VNCI: from recognition to action, now going through for Dutch chemistry

The VNCI sees that talks with the cabinet and politics have have become greater constructive in the past period and that there is growing understanding that we need a future-proof sector.

“That is an crucial research,” says VNCI chairman Ronald van Klaveren. “however recognition alone does not keep factories open nor attract new investments.” Just now, words must be converted into concrete measures that give companies confidence to invest in the Netherlands again. With our unique location by the sea, a substantial hinterland, highly integrated clusters and close cooperation between universities, startups, scale-ups and substantial companies, the Netherlands has crucial competitive assets.”

However, the reality at the moment is different. The economic revenue model is lacking, as a result of which projects come to a standstill, investments are postponed and the Netherlands and Europe are further behind other parts of the world.

“We must do everything we can to prevent chemistry as a vital sector from slowly disappearing from our country,” says van Klaveren. “In a world where the economy is increasingly geopolitical, a strong chemical sector is not a luxury however a strategic necessity.”

Steps set, major bottlenecks remain

crucial steps have been taken by the Dutch government, the VNCI said. to instance, greater attention is paid to reducing regulatory burden, the COens levy-a national head on top of the ETS-has been suspended, and the extension of the Indirect Cost Compensation (IKC) scheme means that greater companies can receive support to indirect ETS costs.

Yet there are still major bottlenecks to the sector that have been insufficiently resolved. Dutch electricity costs are still among the highest in Europe. The high net tariffs in particular, together with network congestion, are a growing issue to companies that want to make it greater sustainable through electrification. The Netherlands is becoming less attractive and the risk is rising that production and investment will disappear abroad. The energy envelope announced is a welcome measure, however it is still unclear whether it already holds in 2027 or will be pushed forward, while companies are now making investment decisions.

National headlines on European regulations and complex permit procedures also slow down or even stop sustainability projects. Companies that want to make sustainability in the Netherlands must be able to count on predictable policies to at least fifteen years, and on executable regulations.

Call: The Netherlands as the leader

The VNCI calls on the cabinet and parliament to continue and accelerate the course of a stronger manufacturing policy. The Netherlands faces a clear choice. If we want to have a strong manufacturing base that contributes to economic development, strategic relevance, climate transition and circularity, the framework conditions to investment must be put in order.

"Europe and the Netherlands have everything in place to be the leader in sustainable and circular chemistry," says Ronald van Klaveren. "The knowledge is there, the methodology is there and the will is there. however investment only comes here if we ensure competitive energy costs, less regulatory burdens and a predictable investment climate with an economic revenue model. The intentions are pronounced. Now it's time to get on with it."

Read our first analysis of the Budget Memorandum here, broken down by policy area. This analysis will be expanded and updated throughout the week.