Dutch central bank calls for switch to sustainable fuels

The Netherlands is not doing enough to switch to sustainable energy sources and the agreements made between industry and officials need to be sharpened up, according to the Dutch central bank.

A new report published by the bank on Friday warns of the risk of the ‘carbon soap bubble’ and says the Netherlands is trailing behind in making the transition to green energy.

‘We are lagging behind when it comes to introducing sustainable energy and reducing greenhouse gas emissions,’ central bank director Job Swank says in the NRC.

This is mainly due to the Netherlands’ reliance on the petrochemical industry, road transport and greenhouse-based food production, all for which rely heavily on fossil fuels, he said. In the interview, Swank went on to mention the agreements reached at the climate summit in Paris last year, in which economies are to be ‘climate neutral’ by the middle of the century.

There is a carbon bubble hanging over the market at the moment even though it is currently manageable, Swank said. Pension funds face the greatest risk, he said. Some 5.4% of their assets are invested in fossil fuels.

Central bank president Klaas Knot will discuss the climate issue with MPs at a special hearing next Tuesday.