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The Netherlands has ratified The Kyoto protocol and agreed to reduce its emissions of greenhouse gases. Since 1990 the goals were made less ambitious several times, but still the last goal for 2000 was not met. Economic growth surely has been one of the main culprits. The main reason economic growth results in higher CO2 emissions, is the fact that it causes higher energy consumption. So far policy measures to reduce CO2 emissions, including many energy efficiency and energy reduction measures, did not succeed in beating the effects of economic growth. The Netherlands did not manage to decouple economic growth and environmental pressure (measured here as CO2 emissions). Absolute decoupling will require an economy that has a fuel mix with a large proportion of renewables, and a much higher energy efficiency level, and probably some major technological breakthroughs. It is not very likely that current policy measures will lead to the Kyoto goals. Therefore, it is concluded that emission trading and levies would offer good, and efficient options for further reductions of CO2 equivalents. It might, however, make it difficult for The Netherlands to realise 50% of its reduction domestically, as CO2 reduction abroad will most likely be at least five times cheaper. The Ministry of VROM will have to invent new policy measures to meet the Kyoto goals. [Copyright &y& Elsevier]