In late December 2007, the European Commission approved a Dutch aid scheme (the "SDE" scheme) designed to stimulate the production of renewable energy and combined heat and power (CHP). It provides for the grant of subsidies to compensate for the difference between the cost of production of renewable energy and CHP as opposed to the production cost of conventional energy. The scheme is a revised version of an earlier scheme and is intended to assist meeting a new national target for the reduction of CO2 emissions by 30 per cent by 2020.