Comming soon ...


"Long-Term Agreement Between the Association of the Dutch Chemical Industry (VNCI) and a number of Chemical companies, the Minister for Economic Affairs and Novem B.V. about Improving energy efficiency"

The Parties,
from the government:
•  the Minister for Economic Affairs, hereinafter called “the Minister” and
•  the Nederlandse Onderneming voor Energie en Milieu B.V. (Netherlands Agency for Energy and Environment), hereinafter called “Novem”

from industry:
•  the Association of the Dutch Chemical Industry (VNCI), represented in law and extra-judicially by a member of the Board of Directors and its secretary in accordance with its articles of association;
•  the companies that by means of a declaration, the text of which is attached as Appendix I, have indicated that they are signatories to this long-term agreement, hereinafter called “the Companies”.

The VNCI and the Companies are collectively called “the Chemical Industry”.


having regard to the fact

•  that the more rigorous objective of reducing emissions of carbon dioxide (CO2 ) is stated in the National Environmental Plan Plus of June 1990, namely “stabilisation of CO2 emissions in 1994/1995 at the 1989/1990 level” and “an absolute reduction in CO2 emissions by the year 2000 by 3-5% compared to 1989/1990”;

•  that a considerable proportion of the reduction in CO2 emissions to be aimed at should be achieved by improving energy efficiency;
•  that the integrated environmental task allocation, which is part of the Declaration of Intent Implementation Environmental Policy Chemical Industry, dated 2 April 1993, refers to this Long-Term Agreement as regards the approach to energy efficiency (see explanatory notes in Appendix II);
•  that this Long-Term Agreement has no effect on the procedures and working methods of the Consultative Group under the terms of the Declaration of Intent Implementation Environmental Policy Chemical Industry;
•  that in the Paper on Energy Saving, which was published by the Minister in June 1990, the energy efficiency objective for the industry is formulated as: a 20% improvement in energy efficiency by the year 2000 compared to 1989. This takes account of any rise in production that occurs. Non-energetic consumption is not taken into consideration;
•  that the VNCI signed a declaration on 6 February 1991 about improving energy efficiency, which stated that the members of the VNCI shall in the future continue to be actively concerned with improving energy efficiency, and that the VNCI and the Ministry of Economic Affairs are seeking to enter into a Long-Term Agreement with one another, concerning the implementation of the measures required to improve energy efficiency; that the Minister, in consultation with the target groups, intends to develop and achieve the objective of the Paper on Energy Saving by means of this Long-Term Agreement;
•  that on the part of the Minister this Long-Term Agreement is entered into on the basis of his responsibility for implementing the energy-saving policy as defined in the Paper on Energy Saving;
•  that on the part of the Chemical Industry this Long-Term Agreement is entered into on the basis of its recognition of the importance of the present environmental problems and its policy to contribute, acting on its own responsibility, to realising the national policy to improve energy efficiency.
•  that the VNCI acts on behalf of the Chemical Industry as interlocutor of the Minister in talks at sector level and on that account has a personal responsibility to contribute to realising the national policy to improve energy efficiency for the industry;
•  that on the part of the companies signatory to the agreement this Long-Term Agreement is entered into in order to contribute to the national policy to improve energy efficiency, each according to its own responsibility;
•  that on the part of Novem this Long-Term Agreement is entered into on the basis of its responsibility in implementing the policy to improve energy efficiency;
•  that the Chemical Industry – acting on its responsibility to defend the competitiveness of businesses in the Netherlands – seriously objects to energy levies within the framework of legislation on environmental pollution and that it is of the opinion that no additional levy should be made in the Netherlands. It assumes that the current unilateral Dutch energy level shall be taken into account when introducing an international energy levy;
•  that the VNCI assumes that the Minister is making an effort to prevent that the Netherlands alone, or with some of the other EC Member States, shall introduce levies on all fuels, insofar as applicable for the chemical industry;
•  that the Parties agree that entering into a Long-Term Agreement about improving energy efficiency is the most effective means at this time for the Chemical Industry to achieve the energy efficiency objective, formulated in the National Environmental Plan Plus and the Paper on Energy Saving;
•  that if any new instruments are introduced in the future, among which energy levies, it must be considered to what extent a given instrument conflicts with the effective implementation of Long-Term Agreements, or adversely affects the international competitiveness of this branch of industry;
•  that it is the intention of the Minister that there shall be consultation between industry, the Ministry of Economic Affairs, the Ministry of Housing, Planning and the Environment, the Association of Dutch Provinces and the Union of Netherlands Municipalities, in connection with the government's position on the report by the Kortmann Commission, about linking the Long-Term Agreement and the granting of licences under the Environmental Protection Act.

Hereby agree

Article 1


In entering into this Long-Term Agreement the Chemical Industry has set itself a target of improving energy efficiency by the year 2000 by 20% compared to 1989.


Article 2

The Companies

The Companies shall take on the following commitments:

2.1 Approach

Each company shall draw up an Energy Efficiency Improvement Plan.

When establishing priorities internally, the Companies shall endeavour to attach great importance to modernisation and investment efforts that contribute to the objective stated in Article 1.

Possible improvements in energy efficiency shall be implemented where considered sensible from a technical, financial and safety point of view. The Companies shall strive to improve energy efficiency as far as practically achievable.

The financial calculations of investments to improve energy efficiency shall be performed using the customary methods employed in the branch of industry.

In the case of new construction work or adaptation of existing installations, the latest technology shall be used, insofar as this is financially sensible, given the need to maintain (international) competitiveness. The final choice of the process and the installation shall be determined by the individual company.

Companies with several sites in the Netherlands may shape the improvement to be achieved using a group approach. This group approach shall be specified in the Energy Efficiency Improvement Plan.

As far as possible the Companies shall seek process-integrated solutions, which optimise energy consumption, product quality, environmental and financial aspects, etc.

In non-competitive areas the Chemical Industry shall endeavour to carry out joint research, share experiences or demonstrate new techniques. In order to carry out joint research, share experience or demonstrate new techniques, the Chemical Industry shall, where possible with the assistance of Novem, promote the formation of Users Groups. A plan for communication and transfer of know how shall be developed by Novem in conjunction with the Chemical Industry.


2.2 Monitoring and Reports

The Companies shall report annually to Novem concerning the improvement in energy efficiency achieved. Information shall hereby be provided about total energy consumption, the energy efficiency index achieved and the main projects and measures carried out in support of the Energy Efficiency Index in that year.

Novem shall report annually to the Consultative Group on Energy Efficiency Improvement, as stated in Art. 8, concerning the improvement in energy efficiency achieved by the Companies in that year. This report shall contain quantitative figures for the energy efficiency index achieved by the Companies in that year and, for the purposes of the target group consultations, information about the development in CO 2 emissions.

The report, from which no information about individual Companies may be deducted, shall be prepared on the basis of information supplied by the Companies.

The energy consumption and production volume in the year 1989 shall be used as reference for the Energy Efficiency Index.

Besides this, in consultation with each company, Novem shall determine per company whether 1989 alone or an average of a few years, with 1989 as the midpoint, in the period 1987 – 1991, will be used as reference. Energy consumption shall be calculated exclusive of non-energetic consumption. The value of the energy efficiency index in 1989 shall be set at 100. For definitions, reference shall be made, unless otherwise agreed, to the definitions used in the National Statistics Bureau statistics on Energy Supply in the Netherlands in 1989.

The Energy Efficiency Index (EEI) is defined as the quotient of the energy consumption in the year in question and the product of the production volumes achieved in the year in question and the specific energy consumption of production in the reference year 1989.

A considerable number of companies supply their steam needs by means of Combined Heat and Power units (CHP's). The total energy saving involved in CHP's, including the co-generated electricity supplied to the public grid, attributed to the chemical industry when there is a direct link between steam generation and its consumption, and the electricity generated. The saving associated with structurally condensed operational management shall be shown separately.

The improvement in energy efficiency that is involved in CHP's that are managed under a joint venture, for example with an electricity or utility company, or by an electricity or utility company separately, shall be shown separately for administrative reasons.

The development of the energy efficiency index shall be kept up to date.

Corrections can be made for:
•  changes in energy consumption due to modified production specifications;
•  extra energy used to satisfy more stringent environmental requirements;
•  changes in energy consumption due to the use of other raw materials;
•  start-stop operations and degree of capacity utilisation.

The correction factors, and their effect, shall be separately kept up to date.


Article 3


The VNCI shall undertake to:
•  continue to draw the attention of its members to the need to contribute to the national policy to improve energy efficiency for the industry in the manner described in this Long-Term Agreement. To that end it shall develop effective activities.


Article 4

The Minister

The Minister shall take on the following commitments:
•  to endeavour to continue providing financial assistance within the framework of schemes and Novem programmes;
•  to seek to support the Long-Term Agreements concluded by means of this financial instruments aimed at the industry;
•  to consider increasing the budget for the chemical industry if it appears that energy-saving activities in the chemical industry produce results more quickly than in other sectors;
•  to endeavour to keep up an incentive programme, such as the Novem-industry programme, until the year 2000 and to keep a part of this programme available for the chemical industry;
•  to endeavour to maintain the EU research and demonstration programmes in the field of energy, known respectively as Joule and Thermie;
•  to exert his influence to resolve any problems not of a financial nature;
•  to make an effort to realise the policy with regard to regulating levies as outlined in Appendix III
•  in principle to strive to bring levies, taxes and excise duty on all fuels into line on a European level, insofar as applicable to the chemical industry.


Article 5

Energy Efficiency Improvement Plan

Each individual Company shall determine an Energy Efficiency Improvement Plan in consultation with Novem, which shall initially cover the period until 31 December 1996 and shall include a look ahead to the year 2000. The Energy Efficiency Improvement Plan is not a public document. The following shall be laid down in the Energy Efficiency Improvement Plan:

•  objective with regard to improving energy efficiency for the company;
•  development of possible activities to achieve the objective;
•  an estimated time schedule for the activities;
•  method for determining the Energy Efficiency Index;
•  the point in time at which the Energy Efficiency Improvement Plan shall be updated by the company and Novem;
•  the point in time at which the progress of the activities, which are described in the agreement, shall be evaluated, and at which the activities shall be adapted to new knowledge. The intervals shall fit in with the internal procedures of the company.


Article 6

1997 evaluation

In 1997 the Parties shall carry out an evaluation on progress of the implementation of the Long-Term Agreement. The improvement in energy efficiency achieved shall be determined.

The feasibility of the objective shall be evaluated in the light of forthcoming projects.


Article 7

Modification and termination

If significant, unforeseeable developments occur during the period before 2001, for instance with regard to:
•  policy in the field of energy and the environmental and technological knowledge in this field;
•  the budget funds, available and forecasted, for promotion an improvement in energy efficiency;
•  legislation (particularly with regard to levies and the environment) and jurisprudence;
•  economic growth, competitiveness, the development in operating efficiency and expectations in this regard;

•  conditions that affect the economic context in which the improvement in energy efficiency has to be brought about with substantial consequences for the implementation of this Long-Term Agreement.

The Minister, the VNCI and the Companies shall consult with one another to consider to what extent the contents of this Long-Term Agreement need to be adapted.

If these consultations do not lead to a consensus within 6 months, any of the Parties may terminate this agreement.

The foregoing also applies in the case of a ruling by the Administrative Disputes Division of the Council of State about the imposition of energy regulations by the competent authority under the terms of the Environmental Protection Act, which has substantial consequences for the implementation of this long-term agreement.


Article 8


A Consultative Group on energy efficiency improvement shall be established by the Parties in joint consultation.

Representatives of the VNCI, the Minister and Novem shall have a seat in this Group. The Group's Chair shall be provided by the VNCI, while Novem shall act as Secretary.

The task of the Consultative Group on energy efficiency improvement shall be:
•  to advise the Parties, voluntarily or on request, about the implementation of this Long-Term Agreement;
•  to prepare annual evaluations of progress based on information collected by the Chemical Industry with the assistance of Novem;
•  to control the system of monitoring and reporting on progress to the Minister;
•  to gear the activities, conducted under the terms of this Long-Term Agreement, with those that are executed under the terms of Gasunie's Environmental Plan for Industry, so that all of these activities reinforce each other.

The Consultative Group on energy efficiency improvement shall endeavour, through its activities, to find solutions to any problems, via joint consultation. It shall refrain from such proposals in the event that one of the Parties has strong objections

No information shall be discussed in the Consultative Group that can be traced back to individual companies.

The Consultative Group on energy efficiency improvement shall present the results relevant to its activity-stimulating task to the consultative group that has been set up to implement the Declaration of Intent Implementation Environmental policy Chemical Industry.


Article 9


In compliance with Article 10, the Consultative Group shall compile a report each year, describing the progress made by the Companies in improving their energy efficiency. By way of illustration, sample projects shall be mentioned. Due attention shall be paid to providing broader information to social target groups.


Article 10


This agreement is a contract under civil law.


Article 11


In order to allow as many as possible companies in the chemical industry in question (BIK code 29 and 30 with the exception of 295 and 296) to participate in this Long-Term Agreement, companies are able to become signatories after the date this Long-Term Agreement is signed.


Article 12


This long-term agreement is valid until 31 December 2000.


Article 13


The Parties involved in this Long-Term Agreement are bound to confidentiality of any information, provided by the Parties under the terms of this Long-Term Agreement, considered or intended to be confidential, with the exception of information disclosed by statutory provisions. The Parties will impose this requirement of confidentiality on their employees.

As agreed and signed in The Hague on this day of 24 November 1993,


spacer spacer
  Design by ESD Bulgaria