Red for green
Since the 1990s the provincial and municipal councils have been given greater decision-making powers over land use planning policies. But they do not have sufficient budgets to exercise these powers. The provincial and local authorities face a shortfall of about 215 million euros for the creation of large green recreation areas near the main towns and cities, and for landscape management and restoration in the National Landscapes.
Expectations too high
To redress the balance the government has pinned its hopes on new financing mechanisms. For example, much is expected of the ‘red for green’ financing arrangement (funding green areas from the returns on real estate development). In the 1990s favourable returns on new residential developments provided opportunities for investing in green areas; about 3500 euros were invested in green space for each new home built. However, these new green spaces were mainly realised within the new housing developments themselves. Regional land value capture mechanisms to pay for green areas, for example, to help finance large green areas, are still rare.
A number of steps still need to be taken before the ‘red for green’ mechanism can be used to fund nature conservation and the creation of green recreation areas around the cities. For example, land development is sensitive to the changing economic situation, which introduces uncertainty into the calculation of the increase in land values available for funding green spaces. Moreover, a regional land value capture mechanism is not expected to be legally enforceable. Much will depend on the ability of the government authorities and civil society organisations to enter into integrated area development schemes with property developers.
