Financing
Are there any public or private “green” financing initiatives for sustainable real estate projects?

The Netherlands Ministry of Finance and the Ministry of Infrastructure and Environment have launched a scheme for green projects (Regeling groenprojecten 2022) whereby banks can offer credit for lower interest rates to investors who plan to invest in green real estate projects. Banks can offer lower interest rates because of the tax benefits that the authorities give to "green" savers and investors. The Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland) reviews applications for the scheme in the name of the Ministry of Economic Affairs. The Netherlands Enterprise Agency seeks to make the "real estate chain" more sustainable by (i) assisting with the growing demand for sustainable real estate, (ii) promoting energy savings that lead to cost savings, (iii) spreading knowledge via publications, such as the Sustainable Buildings Newsletter (Duurzame Gebouwen Nieuwskrant), (iv) actively supporting the Sustainable Housing Platform, (v) cooperating on the platform's and the DGBC's projects, such as green lease and performance contracts, (vi) making retail real estate more sustainable and (vii) promoting the use of sustainable energy. The Netherlands Enterprise Agency also offers the Investment Subsidy for Sustainable Energy and Energy Saving, or "ISDE subsidy" (Investeringssubsidie duurzame energie en energiebesparing), which can be used to make dwellings more sustainable. One can request a refund after purchasing a (hybrid) heat pump, solar boiler or electric cooking facility. The amount of the subsidy one will receive depends on the type and the amount of energy-saving measures one undertakes.

Private financing initiatives for sustainable real estate projects can be provided by the Triodos Bank, which has committed itself to offering green financing for sustainable real estate projects. The Triodos test for sustainable real estate assesses buildings according to the following four aspects: (i) yield; (ii) people; (iii) planet; and (iv) project. The Triodos Bank has also had a closed-end real estate fund since 30 June 2004, which exclusively invests in buildings that are sustainably built and/or managed. In case of such an investment, the property management contract contains a standard annex in which sustainable management of the property must be defined. The stated management includes (i) issuing reports on energy consumption, (ii) stimulating sustainable use and behavior by the tenant, (iii) laying down ambitions regarding the use of materials and (iv) advising on the improvement of properties. The attractiveness of the fund and of sustainable real estate is exemplified by the 97.6% occupancy rate of the buildings in the fund portfolio. Another bank, the ASN Bank, also has a Green Projects Fund (Groenprojectenfonds) that supports sustainable real estate and green projects in the wind and solar energy sectors. CBRE Dutch Office Fund and PGGM Private Real Estate Fund both invest in sustainable real estate projects.