Fossil fuels also dominate the energy needs of the Netherlands. In 2018, oil and gas covered 77% of total final consumption (TFC), while electricity covered only 16%, the second lowest share among IEA member states. The predominance of oil and gas and low electrification are fuelled by the large industrial sector, which focuses on refining and chemical production and the high level of warming of natural gas. In 2018, oil and gas accounted for 80% of industrial demand, while natural gas covered 71% of housing demand and 48% of demand in the services sector, mainly for heating. Greenhouses in the large agricultural sector are also an important source of gas for heating. Below is an overview of the highlights of the Dutch climate agreement by sector. Rutte III will organize the transition, among other things, by closing coal-fired power plants (when the time comes) and gradually reducing gas, with a focus on electric transport and investments in sustainable wind and solar energy. While previous cabinets wanted to increase the supply of sustainability, Rutte III relies on reducing CO2 emissions, collecting and storing CO2. The Dutch hydrogen strategy and green gas roadmap set out plans to accelerate the large-scale production and use of low-carbon hydrogen and a variety of bioenergy-based gases, including biomethane. These strategies support the use of low-carbon gases in all sectors and aim to increase Dutch know-how in low-carbon countries due to natural gas leakage. The production and supply of biomethane in the gas network has been expanded and several large low-carbon hydrogen projects are planned. The government is supporting the acceleration of the use of low-carbon gases through specific research and demonstration resources. Low-carbon hydrogen and biomethane projects are also eligible for SDE projects.
To support the transition to a low-carbon economy, the Netherlands has conducted a review of fossil fuel subsidies (FFS), jointly managed by the Ministry of Economy and Climate Action and the Ministry of Finance. At the request of the Government, the Organisation for Economic Co-operation and Development (OECD) and the IEA facilitated the review of the FFS as part of this review of the Dutch IEA energy policy. Based on consultations with the government, energy stakeholders and FFS experts, the OECD and the IEA developed a report on the FFS, which highlighted the policies that could be considered for reforms and examined how existing policy and budgetary procedures could be adapted to better identify and address fossil fuel issues and energy transition. The report was presented to the government in April 2020 and is used to inform the government of the response to Parliament`s questions on FFS and the potential need for energy policy, subsidies and tax reforms. Urgenda`s decision has also made waves in the broader area of climate conflicts. The government believes that natural gas will be an important part of the energy system by at least 2030 and that low-carbon gases will play a crucial role in the transition to a carbon-neutral energy system, particularly in industry and other sectors where decarbonization needs to be interwoven. In order to reduce natural gas emissions while ensuring energy security, the Netherlands is implementing a comprehensive policy agenda to reduce demand for natural gas and accelerate the production and use of low-carbon gases.