The Dutch government’s most senior advisory body has issued a warning about farm minister Femke Wiersma’s proposal to raise the threshold for nitrogen-based emissions 200 fold, highlighting both environmental and legal risks.

Wiersma wants to increase the maximum emissions limit so that more farm projects and construction can go ahead. But the Council of State said on Monday that it is unclear whether the plan would withstand legal scrutiny.

In addition, the council warned that raising the limit could increase environmental damage. The government’s priority, it said, should be to support the recovery of vulnerable natural areas.

Currently, the emissions threshold is 0.005 mole of nitrogen per hectare per year. That level has meant that hardly any permits are being granted for activities such as building roads or residential housing that could result in more nitrogen emissions.

The cabinet wants to raise the limit to 1 mole per hectare per year, as is the case in Germany. Under that threshold, projects with calculated emissions below the limit would not require a permit and, ministers argue, this would allow small-scale developments with low emissions to proceed.

However, the council said the minister should first develop a “robust, credible and effective” package of measures to support nature recovery in the most affected regions.

“These should aim to meet national conservation goals for Natura 2000 areas and prevent further deterioration in habitats,” the council said.

Wiersma said in a brief reaction that she recognised a number of the issues raised and would produce a more detailed proposal before the summer recess to enable a cabinet decision.

Arno Visser, chairman of the construction industry lobby group Bouwend Nederland, said he was very disappointed by the council’s opinion and warned it would have a significant impact on building projects.

“No house is built in this country without a permit, and given a 22% drop in permits this quarter, you can see how impossible it is going to be to solve the housing shortage,” he told RTL Nieuws. “And the crucial expansion of the electricity grid is also being held up by nitrogen permits.”

MPs debated the plans last week and were also highly sceptical about their prospects of success, including members of the coalition parties. Scientists too have said they have their doubts.

In January, Greenpeace won a case in which judges ordered the state to cut nitrogen levels in at least 50% of the 162 Natura-2000 zones by 2030 or face a €10 million fine.