The Dutch Council of State (Raad van State) has issued a ruling that significantly impacts nitrogen emissions policies in the Netherlands. The decision places restrictions on the practice of "internal balancing" (intern salderen) of nitrogen emissions, which allowed companies to repurpose unused emission allowances within their existing permits for activities that also produce nitrogen.
Previously, businesses with permits for higher nitrogen emissions than they utilized could use the remaining allowance for expansion or modifications without needing a new permit. For example, a company permitted for four facilities but operating only three could add an additional facility using the unused capacity. The new ruling halts this practice, and it applies retroactively to activities since 2020.
As a result, companies that have expanded or altered operations based on internal balancing may now lack the necessary permits. This situation introduces uncertainty across various sectors, including agriculture, construction, and infrastructure development. Industry representatives express concerns about the potential administrative burden and delays in obtaining new permits under the current regulations.
The Dutch Minister of Agriculture acknowledges the significant consequences of the ruling and emphasizes the urgency of developing new nitrogen emissions policies. A transitional period has been established until January 1, 2030, allowing affected businesses five years to comply with the new requirements.
Source: NOS Nieuws