Jan Terlouw, ex-politician and current chairman of the Energy Transition Platfom for the Built Environment (PeGO):
"Government must set rules and create a level playing field"
What is needed to secure the future of the planet? Is the Netherlands on course with its own climate ambitions for 2020? What role is reserved for market parties and what is the role of the government? Jan Terlouw argues that investing in renewables is the most efficient way to tackle the energy and climate issue. The government must make it compulsory for the big players in the field.
"Our country is definitely not in the vanguard in Europe", says Terlouw. "Maybe the Netherlands is on the right track, but it’s happening so slowly. If we want to achieve the 2020 targets, we will really have to get a move on. The question is whether it’s possible. I fear we may not be on schedule."
It is not only the speed of progress in the Netherlands that concerns Terlouw, the global picture does not give any reason for rejoicing either. "What was actually achieved in Copenhagen? People are saying that the temperature of the earth mustn’t rise more than two degrees but they are unable to add how this ought to be done. In my view the climate summit was a total failure."
Heart of the problem hasn’t been tackled
In Terlouw’s opinion, the reason for that failure is that the heart of the problem was not tackled. "The nub of the problem is that 75% of the power plants under construction are fossil fuel-fired. Every year more than 400 billion dollars are still being invested in fossil fuels. That’s an immense sum and huge interests are at stake. If the major players such as the big oil companies don’t invest in renewables, you can never solve the problem. I’m absolutely convinced of that. You are even seeing people pulling out of wind and solar power because they aren’t profitable enough."
Government needs to set rules and give direction
However, those gigantic investments in fossil fuels are not a reason to point an accusing finger at the market, Terlouw affirms. "A free market cannot guarantee the future of the plant; the market mechanism isn’t set up for that. Self-preservation is top of the list.
That’s why the government needs to set rules and give direction, not to mention create a level playing field for all the market parties. After all, if Shell goes for renewables but Esso doesn’t, Shell will lose out. The government bears most of the blame for this and not the big oil companies. The government must say ‘we require you to invest in renewables and, to make it possible, we will make sure there’s a level playing field."
Invest 2.5% more in renewables each year
Terlouw’s suggestion is that the governments of the most energy-consuming countries should have talks with the global players. "The government has to make it compulsory for the market to channel an ever-increasing part of the total investments – 2.5% more every year – into renewable energy, starting in 2011. Initially, the product will then be somewhat more expensive, because up to now the renewable part is less profitable. Subsequent price rises must be for the account of the rich countries that use the most energy. In 2012 you will invest 5% in renewables and in 2013 7.5%. You can then make a schedule. That will be real progress."
Renewable energy: the only non-scarce resource on earth
Terlouw is convinced that investing in renewable energy is the most efficient, indeed the only way to tackle the energy and climate issue. "You can capture CO2 temporarily and store it underground, but I regard that mainly as a stop-gap measure. The real solution lies in renewable energy and the great thing is that renewable energy is and always will be available in abundance; it’s the only resource on earth that isn’t scarce.
Nobody can tell me that there are technical reasons why we can’t make full use of it! We can build lasers and the internet and we are exploring the universe. Of course we can. Admittedly, utilising this enormous potential has an economic component, but it’s mainly a question of political will."
