.eu/environment/ecoap

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanCommission.

Eco-InnovationObservatoryCountryProfile2014-2015:TheNetherlands

Author:GeertvanderVeen,TechnopolisGroup

Coordinatoroftheworkpackage:TechnopolisGroupBelgium

Acknowledgments

IwouldliketothankIvetteOomensandMatthiasPloegfortheircontributionstothisreport.

Furthermore I would like to thank Robbert Droop (Dutch Ministry of Environment andInfrastructure ) andHerryNijhuis and JohnHeijnen (bothNetherlands Enterprise Agency) fortheircomments.

AnotetoReaders

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanUnion.Anumberofcompaniesarepresentedasillustrativeexamplesofeco-innovationinthisreport.TheEIOdoesnotendorsethesecompaniesandisnotanexhaustivesourceofinformationoninnovationatthecompanylevel.

This brief is available for downloaded from

https://ec.europa.eu/environment/ecoap/netherlands

Tableofcontents

Summary...........................................................................................................................1

Introduction.......................................................................................................................2

1 |Eco-innovationperformance............................................................................3

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends..............6

3 | Barriers and drivers to circular economy and eco-innovation in TheNetherlands.......................................................................................................................8

4 |Policylandscape:towardscirculareconomyinTheNetherlands......................9

ANNEX: Policy measures addressing circular economy and eco-innovations in TheNetherlands.....................................................................................................................15

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Summary

AlthoughtheprevioustrendofadecreasingscoreinthecompositeindexoftheEco-InnovationScoreboard (Eco-IS)was reversed,and the index recoveredslightly from91 in98 in2015, therelativepositionof theNetherlandshascontinuedtoweaken. Inranking, theNetherlandshasdroppedto14thplace,surpassedbyPortugal,theCzechRepublicandSlovenia inrecentyears.Traditionally,theNetherlandsscoresverywell(rankingthird)onresourceefficiencyoutcomes,because of its very high material and water productivity. Furthermore, the scores of eco-innovationoutputsandsocioeconomicoutcomesareaboveEUaverage.Eco-innovation inputsandactivitiesare fairly lowacross theboard,withvery lowgreenearly-stage investments (aneco-innovation input).Comparedtoearlieryears theeco-innovation inputshavedropped,butonallothercriteriathescoreshaveremainedthesameor increased.Oneparticularlypositiveresultisthefurtherrecoveryinthescoreoneco-innovationactivities.

Themaintrendsofrecentyearsinthebroaderfieldofeco-innovationintheNetherlandshavecontinued.Inthreefields,importantprogresswasmade:

• inCO2emissionreduction,withtheEnergyAgreement,anagreementtomakeaseriouseffort in reduction of Dutch CO2 emissions by 20% compared to a business-as-usualgrowthscenarioforenergyusein2020–butmoreseriouseffortsareneededtomeetlonger-termgoals;

• thecirculareconomy–wheretheNetherlandsisalreadythecountryinEuropewiththelowest percentage of untreated waste and now has the ambition to attain a morecirculareconomy,witha largepolicyprogramme, significantattention for theconceptandvariousstart-upcompaniestryingtorealisetheconceptinpractice;

• greenfinance–mainstreamingofgreenthinkinginthefinancialsector.

Insomeotherfields,progresswasslowerand/orlessvisible.

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Introduction

TheNetherlandsisasmallcountry,withanareaof41.567km2,andwith17millioninhabitantsvery densely populated (409 inhabitants/km2, 2016). The country’s GDP was €655billion in2014, and nominalGDP/capita is €38,900 (2014, Eurostat), fifth in the EU, after Luxembourg,Sweden,DenmarkandIreland.AnindicationoftheperformanceoftheDutcheconomyisthattheNetherlandsranksfifth intheGlobalCompetitiveness IndexoftheWorldEconomicForum(2015-2016).

Almost75.9%ofgrossaddedvalueintheNetherlandscomesfromtheservicessector.Industryis responsible for22.2%ofgrossaddedvalue,agricultureandfisheries for2.0%(OECD,2015).Important industry sectors are energy production (natural gas), food and beverages, and therefiningandchemicalindustry.

Accordingtothe InnovationUnionScoreboard2015(IUS,2015) theNetherlands isamongtheinnovation followers in the EU (meaning a strong innovator but not a leader),with a leadingposition in the category ‘world class universities’. Gross expenditure on research anddevelopment (GERD)has increased in recentyears to2.2%,which ishoweverstill significantlybelowthe3%Lisbontarget.

ThecleantechsectorintheNetherlandsgeneratesavalueaddedof€5billion,almost1%oftheDutchGDP.Thesectoremploys61,000full-timeequivalent(FTE)employeesandhadanannualgrowth rateof6% in theperiod1996-2010 (CE,2013;more recent figuresnotavailable). Thebroader‘environmentalgoodsandservicessector’hadavalueaddedof€13billion(2013,2.05%of GDP) and employed 126,000 FTE (CBS, 2015). Consciousness for sustainability is high,especially inthe largemultinationals intheNetherlands. IntheDowJonesSustainability Index2015 (DJSI, 2015), Dutch multinationals AKZO Nobel, Unilever and Air France/KLM areworldwidesustainabilityleadersintheirsector.

ThehighpopulationdensityandthesubstantialvolumeofeconomicactivityhavecreatedlargeenvironmentalpressuresintheNetherlands.However,thequalityoftheDutchenvironmenthasgreatlyimprovedsince1990.Manynationalenvironmentalprogrammesandvariousroundsoflegislation, including a large proportion of green taxes (OECD, 2015), have definitely had apositiveeffectontheenvironment.Nevertheless,manyenvironmentaltargetsarenotmetandtherateofprogressregardingtheagreedenvironmentandnature-relatedtargetsisdeclininginrecent years. Examples of persistent environmental problems are high levels of nitrogendepositionandnitrateleaching,excessiveconcentrationsofplantprotectionproductsinsurfacewaters and the low ecological quality of surface waters. Furthermore, there are still largeenvironmental challenges related to greenhouse gas (GHG) emissions (and related use ofrenewable energy or reduction of energy consumption), local air quality (dust and micro-particleslikesoot),noiseandtheprotectionofbiodiversity(PBL2015).Ontheotherhand,theNetherlands is one of the OECD’s best performers in waste management, and the Dutcheconomy is one of the most resource efficient in Europe (OECD, 2015). In order to furtherimprove the circularity of the Dutch economy a new action plan ‘Fromwaste to resource’ isbeingimplemented.

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1 |Eco-innovationperformance

TheanalysisinthissectionisbasedontheEU-28Eco-innovationscoreboard(Eco-IS)fortheyear2015.ViaitscompositeEco-innovationindex,producedbytheEco-InnovationObservatory(EIO),Eco-IS demonstrates the eco-innovation performance of a country compared with the EUaverageandwiththeEUtopperformers.Eco-IS isbasedon16 indicators,aggregatedintofivecomponents: eco-innovation inputs, activities and outputs, environmental and socio-economicoutcomes.1

Figure1EU-28Eco-InnovationScoreboard2015,compositeindex

Source:EIO,2016

Figure1 shows the composite index for theEco-IS2015,placing theNetherlandsagainbelowaverage in theEU-28.TheNetherlandshasnowdroppedto14thplace, surpassedbyPortugal,theCzechRepublicandSloveniainrecentyears.Therelativedeclinethereforecontinues(inthepasttheNetherlandswasjustbehindtheleaders)buttheabsolutetrendofadecreasingscoreon thecomposite indexwas reversedand the index recoveredslightly from91 to98 in2015.Policy ambitions for eco-innovation are however stillmodest, although the theme of circulareconomygrownininfluenceandscopeinrecentyears(seeSection4).

1http://www.eco-innovation.eu/index.php?option=com_content&view=article&id=2&Itemid=34

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Figure2Componentsoftheeco-innovationcompositeindexforTheNetherlands,2015

Traditionally,theNetherlandsscoresverywell(rankingthird)onresourceefficiencyoutcomes,because of its very high material and water productivity. Furthermore, the scores of eco-innovationoutputsandsocioeconomicoutcomesareaboveEUaverage.Eco-innovation inputsand activities are fairly lowacross theboardwith very lowgreen early-stage investments (aneco-innovation input). This is represented in Figure 2. Compared to earlier years the eco-innovationinputshavedropped,butonallothercriteriathescoreshaveremainedthesameorincreased.Oneparticularlypositiveresultisthefurtherrecoveryofthescoreoneco-innovationactivities.

Eco-innovationinputsThe eco-innovation input composite score 2015 dropped again compared to 2013. Thecompositeaverage score foreco-innovation inputs consistsofanaboveaverage score for thepercentage of R&D personnel in total employment (slight increase to 118), a low score forgovernmentalenvironmentalandenergyR&Dappropriationsandoutlays(slightincreaseto65)andavery lowscoreforcleantechventurecapital (where inthepasttheNetherlandsusedtohaveaveryhighscore,butnowhasdroppedtojust15,thismayberelatedtothegeneralstateoftheeconomy,formostcountriesthisindicatorislow).

Eco-innovationactivitiesThe score on eco-innovation activities has increased again from low to moderate level. Thenumber of ISO14001 certified companies in the Netherlands increased again from 2,085 to2,411 (but still is fairly low, because when ISO 14001 was introduced its standards were

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consideredlessadequatetoreduceemissionsthanpreviouslyestablishedvoluntaryagreementsandwerethereforenotextensivelypromoted).Theothersub-indicators(responseonmaterialandenergyreduction innovationactivitiesas recorded in theCIS52survey)haveremainedthesamesinceboththisandlastyeartheCISdatawerebasedonthe2008edition.

Eco-innovationoutputs

Thescoreforeco-innovationoutputsfortheNetherlandsreachedalowin2013,butrecoveredthis year. Netherlands is still scoring above average on the number of academic publicationsrelatedtoeco-innovation(score144),butthenumberisslowlygoingdownandtheNetherlandsiscertainlynotamongtheleadersanymore.Thescoreforthenumberofeco-innovation-relatedpatents, decreased further (from 78 to 65), although the general patenting activity in theNetherlands remains high (mainly based on the patent activity of Dutch multinationals inelectronics). The score on the indicator on eco-innovation-related media coverage increasedsharply,however,andisnowabovetheEUaverage.

Resourceefficiencyoutcomes

The Dutch position in resource efficiency outcomes is consistently strong, with a very goodmaterialproductivity.TheNetherlandshasbeensurpassedbytheUK(whileLuxembourgisalsoperforming better). The good score of theNetherlandsmay to a large part be related to thelargeservicessectorintheNetherlands,butthereisalsoasubstantialheavyindustrysector(oilrefineries, chemical industry, steelmanufacturing,aluminiumproduction).Thisyear,however,boththeenergyproductivityindexandGHGemissionsintensityindexarenowslightlyaboveEUaverage.Thewaterproductivity is still verygood, justbelow, the leadingscoresof theUnitedKingdomandIreland.

Socio-economicoutcomes

The composite index score for socioeconomic outcomes now remains at its 2013 level. Theexports of eco-industryproducts increased from the very low0.22% to0.48% (still below the2011figure,whichalmostreached1%,butthatmighthavebeenauniquepeak).However,thecausefortheselargefluctuationsremainsunclear.Ineco-industryturnovertheNetherlandsis,assaid,leadingagain,nowinco-leadwiththeCzechRepublic,withashareof3.5%ofthetotaleconomy(0.68%in2013).Theemploymentineco-industriesismuchlowerthaninmanyothercountries, but higher than in 2013, with a score of 94 (up from 69 in 2013), based onemploymentof2.37%(up from0.49% in2013,whichwassignificantly lower than reported in2010and2011).Changes inuseofdatasetsmayhave caused these largeandnot completelyunderstandablechanges..

2CommunityInnovationSurvey

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2 |Selectedcirculareconomyandeco-innovationareasandnewtrends

Themain trends in the broader field of eco-innovation in theNetherlands continue from thepastyears.Inthreefieldsimportantprogresswasmade,includingCO2emissionsreduction,thecirculareconomyandgreenfinance.Insomeotherfields,progresswasmoreslowlyand/orlessvisible.

Firstly, an important step towardsCO2emissions reductionwas the ‘EnergyAgreement’ (SER,2013). In this agreement – initiated by the Socio Economic Council in The Netherlands –employers (including federations from all relevant sectors), employees, NGOs and thegovernment reached an agreement to make a serious effort on a reduction of Dutch CO2emissionsby20%comparedtoabusiness-as-usualgrowthscenarioforenergyusein2020.

Themostimportanttargetswere:• areductionofenergyconsumptionbyonaverage1.5%eachyear;• 100petajoules(PJ)ofenergyconservedby2020;• anincreaseintheshareofsustainableenergyproductionto14%in2020and16%in

2023;• atleast15,000additionalfull-timejobscreated.

This agreement was reached in the run-up to the Paris Climate Conference in 2015 and ispresently undergoing implementation. After the first two years it was concluded by theindependentmonitoringcommissionappointedtomonitorprogressandgoalachievement(SER2015) that a large number ofmeasures have been prepared and implemented, and that thegoals for energy conversation, job creation and renewable energy in 2023 are attainable.However, thegoals for renewableenergy in2020and thegoalof100PJof additionalenergyconservationwerejudgedtonotbewithinreach.Anumberofadditionalmeasureswereagreeduponinordertomeetthesetargetsaswell.Althoughthemonitoringcommissionispositive,theconclusion that the Energy Agreement will reach its target is debatable. The NetherlandsEnvironmentAssessmentAgency(PBL)expressesseriousdoubtsaboutattainmentofthegoals(2015)andalsopointsout the lackofapost-2023perspective, since furthermeasureswillbenecessarytoreduceCO2emissionsasforeseenintheParis2015goals.Inaddition,debateinthecountryhasbeen sparkedby the immediate closingof all coal-firedpower stationsandothermorefar-reachingmeasures.

Furthermore,theDutchstate lostacourtcaseagainsttheNGOUrgendaand900co-plaintiffs,forcingtheDutchgovernmenttoadoptmorestringentclimatepolicies.ThedistrictcourtofTheHague has granted to the plaintiffs their claim that theDutch statewas not taking adequateactiontoachieveitsowntargetsintheareaofclimatechange,andthereforenegligentagainstits own civilians. The government is now required to take more effective climate action toreducetheNetherlands’considerableshareinglobalemissions.Thisisthefirsttimethatajudgehas legally required a state to take precautions against climate change. The governmenthoweverhasappealedagainsttheverdict,despitepressurefromsocietyandparliament.

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In the 2016National EnergyDialogue, started by theMinister of Economic Affairs, these andfurtheroptionsforthelongertermwillbediscussed.

Asecondimportanttrendisthereductionofwasteandtheadoptionofthecirculareconomyprinciple. The Netherlands is already the country in Europe with the lowest percentage ofuntreatedwasteandnowhastheambitiontoattainamorecirculareconomy,includingactionssuchas:• fullattentionofdesignersforreuseandrecycling(includingreparability), tobeconsidered

alreadyinthedesignphaseofproductsandservices;• maximumreuseandrecyclingofproductsandresources;• responsible treatment of the environment by every citizen (e.g. reduction of the use of

harmfulsubstancesinagriculture); • optimal lifecycle for all products (e.g. a closed and profitable cycle for paper in the

Netherlands).

Althoughthereissomedebateamongenvironmentalpractitionersabouttheaddedvalueoftheconcept of ‘circular economy’ over other concepts and approaches, such as sustainabledevelopment and life-cycle assessment (LCA), the concept is getting significant attention andvarious start-up companies are trying to realise the concept in practice (see good practiceexamplefromAmsterdambelow).

A third important trend ismainstreamingofgreen thinking in the financial sector.Where inpastyearssustainabilitywasan issueonlyfora limitednumberof frontrunnerandspecialisedgreen banks, sustainability, as part of the broader concept of Corporate Social Responsibility(CSR),isnowbecomingamoreprominentissue.Thisincreaseofattentionisnotlimitedtotherelationbetweenthecustomerandthefinancial institution,butalsoontherelationsbetweenfinancialinstitutionsandthecompaniestheyinvestin.AgoodexampleisABP,thelargestDutchpension fund,which implemented a newpolicy for sustainable investment in 2015 (see goodpracticeexamplebelow).

GoodpracticeDeCeuvel:SustainableUrbanDevelopmentinAmsterdam

DeCeuvelisanurbandevelopmentprojectthatcombineschemicallypolluted‘waste’landand‘waste’ materials into something beautiful and valuable. The former industrial site featuresimaginativelyretrofittedhouseboatssurroundedbysoil-cleaningplants.Theboatshostofficesandworkshops for creative and social enterprises, aswell as a restaurant and B&B hotel. Aslargely self-sufficient elements, theboatswill be able to leave the site after 10 yearswithoutmuchofatrace,leavingthelandmorevaluable,biodiverse,andcleanerfrompollutants.TheDeCeuvelsiteservesasanewblueprintforurbandevelopment,wheredecentralisedtechnologiesand full recycling of local resources empower urban areas to be self-sufficient.Metabolic, anaction agency for societal transformation, designed a technical and environmental system fortheDeCeuvelsitecalledtheCleantechPlayground.Thisisbothadecentralisedcleantechutilityandademonstrationandtestingsitefornewtechnologiesthatcantransformhowweproduceandconsumeresourcesandpublicservicesincities.

Keywords:Urbandevelopment;Circulareconomy;Sustainablecities

Internet:http://deceuvel.nl;http://www.metabolic.nl

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GoodpracticeABP(DutchPensionFundforCivilServants):Policyforsustainableinvestment

In 2015, ABP, the largest Dutch pension fund, implemented a new policy for sustainableinvestment. In thisnewpolicyABPwill, over thenext five years, assess the sustainability andresponsible entrepreneurship of all 4,000 companies in which it invests. Furthermore, ABPwantstoreducetheCO2-footprintofthecompaniesitinvestsinby25%,increasetheassetsinHigh Sustainability Investments (HSIs) from €29billion to €58billion, increase investments insustainable energy from €1billion to €5billion, and increase involvement in issues such ashumanrights,securityandeducation(allby2020).

ABPwillbemoretransparentabout its investments,andpublicisemore inordertoshowthatfinancial and social returns can go hand in hand. As a large investor (ABP has a portfolio of€351billion),thecompanywilluseitsinfluenceandshareholdervotingrightstohaveanimpactnotonlyonthefinancialpolicyofthecompaniesitinvestsin,butalsotourgethemtobecomemoresustainableandresponsibletowardssociety.

Keywords:CSR;PensionFund;SustainableInvestment

Internet:https://www.abp.nl/over-abp/beleggen/verantwoord-beleggen.aspx(inDutch)

3 |Barriersanddriverstocirculareconomyandeco-innovationinTheNetherlands

Themaindriversforcirculareconomyarethepromiseofaneconomicallyviablesystemwithavitalresourcesupply,adecreaseddependencyonexternalresources,andopportunitiesfornewbusinessinaninternationalperspective,aswellasmotivationtoimprovetheenvironmentandwellbeingofpeople.

In order to attain a real circular economy, a systemic change is necessary, with a deeptransformation of production chains and consumption patterns, aswell as a shift in financial,fiscalandreportinginstruments.Suchasystemchangerequiresparallelactionsalongthevaluechainratherthanapurelysector-and/orproduct-focusedapproach(Accelleratio,2015).Therearenoclearrecipestorealisesuchsystemicchange,andinthepresentglobalcontext,actionswithinonecountrywouldnotbesufficienttoachievethischange.

TheNetherlandshasagoodstartingpositiontobeatestinggroundandhotspotforthecirculareconomy. Assets are, according to the Ministry for Infrastructure and Environment, theadvancedwastemanagementsystemsintheNetherlands,theentrepreneurialspirit,thecentralpositionininternationalmaterialstrade,theDutchknowledgeposition,theleadingpositionofDutch design and the cooperation-oriented culture in the Netherlands, which is focused oncoming to joint solutions for large problems (I&M, 2015). TNO estimated the total marketopportunitiesofamorecirculareconomytobenearly€7.3billionayear,roughly1.4%ofGDP.

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Furthermore,thereisthepotentialofcreatingapproximately54,000newjobs.Themajorityofthesebenefits,nearly€3.3billionperyearcouldbeachievedintheshort-term(TNO,2013).

Barriersare in the firstplaceeconomicandorganisational: formanycirculareconomyoptionstheeconomic incentives in thepresentsituationarenot largeenoughtomake itattractive toinvestortakeaction.Agoodexampleofsuchabarrieristhelowpriceobtainableformaterialsthat have been recycled, being too low to recover the costs of recycling (preventing actualrecycling activities), especially with the recent drop of prices of rawmaterials such as oil orvirgin steel. Another example is the challenge that economic cycles are often faster thantechnicalcycles,hamperingpreventionofwaste.Forexample,customersthatprefernewtypesofproducts throwaway theoldonesbefore theyhavebecomeobsolete,as in the fashionormobiletelephonemarkets.

Regulatory barriers are a specific type of organisational barriers. An important example isformedby the lack of end-of-waste criteria (whendoeswaste becomea secondarymaterial?whenwillregulationsonwastehandlingceasetoapply?).Regulationcould,however,stimulatecircularoptionsifwelldesigned.Examplesmaybelowertaxesonlabour,combinedwithhighertaxationonmaterials,orbanningtheuseofcertainmaterialsforcertainapplications,etc.

Technological barriers also exist, but continuous R&D drives technology forwards and, aseconomicdriversbecomestronger, technologicaloptionswillbecomeviable,ornewR&Dwillresult inneweconomicallyviableoptions.Asstatedabove, theDutchhaveagoodknowledgeposition in various areas relevant for the circular economy. Human capital for technologicaldevelopmentisalsoreadilyavailable,andmoreandmorecreativeentrepreneursareexploringopportunities in the circular economy. Education and training in this area is stillunderdeveloped, especially for jobs implementing the circular economy (repair, wastemanagement,etc.)andforthegeneralpublic(e.g.ontheimportanceofcirculareconomyandinstructionsforwasteseparationatsource).

4 |Policylandscape:towardscirculareconomyinTheNetherlands

Governmentsplayanessential role in therealisationof thecirculareconomy. Regulationcanplayastrongroleinenablingmarketsforcircularoptions,byinternalisingenvironmentalcostsand taking into account strategic considerations on resource availability. However,governments’ involvement in realising societal transitions can extend beyond regulation. Asstated above, a system change requires parallel actions along the value chain rather than apurelysector-and/orproduct-focusedapproach.

Allpolicyefforts intheNetherlandsrelatedtothecirculareconomyarecapturedintheactionplan‘Fromwastetoresource’(VANG-programme).The2015reportfromtheStateSecretaryfortheEnvironmenttotheDutchParliamentontheprogressoftheVANGprogramme(I&M,2015)describesvariousbarriersanddriverstocirculareconomyandeco-innovationdevelopment(see

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above), as well as possible solutions for the realisation of the circular economy in theNetherlands.AlthoughVANG isagovernmentprogramme, it includesactivities incooperationwithenterprisesfromvarious industrysectors,aswellasciviliansandconsumers,civilsociety,financialandlegalserviceproviders,andscientists.

TheVANG-programmehasnineoveralloperationalgoalsand,atpresent,54actionsintotal.Theoriginalnumberofactions(in2013)was39.Thisshowstheflexibilityoftheprogrammetoadaptto circumstances and seize opportunities. The nine operational goals and some of their keyactivitieswillbepresentedbrieflybelow.

OnthethemeofNaturalcapital,aDigitalAtlasNaturalCapitalhasbeen launchedthatshowsthe availability of ‘green zones’ in theNetherlands at a high level of detail in order to bettermanagetheuseofthisnaturalcapital.Thisshouldleadtomoresustainablelanduse.

WithinthethemeofProductdesignforcircularitytheaimistodiminishmateriallossesby50%,to5milliontonnes,within10years.Inthepastperiodaprogramme,CreatingbusinessthroughCircularDesign(CIRCO),waslaunchedandinputwasprovidedfortheEuropeanpolicyprocesstointegrateEUproductlegislationwiththeEUEcodesignDirective.

Inorderto integratecirculareconomyinindustryandpolicy,andinthecurriculaofrelevanteducational courses, a specific programme, Practice Research FromWaste to Resource (PROCATCH), has been set up so that technical colleges can work in partnership with businessstudents on specific technical solutions that fit into the circular economy. It has funded 110projects. Results are used in thedevelopment of trainingprogrammes. SME-focused researchagendas were also set up in the field of plastics, metals and organic-waste processing. Inaddition,inthe‘Top’sectors,thetargetedsectorsforgrowthoftheDutchEconomy,researchagendasarebeingdeveloped.Furthermore,within thisactivity theRACE-coalition (RealisationAcceleration Circular Economy, see good practice example) was set up to coordinateaccelerationofthecirculareconomy.

In order to promote resource-independent entrepreneurship, companies are supported inassessingtheirrisksinrelationtoresources.Thisincludedresearchontheresourcesituationfor64 possibly criticalmaterials (and activities to translate the findings to useful information forentrepreneurs), twoactivitiesonpromoting the roleofharbours in thecirculareconomy,andsupportfortheDutchparticipationintheKnowledgeandInnovationCommunity(KIC)forRawMaterials.Itisthegovernment’sambitiontoworktowardsclosingatleast10materialchains.GreenDeals (seegoodpracticeexample)andotheragreementshavealreadybeenconcludedforthematerial/productchainsofconcrete,food,packaging,phosphate,wood,textiles,plasticsandbioticchains.

Financial and other market incentives have been developed to promote circularentrepreneurship.Since1January2015,thewastetaxisextendedfromwastedeposittowasteincineration.Workisinprogressonadaptingothertaxesforwaste.Inordertofurtherdevelopthethemeoftaxationinthecontextofcirculareconomy,thisissuehasbeenpromotedduringtheDutchEUPresidencyin2016.Furthermore,variousexistingsupportinstruments(likeVAMILandMIA)were fine-tuned topromote the circular economyandexperimentswere started topromotenew,circularbusinessmodels(e.g.GreenDealTakeBackChemicals).

Circular Procurement is promoted as well as circular consumption patterns. Variousexperiments have been set up, including reuse of ICT equipment that is discarded by the

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government.Aspecificprojectisset-uptoremoveregulatorybarriersforthecirculareconomyandincreasewasteseparationbyhouseholdtoatleast75%in2020(ormax.100kgofresidualhousehold waste per inhabitant per year). Finally, indicators and statistics are developed toincreaseinsightindevelopmentsthatmaypromotethecirculareconomy.

The regional smart specialisation strategies for the Dutch regions do not provide specificreferences to the circular economy and eco-innovation. However, the strategies recogniseseveral economic clusters that are relevant to these themes. The expressed need forinvestmentsinthelow-carboneconomybytheEuropeanCommissionhasresultedinallregionsidentifyingtheneedforamorebio-basedeconomyandstimulatingcrossoversbetweensectorstoaccomplishthis.FundingforSMEsinthesesectors isprovidedbytheregionaldevelopmentcorporationsintheprovinces.

The Northern Netherlands region (SNN, 2013) identifies the agro-food, chemicals and energysectors as important and emphasises the use of waste streams and clean and safe waterdistribution. Living Lab initiatives are installed todevelop concrete solutions and applications.TheEasternNetherlandsregion(OP-OOST,2014)hasafast-growingenergyandenvironmentaltechnology sector and focuseson the clustersonagriculture, food,health,high-tech systems,materialsandenergy,andenvironmentaltechnology,withcross-oversinbio-energy,greengas,residues,wastewater andmore. TheWesternNetherlands region (TaskforceRIS3, 2014) alsofocuses on chemicals (smartmaterials, green chemistry), clean tech and logistics. Finally, theSouthern Netherlands region (RIS3Zuid, 2013) identifies smart food, smart technology, smartmaterials and smart logistics as innovative opportunities and already has several initiatives inplacethatcontributetothetransitiontoabio-basedeconomy.It ispartoftheBiobasedDeltaproject and the Biobased Europe Initiative between the Netherlands and Flanders, with aneducation-centre in Terneuzen and a pilot plant in Ghent. Furthermore, the Green chemistrycampusinBergenopZoomfocusesonagroresiduesthatcanbeusedforchemistry.

Goodpolicypractice:RACEcoalition

WithintheVANG-programmetheDutchNationalgovernmenthastakentheinitiativetocooperatewithsocietalleaderstoacceleratethetransitiontowardsacirculareconomy.IntheRACE-coalition(RealisationAccelerationCircularEconomy),thecooperativecompanyCircleEconomy(withmembersincludingcompanies,researchersandpublicbodies,ClickNL,DeGroeneZaak,HetGroeneBreinandMVONederland)issupportedbyRVONetherlandsandtheMinistriesofEconomicAffairs,andInfrastructureandEnvironment,torealisetheadvantagesofacirculareconomy.

RACEgoalsinclude:

1 Defineandstimulatecirculardesign2 Stimulatehigh-qualityreuseofproducts3 Analysethebarrierstothecirculareconomy4 Createaportfolioofcircularprojectsthatwillserveasexamples5 Raisepublicawarenessaboutthecirculareconomy6 Involveyoungpeopleinthetransitiontoacirculareconomy.

RACEisayounginitiativebutithasalreadycreatedasetofguidingprinciplesforcirculardesignandstartedtotestthem.These,accordingtoRACE,“challengedesignerstofirstmakea

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statementabouttheneedtheyaregoingtofulfilwiththeirdesign,ratherthandirectlyfocusingonaphysicalproduct.”

Keywords:Socialcoalition;stakeholderinvolvement;circulareconomy

Source:http://ec.europa.eu/environment/ecoap/about-eco-innovation/policies-matters/netherlands/netherlands-pulls-ahead-in-circular-economy-race_en

More:http://www.circle-economy.com/projects/regional/netherland-circular-hotspot/

Goodpolicypractice:GreenDealsCircularEconomy

AshasbeenreportedinearlierDutchEIOCountryProfiles,GreenDeals(introducedin2011)arenon-financialsupportactionstocreateconditionsforinnovationandnewsustainableentrepreneurialactivities.Intheperiod2011-2014,176GreenDealswereclosedintheNetherlands,involvingatotalof1,090participants.WithintheWastetoResourceprogrammeGreenDealsarenowusedtosystematicallyaddressmajorissuesforabroadrangeofpolicy.

AspartoftheDutchEUPresidency,afirstinternationalGreenDealwasclosedinMarch2016,inthefieldofcirculareconomy,withparticipationfromtheNetherlands,France,theUK,Flanders,businessesandenvironmentalNGOs.WiththeNorthSeaResourcesRoundabout(NSRR)thepartiesinvolvedwanttostreamlinetheregulationforrecoveringresourcesfromwasteandfacilitateresponsibleinternationaltradeinwastestreamssuchasaluminiumandlead.

Keywords:GreenDeal,CircularEconomy,Non-financialsupport,Internationalisation

Sources:I&M,2015;https://www.europadecentraal.nl/eerste-internationale-green-deal-gesloten-ter-bevordering-van-circulaire-economie/

More:http://www.greendeals.nl/english/green-deal-approach/#sthash.rkPqYXF6.dpuf

13

References(Accelleratio,2015):FreekvanEijk,BarriersandDriverstowardsaCircularEconomy,LiteratureReview,A-140315-R-Final,Accelaratio,Naarden,March2015,availableathttp://www.circulairondernemen.nl/uploads/e00e8643951aef8adde612123e824493.pdf

CBS,2015:StatisticsNetherlands,GreenGrowthintheNetherlands,TheHague,2015,availableathttp://download.cbs.nl/pdf/green-growth-in-the-netherlands-2015.pdf

DJSI,2015:S&PDowJonesIndicesandRobecoSAM,DowJonesSustainabilityIndices2015,availableathttp://www.sustainability-indices.com/review/industry-group-leaders-2015.jsp

I&M,2015:StaatssecretarisMilieu&Infrastructuur,VoortgangsrapportageVanAfvalNaarGrondstof,TheHague,15April2015,�availableathttps://www.rijksoverheid.nl/documenten/kamerstukken/2015/04/15/voortgangsrapportage-van-afval-naar-grondstof

IUS,2015:HugoHollanders,NordineEs-SadkiandMinnaKanerva,UNU-MERIT,InnovationUnionScoreboard2015,Brussels,2015,EuropeanUnion,availableathttp://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards/files/ius-2015_en.pdf

OECD,2015:OECD,2015,OECDEnvironmentalPerformanceReviews:TheNetherlands2015,OECDPublishing,Paris.,availableathttp://dx.doi.org/10.1787/9789264240056-en

OP-OOST,2014:BeheersautoriteitOOST,OperationeelProgrammaEFRO–Oost-Nederland2014-2020,Arnhem,2014,availableathttp://www.op-oost.eu/OP-Oost-2014-2020/Operationeel-Programma-definitief-12.html

PBL,2013:Vergroenenenverdienen.OpzoeknaarkansenvoordeNederlandseeconomie,PBL(PlanbureauvoordeLeefomgeving)DenHaag,availableathttp://www.pbl.nl/sites/default/files/cms/publicaties/PBL-2013-Vergroenen-en-verdienen-1061.pdf

PBL,2015:PBLPlanbureauvoordeLeefomgevingincollaborationwithWageningenUniversityandResearchCentre,2015,AssessmentoftheDutchHumanEnvironment2014–Thefutureisnow,DenHaag,2015,availableathttp://www.pbl.nl/sites/default/files/cms/publicaties/pbl-2014-Assessment-of-the-dutch-human-environment-1597.pdf

RIS3Zuid,213:various,SmartSpecialisationStrategyRIS3Zuid,Dekunstvanhetcombineren.2013,availableathttps://www.zeeland.nl/digitaalarchief/zee1500081

SER,2013:SER,SocialEconomicCouncil,2013,Energieakkoordvoorduurzamegroei,DenHaag,2013,availableathttp://www.ser.nl/~/media/files/internet/publicaties/overige/2010_2019/2013/energieakkoord-duurzame-groei/energieakkoord-duurzame-groei.ashx

SER,2015:SER,SocialEconomicCouncil,2013,Energieakkoordvoorduurzamegroei,voortgangsrapportage2015,DenHaag,2015,availableathttp://www.energieakkoordser.nl/~/media/files/energieakkoord/publiciteit/voortgangsrapportage-2015.ashx

14

SNN,2013:SamenwerkingsverbandNoord-Nederland,2013,ResearchandInnovationStrategyforSmartSpecialisation,Noord-Nederland,2013,availableathttp://www.snn.eu/ris3

TaskforceRIS3,2014:TaskforceRIS3West-Nederland,2014,RIS3SlimmespecialisatiestrategieWest-NederlandDefinitieveversie,DenHaag,2014,availableathttps://www.kansenvoorwest.nl/images/kansenvoorwest/KvWII/bijlage%20iii%20ris3%20west%20nederland%20inclusief%20bijlagen.pdf

TNO,2013:OpportunitiesforaCircularEconomyintheNetherlands,TheNetherlandsOrganisationforAppliedScientificResearch.,2013,availableathttps://www.government.nl/documents/reports/2013/10/04/opportunities-for-a-circular-economy-in-the-netherlands

15

ANNEX:Policymeasuresaddressingcirculareconomyandeco-innovationsinTheNetherlands

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Focusofpolicymeasure

Circular

econom

y

Generic

focuson

eco-

innovation

Energy

Not

specific

related

to

sustainab

ility

SUPP

LYSIDEFO

CUS

Equity/businesssupport

Publiclyco-fundedventure

capitafunds

-RegelingDurfkapitaal(VentureCapitalmeasure),measureforprovidingventurecapital

http://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/winst/i

nkomstenbelasting/veranderingen_inkomstenbelasting_2016/durfkapitaal_2016

X

-GroenBeleggen(GreenFundsScheme),generictaxmeasureforindividualsprovidingfundsfor

greeninvestments

http://www.rvo.nl/subsidies-regelingen/regeling-groenprojecten

X

Publicguaranteefunds

-InnovatiefondsMKB+(InnovationFundSME+):governmentguaranteeforVCs

http://www.rvo.nl/onderwerpen/innovatief-ondernemen/innovatiefinanciering/innovatiefonds-

mkb

X

SupportforR&Dinpublicsectorandindustry

R&Dfunding

InnovatiefondsMKB+(InnovationFundSME+):innoavtioncreditforSMEs

http://www.rvo.nl/onderwerpen/innovatief-ondernemen/innovatiefinanciering/innovatiefonds-

mkb

X

TKIToeslag(Topsectorresearchsubsidy) X

http://www.rvo.nl/subsidies-regelingen/tki-toeslag

TSE(TopsectorEnergyresearchsubsidy)

http://www.rvo.nl/subsidies-regelingen/regelingen-topsector-energie-tse

X

Collaborativegrants

MITsamenwerking(SubsidyforSMECooperationwithinTopsectors)

http://www.rvo.nl/subsidies-regelingen/mit-rd-samenwerkingsprojecten

X

16

R&Dinfrastructure

Fiscalmeasures

TaxincentivesforR&Dand

start-ups

RDA,genericR&Dtaxincentive(notincludingstaffcosts)

http://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/winst/i

nkomstenbelasting/inkomstenbelasting_voor_ondernemers/research_en_developmentaftrek

X

Innovatiebox(Innovationbox),taxbreakforIP-relatedincome X

http://www.rvo.nl/file/brochure-innovatieboxpdf

TaxincentivesforR&D

personnel

WBSO,generictaxincentiveforR&Dstaff X

Education,trainingandmobility

Tailoredtrainingcoursesfor

companies,entrepreneurs

CIRCO,specifictrainingforcirculardesign

http://www.clicknl.nl/design/circo/

X

Advice/consultingforstart

ups,companies,

entrepreneurs

Placementschemesfor

students

PRO Catch, (Practice Research From Waste to Resource) cooperation between SMEs and

technicalcolleges(I&M,2015)

X

SupportforR&Dworkers

recruitments

Networksandpartnerships

Competencecentres,

clusters,science-technology

parks

Technologyplatformsand

innovationnetworks

Foresightandcommon

visionbuilding

GreenDeals,aimforapartnershipforagreenereconomy

http://www.rvo.nl/onderwerpen/duurzaam-ondernemen/groene-economie/green-

deal?ns_source=google&ns_mchannel=cpc&ns_campaign=%7Bcampaign%7D&ns_linkname=%7

Badgroup%7D&gclid=Cj0KEQjwipi4BRD7t6zGl6m75IgBEiQAn7CfF6Df5Xr6XT8KJSmI7OkH2uC-

_whRDI1c_ngnrSoeK-oaAkg68P8HAQ

X X

Marketintelligenceand

otherformsofinformation

sharing

Various initiatives under VANG (I&M, 2015), see e.g. http://www.nwo.nl/financiering/onze-

financieringsinstrumenten/sia/kiem-vang-kennisinnovatie-mapping-kiem---van-afval-naar-

grondstof-vang/kiem-vang-kennisinnovatie-mapping-kiem---van-afval-naar-grondstof-vang.html

X

17

DEMAN

DSIDE

FOCU

SRegulationsand

standards

Regulations,targets,cap&

tradeschemes

Wastetaxationextendedtowasteincineration(I&M,2015) X

VariousregulatoryupdatesunderVANG(I&M,2015) X

Performancestandards,

labelling,certification

SpecificstudyonnormsandstandardsforthecirculareconomyunderVANG(I&M,2015) X

Publicprocurement

“Green“publicprocurement

ofgoodsandservices

GreenDealonCircularProcurement

http://www.circle-economy.com/news/green-deal-circular-procurement/

X

R&Dprocurement

DutchSBIRincludeseco-innovationsubjects X

http://www.rvo.nl/subsidies-

regelingen/sbir?ns_source=google&ns_mchannel=cpc&ns_campaign=%7Bcampaign%7D&ns_lin

kname=%7Badgroup%7D&gclid=Cj0KEQjwipi4BRD7t6zGl6m75IgBEiQAn7CfFzry5cz7j78iXsWdOis

1l4C2QvW3wLfxNGqKpd9qENkaAiQ08P8HAQ

Pre-commercial

procurement

TechnologyTransfer

Advisorysupportfor

technologyadopters

Financialorfiscalsupportfor

technologyadopters

(e.g.grantsforpurchasing

newtechnology)

VAMIL/MIA:fiscalsupportschemesforgreeninvestments

http://www.rvo.nl/subsidies-regelingen/mia-en-

vamil?ns_source=google&ns_mchannel=cpc&ns_campaign=%7Bcampaign%7D&ns_linkname=%

7Badgroup%7D&gclid=Cj0KEQjwipi4BRD7t6zGl6m75IgBEiQAn7CfFxOEgz0KokwV4e-

lsDjzRh8jE68yVNtudI2_mBZ59GMaApRm8P8HAQ

EIAfiscalsupportschemesforenergyinvestments

http://www.rvo.nl/subsidies-regelingen/energie-investeringsaftrek-

eia?ns_source=google&ns_mchannel=cpc&ns_campaign=%7Bcampaign%7D&ns_linkname=%7B

adgroup%7D&gclid=Cj0KEQjwipi4BRD7t6zGl6m75IgBEiQAn7CfF3iN7nko443GToXRuin0S0VzbT60

ulT07gxX3jugb6EaAohB8P8HAQ

SDE+:StimulatingSustainableEnergyProduction,investmentsupport

http://www.rvo.nl/subsidies-regelingen/stimulering-duurzame-energieproductie-

sde?ns_source=google&ns_mchannel=cpc&ns_campaign=%7Bcampaign%7D&ns_linkname=%7B

adgroup%7D&gclid=Cj0KEQjwipi4BRD7t6zGl6m75IgBEiQAn7CfF4zRY6yxI1zSjJHspHoZF6DY2qME

06ZiF1U5s5LDJ1kaAhYN8P8HAQ

X X

x

x

Supportofprivatedemand

Taxincentivesforconsumers

(e.g.forpurchasing

environmentallyefficient

products)

18

Taxreductionsforproducts

andservices(e.g.VAT

reductions)

Various

Demandsubsidies(e.g.eco-

vouchers,consumer

subsidies)

Various X

Awarenessraisingand

informationprovision

Various,underVANG(I&M,2015) X

AbouttheEco-InnovationObservatory(EIO)

The Eco-Innovation Observatory (EIO) is the initiative financed by the European Commission’sDirectorate-General for the Environment. The Observatory is developing an integrated informationsource and a series of analyses on eco-innovation trends andmarkets, targeting business, innovationserviceproviders,policymakersaswellasresearchersandanalysts.

VisitEIOandDGENVEco-innovationActionPlan(EcoAP)websiteandregistertogetaccesstomoreinformationandtoaccessallEIOreports,briefsanddatabases.

www.eco-innovation.euec.europa.eu/environment/ecoap