The enabling environment for a Paris-compliant financial system is robust in the Netherlands. The Dutch government offers a wide range of green financial support instruments mostly in the form of grants and tax reliefs. These instruments should primarily increase the deployment of renewable energy and energy efficiency. In addition, the Netherlands is about to issue a green government bond this year. The DNB shows a strong commitment to greening the financial industry in the Netherlands, which it has manifested by setting up the Sustainable Finance Platform, co-initiating and chairing the international Network on Greening the Financial System (NGFS) and becoming the first central bank to sign the UN Principles on Responsible Investment (PRI). The state-supported green investment vehicle Invest-NL is expected to start financing green projects in the Netherlands later this year.
The explicit commitment of the financial sector to the Climate Agreement has to materialize in the coming years. Some state-owned entities and municipalities have already developed their own climate related criteria and divestment goals, which can grow into a nation-wide strategy. The further development of sustainable public procurement will help the Netherlands to make sure that public spending drives the Dutch Paris commitments.