Deloitte.Deloitte's EnergyTransition MonitorEnergy transition ata crossroadsMAKING ANA Deloitte Netherlands publicationMPACT THATMATTERSSeptember 2023Deloitte's Energy Transition MonitorExecutive SummaryThe energy transition is arguably the most challenging undertaking of this generation.The Netherlands has made good progress,so far,butthe country has come to a crossroads.Most of its progress has come from picking the low-hanging fruit,and reducing industrial output,butto achieve the emission goals for 2030 and beyond,fundamental choices need to be made around the structure of the Dutch economy andthe energy system that enables it.The Netherlands has excellent offshore wind potential,a long-established industrial sector,and a leadingeducational system,so the country is well-placed to create a global blueprint for a successful energy transition.A successful energy transition depends on the right decisions being made,which require the right information.This Energy TransitionMonitor therefore provides a common fact-base,with which to assess the transition's progress.However,true progress requires more thanjust reducing emissions(because have we really been successful if we relocate emissions toother countries?).This report therefore providesa holistic perspective,and brings together statistical data,stakeholder perspectives (NGOs,journalists,industry professionals,academicsand government officials)and an analysis of public sentiment.Using these sources,this report examines the transition's progress from 1990 to 2022,toward the country's statutory (Klimaatakkoord)targets for 2030 and overall goal of net-zero emissions by 2050.Some key highlights.01.The industry sector has reduced its emissions the most,but through lower production output and by reducing non-CO,greenhousegases,so the real transition still needs to start.02.National energy-related emissions have reduced by 32%in 2022 (relative to 1990).However,this ignores emissions from internationalaviation and shipping,and imported products,which together exceed the reported national emissions.03.15%of energy consumed in the Netherlands comes from renewables-mainly biomass,but with strong growth in wind and solar sourcesfor generating clean electricity.04.Electrification offers the greatest potential for increasing the use of renewables,but progress has been limited.For instance,electricvehicles represented only 1.5%of the mobility sector's energy consumption.05.One in three households on average now uses at least one clean energy technology (solar panels,EVs or heat pumps),and the adoptionrate is growing fast.06.Although public sentiment is mixed,the Dutch energy transition has achieved some notable successes,such as the EU's highestadoption ofsolar panels and per capita provision of EV charging stations,and 40%of the country'selectricity now being generated fromrenewablesThe current rate of progress is too slow to meet the Dutch 2030 targets,so the energy transition must accelerate,and tough decisions layahead.To help make a successful transition,the following approaches to the transition are proposed.01.Develop the path togetherCombine private and public interests,to benefit Dutch society and economy,as well as the global climate.In particular,industrial emissions should be considered alongside domestic production,possibly including a target for manufacturing output.02.Take full responsibilityThe effect on greenhouse gas emissions from international aviation and shipping and imported goods should be taken into accountwhen designing and evaluating emission-reduction policies and incentives.03.Take the public alongPublicsupport can be harnessed by celebrating thetransition's successes,and by using public policy to set new behavioral norms,ratherthan focusing purely on financial incentives.04.Decarbonize molecular energy demandAlthough electrification should remain the main focus,the remaining demand for molecular sources should be decarbonized moreactively,by promoting the use of clean hydrogen and ma king optimal use of the limited biomass resources.05.Prioritize impact in scalingIncentives have proved an effective way to promote the household take-up of some clean energy technologies,and should now focus oninitiatives where the Dutch government is leading and where the greatest impact on emissions can be achieved.For instance changingdomestic heating from gas to new renewable technologies,which will create the demand,momentum and confidence for the privatesector to scale up production.The Energy Transition Monitor provides an overview of the status of the energy transition and proposes bold ideas to accelerate it furtherand creates a starting point for discussion,allowing professionals in the field to work together and make the right decisions for futureprogress.