The Dutch government has suspended negotiations with several of the Netherlands’ largest industrial firms regarding additional reductions in carbon dioxide emissions. Climate Minister Sophie Hermans informed parliament that these companies had committed to exceeding legal emission reduction requirements in exchange for government subsidies.

However, discussions with some firms failed to produce viable plans, and the climate ministry noted a “lack of perspective” for future progress. Companies such as Shell, BP, Air Liquide, Air Products, ExxonMobil, and LyondellBasell, all located in Rotterdam, are among those affected by the terminated talks, along with Dow Chemical in Terneuzen.

Hermans clarified that ending the discussions does not imply a lack of action from these companies, highlighting Shell, ExxonMobil, Air Products, and Air Liquide’s collaboration on the Porthos carbon capture project. The ministry stated that while this tailored approach has yielded results, it can be intricate and time-consuming to implement.

The government is now prioritizing companies with ambitious, concrete, and achievable plans for CO2 emission reduction leading up to 2030. Salt company Nobian is the only major industrial firm to have finalized an agreement with the government, while 13 others have signed a statement of intent.

Negotiations with Tata Steel in IJmuiden are ongoing, with the European Commission involved in subsidy discussions. Tata Steel intends to transition half of its steel production from coal to gas and hydrogen-based power. The Netherlands aims to reduce carbon dioxide emissions by 55% by 2030 compared to 1990 levels. Current plans, however, are projected to achieve a reduction of only 44% to 52%, and no sectors are currently on track.

Approximately 356 companies are classified as major polluters under the European Emissions Trading System (ETS), collectively accounting for about half of the Netherlands’ carbon dioxide emissions. Recent developments indicate that parliamentarians are scheduled to vote on abolishing a tax on CO2 emissions following intense lobbying from companies concerned about potential job losses in the Netherlands.