“Integration and communication as central issues in Dutch negotiated agreements on industrial energy efficiency” Greening of Industry conference, Cardiff, July 2006 By Hans Bressers, Theo de Bruijn and Valentina Dinica, CSTM – University of Twente

Support by stakeholders More than just ‘attaining the feasible?’ Approach very popular with business because of flexibility and role as serious partners After hesitations also acceptance and support from environmental NGO’s For government valued part of possible instrumentation mix

Negotiated agreement interaction processes

- Stimulating collective learning processes (positive side effects) - Extended implementation structure platform for communication and integration (follow up consultations) - Potential for further innovations requiring multilateral cooperation (here “expansion themes”) Three potential advantages of using a negotiated agreement approach:

“To what extent are the potential advantages of using a negotiated agreements strategy realized in the case of the Dutch multi-annual agreement on energy efficiency, and what factors favor or hamper such achievements?”

Dutch energy use illustrated

Direct results Earlier, quicker and more gains in energy efficiency during the period 1998 –2002 than companies in the same sectors that did not participate Additional efficiency gains had a yearly linear factor of 1.43 compared with the national trend in energy efficiency Not all of the 17 sectors involved succeeded, while others did much better Additional process efficiency rather than the ‘expansion themes’

Dutch industrial energy efficiency (Source: CSTM)

Opinions on general results (Source: CSTM)

Building resources for the future (Source: CSTM)

Side effects of NA’s use generally Companies have become more aware of their responsibility to combat the harmful consequences of their energy use (agreed by 71% of the respondents); Governments and target groups have gained mutual understanding of their points of view (85%); Improved collaboration between governments and the target group (87%); More knowledge on reaching ambitious energy efficiency goals (71%) Contribute to improvement industrial energy policy of government (‘external integration’) (94%).

Side effects of follow up consultations Important new knowledge on finding new options for energy efficiency improvements in the sector of industry (only agreed by 10% - obviously not a main consultation benefit - this result also validates that the respondents critically reviewed each item separately); Trust between government and sector has increased during the follow up consultations (66%); More agreement on the concrete tasks for the sector of industry (85%); A more coherent approach of energy efficiency improvements by the sector of industry (75%) (‘internal integration’); More tuning between the activities that stem from the agreement and other energy and environmental policies of government(s) (‘external integration’) (61%).

Type of interaction processes (Source: CSTM)

Assessment of role various governments by other respondents (Source: CSTM)

Expansion themes, assessment of potential (Source: CSTM)

Expansion themes, measures taken (Source: CSTM)

- Stimulating collective learning processes (positive side effects) WORKS - Extended implementation structure platform for communication and integration (follow up consultations) EXISTS - Potential for further innovations (here “expansion themes”) UNDEVELOPED Conclusions on three potential advantages of negotiated agreements

Recommendations to make also expansion themes work An active intermediary utility Improving the integration of environmental and energy efficiency policies Further incentives for energy efficiency innovations in policy mix