The Netherlands is still not able to significantly reduce the amount of resources being used. In fact, in 2022, usage was higher than in 2020. Although a decrease is visible compared to 2016, it is not fast enough. The goal to use half as many minerals, metals, and fossil resources by 2030 seems unachievable. More concrete policy is needed for the Netherlands to achieve these goals. This is evident from the new Integrated Circular Economy Report (ICER) from the PBL, which will be released on February 20.
‘Unfortunately, the PBL must note that the circular economy is too low on the government’s priority list,’ says Marko Hekkert, director of the PBL. ‘The Netherlands is missing opportunities. If we manage to use materials more efficiently, the Netherlands can become less dependent on the supply of crucial rare materials that often come from China. Companies here can also profit from a circular economy with the existing knowledge and innovation capacity.’
Better Use of Existing Policy Instruments
To accelerate the transition to a circular economy, it is at least necessary to elaborate on the plans from the National Program for Circular Economy (NPCE), the PBL states. The government can utilize existing policy instruments more smartly to stimulate the circular economy. For example, through extensive producer responsibility, which makes companies responsible for collecting and reusing the waste from their products.
Additionally, the government can set higher standards for circularity in its purchases and thus contribute to market formation for circular products. It is also important to continue to focus on ambitious European circular economy policy to create a level playing field for Dutch companies. This includes further elaboration of the Right to Repair and legislation for products under the Ecodesign regulation.
In further specifying the proposals from the NPCE, it makes sense to start with the development of policy instruments with significant potential environmental effects. Consider a European tax on primary fossil resources for plastics, and more circular procurement in civil engineering. Or a subsidy for circular measures to reduce the price difference between Dutch recyclate and primary resources. Such measures could prevent more Dutch plastic producers from going bankrupt – as happened last year, because new plastic is much cheaper than recycled material.
Circular Solutions for Housing and Clean Energy
There are several major social challenges in the Netherlands that require much more materials. In the coming years, many homes will be built, and the demand for clean energy from solar and wind will also increase. This could be more circular. For instance, by splitting or ‘topping up’ houses or converting offices into homes instead of new construction, and by setting requirements for reuse and recycling in the design of wind turbines.
Specific materials are particularly needed for electronics, which come from afar and are sometimes only extracted or refined in a few places. Extraction is often harmful to the environment and nature. It would make a significant difference if fewer materials were used for products, and if these were easier to repair and better recycled after use. This way, the Netherlands would also become less dependent on other countries.
Consumers Still Buy Insufficiently Circular
Consumers buy more new products every year, such as clothing, digital devices, and furniture. This increasingly involves cheap items of low quality. In addition to fast fashion, there is now also fast furniture. Consumers are often open to repairing items, but this is not always possible. Repairs are often expensive and take a long time.
Resource Use and Supply Risks Have Increased
Compared to 2020, the amount of minerals, metals, and fossil resources used in the Netherlands increased in 2022. However, a decrease is visible in usage compared to 2016. Both 2020 and 2022 are special years for resource use. For instance, in 2020, significantly fewer fossil resources were used due to corona, and in 2022, resource use was lower due to higher prices from the war in Ukraine.
Moreover, over the past ten years, the supply risks for most critical resources in the Netherlands have increased. This particularly affects the manufacturing industry, including sectors like machinery, transport equipment, and electronic devices.
ICER realized in collaboration with multiple partners
The ICER was developed in collaboration with, and with input from, the following institutions: CBS, CPB, Center for Environmental Sciences (Leiden University), Copernicus Institute (Utrecht University), RIVM, RVO, RWS, and TNO. All these institutions contribute to the multi-year Knowledge Program Circular Economy, which is led by the PBL.