This month, the Dutch Ministry of Economic Affairs and Climate has sent a letter to the Dutch parliament to share details on the SDE++ regulation for 2020. SDE++ is a Dutch subsidy scheme to promote CO₂ emissions reduction measures. The Ministry based its recommendations in part on three Guidehouse reports: an analysis regarding base levels (“basisbedragen”) for Carbon Capture and Sequestration (CCS), an assessment of the cost-effective alternatives to CCS (the so-called Sieve (“Zeef”) regulation), and an identification of industrial electrification technologies for future SDE++-rounds.

With the first analysis, Guidehouse supported PBL in calculating the SDE++ 2020 base levels for three CCS sub-technologies. The SDE++ advice provides the basis on which the Ministry determines the final volumes for CCS, to be announced in spring this year.

The Sieve is a set of selection criteria to ensure that CCS is only eligible for subsidy if no cost-effective alternatives are available to reduce the CO₂-emissions. Guidehouse concluded that the Sieve should favor the use of biomass for heat and the direct use of CO₂ over CCS in some applications. Furthermore, Guidehouse recommends updating the Sieve annually to reflect changing conditions.