Extended notes on the assessment framework for economic considerations
Here the Advisory Division assesses, among other things, the costs (and cost divisions) and social-economic consequences of the measures proposed in the Climate Plan. Another aspect that is reviewed by the Advisory Division is the choice of the various instruments, e.g. standardisation, subsidies or pricing. If necessary, it also examines the form of subsidy measures. The Advisory Division also monitors the economic effects of national measures on a European and international level.
The Climate Plan must contain a review of the consequences of the government’s climate policy for the financial position of households, businesses and government authorities, employment opportunities, including education and training of staff, development of the economy and realisation of a fair transition.
In its advisory opinion (only available in Dutch) on the memo of Changes for the Climate Act, the Advisory Division noted that this type of review is assumed to provide insights into the overall costs of the proposed measures. The Advisory Division reviews the extent to which the Climate Plan provides such insights.
The Advisory Division also reviews the extent to which cost efficiency is taken into account. See the letter (only available in Dutch) from the minister dated 23 February 2018 on the cabinet’s approach to climate policy.