Memorandum of Understanding with the CPB

On the grounds of the Climate Act, the Climate Plan must contain a review of the consequences of the government’s climate policy such as 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 and affordable transition.

The Climate Memorandum must contain, among other things, the financial consequences for households, businesses and governments in relation to significant developments in climate policy which deviate from the Climate Plan. Of course the Ministry of Economic Affairs and Climate will ask the Bureau for Economic Policy Analysis (CPB) to draw up estimates, as was also the case for the Dutch Climate Accord. This concerns budgetary effects, cost/income impact and the distribution of costs. If possible, the macro-economic effects will also be evaluated.

It is the task of the Advisory Division of the Council of State to make a normative assessment of climate policy as a result of the Climate Act and review the administrative elements in view of the achievement of the climate goals. The Advisory Division shall also apply the estimates and analyses from the CPB if necessary.

The CPB has experience with independent economic scientific research which includes analyses and estimates. Ministers or state secretaries are unable to give any directions with respect to the research methods or content of the reports generated by the planning agencies (see Note 4 of the Notes to the Prime Minister for Planning Agencies).

As far as the Advisory Division is concerned, it is important that it can make use of independent estimates and analyses from the CPB in a timely manner for purposes of its assessment of the financial/economic consequences of climate policy as a result of the Climate Act.

They have therefore made the following working arrangements:

  1. Information

The Advisory Division can ask the CPB to provide estimates and analyses and supplementary information regarding the relationship between the ongoing climate policy and state budget and the aforementioned financial/economic aspects which the Climate Plan, Climate Memorandum and Progress Report must contain.

  1. Consultation

The Advisory Division and CPB consult at least once a year concerning the Advisory Division’s need for forecasts, analyses and information.

  1. Publication of Memorandum of Understanding

The working arrangements between the CPB and the Advisory Division will be made public.

  1. Evaluation

It will be determined whether or not these working arrangements must be supplemented or altered periodically based on experiences.