Big choices facing the Netherlands

Construction and housing

Having a home of your own is a fundamental aspiration for everyone in the Netherlands. A home is the place where people’s dreams come to life. Where families are started. Where we meet with friends and loved ones, or retreat to take time for ourselves. We seek out a home when life opens doors for us, presenting us with a new job or course of study, or indeed when other doors have closed.

A home is so much more than bricks and mortar. It is the key to an independent and enjoyable life. For many people in the Netherlands, however, obtaining an affordable and suitable home is no longer a given. All generations are now being impacted by the housing shortage. Young people are putting their lives on hold because they can’t find a place to live. Families are stuck in cramped accommodation and cannot move up the housing ladder. Older people who wish to downsize, or who want to move with a view to their future needs, cannot find suitable alternatives and so are forced to stay where they are. The housing shortage is affecting both the homebuyers’ and rental markets; the social housing sector and the deregulated rental sector; the countryside and the cities. Achieving a lasting solution therefore demands an approach under which we break trends and make unorthodox choices. Tackling the housing shortage will be our top priority.

This situation has not arisen overnight. In recent years, too few new homes have been built, while our society has changed enormously: for years now it has been impossible to meet the target of building 100,000 new homes each year. Owing to the combination of lengthy permitting and other procedures, local and other regulations, affordability requirements and the tax climate, it takes years to build a new housing development. In fact, the number of permits that are actually being granted is declining. People who wish to build or invest in new housing are too often hindered by rules that were introduced with the best of intentions.

We consider it our responsibility to confront this reality. The housing crisis demands an honest assessment of the scale and causes of the problem. It demands clear choices and cooperation between central government, regions, municipalities, businesses and civil society. We are opting for a three-track approach: more construction, affordable housing, and fewer obstacles.

Obstacles: scrapping, relaxing and simplifying rules

The housing market’s heavy regulatory burden means that many potential homes are coming onto the market far too slowly or not at all. More properties can be built, converted and rented if we cut rules, permits and procedures. We will therefore get to work on day one of the new government’s term. Here is what we aim to do:

We will cut down on objection procedures. We will introduce a single opportunity for judicial review (ending the accumulation of judicial reviews on top of objection procedures) and fixed time limits for judgments, and we will limit the scope for suspending construction (for example by means of fixed payments). We will raise the threshold for lodging objections and applying for judicial review. A permanent national scheme will be launched for the advance arrangement of compensation for loss in general and compensation for loss resulting from changes to a land-use plan. We will also make agreements with municipalities to scale up civil service capacity for permitting and parallel planning.
We will work with an annual Simplification Act to systematically simplify legislation and rules. For example, simpler rules will be introduced for upward extension and splitting properties, and these will be permit-free where possible. Municipalities will be required to draft clear policy on the circumstances in which property developers may do this. Central government will set minimum requirements on the circumstances in which it should be possible to split, convert or upwardly extend properties. We also aim to make house-sharing and renting homes by room/student room easier. Municipalities will need to have compelling reasons to restrict the splitting of properties into rooms or studios. Homes created on one’s own property for family use or informal care purposes will not require a permit, and obstacles to live-in tenant/landlord arrangements will be removed.
We will standardise sustainability and other requirements and ensure that all municipalities scrap any construction requirements that go beyond those laid down in statute, so that the same rules apply everywhere. We will require provinces to harmonise nature conservation rules, so that these do not hinder housing construction. Municipalities will establish the clearest possible spatial planning/environmental quality frameworks with standardised rules, making the work of aesthetics committees surplus to requirements.
The Structures (Environment and Planning) Decree will be simplified in order to eliminate unnecessary and costly building requirements.
Both legislation and the tax climate for the rental market will be shaped in such a way that the investment climate improves and more rental homes can be made available. Before the evaluation of the Affordable Rent Act takes place we will examine how the Act can be optimised to maintain the supply of rental homes.
Municipalities’ scope to impose residency requirements and purchasing restrictions aimed at deterring property investors will be drastically reduced and made more targeted. The specific approach taken in this regard will depend on the evaluation of the Act.

Construction: a clear path for new housing

Property developers, building contractors and contracting bodies such as housing associations are ready and waiting to start building more homes. They must be given the freedom to address the housing shortage by ramping up construction. Here is what we aim to do:

We will create at least 30 large-scale new housing developments in the national interest, spread throughout the country. These may take the form of new housing estates or neighbourhoods, as well as entire new towns. We will take a comprehensive approach: housing, work, accessibility, green spaces and other facilities will be developed coherently. We will also work to add new streets and neighbourhoods to established areas.
Central government will now play a stronger role once more in spatial planning and housing construction. Municipalities that exceed their homebuilding targets will be rewarded. Municipalities that lag behind in this regard will receive support from the responsible ministry in order to raise production. We will invest in the realisation incentive and homebuilding incentive schemes, and will safeguard the National Liveability and Security Programme (NPLV). The locations, numbers and timeframes of new homes to be created will be laid down in national legislation.
We aim to dramatically increase the number of homes available to rent and to buy. In order to achieve this, new homes must be built as soon as possible. These must be viable construction projects. Public funds will not only be spent on affordable rental properties; a proportion will be earmarked on a structural basis for the delivery of affordable homes to buy.
In new regional agreements on housing (woondeals) concluded between central government, local authorities and housing associations, we will aim for two-thirds to be affordable housing, 30% of which will be for the social rental sector and 25% will be affordable homes available to buy. This may vary from one region to another. There is also a housing shortage in relatively expensive regions, such as the Randstad conurbation, and these regions too will require more investment and construction. In other respects property developers will be free to build homes in accordance with the needs of home-seekers, whether these homes are to buy or rent.
All regional improvement grants will be bundled into a single budget to prevent fragmentation, and we will apply instruments contained in the former Crisis and Recovery Act in order to considerably shorten procedures.
New housing estates need to be easily accessible by both road and public transport. We will ensure that sufficient funds are available not only for construction but also for accessibility.
In order for more homes to be built, the financial position of housing associations and private landlords needs to improve. We want to enhance housing market mobility, and therefore we will introduce annual means testing to determine whether rental prices are still appropriate. Agreements will be made with housing associations about setting appropriate levels of rent. Means testing will also be introduced for new tenants in the social rental sector.
We want to use innovation to accelerate the construction of new housing. Prefab homes can be built more quickly and sustainably. However, different rules apply in every municipality, and as a result it is proving impossible to scale up production sufficiently. We will make prefab homes much more affordable and quicker to build by aligning the rules and developing a digital planning process. We will introduce a fast-lane permitting process for repeatable building concepts and type approval for factory-built and standardised construction. Such housing solutions will also help us to more quickly meet statutory housing targets for special groups, such as homeless people, people moving from care homes to independent living facilities, and people with refugee status.

Affordable housing: a suitable home for every budget

Everyone deserves an affordable home, be it home-seekers or people already in decent accommodation. Therefore, our plans for a healthy housing market not only involve the building of new homes, but also address concerns about whether the people who live in them can afford to pay for them. Here is what we aim to do:

In order to keep homes affordable and the housing market stable, the tax treatment of owner-occupied homes will remain unchanged.
The housing market mobility we stimulate will help groups such as first-time buyers/tenants and older people find decent homes. After all, many older people want to move to a home that meets the requirements of their time of life. However, the supply of decent ‘homes for life’ for older people is currently too limited. We will encourage the construction of new living concepts for older people so that they can stay in their communities with their neighbours for longer, while enjoying a better quality of life.
A housing market mobility bank or an attractive mortgage product for older people (‘mobility mortgage’) will make it easier to convert bricks and mortar into cash.
We want more shared living concepts for young people and students. Having fewer studio apartments and more house-sharing will not only quickly increase the supply of affordable homes, but will also help tackle loneliness. We aim to incentivise this with property-based subsidies.
Given the major shortages in the housing market, we want to make permanent occupancy of holiday homes possible. We will also work to solve policy implementation issues. Procedures for the sale of properties by housing associations will be simplified. This will give housing associations more financial scope to invest in newbuild homes and sustainability.
Municipalities will have more opportunities to pursue active land policy and to purchase land at reasonable prices, including through a firmer and more active application of preferential rights, and a facility to help fund the purchase of land. We want to prevent prices being driven up by increased demand. In this connection an instrument could be used to allow landowners’ private profits to be used more for public purposes, such as housing construction and infrastructure. Expanding the cost recovery system would be the quickest and most suitable option.
The National Performance Agreements and other outcomes of the Dutch Housing Summit will be continued. Housing associations are crucial both for public housing and for neighbourhood liveability. We will therefore give housing associations more scope to invest in developments that are not currently being addressed adequately by the market. Expanding the opportunities associated with commercial activities – as distinct from activities deemed to be in the general economic interest (diensten van algemeen economisch belang; DAEB) – could be useful in this regard.
In order to manage demand on the housing market, the government will also work to gain greater control over all forms of migration, who is able to come to the Netherlands and what housing options we make available to them.
Educational institutions will be given more responsibility for providing sufficient housing for international students. We will establish rules allowing such institutions to charge rent for accommodation.
Employers that wish to engage labour migrants must take account of the availability of housing facilities in the region concerned. If no such facilities are available, the employer will be responsible for providing them.

Agriculture, nature and nitrogen

We believe in the professional expertise and innovativeness of the Dutch agricultural sector. Sustainable food production, healthy businesses and a more robust natural environment go hand in hand. The Netherlands urgently needs to resolve the current deadlock on nitrogen emissions. The nitrogen problem is causing enormous uncertainty for the agricultural sector, impeding economic development and harming the natural environment. We are making a clear choice for a future-proof agricultural and food system and a robust natural environment. Resolving the nitrogen deadlock will enable entrepreneurs to grow their businesses, offer prospects to farmers including holdings that through no fault of their own do not have the necessary environmental permit (PAS-melders and interimmers), and allow us to build new homes. It will also enable us to restore biodiversity and the natural environment, both of which are under immense pressure.

The onus for ending this crisis and easing the pressure on the economy lies on those in the political arena, who will need to make decisions to arrive at a coherent package of measures that the sector can get behind. We will build on the robust proposals already put forward by various parties and public authorities over the past several years. This package will create scope in the short term for the construction industry and other businesses to go ahead with projects and make their operations more sustainable. It will also include a customised approach to legalise the operations of PAS-melders and interimmers and enable resumption of the permitting process. Money is needed for implementation, monitoring and enforcement. That is why we will reserve sufficient funding until 2035. We will also reinstate the Nitrogen Fund, which will be used to finance projects for nature restoration, integrated area development and the agricultural transition, that will achieve a legally demonstrable reduction in nitrogen emissions. This coherent package of measures will be elaborated in four tracks, outlined below, which we will lay down in law as soon as possible.

General nitrogen emission reduction

We will work on emission allocation ceilings and lay down emission reductions for all sectors (agriculture, industry, transport), allowing the process of issuing new permits to resume. Here is what we aim to do:

We will lay down sector-specific statutory emission targets for 2035, and interim targets for 2030. The targets for 2035, compared with 2019 as the reference year, are: a 42% to 46% reduction in ammonia (NH₃) emissions from agriculture; a 50% reduction in NH₃ emissions from industry; and a 50% reduction in nitrogen oxides (NO_x) from transport. The non-binding interim target for agriculture is 23% to 25% fewer NH₃ emissions by 2030, compared to 2019.
The critical deposition value (kritische depositiewaarde, KDW) will be replaced as soon as a legally sound alternative becomes available. Management will be aimed at achieving emissions reduction and be based on the actual ecological condition of nature areas. We will introduce a new system of permitting based on achievement of the targets. We will invest in greater implementation capacity for the competent authorities.
The government proposes a clear national approach to achieving the targets for nitrogen and CO₂ emissions reduction and for improved water quality. In consultation with the provinces, area-based approaches will be developed setting out targets for specific areas and, as soon as this is possible, targets for individual holdings. Management and control based on these specific targets will give farmers clarity about how much their holding can emit, putting them in the driver’s seat.
We will use an effective monitoring network to measure national and regional progress towards targets in the areas of nature, soil and water every two years and make adjustments where necessary. With regard to nitrogen, we will carry out more extensive measurements of nitrogen deposition, and soil and satellite measurements to validate models and monitor emissions of NH₃ and NO_x.
If the 2030 interim target is not achieved, supplementary measures will be taken in consultation with the parties involved. If the nitrogen target for 2035 is not achieved, the last resort will be a mandatory reduction in farms’ animal production rights or phosphate production rights. Companies in the industry and transport sectors will also have to take stricter measures if they fail to achieve their targets.
When a package of measures is developed that demonstrably guarantees the reduction targets will be met, a legally tenable mathematical threshold level will be introduced. Where possible, area-specific limit values will be introduced as soon as possible.
We will improve the legal basis for animal production and phosphate production rights, and extend this system to veal calves and goats. Animal production and phosphate production rights will be subject to a mandatory reduction when a holding is sold to a new owner outside the family. The existing legal basis linked to manure production ceilings will need to be expanded for this. The various reduction percentages will be determined before the summer, after consultation with the parties concerned and based on what is necessary in light of the broader societal challenges.
In addition, general reduction measures will also be agreed before the summer in consultation with the parties involved, with a view to achieving the 2030 and 2035 targets, and lowering the outstanding amount that will need to be achieved through goal-centred management.
Efforts should be made to create a closed-loop system as much as possible at farm or regional level, as this produces less pollution and benefits water quality. To this end we will introduce a simple land-based application standard by 2032 at the latest. Holdings that comply with the goal-centred approach will be exempted. We will also investigate the scope for a grassland requirement and a cover crop requirement in areas with a high leaching potential.
We will ensure ongoing financial support for the further development of area-based processes, such as extensification, innovation and management measures. Farmers who are helping to manage these processes will receive payment for their time.
More scope for experimentation will be created via ‘Field Labs’ for technical and social innovations, extensification, revenue models and a discretionary policy with regard to permitting and manure rules and groundbreaking innovations.
We will continue the schemes for voluntary cessation of farm operations, focusing them more specifically on livestock holdings in a certain radius around Natura 2000 areas suffering from excessive nitrogen deposition and on outdated farm holdings. The goal here is to restore the quality of nature areas and achieve effective nitrogen reduction. We will develop a separate scheme to accelerate the phasing out of outdated farm holdings.

Area-based nitrogen reduction around sensitive nature areas

Our nitrogen strategy is aimed particularly at improving the situation in nitrogen-sensitive Natura 2000 areas where the deposition value is currently exceeded, through a combination of voluntary and less optional measures. Here is what we aim to do:

We will establish zones around Natura 2000 areas that are wide enough to ensure the goals for the area in question are reached.
We will start with the most sensitive nature areas. These zones and the accompanying goals and measures for the most sensitive areas will be determined by the summer, in consultation with the provincial authorities. Within the zones near nature areas, a greater reduction in emissions will be necessary, for which the provincial authorities will adopt area-based approaches made up of innovation, extensification, converting to sustainable production, and moving or ending operations.
We aim for area-based approaches to tie in where possible with ongoing processes in the provinces, as approaches need to be tailored to the area in question. In the interests of a level playing field, provincial plans will need to satisfy requirements laid down at national level. Disbursement of funds will be conditional on uniformity of approaches (in terms of zone width and measures required) around comparable nature areas.
We will give priority to implementing this approach around at least five nature areas in 2026 where the situation is the most critical in terms of the impact of nitrogen deposition, including the Veluwe and the Peel. The approach in each area will combine measures to reduce nitrogen with nature conservation and restoration, improving water quality, combating groundwater depletion and restoring ecosystems.
We will also continue the area-based nitrogen approaches already initiated in a number of economic clusters, including the Port of Rotterdam and the Brainport Eindhoven region.
Based on monitoring results, land management organisations should be compelled to carry out nature restoration measures within fixed restoration objectives. Participation in the priority areas will be formally established, so that all parties involved – from the sector, nature conservation and other parties in the system – will have a shared role in steering towards the goals.
Agriculture will be facilitated in areas where it is feasible. Besides regional land banks, an integrated National Land Bank will be established to help holdings in the vicinity of nature areas to relocate if they wish. Through long-term structural policy, central management and incentive schemes, we will facilitate the transfer of parcels of land and farm properties from farmers without a successor to others, particularly young farmers. All parties in the system will be urged to contribute to this.

Nature conservation and restoration

We are proud of our Dutch landscapes and nature areas. We want to keep these areas in good condition for future generations to enjoy too. Here is what we aim to do:

We will work with provincial and water authorities, farmers and nature organisations to restore degraded nature areas. This will involve tackling the nitrogen problem and implementing an area-based approach to stop groundwater depletion and eradicate invasive alien species.
We will implement the Nature Pact and make new agreements for the period after 2027. More robust links between nature areas will reduce habitat fragmentation and reinforce biodiversity. Structural funding and clear accountability for effective nature management will enhance the results of conservation efforts. Where necessary, we will enlarge nature areas. Where possible, we will opt for agri-environmental stewardship and shared use.
With a view to fair payment for agri-environmental stewardship, we will aim to agree long-term contracts and expand the area covered by these schemes. We will pay farmers for development and management activities, based on what is most beneficial for nature and water.
We will provide structural funding for land management organisations through the grant system for nature areas and landscapes. Among other things, funding will be available to carry out (or intensify) vital conservation activities and take mitigation measures to restore the quality of nature areas, especially nitrogen-sensitive Natura 2000 areas. Grants will be tied to an obligation to achieve results.
We will implement the Nature Restoration Regulation. In disbursing the available resources, the focus will be on urban greening and nature restoration in the North Sea and the Wadden Sea. In determining how the Nature Restoration Regulation should be implemented we will also consider, within the existing legal frameworks, broader interests relating to spatial planning and the economy. We will conduct an evaluation of the objectives for Natura 2000 areas to find out if they can reasonably be achieved.

Targeted support

We are aware that we are asking a lot of farmers. But we are standing by them and want to help them transition to future-proof agriculture. Here is what we aim to do:

If farmers need to make changes to their farm management or if they have to cease operations in a particular location under the area-based approach, we will compensate them for the costs of extensifying, relocating or, if there is no other alternative, for compulsory buy-out and for depreciation of land and/or other losses. Farmers who adopt more sustainable practices or convert to less intensive or nature-inclusive agriculture will receive support. Funding for agri-environmental stewardship could give this an extra boost.
AI, drones, green gas, sensor technologies, robotisation, biotechnology and genetics, cultured meat and innovative fermentation will all play a role in the food production of the future. We will support private investment with grants and credit schemes. By collaborating with agribusiness and knowledge clusters, we can scale up and roll out proven innovations that will help us develop a future-proof, sustainable food system.
We will talk with parties in agricultural supply chains on how government can draft policy that will support sustainable chains in growing their markets in the Netherlands and more widely in Europe. We will also make agreements on bringing fruit and vegetables onto the market that have been grown using sustainable methods or that have an imperfect appearance. We will encourage the consumption of organic and sustainable products, and to this end will proceed with the action plan on increasing organic production and consumption.
We will work on improving the sector’s implementing capacity. To this end we will make a start on establishing a ‘marketing board 2.0’.

Other areas

We are also going to take measures in a number of other areas. Here is what we aim to do:

We will make national, binding agreements with greenhouse growers, arable producers and parties in the chain, aimed at substantially reducing the use of plant protection products, based on environmental impact points. The scope for integrated crop protection will be expanded. At European level, we will advocate authorisation of CRISPR-Cas and cisgenic technologies in plant breeding.
The government will support young farmers and growers, with a view to promoting generational renewal in agriculture. Existing startup aid will be continued at the current level until at least 2035, and any extra space within the Common Agricultural Policy will be utilised. In addition, ‘farm succession’ will be added to the Green Projects scheme and the Investment Fund for Sustainable Agriculture as a separate category. For young farmers and growers, this means the take-over price and the loan required to buy or lease land will be taken into consideration too.
The government will introduce a standard for methane-reducing additives in cattle feed as of 2029.
A draft order in council on humane livestock farming will be presented to the House of Representatives in the summer of 2026. It will set out the elements of a humane livestock farming standard, to be introduced in stages, based on voluntary agreements made with stakeholders in the Humane Livestock Farming Agreement. Pursuant to that agreement, this government will establish a national authority on humane livestock farming that will be tasked with monitoring the implementation of the livestock farming standard. In consultation with the parties to the Humane Livestock Farming Agreement, the authority will also advise on any adjustments to the timetable for the standard’s entry into force for reasons including feasibility. The government’s investment in humane livestock farming will take the form of grants and tax relief, offering economic prospects for family-run farms. There will be extra attention for young farmers.
By investing in technological and social innovation and in sustainable fishing techniques, we will help make Dutch fisheries fit for the future. Innovative aquaculture and new forms of cultivating crustaceans, shellfish and seaweed offer additional opportunities for sustainable fisheries. We will work with other North Sea countries and advocate clear European rules on these topics.

On track for the climate and green growth

We want to see a prosperous, clean and autonomous Netherlands. We believe that a thriving economy and a liveable planet can go hand in hand, but that requires us to roll up our sleeves and work together. The challenges are significant: our earning capacity is under pressure and decarbonisation in the Netherlands is stalling.

This affects all of us. People are worried about their energy bills. Companies that want to become more sustainable are encountering the limits of grid capacity. And we would like our children to grow up in a clean and safe world. All this will take a united effort. From the kitchen table to the boardrooms of the largest companies, it’s time for us all to get to work.

The government will take the lead. We will do everything possible to reduce congestion on the electricity grid. We will work at full speed on clean, domestically produced energy, and we will use our raw materials wisely. Targeted investment will enable companies to become more sustainable.

In this way we will create opportunities for green growth and reduce our dependence on repressive countries. We will continue working towards the climate targets and building a clean and safe future. And we will achieve this by the following means.

Investing in energy security and affordable energy from Dutch sources

It is crucial to invest in energy security and affordable energy, including for the long term. Here is what we aim to do:

We will tackle grid congestion with the highest priority. The most urgent projects will be carried out first. Available grid capacity must be used more efficiently, including through grid tariff incentives, flexible contracts and energy hubs. In addition to ongoing measures and the legislative programme to accelerate the expansion of the electricity grid, we will introduce a Grid Congestion Crisis Act to speed up permitting procedures and intervene if construction stalls.
We will fully commit to electrification, as this is the main route to decarbonising industry. Carbon storage in the North Sea will also be necessary. Government investment in carbon capture, storage and utilisation (CCUS) will take place through state holdings.
For clean energy produced in the Netherlands, we will continue to invest in achieving 40GW of offshore wind capacity through Contracts for Difference. Supplementary to this, we will better align electricity supply and demand in industry and improve connections with other countries’ grids.
We will extend the SDE++ renewable energy grant scheme with six new application rounds to accelerate the rollout of renewable energy sources. New sustainable electricity sources must be integrated into the energy network in a ‘grid-aware’ way.
We will invest in green gas and green hydrogen production and delivery. Under strict conditions, blue hydrogen (combined with CCS) can play a role in scaling up the Dutch hydrogen chain during the transition to a sustainable energy system.
We will strengthen the nuclear power cluster in the Netherlands, accelerate the small modular reactor (SMR) programme, and support nuclear innovations for maritime shipping. Using the available budget from the Climate Fund and in cooperation with market parties, regional authorities and industrial clusters, work will continue on the development of at least four new nuclear power plants. These may include both conventional reactors and SMRs.
We will continue strong investment in district heating networks, which will also help reduce grid congestion. People will receive clarity as soon as possible about whether they will be connected to district heating or be offered another sustainable heating solution. To accelerate the rollout and keep heating affordable for households, the government is prepared – within existing financial frameworks – to nationalise private-sector heating companies and invest in new developments. Where district heating is not the most suitable solution, we will have incentives and standards in place for the rollout of hybrid, smart heat pumps from 2029 onwards.
We will launch a capacity market for electricity supply security, so that there is always sufficient electricity available to meet peak demand.
We will prioritise improving homes’ energy efficiency, for example through a National Insulation Initiative, helping to keep energy bills structurally affordable. In the years leading up to 2030, neighbourhoods with the highest energy poverty will be supported through the National Liveability and Security Programme (NPLV). Landlords will be required to phase out rental homes with E, F and G energy performance certificates (EPCs) by 2029 and with C and D EPCs by 2040.
The Groningen gas field will remain closed. No new permits will be issued for gas extraction in the Wadden Sea. Existing sector agreements will be upheld, and gas extraction in the North Sea will continue. We will work with the sector to ensure a responsible phasing out of gas extraction on land.

Building a clean and safe future

We will work at full speed to achieve the climate targets. Meeting the 2030 climate target will be challenging, but we will keep pursuing that ambition. We will continue to implement measures that have already been agreed, resolve bottlenecks in implementation and accelerate breakthroughs wherever possible. Through strong long-term policy and a smart European approach, we will do everything necessary to achieve the climate targets for 2040 and 2050.

We will therefore continue working at European level to meet climate targets and uphold the targets laid down in the national Climate Act. Here is what we aim to do:

The agreement in the EU is to achieve a 90% net reduction in greenhouse gas emissions by 2040 compared with 1990 levels. This will require additional efforts. In 2026 the European Commission will present a package of measures aimed at 2040. The Netherlands will advocate an ambitious European package to ensure a level playing field. After the European measures have been adopted, we will align as much as possible with this approach. If necessary, additional measures will be provided for at national level in spring 2027 in order to meet the goals for 2040, taking affordability and feasibility into account.
We are working towards a fully circular economy by 2050, partly with a view to the supply of strategic raw materials. We will strengthen the National Circular Economy Programme and set sector-specific circularity targets, preferably at European level. This will boost innovation and market development, make European and Dutch businesses more competitive, and provide long-term certainty and scope for investment. We will also focus on implementation and on scaling up circular solutions in the market, for example by acting as a ‘launch customer’ and removing bottlenecks to create a level playing field.
We will expand charging infrastructure for electric vehicles and keep tax incentives for electric driving. We will encourage the use of carsharing, cycling and public transport.
We will continue operating an emergency energy fund to assist low-income households with their energy costs while accelerating the energy transition.
We will work with Germany and France to set standards on the use of biofuels in road transport and inland and maritime shipping after 2030, while safeguarding a level playing field for the transport sector and filling stations.
We will accelerate the agricultural transition, so that the sector contributes proportionately to achieving the climate targets.
We will stimulate national innovation in negative emissions and carbon removal. Internationally, we will work on establishing a knowledge cluster for carbon management.

Accelerating sustainability in energy-intensive industry

We are fully committed to green industry with lower emissions. This requires close cooperation between government and industry, taking a European perspective. This will increase strategic autonomy and help build a country that is fit to pass on to future generations. Here is what we aim to do:

We will create a level playing field and implement stable long-term policy to enable companies to invest in decarbonising their operations. To this end, we will abolish the national carbon levy and seek to lower electricity costs, with a view to a European level playing field and accelerating electrification. We will make clear administrative agreements with industry to ensure sustainability goals remain on track. When introducing new policy we will systematically assess the effects on the level playing field with neighbouring countries.
We will phase out financial incentives for fossil fuels, coordinating this with EU partners as much as possible.
We will uphold existing customised agreements; new customised agreements will focus on clusters or regions. The ‘Green Growth Package’ will be further developed.
We will draw up a national spatial-economic strategy for the energy-intensive port and industrial clusters designated as areas of national importance in the draft National Spatial Strategy, with a view to concentrating heavy industry activities in clusters.

The strongest economy in Europe

A strong economy is the basis for our prosperity and welfare. We can only afford to pay for our healthcare system, social security, education and safety because people get up every day to work. And because there are entrepreneurs who have the creativity, professionalism and courage to help our society make progress. However, our earning capacity is under pressure. When productivity grows faster in other countries, the Netherlands falls behind. We therefore need to place renewed emphasis on the fact that every euro we spend has to be earned first. For this reason, economic growth will be one of our main missions. In order to maintain our prosperity in the future, we need to pursue modernisation, sustainability, innovation and investment.

The most important step we can take now for the sake of our prosperity tomorrow is ensuring that people and businesses are willing and able to invest more in the economy of the future. Yet despite the great need for economic growth, investment is currently in decline. This affects our earning capacity and our future prosperity. It is therefore necessary for the government to spend less on consumption, invest more and facilitate more private investment. We are prepared to make the choices required for a strong economy, an efficient government and a strong Netherlands. We are aiming for calm, stability and predictability because we realise that decisions to invest are made over the long term. We must foster confidence that working, investing and doing business in the Netherlands pays. This will enable the Netherlands to become the strongest economy in Europe, with the best investment climate.

Investment

It is our goal to ensure that businesses – whether they are SMEs, startups, scaleups or large corporations – can successfully raise finance in the Netherlands. It must become possible once more for groundbreaking companies to become big in the Netherlands. We are therefore taking extra steps to free up more investment and strengthen the investment climate and finance ecosystem. Here is what we aim to do:

Within two years after the government takes office, we will establish a national investment institution to strengthen the Dutch capital market and enhance our long-term earning capacity. The institution will provide financing to projects and businesses that are unable to raise it independently in the private finance market. The institution will predominantly offer financing on market terms, consisting of equity capital and various types of loans.
Existing instruments can be integrated into the institution, which will be the Dutch partner of the European Investment Bank and will operate at a remove from politicians and ministries. Geared towards private investment, the institution will aim to mobilise institutional capital without crowding out private capital. We will make an additional capital contribution and also incorporate suretyships and guarantees. The institution will not exist to perform public tasks. Investments will be accounted for in the central government budget.
To ensure that businesses have better access to financing, we will work at European level towards the capital markets union and the completion of the banking union. We will harmonise supervision of the financial system, deepen national capital markets and streamline regulation. We will form a leading group of like-minded countries to harmonise rules, for instance on insolvency, without delay.
Where possible we will make use of European cofinancing and investment opportunities, for instance through the European Competitiveness Fund, the Chips Act 2.0 and Important Projects of Common European Interest (IPCEIs). Through a national EU funding arrangement we will provide Dutch businesses and knowledge institutions with predictability and access to European innovation programmes.
We want a stable tax climate for businesses. We want to support businesses in making investments that are aligned with our economy of the future, by expanding the Research and Development (Incentives) Act (WBSO) for the development of AI and technology and retaining the innovation box tax relief scheme. Where possible, the Energy Investment Tax Credit (EIA), the Environmental Investment Tax Credit for Entrepreneurs (MIA) and Accelerated Depreciation of Environmental Investments for Entrepreneurs (VAMIL) will be merged into a single robust investment scheme. Credit arrangements for SMEs, such as the SME loan guarantee scheme (BMKB), will remain in full force. We are committed to a level playing field in Europe wherever possible and will therefore not raise corporation tax. The freedom contribution for businesses will take the form of an increase in invalidity insurance fund contributions. The details will be worked out in consultation with employers’ organisations.
We will encourage people to invest more of their savings in the Dutch economy. There will be an EU investment account and we will study the option of win-win loans. In addition we will incentivise long-term investment by evolving the new box 3 system, which is based on actual return, into a capital gains system.
A robust financial sector is essential for driving investment in the Netherlands. We will continue ambitious efforts to tackle the regulatory burden, including making the Laundering and Terrorist Financing (Prevention) Act more risk-based. We will ensure that the rules for fintech companies are in line with international standards.

Innovation

Investing in innovation is vital to maintaining our prosperity and ensuring the long-term affordability of the entire public sector. The money needed will be earned in the future using technology that does not yet exist. Furthermore, in today’s global landscape, economic strength increasingly translates into geopolitical power. Innovation and applied knowledge will therefore be decisive to our geopolitical position in the world. Here is what we aim to do:

The government will work towards reaching the 3% target for R&D investments. While the private sector will have to provide the majority of this funding, the government can also use public investment to stimulate private investment. The government must also create the necessary conditions and act more often as the ‘launch customer’ for innovative technologies. We will continue implementing the National Technology Strategy and will support regional innovation clusters.
In order to help innovations progress beyond the development phase, we will deploy the National Growth Fund and where possible seek alignment with European cofinancing.
To drive the implementation of the National Technology Strategy forward, we will invest in regional innovation clusters and in participation in European innovation programmes and public-private innovation programmes.
The Netherlands remains fully committed to the construction of the Einstein Telescope. To secure this ambition we will specifically seek to cooperate with Germany and will upgrade the ETpathfinder R&D facility.
We will leverage the government’s procurement power to encourage disruptive innovations and offer an initial market using the DARPA model. For this purpose we will establish a National Agency for Disruptive Innovation.
We will make use of the scope offered by European legislation for ‘regulatory sandboxes’ and give young tech firms more freedom to experiment.
More economic value needs to be created from scientific knowledge. In order to establish more successful spin-outs from educational institutions, the aim is for Dutch knowledge institutions (including academic hospitals) to offer the best deal terms for startups in the entire Western world. We will merge the technology transfer offices (TTOs) into a single national TTO responsible for the development and rollout of best practice.
In line with the National AI Delta Plan, we will, among other things, work on developing an AI Compute Power Plan, remove structural barriers to the construction of AI infrastructure related to spatial planning, energy and permits and boost AI adoption and AI literacy in the Netherlands.

Entrepreneurship

Entrepreneurs are crucial to achieving more economic growth, generating broader prosperity and meeting the challenges of the future. They therefore need to be given the freedom to do business, achieve growth and transition towards sustainability and be given the appreciation that they deserve. Businesses do not operate in isolation; they reinforce one another and need a government that facilitates growth while providing stability and predictability. Here is what we aim to do:

We will continue the approach to tackling the regulatory burden. Each year we will scrap or simplify at least 500 rules. We will adopt ambitious reduction targets for each ministry, to be coordinated by the Minister of Economic Affairs and Climate. We will have all legislation assessed and scrap rules that entail high costs and/or that do not function well. Working with municipal authorities, we will develop standards for a lower regulatory burden and clear rules, so that local rules are not unnecessarily burdensome for businesses.
The government will simplify complicated rules for members of the public and businesses. To this end it will submit an annual Simplification Act to parliament, containing concrete proposals from ministries, supervisory authorities and implementing bodies. The first Simplification Act will enter into force in early 2027.
Our ambition remains the elimination of ‘gold-plating’ – the practice of imposing stricter national requirements on top of EU legislation. European directives and rules will be implemented more quickly and wherever possible exactly as they are. We support the EU’s Omnibus legislation. We will make agreements with supervisory authorities that rules will not be interpreted more strictly than necessary and that administrative burden will be limited.
Permit procedures for businesses must be accelerated, for instance through digitalisation. In the case of simple applications, we will examine whether (and if so, how) permits can be granted automatically and the fees waived when the authorities fail to comply with deadlines. In the case of larger projects, where possible we will allow construction to run parallel to the permit application. In addition, municipalities will be required to decide on objections to permits within 12 weeks.
Entrepreneurs can only do business when policy and taxation are stable. With a view to a level playing field, we want to retain schemes that are important to business but that have often been the subject of debate. Take for example the flat-rate tax allowance for expats, the innovation box (tax relief for innovation), the business succession scheme, loss offsetting, the participation exemption and the Research and Development (Incentives) Act (WBSO). Tax reliefs for entrepreneurs, such as the WBSO and the work-related costs scheme, will be simplified and the administrative burden will be reduced. The tax burden on director-major shareholders needs to be in balance.
The social security system needs to work for employees and employers, so that offering a job becomes a more appealing option.
The Dutch labour market needs talent. We will train talented students specifically for the labour market at our secondary vocational schools (MBO), higher professional education institutions (HBO) and universities, and where necessary we will attract international talent in a targeted manner. The measures for this are set out in the chapter on education.
It must be possible for startups and scaleups in the Netherlands to grow. We will therefore make it easier for staff to be paid partly in shares/share options and expand the possibilities for giving employees a financial stake in companies in a tax-friendly way. The investment institution that is being set up will increase the availability of venture capital for startups and scaleups.
We will create more scope for self-employed people. We will tackle false self-employment by splitting up the Employment Status Assessment and Legal Presumption (Clarification) Bill, which deals with this subject: its legal presumption of employee status will be introduced and the other provisions replaced as quickly as possible with the Self-employed Persons Act.
We will promote sustainable and responsible business conduct. We will make provision for the ‘steward-owned company’ in statute as a possible legal form for businesses. We will reduce the administrative burden and costs of businesses that want to operate sustainably.
The Dutch economy is strong partly on account of leading large companies that have opted to pursue growth and a sustainable future in the Netherlands. We will not scale back the flat-rate tax allowance for expats.
Businesses in high streets give a village or town centre its soul, sponsor local football and hockey clubs and create a festive mood around Christmas and Sinterklaas time. We will therefore continue the strategy to improve shopping areas.
Family businesses are crucial to our economy and therefore we will not scale back the business succession scheme or the deferral scheme for director-major shareholders passing on a substantial interest in a business.
We will encourage women’s entrepreneurship through the Code-V initiative and set ourselves the goal that by 2030 women entrepreneurs will raise just as much finance in relative terms as male entrepreneurs.

The government is going for growth

The government is going for growth, aiming for innovation, sustainability and productivity increases. In accordance with the Wennink Report, we will actively pursue 1.5% structural economic growth and if that target is not achieved, we will make adjustments. The Netherlands has ecosystems that operate on the basis of cooperation between major companies, SMEs, startups and knowledge institutions. We have therefore chosen to take a targeted and focused ecosystem approach and will pursue economic policy geared towards these systems. Here is what we aim to do:

We will continue the new strategic industrial policy focusing on certain domains and markets on the basis of potential earning capacity, societal challenges and the importance of our strategic autonomy.
In line with the existing focus on industrial policy, we will opt for four domains that are essential to our future economy and societal welfare: digitalisation & AI; security & resilience; energy & climate technology; and life sciences & biotechnology. Within these domains, we will focus on building up technological niche positions.
We will further expand the Netherlands’ strong position in clean manufacturing, with opportunities for circular construction materials, green chemicals, biobased plastics, hydrogen and the maritime sector.
We will allow businesses sufficient physical space to expand their operations. To this end we will designate areas of strategic importance around innovation clusters and pencil in sufficient space for business zones. Municipalities that transform business zones or end their use as such will, in partnership with other municipalities, ensure that new space is made available for businesses. When it comes to industry of national strategic importance, central government will coordinate where necessary.
In order to promote the healthy operation of the markets, we will give the Netherlands Authority for Consumers and Markets, as market supervisor, two new instruments: the call-in power and the new competition tool. In the detailed implementation arrangements we will limit the regulatory burden and uncertainty.
A more effectively operating European single market is crucial to our economic growth. We will therefore in so far as possible harmonise legislation relevant to entrepreneurs, such as company law and employment legislation. We are also committed to the completion of the single market.