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Rewarding sustainable consumption choice

• The NU project in Rotterdam
• Instrument: the Sustainable Incentive Card in Rotterdam
• The advantages of the NU card
• Target : the whole Netherlands before the European Union

The NU project in Rotterdam

Increase the demand for sustainable products, promote sustainable citizens daily behaviour, stimulate waste separation and re-use, stimulate public transport and increase the supply of sustainable products by SMEs, here are the main objectives that the municipality of Rotterdam pursued by launching the NU-card.

Rotterdam is the second biggest city in the Netherlands, with 600,000 inhabitants and the world’s largest harbour. It has ambitions to be a leading sustainable city. In may 2002, the Department of Environment, the municipal public transport organisation RET and the municipal waste company Roteb formed a partnership to launch the NU-card project. The project is sponsored by the European Commission ( LIFE ) and the Province of South Holland. It also beneficiates for the support of the co-operative Rabobank Rotterdam and Group and the development agency Barataria. 

Instrument: the Sustainable Incentive Card

The NU card is an incentive card for sustainable purchases of consumers. It is based on chip card technology. NU points are given to cardholders as a reward for specific actions and for purchases of specific sustainable goods and services. The points are redeemed for (other) environmentally beneficial products.

The card has two moments with a positive incentive for sustainable behaviour: saving the points with sustainable (purchasing) behaviour, and spending the points on sustainable goods and services. 

Savings List

The Savings List includes purchases of sustainable products (of interest for the private sector) and sustainable behaviour (of interest for the local government):

• renewable energy, insulation materials, A-label equipment, High Yield heaters, etc.
• eco-labelled products (like organic foods).
• green financial products.
• deliverance of separated waste fractions.
  
  
  

Spending List 

The Spending List contains sustainable goods and services that constitute an appealing reward, like: 

• public transport and other forms of sustainable city transport (bike rental, car share).
• eco-efficient products, primarily products with low energy intensity, including culture and education.
• re-used products and repair services.

Thus the NU card gives a new stimulation to sustainable behaviour of consumers.






The advantages of the NU card

Expected results

The Project NU is significant because it will be a powerful tool to:

• motivate trend-followers to behave more sustainably
• increase the market shares of sustainable goods and services
• activate the public on specific sustainable and environmental issues, where authorities now often do not have an effective tool

Where many instruments are situated on the supply side or at the information level, the Sustainable Incentive Card works on the demand side. The instrument actually changes daily behaviour and the demand for sustainable products. 

Assets of the NU card 

The NU card is different to many other instruments in a fundamental way. It notably provide the following assets:

• positive: NU is a positive instrument. Consumers get an incentive, not a penalty; 
• behaviour: often it is expected that information will lead to a shift in attitudes, which will then lead to a change in behaviour. The NU card starts at the other end. An incentive is given to sustainable (purchasing) behaviour. The cardholders will be more open for information (to get more rewards). This will lead in time to internalisation of sustainability. 
• demand side driven: Where many instruments are situated on the supply side or at the information level, the NU card works on the demand side. NU stimulates the demand for sustainable products, rather than supplying more products. 
• marketing tool: the NU card is a marketing tool for sustainable consumption patterns.

Target : the whole Netherlands before the European Union

The promoters hope that the project, started in May will rapidly deliver rapid results. 8.000 cardholders and 100 to 200 SMEs are expected for end 2002. At mid 2003, the project will be up-scaled when proven successful.

The extension of the project in the whole Netherlands is a Medium term target. To do so, the organisation will be transformed, a new business plan will be written and new investors will be invited. After these preparatory measures the national roll out can take place easily. The technical infrastructure is already in place. The card will be introduced with a large publicity campaign. 

In the same time, promoters also suggest to the European Commission to study the transferability and implications of the concept in other countries of the EU. New demonstration projects will be carried out and could be scaled up at the national levels or at an international level : then the Dutch cards-organisation can be succeeded by a European organisation to monitor and further expand the card.

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