18/06/2024

External offsetting evaluation

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Dialogic, on behalf of the Directorate-General for Rural Area & Nitrogen (DGLG&S) of the Ministry of Agriculture, Nature and Food Quality (LNV) and the Interprovincial Program Organisation for Nitrogen and Nature (IPSN) of the Interprovincial Consultation (IPO), conducted the evaluation of external offsetting.

Background

If an initiator wants to develop an activity that leads to an increase in nitrogen deposition on nitrogen-sensitive Natura 2000 areas where significantly negative effects cannot be ruled out, then he must mitigate these potential consequences (article 6, paragraph 3 of the EU Habitats Directive) in order to obtain permission. External offsetting – using nitrogen capacity from a company that is ceasing entirely or partially – is an example of such a mitigating measure. Prior to the entry into force of the Program Approach Nitrogen (PAS), external offsetting was already possible under national and European laws and regulations.

Research objective

The objective of the evaluation was multifaceted. Efforts were made to gain more insight into the facts and figures of external offsetting. This includes the number of applications/initiatives using external offsetting submitted to the competent authorities since the PAS ruling, the number of rejections, and the number of licences/permit decisions (such as the Tracé Resolution to be taken ex officio)/ spatial plans established using external offsetting. The aim was also to understand the effects of external offsetting, as well as the experiences of both the competent authorities and the offsetting donors and recipients involved in external offsetting.

Conclusions

Regarding the effectiveness and efficiency of external offsetting, we conclude that:
  • external offsetting is effective in itself, and during the evaluation period was primarily used for housing construction (via the SSRS), agricultural initiatives, and – to a lesser extent – by industrial initiators. External offsetting is rarely used for infrastructure projects.
  • the extent to which external offsetting can be deployed depends heavily on the state of nature. Due to conclusions in the nature target analyses of 2023 in various areas where deteriorating nature in the Natura 2000 areas cannot be ruled out and insufficient measures have been established for nature preservation, external offsetting is not or only limited possible in those areas (circa from 2023). This is because it is difficult to justify that the deposition reduction from offsetting donors is not necessary for nature or is additional. There is still an appeal pending at the Administrative Jurisdiction Division of the Council of State to determine if this additionality requirement also applies to external offsetting between private individuals.
  • it is difficult to draw accurate conclusions about the (side) effects of external offsetting because quantitative information is limited.
  • the efficiency of the policy rules for external offsetting is difficult to determine; meaning it is challenging to ascertain whether the 'costs of external offsetting' (time and resources used to shape, implement, and carry out the policy rules) are proportionate to the results achieved regarding the set work objectives.
The evaluation was presented to the House of Representatives on June 14. Read the relevant parliamentary letter here.