Industry and local politics: a necessary partnership

A shortened version of this article was previously published by Industrielinqs on 4 June 2025.

In addition to national elections, the March 2026 municipal elections are fast approaching. Now is the time for both industrial stakeholders and local political parties to recognize the critical importance of close cooperation between the two. This collaboration is essential for addressing both business needs and broader societal challenges. Industry drives jobs, innovation, and economic growth, while municipalities provide the necessary conditions: from permits and spatial planning to local infrastructure, community engagement, and environmental enforcement.

Especially now—when the energy transition, housing construction, and sustainable mobility dominate the agenda—this cooperation is more urgent than ever. Local industry thrives when municipalities are forward-thinking and open to innovation. Conversely, municipalities benefit when companies contribute to building strong, sustainable regions with ample employment.

The industry wants to maintain, expand, and green its operations but often runs into restrictive conditions. Grid congestion, nitrogen limitations, and a lack of physical space are slowing investment—particularly at local production sites where growth is needed most. Without policy support at both national and local levels, progress stalls. The national government increasingly acknowledges that industry is crucial for the energy transition, economic development, and the Netherlands’ strategic autonomy. While The Hague provides direction, it relies on local governments for implementation and facilitation of industrial activities. This requires close cooperation. No surprise, then, that debate over the future of industry is gaining momentum at the municipal level too.

Municipalities face tough choices. Space is limited, and the interests of housing, nature, and economic development increasingly clash. Permitting for industrial activities is technically complex, and environmental capacity is constrained—if available at all. At the same time, public resistance to new or expanding industrial operations is growing. With local elections on the horizon, these decisions become even more pressing. How will municipalities deal with industry? Where is space available, and what are the actual needs? And how do we align this with local ambitions?

Through regional energy and climate platforms and joint development agendas, municipalities are increasingly seeking cooperation with industry. It is essential that industrial players understand the three key roles municipalities play: as standard-setters, connectors, and advocates.

1. Municipalities as standard-setters

As policymakers, municipalities can make a real difference. They define zoning frameworks, issue permits, set sustainability standards, and participate in decisions around local energy infrastructure. These choices directly shape the playing field for industry. Strategic use of their policy levers enables municipalities to encourage sustainable business activity while safeguarding public interests like livability and environmental quality. Local decisions are critical to the success of national transitions.

2. Municipalities as connectors

Municipalities also act as vital connectors. They bring together businesses, grid operators, knowledge institutions, and civil society organizations. This role is key in building public support and developing joint solutions—such as energy hubs, waste heat sharing, or spatial planning coordination. With their networks and administrative legitimacy, municipalities can effectively facilitate and accelerate this kind of collaboration. They also play a crucial role in public engagement and communication: by involving residents early, they strengthen local buy-in and foster civic participation.

3. Municipalities as advocates

Finally, municipalities can serve as strong advocates. Increasingly, they defend the interests of specific sectors or companies within their region by raising their concerns and needs with the national government and other stakeholders. By acting collectively—through the Association of Dutch Municipalities (VNG) or regional partnerships—they can draw attention to bottlenecks caused by national policy. Examples include funding gaps, overloaded power grids, or the need for tailored legislation. With their practical experience, municipalities contribute to more realistic and effective national policymaking.

Conclusion

In short: municipalities and industry need each other. Without local policy, there’s no room for industrial sustainability efforts. Without innovative industry, local transitions are unfeasible. Addressing major societal challenges requires close collaboration, coordination, and mutual understanding. The future lies in a strong alliance between municipalities and industry. This won’t happen automatically—it requires a continuous dialogue, a shared agenda, and early involvement in policy and investment decisions.

Companies should therefore invest in their relationships with local governments and be mindful of the crucial roles municipalities play—as standard-setters, connectors, and advocates. Only then can they clearly articulate the conditions needed to drive sustainability while contributing to broader public goals. Likewise, municipalities must see industry not merely as a stakeholder but as a full-fledged partner in tackling societal challenges.

Public affairs has a key role to play in this. By bridging the gap between municipal ambitions and the daily realities of companies, public affairs helps align interests and accelerate collaboration. With the 2026 municipal elections on the horizon, there is a clear mandate: actively organize this cooperation. Only then will it move from an afterthought to a launching pad for local policies that make sustainable industrial growth possible.