Well-being ‘later’: summary

Colour codes and notes to the dashboards in the Monitor of Well-being

Economic capital

Both physical capital and knowledge capital stocks are more or less stable. For investment spending – fundamental to the level of economic capital – the picture is mixed. The decreasing trend of investment in ICT has stopped (SDG 9.3). Investment in renewable energy and energy efficiency is increasing in terms of percentage of GDP (1.6 percent in 2022) (SDG 7). Gross investment in tangible fixed assets is no longer growing but has become stable. At 16.4 percent of GDP, the Netherlands ranks at the bottom of 14 EU countries (SDG 8.1). The Netherlands invests a relatively large amount in research and development (R&D) (SDG 9.3). Total and private sector R&D expenditure as a percentage of GDP and number of hours worked per capita both show upward trends. In the EU27, the Netherlands ranks among the leaders on both total and private sector R&D expenditure.

Household debt is increasing, but so are household wealth and savings.

The Dutch population is growing older, and this is putting both sustainable financing of the welfare state and the accumulation of pension assets under increasing pressure (SDG 10.2). Increasing grey pressure and decreasing green pressure are pushing down the ratio of workers to non-workers. The withdrawal of resources from accumulated pension assets reflects this pressure. Pension provisions are becoming less affordable, with pension premiums accounting for a growing share of workers’ earnings. Estimated average pension assets and the current coverage ratio of pension funds are stable. In 2022, nearly 61 people were receiving payments from a pension fund for every one hundred workers paying into these funds, and the trend is upward. On average, in 2022 paid pensions amounted to just over half of previous income from work. The rising trend has changed to stable.

Dutch companies have ample opportunities to make their business more sustainable in terms of production processes, energy consumption, and value chains (SDG 9.2). Fifteen percent of small and medium-sized enterprises said access to financing was problematic or very problematic in 2023, the lowest level in the EU. The contribution of the environment sector to GDP and employment is growing.

Dutch manufacturing processes are becoming more sustainable. The energy intensity of the economy shows a downward trend: companies require less and less energy to produce value added. Domestic material consumption in the Netherlands is lower than in most other EU countries, and the trend is stable. Moreover, resources are being used more efficiently (SDG 12). Resource productivity of the Dutch economy is the highest in the EU27. The previously rising trend has stabilised.

Human capital

No trends indicate a decrease in human capital. Healthy life expectancy and most other health indicators are stable. In 2023, 77.5 percent of Dutch people rated their own health as good or very good, although perceived health was clearly lower in 2022 and 2023 than in previous years (SDG 3).

Compared with other EU countries, the Netherlands has relatively more people with higher and fewer with medium education levels (SDG 4). The share of the latter is decreasing, while that of the former is increasing. Specific skill levels vary. Mathematics skills of students and digital numeracy skills of the overall population are among the highest in the EU. However, for student reading skills, the Netherlands ranks towards the bottom of the EU.

Natural capital

Population growth is pushing down the available area of natural space per capita in the Netherlands. The country is one of the most densely populated in Europe. ‘Green and blue space’ per inhabitant is trending downwards. The share of land managed under the Netherlands Nature Network (NNN) – 20.9 percent of the total land area in 2022 – no longer shows an increasing trend.

Human activities place extensive pressure on Dutch nature and wildlife. Greenhouse gas emissions are high compared with other EU countries, although most indicators are trending downward. In 2023, greenhouse gas emissions were 34.5 percent lower than in 1990 and per capita emissions are decreasing steadily. Although industrial emissions from companies with the highest emission levels – which are required to participate in the European Emissions Trading System (ETS) – also show a downward trend, only in Bulgaria, Cyprus, and Poland is the decrease smaller. Methane emissions from agriculture show a downward trend in combination with a low position in the EU.

Dutch economic growth is now decoupled from greenhouse gas emissions. The greenhouse gas intensity of the economy shows a downward trend: GDP volume is growing while emissions are decreasing. The total amount of accumulated CO₂ emissions continues its steady increase. Cumulative CO₂ emissions reflect the Dutch contribution to global historical CO₂ emissions; this contribution is relatively large compared with other EU countries. The installed capacity for renewable electricity from wind, water and solar has increased substantially.

The quality of Dutch ecosystems is under pressure. Phosphorus and nitrogen surpluses are stable but high. In 2019, the Netherlands was among the EU countries with the highest phosphorus and nitrogen surpluses. Excess phosphorus and nitrogen have negative consequences for the quality of surface water and ecosystems such as heathlands, forests, and dunes. Despite a gradual long-term decrease, environmental pressure from nitrogen deposition remains substantial (SDG 15). In 2021, almost two-thirds of all land nature areas exceeded the critical deposition load.

Biodiversity on land and in freshwater and marshes show declining trends. Farmland bird populations (27 species of meadow, field, and farmyard birds found in the Netherlands) are trending downwards, indicating sharply deteriorating living conditions. Populations or distribution (depending on the species) of Dutch terrestrial fauna are also trending downwards. However, the quality of seawater and natural life in and around Dutch marine areas is improving (SDG 14). The Clean Water Index shows an increasing trend, although water quality is relatively poor (SDG 15).

Sustainability of water use is decreasing. Water stress, defined as the ratio between total freshwater withdrawal and total renewable freshwater resources, taking into account the water needs of the environment, is trending upwards. Total withdrawal of freshwater per capita was relatively high in 2022 (15th out of 16 EU countries). As the Netherlands has many water-intensive industries, withdrawal was higher than in 2021 because of the drought conditions. Additionally, groundwater withdrawal per capita was higher in 2018, 2019, 2020, and 2022 than in previous years. Dry summers led to increased water use by agriculture and drinking water companies.

The quality of surface water is poor. In 2023, only 5.7 percent of the freshwater bodies protected under the Water Framework Directive had ‘good’ biological quality, and 0.2 percent ‘sufficient’ chemical quality. Species of fish, breeding birds, amphibians, dragonflies, mammals, and butterflies typical of freshwater and marsh habitats are trending downwards.

Compared with other countries in the EU, agriculture places a heavy burden on the environment in the Netherlands (SDG 2). Livestock density is higher than anywhere else in the EU27. The Netherlands ranks near the bottom of the EU list in terms of organic farming area and protein crops. Chemical pesticide use is one of the lowest in the EU in terms of use per euro of agricultural production, but one of the highest in terms of use per hectare. Nitrogen and phosphorus uptake are low compared with other EU countries. However, other aspects of agricultural production are becoming more sustainable: livestock density, use of pesticides and antibiotics in livestock farming are all decreasing. Areas devoted to organic farming and dairy cattle grazing are increasing. The area of protein crops almost doubled compared with the previous year.

Social capital

Trust in other people (trust in general) shows an upward trend. In 2020, the level was much higher than in other EU countries. Trust in institutions (House of Representatives, police and judges) is stable, and is relatively high compared with other EU countries. Trust in judges and in the EU show rising trends.

Social cohesion in residential neighbourhoods no longer shows an increasing trend. In 2023, 19 percent of all adults felt that norms and values were either stable or moving in the right direction. In 2020, 12.1 percent of the population considered themselves as belonging to a group that is discriminated against. This is high compared with other EU countries, and the trend is stable.

Regulatory quality of governance, effectiveness of government and voice and accountability are all high in the Netherlands compared with other EU countries (SDG 16.2). Regulatory quality of governance was stable but is now decreasing steadily. The effectiveness of government is declining, and the perception of the Dutch public sector as being free from corruption is also decreasing.