Port of Rotterdam Authority has responded to the demand letter from Advocates for the Future (AftF). The Port Authority reinforces the need for a transition to a climate neutral port in 2050 and explains how it is actively taking efforts to achieve this goal in collaboration with companies and governments. The transition is a priority for the Port Authority. However, it cannot fulfil the AftF’s demand to force companies to limit fossil fuel activities in Rotterdam because this is not aligned with current European and Dutch climate policy and is not part of the Port Authority’s role. Furthermore, it is an ineffective way to reduce worldwide CO2 emissions.
The Port Authority is concerned that ceasing fossil fuel activities in Rotterdam could have major consequences, including for the security of supply of energy and the position of European industry.
The Port Authority believes it has a social responsibility to contribute to the objectives of the Paris Agreement (2015). ‘Climate neutral and circular’ is one of the four strategic focal points in our Corporate Strategy. Reducing CO2 emissions plays a major role in the decisions the Port Authority takes and the projects it executes.
The Port Authority was founded to strengthen the position of Rotterdam’s port and industrial area in the interests of the Netherlands and Europe. The Port Authority leases sites to companies and develops the infrastructure in the port. In this role the Port Authority has been taking action for years to stimulate a reduction in CO2 emissions by companies in the port and beyond, through means such as developing the necessary infrastructure and by attracting sustainable companies.
The Port Authority stimulates the port’s transition
Tackling the effects of climate change requires a completely new, global system for energy and raw materials. Companies worldwide, including in the port, must make major investments in adapting their production, in new plants and in the development of new production chains. Over time, the use of fossil energy and fossil fuels will reduce.
The Port Authority is taking efforts to stimulate and facilitate this in Rotterdam. To this end, it is implementing a wide-ranging transition programme, which it set up following the Paris Agreement. Various projects have already been implemented or are ongoing, facilitated by the Port Authority. At the moment the Port Authority is noticing that companies are postponing their investments in sustainability and suspending construction projects as a result of the unfavourable investment climate and the lack of demand for sustainable products. For companies, it is crucial that they can earn back their investments in sustainability over time. The Port Authority’s influence over this is extremely limited.
Governments are setting the pace of emissions reduction
In the transition, governments determine the pace and method of the reduction of greenhouse gases. This requires complex deliberations that involve many more factors aside from the reduction of emissions, such as security of supply, affordability of energy, strategic independence and the competitiveness of industry. This decision making is in the hands of the political sphere, which is necessary to ensure wide-spread support for the transition. European and Dutch legislation is aimed at reducing emissions under uniform conditions through European measures such as the European Union Emissions Trading System (EU ETS). This legislation does not contain any prescribed routes for limiting or ceasing fossil fuel activities for specific regions or companies.
The Port Authority has two shareholders: the municipality of Rotterdam and the Dutch state. Therefore, the Port Authority is operating within the political decision making and policy frameworks of the government. For the cessation of fossil fuel activities, the Port Authority would have to ban activities in the port which are legal and for which the government has expressly granted permission. A substantial proportion of fossil fuel activities have been designated by the government as being vital to Dutch society, including the refining of crude oil into petrol, diesel and kerosene, the import of gas and the manufacturing of basic chemical products by the chemical industry. The Port Authority is therefore convinced that it is not obliged to force companies to limit fossil fuel activities.
Local approach does not help tackle climate change
The Port Authority does not expect that limiting fossil fuel activities in Rotterdam would contribute to a reduction in global emissions. At present, there is still an insufficient supply of sustainable energy and raw materials to keep society running. Companies therefore continue to fulfil the demand for fossil energy and fossil fuels, while gradual investments are made in the production of sustainable energy and fuels, such as recycled plastics, hydrogen and biofuels. We are seeing the first examples of this in the port, including the largest cluster for biofuels in Europe and two large hydrogen plants under construction.
If a region imposes stricter rules, the companies established there would likely move their fossil fuel production and imports to other regions and countries. They would potentially also make their investments in sustainable production elsewhere. There is a good reason why the European climate policy is aimed at leading an efficient transition with regulations that apply across Europe.
Forcing certain activities to stop in only Rotterdam would therefore only result in a waterbed effect in terms of CO2 emissions. It also would not aid in the possibility of establishing sustainable industry in Rotterdam. Simultaneously, it would have substantially negative effects on the port of Rotterdam and therefore on the Netherlands and Europe.
The Port Authority continues to implement its strategy
The Port Authority will continue to implement its strategy and approach to creating a climate neutral port, as laid down in the Climate Transition Plan. At the moment, the Port Authority is refining its scenarios for the transition up to 2050. We are mapping out various paths to a climate neutral, competitive and resilient port and include this in our approach. The Port Authority is certainly open to a continued dialogue with Advocates for the Future and other parties involved in the port.
Source: Port of Rotterdam
