NL: Grower costs to rise with the introduction of European Emission Trading System

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Gas prices rise due to blending in green gas

An ETS-II opt-in will have significant consequences for the greenhouse horticulture and fisheries sectors. This is the conclusion drawn by researchers from Wageningen University & Research. The Dutch government intends to include all fossil fuels not yet covered by the European Emission Trading System (ETS) for CO₂ emissions within the new ETS-II through an opt-in.This is scheduled to start in 2027.

In the greenhouse horticulture sector, some of the largest natural gas users are already under ETS-I. The other companies would fall under the new ETS-II. The costs of the so-called ETS-II opt-in for greenhouse horticulture companies would amount to 151 million euros for the year 2030, with a consumption of 1.768 billion m³ of natural gas.

If the CO2 levy were to drop to a zero rate due to the interaction effect after the introduction of ETS-II, the costs for the greenhouse horticulture sector would amount to approximately 96 million euros. Which would still constitute a significant increase in costs.

The researchers assume that the cost calculation (151 million) results in 1.66 euros per m² with an acreage of 10,000 euros. This amount is added to other pricing measures, such as the Energy Tax.

Green gas
The researchers also examined a blending obligation for green gas. The researchers also point out that this obligation is linked to the gas that falls under ETS-II. This may increase the price of the supplied gas (by an expected 12 to 17 euro cents per m³ of gas).

The blending of green gas into the public natural gas network is assumed to contribute to achieving the 4.3 Mton CO₂-equivalent residual emission. This blending does not affect the impact of ETS-II (opt-in) because the amount of fossil CO₂ of the residual emission target remains the same. However, the blending obligation will have an effect on the level of the CO2 levy and its impact on greenhouse horticulture. The researchers have not yet investigated these effects in detail.

View the entire study here (in Dutch).

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