Following an unprecedented crisis caused by the pandemic, the Netherlands’ recovery and resilience plan responds to the need of fostering a strong recoveryand making the Netherlands future-ready. The reforms and investments in the plan will help the Netherlands become more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.
To this end, the plan consists of 28 investments and 21 reforms. They will be supported by €4.7 billion in grants. 48% of the plan will support climate objectives and 26% of the plan will support the digital transition.
The transformative impact of the Netherlands’ plan is the result of a strong combination of reforms and investments which address the specific challenges for the Netherlands.
The reforms address bottlenecks to lasting and sustainable growth, while investments are targeted to accelerate the transition towards a more sustainable, low-carbon and climate-resilient economy, to maximise the benefits of the digital transformation and to strengthen economic and social resilience and the cohesion of the Single Market.
The plan also intends to stimulate renewable energy sources, energy efficiency and sustainable mobility, foster digitalisation, improve the labour and housing market, strengthen healthcare services and combat tax avoidance and money laundering.
All reforms and investments have to be implemented within a tight time-frame, as the Regulation on the Recovery and Resilience Facility foresees that they have to be completed by August 2026.
The plan will foster economic growth and create jobs. According to Commission estimates, the plan could raise the Netherlands’ gross domestic product by 0.4% to 0.6% by 2026 and create at least 22,000 additional jobs. The Netherlands will benefit significantly from the recovery and resilience plans of other Member States. Cross border (GDP) spill overs account for 0.4 percentage points of the estimated impact in 2026, showing the value added of synchronised expenditure across Member States. Furthermore, this assessment does not include the positive impact of structural reforms, which can be substantial.
Impact of NextGenerationEU on Netherlands' gross domestic product by 2024
Jobs by 2026
Gross domestic product benefits thanks to other Member States’ recovery and resilience plans in 2024
When designing the plan, the Netherlands’ authorities consulted national and regional social partners and stakeholders, while pursuing a close dialogue with the Commission ahead of the formal submission of the plan on 8 July 2022. On 8 September 2022, the Commission gave its green light to the plan. President von der Leyen symbolically handed over the Commission’s assessment to Prime Minister Rutte during a visit in the Netherlands on 8 September 2022.
Green transition
The major challenge for the Netherlands in terms of meeting climate targets relates to the presence of relatively large energy-intensive industry and transport sectors. In addition to electrification, these sectors will need to rely on other energy carriers such as renewable hydrogen to become climate neutral.
The measures in the plan should contribute to achieving the 2050 climate neutrality objective, and the 2030 energy and climate targets, taking into account the Netherlands’ national energy and climate plan. They should also contribute to meeting environmental targets for waste, water, pollution control, biodiversity protection and restoration, marine and water resources, and support the transition to sustainable food systems as well as to a circular economy as appropriate.
Key measures for the green transition
The Netherlands’ plan puts a strong focus on the green transition, as €2.25 billion will be dedicated to green investments. Dedicated measures are expected to boost the development of renewables through investments in support for offshore wind energy (€694 million) and in R&D in green hydrogen (€69 million). These will be complemented by crucial reforms in permitting and energy taxation.
Furthermore, €989 million will be allocated to reduce nitrogen emissions or address their negative effects on nature through a subsidy scheme for the cessation of intensive pig farming (€275 million) and a comprehensive Nature Restoration scheme (€714 million).
On sustainable mobility, €29 million will be invested in promoting the development of ultra-efficient aircrafts using hydrogen as an energy carrier and €56 million in strengthening support for fully electric, zero-emission inland waterway transport.
In addition, the adoption of specific reforms will facilitate the connection of renewable energy to the energy grid, the sale of self-generated electricity and investments in the charging infrastructure for electric cars to support the transition towards more energy sources.
Lastly, energy efficiency measures will account for €849 million via the subsidy scheme for sustainability of public sector real estate (€225 million), which promotes renovations and focusses on improving the energy efficiency of public sector buildings, and the investment subsidy for sustainable energy and energy savings (ISDE) (€624 million), which awards grants for investments in small-scale heat pumps, solar boilers, insulation and heat connections to improve energy efficiency.
Several measures in the plan also contribute to the REPowerEU objectives to rapidly reduce dependence on Russian fossil fuels and fast-forward the green transition. These include for example investments in offshore wind and energy efficiency in housing.
Example project – Inland waterway energy transition, project Zero Emission Services (ZES)
The Dutch plan will finance the development and use of zero emission vessels with an investment of €56 million. The investment ‘Inland waterway energy transition, project ZES’ will promote the use of exchangeable Modular Energy Containers (MECs), which can be charged with green electricity at several loading sites in new and converted inland waterway vessels. Breaking away from the traditional model wherein a skipper owns an entire vessel including the propulsion system, the project aims to offer a future-proof, affordable and scalable solution for zero emission inland shipping. ZES is not only expected to reduce CO2 emissions per vessel by an average of 1000 tonnes per year but is also expected to benefit the Netherlands’ structural approach to nitrogen, given that vessels making use of MECs do not emit nitrogen. Finally, this investment will contribute towards reaching the ambitions set out in the REPowerEU Communication.
Digital transition
The Netherlands is one of the top performers in the digital domain in the European Union and the Dutch population has generally high levels of basic and advanced digital skills. However, the country also faces a persistent shortage of digitally skilled professionals, including in artificial intelligence, data and cybersecurity. The proportion of female ICT specialists has been increasing slowly over recent years but is still slightly below the EU average. Addressing these challenges through suitable investments in digital skills education and in digital skills development more generally can contribute to maintaining the Netherlands' position as a digital leader.
Key measures for the digital transition
The Netherlands’ recovery and resilience plan supports the digital transition with investments promoting advanced technologies, such as quantum technology (€263 million) and artificial intelligence (€60 million). Digitalisation of education is supported by a €209 million investment in the information and communications technology (ICT) infrastructure and sectoral knowledge infrastructure of the education system. Sustainable mobility is supported with €149 million in promoting smart mobility solutions, the rollout of digital infrastructure in the traffic management system of trains and the development of digital road side stations. The plan also envisages support for the digitalisation of the criminal justice chain (€75 million) and upgrades to the IT systems of the Ministry of Defence (€94 million). Furthermore, the plan will contribute to developing digital skills at different levels of the education system and digital inclusion in both education (€329 million) and health through e-health applications(€22 million) in the Netherlands.
Example project – Quantum Delta NL
Through targeted funding instruments in its recovery and resilience plan, the Netherlands plans to invest substantially (€263 million) in the development of application of quantum technology (quantum computers, networks and sensors) for new solutions that will specifically support start-ups and are expected to lead to advances in research and development, networking and sensing.
This investment programme aims to develop, attract and retain talent and stimulate the development and establishment of new companies in the field of quantum technology in the Netherlands.
Economic and social resilience
Key macro-economic challenges for the Netherlands’ economy include addressing challenges emanating from debt bias and distortions in the housing market and from institutional differences on the labour market between employed and self-employed. Efforts are needed to tackle tax avoidance and address money laundering related challenges, to promote institutional resilience by accelerating the digitalisation of the Dutch government and to improve the Dutch healthcare system, including the risk of an acute shortage of human resources in the care sector.
Example project - Disability insurance for self-employed persons
As part of the plan, the Netherlands will strengthen the labour market by improving the social protection coverage for the self-employed via the introduction of a mandatory disability insurance. This reform law will contribute to a better level playing field between employed and self-employed persons.
The plan is consistent with relevant country-specific challenges and priorities identified in the European Semester, the annual cycle of coordination and surveillance of the EU’s economic policies. For a detailed explanation of the European Semester see the following link: The European Semester explained | European Commission (europa.eu)
The Netherlands’ recovery and resilience plan
National recovery and resilience website
Assessment of the recovery and resilience plan
Press release: The Commission endorses Netherlands’ Plan
Council Implementing Decision on the approval of the assessment of the recovery and resilience plan of the Netherlands and Annex
Commission Staff Working Document: Analysis of the recovery and resilience plan of the Netherlands
Factsheet: Netherlands’ recovery and resilience plan
Questions and answers: European Commission endorses Netherlands' plan