"We are going to renew the subsidy system. It will be reintroduced in the spring of next year," Cramer said.

She said the Netherlands planned to put in place a certification system for the use of biomass materials, such as grains, sugars and vegetable oils, used to generate power and produce biofuels to guarantee their sustainability.

"We will try to introduce an incentive so that people innovate in the course of time and also make sure that the use of biomass meets stricter and stricter criteria."

The previous Dutch cabinet drew criticism for its decision last year to freeze subsidies for new green energy projects, which it said was motivated by the fact that a multi-year subsidy budget was depleted and by environmental concerns.

Global production of biofuels and power generated directly from the use of biological materials called "biomass" have soared as countries look for alternatives to fossil fuels to fight climate change and solve energy security problems.

But environmentalists say burning tropical forests to clear plantations to produce palm oil or sugar would more than offset that environmental bonus. Biofuels are also in direct competition with food needs over raw materials.

CERTIFICATION

Cramer said last week she would soon start discussing with the industry the possible certification system for the use of biomass.

The European Union, which wants to raise the share of renewable energy to 20 percent by 2020, is also working on possible certification that is seen as a blow mainly to Asian palm oil producers eager to supply oil to Europe.

Environmentalists say that the growing use of palm oil to produce energy has helped accelerate deforestation in producing countries like Indonesia.

The Dutch government also plans to stimulate the construction of more wind energy parks, Cramer said but declined to give details about the size of the future subsidy package.

She said her government will unveil a detailed plan next month on how it would boost renewable energy to 20 percent, achieve a 2-percent energy savings per year and a 30-percent cut in carbon dioxide emissions by 2020.

The Netherlands is particularly vulnerable to climate change as two-thirds of its territory lie below sea level.