Letter to the Informant: Circular Deal for the Chemical Industry

The chemical industry must not only transition to sustainable energy but also replace fossil raw materials with sustainable alternatives. This means that we need millions of tons of recycled plastic, sustainable biomass, and carbon from CO2 in order to produce non-fossil plastics and chemicals. The good news is that the Netherlands, with its existing knowledge, logistical chains, infrastructure, industry, and innovative leaders, is ideally positioned to turn this transition into a sustainable business model.

On behalf of these green leaders and the parties committed to accelerating green chemistry, united in the platform Green Chemistry New Economy, I advocate for a 'Circular Deal' similar to the Climate Act and the Green Deal focused on resource transition. I want to emphasize that this transition offers opportunities for businesses, including new innovative enterprises, making the Netherlands a home for a strong new sustainable economic sector. This will enhance the strategic autonomy of the Netherlands in terms of energy and raw materials and lead to a feasible and affordable way to meet climate and circular goals.

Specifically, GCNE calls for a “Circular Deal” with the following points of attention:

• Stable long-term policy from the government: ensure that industry in the Netherlands can invest in sustainability, thereby retaining important industries and their value chains here. Initiate at the European level to achieve harmonized policy and financing that stimulates and strengthens the Dutch green chemistry sector.
• Create markets for circular products through regulation: ensure a level playing field between a) fossil and renewable raw materials and b) applications for energy and materials.
• Organize public-private collaboration around 1 billion euros of patient venture capital for scaling up new innovative companies focused on breakthrough technologies in green chemistry;
• Remove barriers and obstacles to utilizing waste and residual streams for application in new products and promote practical solutions such as certification pending European harmonization ("end waste status dossier"). Ensure sufficient capacity at environmental authorities to oversee this.
• Consider establishing a Ministry of Circular Economy & Climate to address the energy and raw material transition, ensuring stable long-term policy and a level playing field.

There is political will to make the chemical industry more sustainable and to retain it in the Netherlands. The essential next step is to provide green chemistry with a clear perspective and consistent policy, so that the Netherlands can become a world leader in sustainable chemistry.