The Dutch government is to stop providing insurance for new fossil fuel projects involving Dutch companies abroad unless these are in line with the international climate goal to limit global warming to 1.5 degrees.
The decision was first announced a year ago but the details have only just been published by the finance ministry.
The decision means ‘there won’t be any room for support for new projects aimed at the exploration and extraction, processing, storage, transshipment and transport of fossil fuels and electricity generation by means of fossil fuels’, the ministry said in a statement.
The Dutch government currently provides export credits for companies operating abroad on risky projects to cover them if the client defaults on payment. These often involve fossil fuel projects in countries where there is government or other instability.
This means, in principle the government has been supporting the fossil fuel industry – a position ministers agreed to phase out at last year’s Glasgow climate summit. The export credit insurance scheme will, however, be made more attractive for green projects, to support businesses in the energy transition, the ministry said.
Last year, the state had insured fossil fuel projects to the value of nearly €5 billion.
The change in the Dutch position means companies will have find a private insurance group to cover them, if possible.
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