Review of compensation for losses resulting from production restrictions at coal-fired power stations

Michiel Tjepkema, Michiel van Emmerik and Colinda van Drunen carried out an evaluation study, commissioned by the Minister for Economic Affairs and Green Growth, into the compensation awarded for the reduction in production at coal-fired power stations, partly in order to meet the Urgenda targets. The Minister commissioned the study following a motion passed by the House of Representatives, which was prompted, amongst other things, by the view that the coal-fired power station(s) in question had been overcompensated.

The researchers draw a nuanced conclusion. On the one hand, the compensation for the infringement of property rights could perhaps have been slightly lower, given the foreseeability of the climate measures in question. On the other hand, it was clear that some compensation was certainly warranted. The researchers recommend that, in similar future cases where compensation is awarded for losses suffered as a result of climate measures, the government should make it clearer in advance which criteria and principles it will apply. This will contribute to a predictable and fair (neither too little nor too much) compensation policy in cases of loss caused by climate measures.

The Minister presented the evaluation report to the House of Representatives on 1 November 2024. 

View the full report