IMPLEMENTATION COP26-DECLARATION

The COP26 declaration was signed by the Netherlands on 8 November 2021. In doing so, the Netherlands has committed itself to the termination of new direct international government support to the unabated fossil energy sector and stimulating the energy transition from fossil to sustainable energy, using public support to increase the contribution of the private sector. In response to this, a first explanation of the scope of the COP26 declaration was given in the letter to Parliament of 8 November 2021. The more detailed elaboration follows below.

Scope

The Paris Agreement focuses, among other things, on reducing greenhouse gas emissions through the use of fossil fuels. The COP26 declaration focuses on the chain, extraction and production of fossil fuels by the fossil energy sector.

The following activities from the fossil value chain fall within the fossil energy sector:

  1. Exploration, extraction and transport of fossil fuels
  2. Processing of fossil fuels
  3. Storage, transshipment & distribution of fossil fuels
  4. Electricity generation using fossil fuels

Not excluded by the declaration are:

  • Sale and use of fossil fuels in built environment, transport (vehicles and vessels), agriculture and industry fall outside the definition of the fossil energy sector. These sectors will experience climate transitions, as reflected in Nationally Determined Contributions (NDC) and Long-Term Strategies (LTS) of all countries that are members of the climate agreement.
  • Activities in the chains where fossil raw materials (feedstock) are used exclusively in industrial applications (such as steel and plastics) also fall outside the scope. In many cases, there are currently no affordable sustainable alternatives on a scale. The repurposing and dismantling of existing fossil infrastructure also falls outside the scope of the declaration.

Exceptions in line with 1.5°C

The starting point for the policy is ‘no, unless’, in line with 1.5°C.

  • The COP26 declaration offers limited scope for exceptions, provided they are in line with 1.5°C warming and the goals of the Paris Climate Agreement. The Netherlands could use this scope, where necessary and justified, on an exceptional basis for oil and gas. The coal chain and unconventional extraction (shale) are already excluded from the export credit insurance.
  • The policy can be periodically adjusted on the basis of the latest developments.
  • The table lists exclusions and exceptions.
Exclusions and exceptions