NRW.BANK example: how funding programmes can help overcome current challenges in the forest-wood value chain

As the development bank for North Rhine-Westphalia, Germany, NRW.Bank promotes regional economic growth, innovation, and environmental protection. It is a budget-independent entity that collaborates with other banks while maintaining neutrality in its operations. Its mission is to drive smart, green solutions through various funding programmes.

One of its initiatives focuses on digitalisation and technology for sustainable forestry. This programme provides funding to forest owners and forestry service companies. It covers a wide range of needs, such as acquiring machines and devices, building and acquiring facilities and buildings, and implementing IT solutions. The funding is structured as a combination of a 40% subsidy and a 60% aid-free loan from the pension bank.

In the construction sector, NRW.Bank has introduced an additional loan to promote the use of wood in building projects. This initiative is part of the state’s housing promotion program. It supports projects that make significant use of wood (e.g., hybrid timber and solid-wood constructions to construct new buildings, subsidised rental apartments, and student dormitories). Wood must be permanently installed and has to come from sustainable-certified sources. The funding model for this initiative offers loans based on the weight of wood used, with €1.30 allocated per kilogram of wood, up to a maximum of €17,000 per residential unit.

The housing projects “Trialog  Hilden” and “Unna” are examples of NRW.Bank’s 2023 best practice projects, showcasing innovative approaches to sustainable building and highlighting the integration of wood as a key material in construction.

More on NRW.Bank

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Additional Loan of NRW.BANK for Building with Wood

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• Category: Resources, Factsheets
• Tag: North Rhine-Westphalia, Bioregions-EIB Workshop 2024, Overcoming investment barriers in the forest sector, nrw.bank