The main problem that this action deals with is the lack of comprehensive and up-to-date information for cities on how to receive EU-level funding and financing and on how to leverage private investment for brownfield redevelopment. Brownfield redevelopment presents a valuable opportunity to not only limit land take and prevent urban sprawl, but also to make cities more liveable and to apply nature-based solutions.
Private investors look at a project in terms of profitability and market potential. The cost - value gap (if the perceived future value of a site is less than anticipated redevelopment costs) prevents the redevelopment of those sites that are on the borderline of profitability (‘B’ sites) or are generally not profitable (‘C’ sites). This can only change if there are some means of creating a surplus of value over cost. This is particularly important in the early stages of brownfield redevelopment. While ‘B’ sites require only a modest intervention (gap/bridge funding) from the public sector, ‘C’ sites require a more substantial intervention from the public sector to address upfront costs and make the project attractive for private investors.
While there are several networks and research projects that have explicitly dealt with the question of funding and financing (CLARINET, CABERNET, NICOLE, RESCUE, REVIT), this information is often either outdated, incomplete or too general to be of any use. The problem is also that cities are not always aware of the mechanisms/instruments that exist.
The proposed action is to develop a comprehensive funding and financing Guide for cities planning a brownfield redevelopment project, which provides an up-to-date description, with concrete examples from across Europe, of relevant funding and financing mechanisms/instruments. The Guide would offer a perspective on how these funding sources and financing mechanisms can be combined or blended in a holistic approach, in order to overcome the above-mentioned bottlenecks and mainstream brownfield issues among urban stakeholders.
The Guide would cover EU-level funding and financing mechanisms/instruments, as well as fiscal and regulatory mechanisms/instruments for leveraging private investment for all activities or phases of the redevelopment process:
- site assessment,
- remediation, and
The Guide would consist of two major sections:
- EU-level funding and financing mechanisms/instruments:
- Fiscal and regulatory mechanisms/instruments for leveraging private investment:
An additional activity will be asking the European Court of Auditors to update their study “Have EU structural measures successfully supported the regeneration of industrial and military brownfield sites (2012)”. This could also inform the programming for the 2021-2027 ESIF period.
This Guide will be made available either in the form of a website/portal or an active PDF document.
- Sustainable Use of Land and Nature-Based Solutions Partnership full Draft Action Plan
- Draft Action 1: INCLUDING LAND TAKE IN IMPACT ASSESSMENT PROCEDURES
- Draft Action 3: IDENTIFYING AND MANAGING UNDER-USED LAND
- Draft Action 4: INDICATORS OF LAND TAKE
- Draft Action 5: PROMOTING FUA COOPERATION AS A TOOL TO MITIGATE URBAN SPRAWL
- Draft Action 6: BETTER REGULATION TO BOOST NBS AT EUROPEAN, NATIONAL AND LOCAL LEVELS
- Draft Action 7.1: PREPARE AN NBS FUNDING GUIDE TO ASSIST CITIES IN ACCESSING FUNDING FOR NBS PROJECTS
- Draft Action 7.2: OVERCOMING THE BIAS FOR EXISTING SOLUTIONS THROUGH NBS FINANCIAL INCENTIVES MAINSTREAMING
- Draft Action 8: AWARENESS RAISING IN THE AREAS OF NBS AND SUSTAINABLE USE OF LAND (URBAN SPRAWL)
- Draft Action 9: AGREEING ON COMMON TARGETS AND INDICATORS FOR NATURE-BASED SOLUTIONS, URBAN GREEN STRUCTURE, BIODIVERSITY AND ECOSYSTEM SERVICES IN CITIES