In the coming period, the political discussion on this will undoubtedly be conducted intensively in the Dutch House of Representatives. It remains of great importance to make political and policy choices in the Netherlands from the perspective of chains and industry clusters, with a comprehensive consideration and a long-term vision for both future earning capacity and strategic autonomy as well as for the energy transition and climate objectives.  

This appeal is due to the strategic importance of the industry and a successful energy and raw materials transition. Head offices both in Europe and worldwide are weighing up whether to make sustainability investments in the Netherlands or just over the border where the business case is stronger. If the situation unfolds unfavourably, investments in sustainability will not materialise and long-term production will no longer be viable due to rising emission prices. That is certainly undesirable in light of the climate objectives. In the responses to the package, it seems as if the interests of industry and the climate are directly opposed, while the measures should actually enable sustainability. Minister Hermans stated that she wanted to take ‘an extra step’ that is necessary to bring the climate goal of 55% CO₂ reduction by 2030 ‘back within reach’.

A week after the interim budget report, the response came from the government on 25 April. By scrapping the looming plastic tax and reinstating the Indirect Cost Compensation Subsidy Scheme (IKC) that mitigates energy costs, the package ‘provides short-term relief in several areas and includes important investments for the future,’ says Port of Rotterdam Authority CEO Boudewijn Siemons. By modifying the refining process, it will become more attractive to incorporate green hydrogen in fuel production.

The package offers relief by taking steps on some key investment conditions, but there is still urgent work to be done. Regarding nitrogen, there is a lack of a legally sustainable breakthrough, which is urgently needed for the development of the industry and the port of the future. In terms of energy costs, addressing the network tariffs is an urgent issue for the transition. Some elements of the package still require attention, such as the agreements regarding the abolition of the plastic tax. Siemons: ‘We must continue to collaborate with the government, especially leading up to Prinsjesdag, to maintain a competitive investment climate in the interest of a resilient Dutch industry.’

The Port of Rotterdam Authority notes that developments in the basic chemicals industry are unfolding rapidly, and it is in constant dialogue with companies and the government in this regard. Port Alderman Simons and Deputy Weverling sent an urgent letter and sounded the alarm on the NOS news; in EenVandaag, director of Huntsman Holland, Kal Ghogali, and Ronald van Klaveren from Lyondell explained the importance of the chemical industry.

In WNL op Zondag, Shell CEO Frans Everts advocated for a level playing field compared to foreign competitors. In the lead-up to the parliamentary debate on making the industry sustainable on 20 March, Deltalinqs shared its vision for the necessary steps to future-proof Dutch industry. The umbrella organisations VNO-NCW, FME, VNCI and Vemobin also recognise that their members are struggling and have made this clear. They are also motivated by the fact that the starting position for greening industry in the Netherlands is promising, with wind from the North Sea as an energy source, excellent connections with Northwest Europe and a highly skilled workforce.

The Dutch situation is a magnified reflection of the broader European context. As the CIEP stated in February, European industry is confronted with structurally higher energy costs compared to producers elsewhere and is suffering from an oversupply of goods from China. On the cover of their report is a troubling image of a collapsing Jenga tower, caused by the removal of too many blocks. This comparison also applies to the Rotterdam situation, when LyondellBasell/Covestro and Tronox announced in March their intention to close their chemical plants here.

Previously, Indorama's plastic factory also ceased operations in Rotterdam. This is primarily bad news for the employees at risk of losing their jobs, and the closures also represent a drain on the port of Rotterdam and the cluster of chemical companies. They produce essential raw materials upon which many other industries depend. The cluster is highly integrated, with the waste products of one industry serving as the raw materials for another.

Spring 2025 could rightly be called hot, irrespective of the summery weather. The songbirds were drowned out by the alarm bell that Dutch industry sounded loud and clear. Companies are struggling with energy prices that are significantly higher than in neighbouring countries and due to the Netherlands ‘gold-plating’ European policies such as the CO2 tax, and high nitrogen emissions without a clear reduction plan. And this at a time when China and the US are protecting their industries while neighbouring countries are supporting their own. Two companies in the port of Rotterdam announced closures within a week. Has the alarm bell been heard by the government?