0000001343 00000 n This sets a high bar. 0000236955 00000 n The ruling in the case, which was brought by various nature organizations, comes as no surprise. For lessees, the attention points focus on whether the leased real estate meets the statutory requirements, whether the landlord has obtained necessary permissions and addressed any non-compliances, and the continued non-compliance risks and related costs of having to relocate. Q&A: How the ‘Dutch case’ ruling is paralysing housebuilding. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> The legal basis for the recent court decision can be found in European law.

Projects that fit within an irrevocable zoning plan that have been adopted using the APN but have not yet been permitted, or projects for which otherwise no appropriate assessment has been carried out, will be subject to appropriate assessment requirements. See also: What we do well in Dutch nature. The PAS permits must be issued for construction projects and farms in the vicinity of protected nature areas, so-called Natura 2000 areas. In conclusion, the ECJ ruled that the framework itself could, in principle, be in accordance with European law but the actual application and conformity of such a framework is for the national courts to decide. 0000235998 00000 n

Where new leases are entered into, lessees can expect to have specific requirements in this respect and/or obligations for lessees. Specific risks arise from building and zoning permits, as of 2015: Multiple projects or activities were annulled in recent months by the competent authorities or Council of State. Many more court cases follow in which the so-called Nitrogen Approach Program (PAS) plays a role: around 180 cases are involved at the Council of State alone. Lenders may consider developing products that cater to redevelopment or upgrading of non-compliant real estate. Construction of roads or farms depends on permits. "The Dutch government is investigating ways to tackle these issues but, right now, there is no clear outlook on a solution or its timing.". 127 0 obj <>stream The asset value effects of non-compliance vis-à-vis compliance as well as running costs should also be factored-in when considering whether or not measures should be taken. On the basis of the PAS, governments gave permission for all kinds of activities in which nitrogen is emitted. In addition, officials are looking into the option of taxing landlords and investors when they buy new property, and at a further cut to mortgage interest deductions, the paper said. On the basis of the PAS, governments gave permission for all kinds of activities in which nitrogen is emitted. For lenders that are financing assets and asset portfolios, key attention points include whether the owners are in compliance and have obtained the necessary permits, and may put debt service at risk. The Dutch government is investigating ways to tackle these issues but, right now, there is no clear outlook on a solution or its timing, prompting the market to either come up with solutions or await the government's plan. Non-permitted activities and projects below the thresholds of the APN and therefore allowed without further permission are now, in principle, conducted without the required permit and illegal. In addition, the Dutch government presented a report "Not everything is possible" (Niet alles kan) in September 2019 on solving the nitrogen issue.

September 5, 2019 . For example, for the construction of a road or the construction of a livestock farm. The problem with this approach is that it is not at all clear beforehand whether the measures work. h�b```e``�"���@(������ᮖ�9L����+290tz�م��7 E;����54��l�j@Z ���"R�d��/����a����`ǰ�@m���b���k0�V�^ ���9�}����up��`�.�p�Qh6�3�[IiFG@,�Ȁ �]r���-�h_ DK#@� �c3p These argued the APN was infringing European law and in no time – pending appeals and the response of the European Court of Justice (ECJ) of the pre-judicial questions – the Dutch Council of State (Afdeling bestuursrechtspraak van de Raad van State) suspended more than 200 cases (projects/activities) relating to nitrogen issues or where such arguments had been raised. 3 0 obj The Netherlands has more than 160 Natura 2000 areas, such as the Wadden Sea, the Fochteloërveen, the Oosterschelde, the Biesbosch and the Oostvaardersplassen. The cabinet is set to reply to the report by the beginning of October.

0000235782 00000 n 0000125986 00000 n Given this framework is based on European law, this is not only a national issue. For example, for the construction of a road or the construction of a livestock farm. It ruled that in principle the framework could be in accordance with the European legal framework, provided that the assessment used and input (emission bank) is thorough and there is absolute scientifically substantiated evidence there is no reasonable doubt that an envisaged project or activity will not have negative effects for the related conservation areas. The irrevocability of all permits underlying financed assets should be a condition precedent to any financing offered. Dutch nitrogen policy is contrary to European nature legislation, the Council of State ruled on Wednesday. On 7 November 2018 the CJEU gave judgment in Joined Cases C-293/17 and C-294/17, Coöperatie Mobilisation for the Environment UA, Vereniging Leefmilieu V College van gedeputeerde staten van Limburg and Stichting Werkgroep Behoud de Peel v College van gedeputeerde staten van Noord-Brabant. Milieudefensie calls the statement "good news for nature, the climate and our health". The organization calls on the government to "not come up with new tricks to bypass European rules". While this may open up opportunities for market players seeking to alleviate concerns for developers, any new way of conducting appropriate assessment is almost guaranteed subsequent litigation and scrutiny.

Finally, if a project has negative effects and the ADC-test cannot successfully be adopted then a permission for such project or activity should be withheld. The ruling of the highest administrative court can have far-reaching consequences for construction projects in the vicinity of nature reserves. Arib calls Baudet's assassin remark 'sad show', Remkes Commission: Nitrogen emissions must be halved by 2030, The Cabinet is examining whether construction can be done without a nature permit at low nitrogen emissions, Cabinet will investigate nitrogen threshold for construction after report Remkes, Dutch farmers may use extra nitrogen from manure, provided it is not too hot, Farmers are allowed to use extra nitrogen from manure, provided it is not too hot, Dutch farmers may use extra nitrogen from manure again, provided it is not too hot, Remkes about the nitrogen policy: 'No more non-commitment', Voice actor of the first Doraemon Kosei Tomita dies, Hong Kong announces the 2020 list of honours and awards of 687 people. Too high concentrations of nitrogen are harmful to nature and health. The Court also ruled against the Dutch government. On November 7, 2018 the ECJ answered these questions. Initial estimates of the financial and economic impacts of this decision amount to a loss of EUR 14 billion due to the suspension and/or cancellation of projects. 0000006485 00000 n Due to an excess of nitrogen, certain plant species grow faster, while others end up under pressure. x��[�n�H}7��Gi3l6�@`@c;�&N6vv&�@K�ĉ.R�7�u�yk�Ms�I$�/�u9u��#�~�޽�t��Z�����+�������RH�q}q��¥���+�[�ϻH���3W��[\}����1�������V7����l';��D��z�#I��,� ,��NX/�!�^x��i4���ҧ~$���k�:N��&����~Nvb6��,1>����6�Ɠ݁�����{A�D����� �'���Z���$�>�ϐq�S5�����aO����CЅ�Ξ j�����$�v���_6)��61�w��.�ޕ�+����+�'N��32ɖu�;�|7�j"�'ڤ�_�Ӌ`�#=�i���+2�7���&�sE���I�酲×��B\}�b�}�4��{��7����Glu# ����Tʉ�z��+�|�B�t3�%��o�$#O�|k���C'0�Կo�_��$��X��^��9�lo3bܜ���#)+t���!������ Z�?з|C��K2ОŶYҀ}!0����sc3�8��n���{v�-|�69JN&?�.��$4I�����c���d�r�o��8��DP��A�! DLA Piper is a global law firm operating through various separate and distinct legal entities. This includes cookies from third party social media website if you visit a page which contains embedded content from social media. Cabinet sources told the paper the government plans to bring in ‘unorthodox measures’ such as setting up a €1bn housing fund for local councils and a reduction in tax for housing corporations. 0000002304 00000 n LA���j�(l�������Z�X 0000461468 00000 n For example: The fallout is not yet clear as new issues arise on an almost daily basis but real estate, as a key sector, will clearly be affected. Later estimates suggest as many as 18,000 projects may be affected, indicating even larger losses. Sufficient compensating measures shall be taken. In Amsterdam in particular, council charges for land and rules on rent increases, have led to a sharp decline in building projects and many developers are turning their backs on the capital. 2 This court decision is currently seen as one the biggest risks within the Dutch real estate and infrastructure market. On the basis of the PAS, governments gave permission for all kinds of activities in which nitrogen is emitted. To establish this, the EU has adopted directives (e.g. 0000127151 00000 n Housing. Contributing to preventing or limiting emissions will, in any case, be profitable.

In addition to these attention points for specific players, the recent court case and new regulations raise a number of pending questions that need to be fully appreciated, and we expect a number of developments in the market.

It's worth remembering that an application for a new nature permit always comes with the risk that such a permit may not eventually be obtained. The core principle is a nitrogen emission bank. Indeed, the government takes the position that no active enforcement will be initiated against activities that are retroactively not permitted. endstream endobj 92 0 obj <>/Metadata 87 0 R/OpenAction[93 0 R/XYZ null null null]/OutputIntents[88 0 R]/Pages 80 0 R/StructTreeRoot 7 0 R/Type/Catalog>> endobj 93 0 obj <>/ProcSet 126 0 R/XObject<<>>>>/Rotate 0/StructParents 13/Thumb 79 0 R/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 94 0 obj <> endobj 95 0 obj <> endobj 96 0 obj <> endobj 97 0 obj <>stream

To reduce these emissions and so improve protections of flora and fauna, the government implemented new legislation from July 1, 2015: Action Plan Nitrogen or APN (Programma Aanpak Stikstof, PAS). This is due to the fact that, in retrospect, these activities or projects require a permit and are no longer covered under the thresholds stipulated by the APN. The government is planning to earmark billions of euros in its 2020 spending plans to try to solve problems in the Dutch housing market, the Volkskrant said on Thursday. Housing. *��䝯~�9�K��H