CO2 efficiency of Dutch industry worse than European competition

Dutch manufacturers perform worse on CO2 efficiency than their European competitors. Between 2021 and 2023, CO2 emissions per unit of product increased among the 282 manufacturing companies covered by the European Emissions Trading Scheme (EU ETS). This is according to a report by the Dutch Emissions Authority (NEa). This development puts pressure on the Dutch manufacturing sector’s competitive position.

The NEa collects annual emissions and production data to monitor CO2 emissions from manufacturing companies in the Netherlands. Based on this data, the authority compiles CO2 efficiency figures. These figures show how the Dutch sector is performing compared to the European benchmark. The largest emitters of CO2 within Dutch manufacturing are obliged to participate in the EU ETS. Last year, Dutch manufacturing companies performed at 16.9% below the benchmark. As a result, CO2 efficiency fell on average by 3.2 percentage points compared to 2021.

CO2 efficiency improves among the majority

Fortunately, there is also some good news. The majority of companies (148 out of the 282 sites) show an improvement in CO2 efficiency in 2023 compared to 2021. Unfortunately, this overall average remains negative because the performance of particularly the larger emitters, who weigh most heavily in the average, has worsened. According to the NEa, the decline in the average efficiency across all companies can be explained by the fact that companies have apparently not been sufficiently able to flexibly align their fossil energy inputs with their reduced production levels. Also, some carbon-efficient plants have ceased operation.

‘Earlier this year, we reported a record fall in CO2 emissions in the manufacturing and energy sectors. The CO2 efficiency figures we now have confirm what we suspected then: the fall in CO2 emissions in manufacturing is mainly due to lower industrial production and is only marginally the result of improved and cleaner production methods. Fortunately, however, there are some positive exceptions. 148 sites have managed to improve their CO2 efficiency,’ says Mark Bressers, Director of the NEa.

A big challenge for the Netherlands

Incidentally, the record fall in CO2 emissions cited by Bressers is mainly thanks to the energy sector. ‘Nevertheless, these figures show that the manufacturing sector in the Netherlands – and also in other European countries – faces a big challenge. The current Dutch government is committed to green growth. These new figures show that significant steps still need to be taken to achieve this and to ensure that CO2 emissions can fall further, while maintaining or even increasing productivity. Innovation and improving CO2 efficiency will be necessary for this,’ Bressers states.