Speech at the Hungarian-Dutch Round Table Conference
Speech Ms M.J.A. van der Hoeven, the Netherlands Minister of Economic Affairs, at the Hungarian-Dutch Round Table Conference with focus on Climate and Energy,
The Hague, 5 February 2009
Ladies and Gentlemen,
It is wonderful to see so many Hungarian and Dutch businesses represented here today. A warm welcome to all of you.
As Minister of Economic Affairs and Energy, I very much applaud the climate and energy focus of today's Round Table Conference. We need to maintain a strong and unwavering commitment to meeting renewable energy targets, at this moment in time particularly.
The present economic crisis makes it difficult to maintain a strong focus on climate policy and green issues. However, problems are urgent and brook no delay! Moreover, the ongoing economic downturn provides us with new opportunities for rapid action. Investments are needed, and we need to keep up Research & Development activities.
This is all the more true for green investments. They have important long-term effects, preparing for a better future. We need to keep this in mind! Innovation budgets can easily fall victim to this major economic crisis, much to our later regret, I am sure. We must avoid such development at all costs.
Therefore, we need to keep moving towards a more sustainable energy future, and we need to do so at maximum speed.
In international politics it is three D's that count: diplomacy, defense and development.
In the field of energy we need to reckon with a set of three D's in very much the same way. Diplomacy, diversification and determination.
I would like to explore these three energy D's today as they are important to our daily business, yours as well as mine.
As for diplomacy: it is important to realise that in energy affairs our fortunes are closely linked with those of other countries. Just think of the recent gas crisis following a conflict between Russia and the Ukraine. Many EU-countries were affected, Hungary among them. It has made us realise even stronger that it is vital for the EU to speak with one voice.
At this moment in time particularly, diplomatic efforts by the EU should focus on improving European infrastructure for energy transport. Here I have in mind the Nabucco and Nordstream pipelines. We must now move forward quickly, since all infrastructure projects have long lead times.
The recent conference in Budapest involving all twelve 'Nabucco-countries' (organised by your Prime Minister) showed that there is new momentum for this important project. And we should act on that. Realising these projects will require massive investments. That should open up vast business opportunities for all countries concerned!
Like other countries, the Netherlands is keen to further develop its energy infrastructure. As a gas hub for North-West Europe we aim to strengthen our position as a gas trading country.
I recently visited Algeria, accompanied by a number of large Dutch energy companies. Algeria is a major supplier of LNG. Rotterdam is in the process of building regasification facilities, so Algeria could very well develop into an important trading partner to the Netherlands.
My aim is to contribute through intensifying bilateral relations. In that way, government and business can work together fruitfully. What's more, all EU countries will benefit from larger import volumes entering the Netherlands, as we are a gateway country that is well connected to Europe.
Still, we need to do more than expand the number of available energy transport routes or go in search of contracts with new trading partners. In order to achieve a truly sustainable energy system it is vital that we diversify our energy sources, adding sustainable sources to a significant degree.
That brings me to our second D: diversification.
The Netherlands is working hard on realising an energy mix that is sustainable in the long run.
EU climate targets for 2020 have set us a clear challenge. The Netherlands is working towards a 30% reduction in CO2 emissions, a 20% share of renewables in the overall energy mix and a 20% increase in energy efficiency.
Our sustainability policy involves large-scale investment projects in wind energy, for instance. We envisage building 6000 MW off-shore wind capacity in the North Sea. That will account for 15% of overall electricity consumption in the Netherlands. If we also deploy more wind turbines on-shore we will by 2020 reach some 25%. Dutch industry is heavily involved in these efforts, supported by innovation policy and state-of-the-art technological research.
We are also making important steps in applying new technology in other fields. Just think of solar power, biomass and Combined Heat and Power. The Netherlands has over the years maintained a strong position, due to our strong R&D record and tradition of creative entrepreneurship. Green Feedstocks and Energy Efficiency in the Built Environment are on the agenda for today.
These are profitable sectors already, but there is potential in terms of business still. I am confident that we will overcome potential obstacles by fostering entrepreneurship, by cooperating with research institutes, and - last but least - by implementing a set of stimulating government policies. That is where my commitment lies!
As for Hungary and the Netherlands: we need to explore our mutual strong points in energy innovation and look for joint investment opportunities.
At present, our two countries work together on a number of Joint Implementation projects. These are being carried out in Hungary. These projects make it possible for Hungary to further improve specific energy installations; the Netherlands benefit as the projects help realise CO2-targets. Implementation is still not running as smoothly as we would have wished, but that surely is far from unusual in the complicated field of JI-projects.
This brings me to our final D: D for determination.
As I said before, the economic downturn that is now upon us must not weaken our commitment to sustainability goals. On the contrary, it should further deepen our common resolve to address climate issues. The economic crisis will pass, eventually. The climate issue, however, is very likely to persist, for many more decades to come. It must remain at the forefront of our thinking and our work.
The recent meeting of EU government ministers in Poznan has clearly shown that Europe is leading the way in tackling the global issue of climate change.
Now is the time to act on our beliefs. Now we must make sure that we emerge from this crisis stronger than before.
And we are working hard towards this.
Last week I signed the founding document for IRENA, the International Renewable Energy Agency in Bonn.
IRENA will act as the global voice (so to speak) for renewable energies. Its aim is to provide practical advice and support for both industrialised and developing countries. Regulatory frameworks need to be improved; more capacity needs to be built. There is a strong need for international coordination. It is a promising development that well over 60 countries worldwide have now joined the IRENA-initiative. Hungary is not yet among the signatories; I hope your country will soon join the IRENA initiative.
We are aiming high - our climate targets may well be called 'challenging'.
Last Monday, Mr Tanaka, President of the International Energy Agency - a renowned OECD think tank - presented his review of Dutch energy policy over 2008. He complimented us on our ambitious climate goals. At the same time, he emphasised that what counts is implementation.
Mr Tanaka took a firm stance on the need for further investments in nuclear power, as part of the energy mix required to meet Dutch sustainability targets. He was very outspoken in his call on the Dutch government to make a clear-cut decision on nuclear energy expansion as soon as possible. This is still a matter of political debate. I can only say that nuclear power is already part of our energy mix and we are keeping all our options open for adding nuclear capacity in future.
I fully agree with Mr Tanaka in saying that all policy must be geared towards action. As it is by our actions that we show our true worth and really make a difference. It is for our actions that we can be held accountable. As a politician I will face new elections, but as human beings we all have to face future generations. They will judge us by the results of our effort. That is why our effort must now bear fruit.
I know I have come to the right address for making a call for concrete action. Climate policy implementation requires business to step in. We need you! We need entrepreneurs who are willing to take up the challenge of providing a better future for our children, and make a profit while doing so!
I sincerely hope this Round Table Conference will inspire you to take up the cause of energy innovation.
Hungary and the Netherlands have much to offer one another. I am sure you will benefit from today's meeting!
Thank you.