200 million for large-scale approach to biobased construction | News item

News item | 08-11-2023 | 15:43

The Ministries of the Interior and Kingdom Relations, I&W, LNV and EZK are allocating 200 million euros to stimulate the large-scale use of bio-based building materials. Biobased construction is a very promising method to reduce the environmental impact of agriculture, industry and construction. CO2 emissions are lower and fewer non-renewable raw materials are needed, because materials continue to grow. The National Approach to Biobased Construction (NABB) should lead to a new national market for the large-scale cultivation, processing and application of biobased building materials. This gives farmers the prospect of a sustainable revenue model, while builders have access to sufficient sustainable materials. In addition, it contributes to a circular economy.

With the National Approach, the ministries are making 25 million euros available until 2025 (phase 1) to set up a market. The remaining 175 million euros is a reserve to expand the market in the following years (2025-2030, phase 2). The approach has been drawn up in collaboration with other government parties, market parties and knowledge institutions.

The ambition is to realize at least 30 percent of new-build homes with at least 30 percent bio-based materials by 2030. The same percentage applies as a target for insulation measures for sustainability and for the materials used for non-residential construction. A substantial part of the materials for infrastructural structures and objects, such as asphalt, street furniture and bicycle bridges, must also be biobased. To achieve this, there must be at least 25 production chains of farmers, industrial processors and builders by 2030. The aim is for the cultivation of fiber crops for building materials to grow from approximately 2,000 to 50,000 hectares and the processing capacity to at least 400,000 tons of fibers per year.

“Experience shows that a market does not arise by itself,” says Minister Hugo de Jonge of the Interior and Kingdom Relations. “The biobased share is still very small and it is not easy for market parties to increase this share independently. With this investment we want to give the market the push it needs to grow into a fully-fledged market, from the farmer who produces a crop to the processor and builder who ultimately uses the product. So we go from plant to building; houses grow here.”

The most important action to achieve this is to set up and scale up chains of farmers, processors and builders. To this end, the plan proposes a wide range of measures. The demand for bio-based insulation materials is stimulated by the tightening of the environmental performance requirements for buildings, with greater control on CO2. There will also be a financial incentive in the form of a bonus in the subsidy schemes for homeowners.

In the infrastructure sector, the government will focus more explicitly on environmental performance and reward bio-based innovations through incentive schemes. The processing industry also receives financial support through a scheme to set up production facilities. It is especially important for farmers that they can participate in chains of farmers, processors and builders, supported by long-term agreements. For example, it is also worthwhile to grow fiber hemp. Research is also being conducted into the possibility of improving the income of farmers who grow fiber through carbon credits. Building Balance is the party that focuses on facilitating regional chain collaborations, national processing chains and those that already multiple chains has supported in the country.

Government orders can stimulate demand

The plan also describes how major clients such as the Central Government Real Estate Agency, Rijkswaterstaat, ProRail and housing associations can contribute to increasing the demand for bio-based materials due to their extensive construction projects. Rijkswaterstaat is already far advanced in the development of asphalt in which bio-based raw materials take the place of fossil raw materials (bitumen). Together with these parties, the ministries involved are looking at ways to accelerate the criteria for applying for this, and which indicators can be used for this.

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