Dutch pension funds have written to the government’s new administrators asking for clear and reliable long-term policy on the sustainability transition.

The pensions industry, alongside the wider financial sector, voiced its support for the coalition’s policy on climate and green growth.

However, it argued that clear and reliable long-term policy would enable the Netherlands to transition to sustainability faster and smarter, while also reducing its reliance on other countries.

The letter, signed by the Dutch Fund and Asset Management Association, the Dutch Banking Association, the Federation of Dutch Pension Funds, and the Dutch Association of Insurers, said the finance sector supported the government’s plan to adhere to the Paris Agreement and give more leeway to entrepreneurs who wanted to make their businesses more sustainable.

They believed this would create opportunities for new jobs, innovation, and a strong Dutch economy, while reducing CO2 emissions.

Financial institutions were keen to facilitate sustainable projects if they provided good returns, and had made “significant efforts” to reduce CO2 emissions and develop further sustainability plans in recent years.

However, they argued that clear preconditions and a stable government course were needed to accelerate progress.

The industry therefore called on the cabinet to set clear standards, for example on energy and raw material use, so companies know which steps they need to take.

A clear CO2 price in Europe was also recommended, alongside the phasing out and reversing subsidies for fossil fuels, and a strong National Investment Institution to help finance sustainable projects that are currently too risky for the market.

“Sustainability is not only necessary, but also offers many opportunities for the Netherlands: a cleaner country, new business activity and new jobs,” the organisations concluded.

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