In the De Broeikas section, climate reporter Jeroen Kraan writes every week about what strikes him. This week: The Cabinet and Tata Steel celebrated a “important step” towards state aid, but it is still not sure if it will really come to that.
A few months ago I wrote about the constant uncertainty about the sustainability plans of Tata Steel. The country’s largest exterior of greenhouse gases was then embroiled in Ultrageheime conversations with the outgoing cabinet about state aid for his plans to produce ‘green steel’.
This week the Black Box opened and the cabinet signed a declaration of intent with Tata Steel. This showed that the government is willing to contribute 2 billion euros in subsidies to the greening of the factory. Tata itself lays down between 2 and 4.5 billion.
I am now used to the fact that news about Tata Steel always comes to the most inconvenient moments. This time the pasta was almost cooked when I received a message that the announcement was next. The whole evening I was then taking the very technical and legal documents, while the pasta was getting cold next to my laptop.
Political support is shaky
It soon became clear to me that all that uncertainty about the greening of Tata has not yet been removed. In July I wrote: “CO2, Nitrogen, Health: This deal has to arrange it all in one go”. But in any case, according to the cabinet’s own expert group, health has not been arranged well enough.
This summer, the House of Representatives adopted a motion stating that following the advice of these experts must be a “hard condition” in the negotiations on state aid. That motion by GroenLinks-PvdA MP Joris Thijssen was supported by a colorful collection of parties: the full left flank of the Lower House, but also NSC, PVV and JA21.
In her letter to the House of Representatives, outgoing climate minister Sophie Hermans writes that the health advice “, where possible and appropriately” were taken over in the declaration of intent with Tata Steel. But not all the advice of the experts have been followed.
The cabinet advisers write that trust in Tata Steel is “Wankel” among local residents. You can say the same about the political support for green state aid. In any case, it is a subject that there is no simple left -right distribution in the Lower House.
For example, on the left wing you have parties who want Tata Steel to close completely (Party for the Animals, Volt), parties who want greening to be accompanied by strict conditions (GroenLinks-PvdA, D66) and a party that only supports sustainability if the government gets shares in the company (SP).
On the right there is broader support for the preservation of heavy industry, but some parties are critical of sprinkling with climate mills. How does that 2 billion euros in sustainability subsidy relate, for example, to proposals such as scrapping the Climate Fund (PVV election program) or stopping the energy transition and deploying on coal (FVD)?
Negotiations are not nearly ready yet
What makes it extra complicated: although Tata Steel will be encouraged by the Indian parent company (as stated in the declaration of intent), hard commitments from India seem to be missing for the time being. Only in the final customization appointment will it come to which financial obligations the parent company is concerned and how it will be prevented that the subsidy counts flow to India.
The end of the negotiations is therefore by no means in sight. And in the meantime, certain events can still undermine the plans. Tata Steel is still the subject of a criminal investigation, is under the microscope on various fronts at the environmental supervisor and can be hit hard by a further escalating trade war.
They are all potential powder barrels that can make the negotiations go up in smoke. I dare to predict that there will be an unexpected turn around Tata Steel in the coming year. Probably when my pasta is almost cooked.
In The Section The Greenhouse , Climate Reporter Jeroen Kraan Writes Weekly about what he notices. This week: The Cabinet and Tata Steel Celebrated An “Important Step” Towards Government Support, but It is far from Certain Whether It Will Actual Happen.
A Few months ago, I wrote about the continuing uncertainty surrounding Tata Steel’s Sustainability Plans. The Country’s Largest Emitter of Greenhouse Gases was then Still Involved in Top-Secret Talks with the Outgoing Cabinet About Government Support for its plans to produce ‘Green Steel’.
This week, the black box opened and the cabinet signed a letter of intent with tata steel. This Showed that the Government is prepared to contribute 2 Billion euros in subsidies to make the factory More Sustainable. Tata itself will contribute Between 2 and 4.5 Billion.
I have Become Used to News about Tata Steel Always Coming at the Most Inconvenient Times. This time the pasta was Almost Done When I Received a Message That The Announcement was incoming. I then spent the whole event going through the very technical and legal documents while the pasta next to my laptop was getting cold.
Political Support is Shaky
It Soon Became clear to me that all that uncertainty about the greening of tata has not leg removed by a long shot. In July I wrote: “CO2, Nitrogen, Health: This deal has to fix it all at once.” But in Any Case, Health is not regulated well Enough Accordination to the Cabinet’s Own Group of Experts.
This Summer, the House of Representatives Adopted A Motion Stating That Following the Advice of these experts Must Be A “Hard Condition” in the Negotiations on Government Support. That motion by GroenLinks-Pvda MP Joris Thijssen was supported by a Motley Collection of Parties: The Entire Left Flank of the House of Representatives, But also NSC, PVV and JA21.
In her letter to the house of representatives, outgoing climate minister Sophie Hermans Writes that the health advice has bone incorporated “Where Possible and Applicable” in the letter of intent with Tata Steel. But not all the advice from the experts Has Been followed.
The Cabinet Advisors Write That Confidence in Tata Steel is “Shaky” Among Local Residents. The same can be said about the political support for Green Government Support. In any case, it is a subject about which there is no simple left-right division in the house of representatives.
For example, on the left wing alone you have parties that want tata steel to close complete (party for the animals, volts), parties that because greening to be accompanied by strict conditions (greenlinks-pvda, d66) and a party that only Sustainability.
On the right, there is Broader Support for Maintaining Heavy Industry, But Some Parties Are Critical of Scattering Climate Billions. For Example, How does that 2 Billion Euro Sustainability Subsidy Relate to Proposals Such as SCRAPPING THE CLIMATE Fund (PVV Election Program) OR Stopping the Energy Transition and Focusing on Coal (FVD)?
Negotiations far from over
What makes it Extra complicated: Although Tata Steel Will Be Encouraged To Become Greener by the Indian Parent Company (AS Stated in the Letter of Intent), Hard Commits from India Still Appear to Be Lacking. Only the Final Customized Agreement Will State the Exact Financial Obligations of the Parent Company and How It Will Be Prevented That The subsidy Billions Flow to India.
The End of the Negotiations is Therefore Not Yet in Sight. And in the Meantime, Certain Events Could Still Undermine the Plans. Tata Steel is still the subject of a criminal investigation, is under scrutiny on variant fronts by the environmental supervisor and could be hit hard by a further escalating trade war.
These are all potential powder kegs that could cause the negotiations to go up in smoke. I dare to predict that there will be annexpected twist surrounding tata steel in the coming year. Probably when my pasta is almost done.