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Inspiration Card
Governance Actions |
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Finance & Procurement
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G20 Reconfigure fees and other charges to reflect the costs and benefits associated with NBS
| Knowledge & Awarness | Political Commitment | Organisation | Perceived Costs & Benefits | Social & Environmental Justice |
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The internal revenues could be strengthened by designing area-specific charges based on the additional infrastructure costs incurred because of the development/reconstruction of the urban districts. Such fees and charges could be targeted at the developers and/or business owners and tenants that would benefit from better infrastructure. In addition, the city can apply the “polluter-pays” principle, where fees and other charges target activities that have negative environmental consequences. The fee creates an incentive for actors to reduce the undesired activity, potentially creating a double-sided effect of reducing the challenge the NBS is to address while generating additional revenue sources for further NBS investment.
- Development exactions and impact fees
- Business improvement districts (BIDs)
- Collecting stormwater/run-off fees
- Compensation schemes for depleted ecosystem services
UNaLab Stories: BID, Eindhoven
The BID in Eindhoven is the largest BID in the Netherlands as it includes the entire city centre of Eindhoven. It was created according to the national law, which enables local business entities to organise themselves and hold a vote for establishing the BID. Given that a sufficient turnover is reached as well as 50% of the business owners approve, a BID can be established. The income collected from the tax in the BID area is collected and managed by an association. It is spent on the local initiatives based on the proposals submitted by the local business community members. Even though the fund managing association is independent from the municipality of Eindhoven, the strategic city goals seem to be taken in consideration when allocating the funding. For example, projects aiming at improving the city image by introducing more greenery in the city have received financial support from the association. According to the municipal economic experts, the BID has proven to be a great instrument to mobilise the local business community members including local producers, retail chains and real estate owners and provide financial support for bottom-up urban greening initiatives.