Rabobank, one of the largest banks in the Netherlands, has warned in its 2024 interim report today (Tuesday, August 6) that the introduction of nitrogen reduction measures have been “particularly significant” for Dutch farmers.
Nitrogen emissions are only allowed in the Netherlands for projects such as housing development, construction and roads infrastructure and these must have a special permit to proceed.
In its latest interim report Rabobank again acknowledged that “the current agricultural system in the Netherlands has reached its limits and that change is needed”.
The bank, which reported a net profit of €2,818 million for the first half of 2024, said that as it “finances a significant part of the agricultural sector” it is committed to supporting its agricultural clients through a transition towards a “more sustainable sector”.
“Sector visions have been updated incorporating goals in the areas of nature, water, climate, biodiversity and animal welfare during the period 2023-2040,” Rabobank outlined specifically in relation to the Netherlands.
It also referenced the Dutch government’s nitrogen plans which were first unveiled in June 2022.
These include “emission reduction goals and prospects for farmers”.
But the bank warned that despite “extensive negotiations involving numerous stakeholders” including a contribution from Rabobank, an “agricultural agreement” has not yet been reached.
Rabobank
In the first half of 2024 Rabobank’s worldwide Food & Agri portfolio grew by 4% to €119.6 billion.
According to the chair of Rabobank’s managing board, Stefaan Decraene, although most of its customers appear to be “resilient” they continue to operate in “a dynamic environment with many economic and geopolitical uncertainties”.
He also underlined that “sustainability” plays a key role in the bank’s operations and decisions.
In its interim report published today Rabobank highlighted its decision to back ArkeaBio, a Boston-based start-up that is developing a vaccine to decrease methane emissions from livestock.
The bank also outlined that the outcome of recent European elections will result in “a prolongation of uncertainties” for the agricultural sector.