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Other countries can benefit of this work and the experience gained. The Netherlands is following active policy also in abating NOx emissions. The introduction of NOx trading with an annually decreasing cap for all electricity generation installations is a potentially effective tool to reduce the absolute levels of NOx emissions in a cost-effective way. The government has several studies under way investigating a range of alternative motor fuels prior to developing a policy. Such policies should be developed as soon as possible and the precise contribution that alternative motor fuels are expected to bring in energy efficiency and GHG targets should be made clearer.

The industry (including non-energy use4) is the largest 4. Including non-energy use of fuels of 1 Mtoe. 43 5 energy-consuming sector (38%), followed by the transport sector (24%), the residential sector (17%), the services sector (13%) and the agricultural and other sectors (7%). 8 Mtoe. Growth in industrial production over the same period was about 20%. The government estimates energy consumption in this sector to increase by 20% by 2010, driven by growing production volumes which exceed the improvements in efficiency.

The covenant is expected to reduce industrial CO2 emissions by over 5 Mt by 2012 compared to “frozen” energy efficiency. For the power generating sector, this will be nearly 2 Mt of CO2 (excluding the impact of new power plants). The government evaluated the effectiveness of the covenant in 2003. Some changes to the covenant are expected owing to the introduction of the EU emissions trading, which will make the covenant obsolete for the reduction of CO2 emissions. The government is a party to the covenant and agreed not to impose additional energy efficiency or CO2 reduction measures for the participants.

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