Minister Ollongren (Internal Affairs) informs the Lower House that the plan is too expensive and too complicated. The so-called ‘building-related financing’ formed the foundation in the Climate Agreement to persuade people with a house to buy to participate in the CO2 ambitions in The Hague.
The cabinet wanted to amend the law so that the loan can be linked to the house. When the house is sold, the loan is transferred to the new owner. So someone does not continue to pay for the investments in the house as with a normal loan.
The Netherlands Environmental Assessment Agency has previously warned against high interest charges. There is no collateral for the loan, as is the case with a mortgage. Minister Ollongren now admits that banks ‘are not expected to be able’ to offer the loan ‘sufficiently attractive’.
The plan to transfer the loan from owner to owner met with numerous legal objections. Ollongren is still going to see whether the National Heat Fund – established by the cabinet – can develop a form of building-related financing.
It is not the first setback for the cabinet. The trial with natural gas-free neighborhoods is progressing so poorly that the makers of the Climate Agreement now believe that it is okay if the CO2 target is achieved in a different way.
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