VHG sees little concrete room for greenery in 2027 Budget Memorandum |
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Industry association points to opportunities for climate adaptation, but misses green standard and concrete measures for urban greenery
According to Koninklijke VHG, the 2027 Budget Memorandum contains few concrete plans for urban greenery. At the same time, the industry association sees opportunities for greenery within plans for climate adaptation, innovation and emission-free construction. Several fiscal and labour market measures are also relevant for green entrepreneurs.
| Image for illustration, generated with AI |
VHG is critical of the limited attention given to urban greenery in the Budget Memorandum. According to the industry association, greenery is not identified as a separate policy challenge, even though it can contribute to climate adaptation, health and the quality of the living environment. VHG therefore describes the government's green ambitions mainly as 'beautiful words'.
Greenery missing as a standard in housing development
According to VHG, a standard is missing that structurally links greenery in new construction to climate adaptation, health and quality of life. It is also unclear to what extent additional funding for nature and nature monitoring will become available for urban greenery. At the same time, the industry association sees opportunities to better connect climate adaptation and greening. In the coming years, plans will focus among other things on tree canopy cover, paving and perceived temperature.
According to VHG, water and soil systems will also play a greater role in design and construction. The industry association points out that green measures can specifically be used for water-related challenges.
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VHG misses a concrete green standard in the major housing construction challenge
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More funding for innovation
According to the VHG overview, the government is allocating €3.3 billion for a new National Investment Institution. In addition, €500 million will become available for the National Agency for Disruptive Innovation and a new round of the National Growth Fund of €375 million. For the green sector, this could become relevant in the longer term for areas such as robotisation, climate adaptation and emission-free technology. The exact conditions still need to be worked out.
For entrepreneurs, several fiscal changes are also relevant. For example, the deduction percentage of the Energy Investment Allowance (EIA) will increase to 45.5 percent. This is accompanied by measures including the abolition of the starter deduction and random depreciation for starters.
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The higher EIA could make sustainable business investments more attractive
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Electrification remains an area of attention
For green companies, the approach to grid congestion is also relevant. The government is making additional funding available to tackle overloaded electricity networks. Additional funding will also become available within Clean and Emission-Free Construction for zero-emission construction equipment and governments working without emissions. VHG does point out that green companies do not automatically have access to existing schemes for emission-free equipment.
On the labour market, relevant measures include the announced Self-Employed Persons Act, modernisation of the non-compete clause and a higher tax-free kilometre allowance. The maximum tax-free reimbursement will increase to €0.25 per kilometre. At the same time, the average premium for the Return-to-Work Fund will increase by 0.15 percentage points, which could lead to higher employer costs.
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Many of the announced measures still need to be worked out in more detail
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VHG says it will continue to monitor the consequences for green entrepreneurs and employees in the coming period. According to the industry association, the key question for the sector remains how ambitions regarding climate adaptation, greening and innovation will be translated into concrete measures.
This article was previously published on 17 September 2026 on the website of Stad + Groen.
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