The role of the Dutch pension sector in the energy transition

“The pension sector can play an important role in making our economy and society more sustainable”

What does the report examine?

This report, compiled by scientists, experts from the pension sector, and policymakers, examines the extent to which Dutch pension funds and insurers contribute to the national energy transition and how this role can be further strengthened in the future. The authors draw on various sources of information: literature reviews, media reports, policy reports, and interviews. First, they consider the current state of affairs: the Netherlands is not on track to achieve its own energy transition goals, and pension funds and insurers have so far financed only a limited part of the energy transition. The report then highlights the main obstacles and makes recommendations to the government and the pension sector on how to increase the potential for contributing to the energy transition.

What are the key findings?

Between now and 2050, the Dutch energy transition will require an annual investment of €25 to €30 billion. A survey of insurers and pension funds shows that their current investments mainly focus on three themes: transport and distribution, renewable energy sources and energy carriers, and energy efficiency. Current
investments are relatively limited in scope compared to the total investment effort required. The main obstacles are policy and regulatory uncertainty, a lack of capacity and specialized knowledge among pension funds and insurers, and the fact that public-private partnerships in this area are still under development.

What are the implications?

• Uncertainty about long-term government policy often makes investment propositions too risky. A greater role for the pension sector requires consistent government policy and regulations and a financial framework that allows private/institutional capital to participate in transition investments.
• The pension sector itself is advised to remove barriers to sustainable investments by establishing a clear framework for these investments, developing and strengthening expertise, and contributing to investments in energy efficiency and the sustainability of industry.
• Finally, the report emphasizes that public-private partnerships are crucial for improving the risk-return profile of investments by the pension sector.