Dutch gov't wants banks, supermarket to do more to solve nitrogen crisis

Agriculture Minister Piet Adema wants to force banks and supermarkets to play a more significant role in solving the nitrogen crisis. They must make a financial contribution to making the agricultural sector more sustainable, the Ministry of Agriculture confirmed to NOS after a report by NRC.

According to the Dutch media, Adema wants to force banks to reduce farmers’ outstanding loans by 10 percent to create financial room for them to stop or make their businesses more sustainable. He wants supermarkets to stimulate the demand for sustainable products, for example, with campaigns to better inform consumers about the environmental costs of their purchases.

The banks and supermarket groups have six months to draw up a plan for their contribution to reducing nitrogen emissions. These demands will form part of the agriculture agreement.

Rabobank, traditionally a bank big in the agriculture sector, would lose about 3.5 billion euros if it canceled part of its loans to farmers. It told NRC that it wants to play a role in the agriculture agreement, but canceling loans is not an option. It can’t happen just like that, the bank said.

CBL, the sector organization for food trade, told NOS that it has had no contact with Adema yet. Still, it doubts whether the government can legally enforce a contribution to solving the nitrogen crisis.

The agriculture agreement aims to create a more sustainable and circular agriculture sector to reduce nitrogen emissions. It also includes agreements about animal diseases, public health, odor, and particulate matter, among other things. Adema hopes to present the agreement sometime in March.