Common use of Ambition Clause in Contracts

Ambition. As is the case for the other sectors, we wish to realise a true transition for the industry sector. This means that we wish to offer industrial businesses prospects to ensure the transition to radical greenhouse gas emissions reductions in the Netherlands will take place. Although it would be possible to realise the national targets by shifting industrial activities abroad, increasing emissions abroad would ultimately not benefit the climate, and this shift would create a risk of loss of activity and jobs in the Netherlands. For that reason, the realisation of the reduction ambitions will have to go hand in hand with retaining a business climate that is attractive to businesses in the industry sector. This will contribute to our prosperity, our well- being and the nation’s employment. Broadly speaking, Dutch industry will be able to shape the transition through measures such as process efficiency, energy savings, CCS, electrification, use of blue and green hydrogen and acceleration of circularity (such as plastics recycling, biobased raw materials or steel2chemicals). This is by no means a blueprint for the transition, but rather the starting point for an adaptive process, in relation to which there are major differences in costs per 25 ▇▇▇▇▇://▇▇▇.▇▇▇.▇▇/nl/adviezen/energietransitie-en-werkgelegenheid. 26 Social and Economic Council (SER) (2018), Energy Transition and Employment Advisory Report. technology type. Green hydrogen and the circular economy are issues regarding which the Netherlands will be able to distinguish itself on an international level. Transformation processes will take place within the region, where synergies will have to be created between businesses. This will, for example, also involve connection to the heating demand in the built environment. Since the 1990s, Dutch policy has been aimed at strengthening regional clusters of connected businesses and knowledge institutes to support competitiveness and innovation. In recent years, Top Sector policy was chiefly responsible for strengthening the regions by way of the "triple helix" formula, which sees public authorities, businesses and knowledge institutions working together.27 The fruits of this strategy are primarily discernible in urban regions, which focused significantly on strengthening one specific sector, such as the Brainport in the vicinity of Eindhoven and Food Valley near Wageningen. Recently, the government decided to modernise its Top Sector policy by shifting its scope from sector-driven policy to mission- driven innovation policy.28 The agreements in the context of the Climate Agreement are expressly cited as examples of the modernisation of the government’s innovation policy. Our country has five principal industrial regions in which energy-intensive activities are clustered: Rotterdam/Moerdijk, Zeeland (Terneuzen and surrounding areas), the North Sea Canal Area, the Northern Netherlands (Eemshaven-Delfzijl and Emmen) and Chemelot (Geleen region). The 12 major energy-intensive businesses, which collectively account for over 60% of carbon dioxide emissions from industry in the Netherlands, occupy key positions in these 5 industrial clusters.29 The operations of many of the businesses in these 5 regional clusters depend on the 12 largest industrial businesses ("Big Twelve") that operate in the Netherlands. Many supply chain relationships are in play. As a result, the realisation of frontrunner positions has an impact within the industrial environment and far beyond it as well. In accordance with the SER National climate approach for regional industrial frontrunners advisory report,30 these businesses will be asked to present themselves as pioneers in the global frontrunner programmes. This will allow the "Big Twelve" to encourage a similar development among their suppliers and customers and the SMEs in the region. The five regional clusters will thereby be positioning themselves as living labs and acceleration ▇▇▇▇▇▇▇▇, with the potential to attract new, ambitious and innovative businesses (both large corporations and SMEs), which will be able to prepare themselves for the new economy more quickly and effectively in the Netherlands and will be able to market this head start in knowledge on the international stage. In other words, the challenge will be to realise the changes in scale in these regions, which will be vital to the industry of the future and will lead to technological breakthroughs, substantial cost reductions, significant carbon emissions reductions and export opportunities. The developments that have recently taken place in wind and solar energy are inspiring examples in that regard.

Ambition. As is the case for the other sectors, we wish to realise a true transition for the industry sector. This means that we wish to offer industrial businesses prospects to ensure the transition to radical greenhouse gas emissions reductions in the Netherlands will take place. Although it would be possible to realise the national targets by shifting industrial activities abroad, increasing emissions abroad would ultimately not benefit the climate, and this shift would create a risk of loss of activity and jobs in the Netherlands. For that reason, the realisation of the reduction ambitions will have to go hand in hand with retaining a business climate that is attractive to businesses in the industry sector. This will contribute to our prosperity, our well- being and the nation’s employment. Broadly speaking, Dutch industry will be able to shape the transition through measures such as process efficiency, energy savings, CCS, electrification, use of blue and green hydrogen and acceleration of circularity (such as plastics recycling, biobased raw materials or steel2chemicalssteel2chemic als). This is by no means a blueprint for the transition, but rather the starting point for an adaptive process, in relation to which there are major differences in costs per 25 ▇▇▇▇▇://▇▇▇.▇▇▇.▇▇/nl/adviezen/energietransitie-en-werkgelegenheid. 26 Social and Economic Council (SER) (2018), Energy Transition and Employment Advisory Report. technology type. Green hydrogen and the circular economy are issues regarding which the Netherlands will be able to distinguish itself on an international level. Transformation processes will take place within the region, where synergies will have to be created between businesses. This will, for example, also involve connection to the heating demand in the built environment. Since the 1990s, Dutch policy has been aimed at strengthening regional clusters of connected businesses and knowledge institutes to support competitiveness and innovation. In recent years, Top Sector policy was chiefly responsible for strengthening the regions by way of the "triple helix" formula, which sees public authorities, businesses and knowledge institutions working together.27 The fruits of this strategy are primarily discernible in urban regions, which focused significantly on strengthening one specific sector, such as the Brainport in the vicinity of Eindhoven and Food Valley near Wageningen. Recently, the government decided to modernise its Top Sector policy by shifting its scope from sector-driven policy to mission- driven innovation policy.28 The agreements in the context of the Climate Agreement are expressly cited as examples of the modernisation of the governmentgovernment ’s innovation policy. Our country has five principal industrial regions in which energy-intensive activities are clustered: Rotterdam/Moerdijk, Zeeland (Terneuzen and surrounding areas), the North Sea Canal Area, the Northern Netherlands (Eemshaven-Delfzijl and Emmen) and Chemelot (Geleen region). The 12 major energy-intensive businesses, which collectively account for over 60% of carbon dioxide emissions from industry in the Netherlands, occupy key positions in these 5 industrial clusters.29 The operations of many of the businesses in these 5 regional clusters depend on the 12 largest industrial businesses ("Big Twelve") that operate in the Netherlands. Many supply chain relationships are in play. As a result, the realisation of frontrunner positions has an impact impac t within the industrial environment and far beyond it as well. In accordance with the SER National climate approach for regional industrial frontrunners advisory report,30 these businesses will be asked to present themselves as pioneers in the global frontrunner programmes. This will allow the "Big Twelve" to encourage a similar development among their suppliers and customers and the SMEs in the region. The five regional clusters will thereby be positioning themselves as living labs and acceleration ▇▇▇▇▇▇▇▇, with the potential to attract new, ambitious and innovative businesses (both large corporations and SMEs), which will be able to prepare themselves for the new economy more quickly and effectively in the Netherlands and will be able to market this head start in knowledge on the international stage. In other words, the challenge will be to realise the changes in scale in these regions, which will be vital to the industry of the future and will lead to technological breakthroughs, substantial cost reductions, significant carbon emissions reductions and export opportunities. The developments that have recently taken place in wind and solar energy are inspiring examples in that regard.