Research: Investing in urban green pays off on all fronts

NEWS

POLICY & LEGAL

Heleen Kommers, Wednesday 16 July 2025

108 sec

Cost-benefit analysis underlines the importance of greening

Urban green is not a luxury, but a necessity. This is evident from a recent analysis commissioned by the Ministry of Housing and Spatial Planning. Without substantial investments in greenery, the livability of cities is under pressure, especially with the planned construction of 900,000 homes by 2030. At the same time, the new European Nature Restoration Law stipulates that there must be no net loss of urban green space. Green and construction must therefore go hand in hand.

Illustrative image, generated with AI

Researchers from Rebel and Arcadis mapped out the consequences of urbanization for existing green spaces. If nothing changes, an estimated 2,100 hectares of urban green and approximately 241,000 trees—equivalent to more than 4,000 football fields—will disappear. This calls for serious compensation, says Jonne Velthuis of Rebel. "By cleverly linking housing development to greening, solutions can emerge that are both ecologically and spatially future-proof."

If nothing changes, an estimated 2,100 hectares of urban green and approximately 241,000 trees—equivalent to more than 4,000 football fields—will disappear.

more benefits than costs when greening

The researchers developed three scenarios, ranging from limited to extensive greening. In the middle scenario, 69% of the costs are already offset by measurable benefits. These include reduced heat stress, better health, increased property values, and less climate damage. Health benefits account for 35% of the total gains, followed by climate benefits such as CO2 storage (23%). However, not all effects can be expressed in monetary terms. Increased biodiversity, reduced stress, and improved social cohesion are just as important for the livability of cities.

space and resources are available - but a structural approach is lacking

According to the analysis, there is sufficient space to green the cities. Only 2% of the paved surface needs to be 'depaved' to compensate for the loss. This could involve narrowing roads or removing unnecessary paving. However, structural management requires financial commitment: over a period of 50 years, these costs amount to €3.7 billion. Velthuis therefore advocates for structural funding, for example linked to climate adaptation and CO2 compensation.

The researchers developed three scenarios, ranging from limited to extensive greening.

green as a tool against inequality

Greening can also help reduce social inequality. Especially in vulnerable neighborhoods, quality green space is often lacking, while the climate impact is greatest there. Investing in these areas not only increases livability, but also prevents social costs.

time to give green a permanent place in spatial planning

Many municipalities are now taking initiatives, from tree giveaways to greening squares. But a structural approach is often still missing. By including green space from the outset in spatial planning, it can become a natural part of housing projects—just like roads or lighting.

the message is clear: greening is not optional, but necessary

"Without greening, cities will become unlivable," says Velthuis. "If we do nothing, we'll sweat the city out." The study provides hard data for policymakers and green professionals who want to accelerate greening. Investing in green pays off in the long term—both socially and financially.

View the full analysis here: Financial exploration: Green in and around the city.

Many municipalities are now taking initiatives, from tree giveaways to greening squares. But a structural approach is often still missing.

This article was previously published on 16 July 2025 on the website of Stad + Groen.

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