General Data
Name of instrument Greenfield Development Charge (= Neuerschliessungsumlage)
Country DE
Spatial level national
Type Economic instruments
Subtype Steering taxes
Description A charge is levied on greenfield development, whose revenues are being used for activating inner-urban brownfield potentials. Based on a delineation of built-up area and greenfield areas, every new development on the greenfield area is levied 25-50 EUR/squaremeter, which are collected in a regional fund for activation and rehabilitation of inner-urban brownfields. The tax is being levied from sellers/buyers independently from other costs that might accrue for greenfield development such as ecological compensation or levies for public infrastructure provision.
General objectives funding and promoting brownfield redevelopment, containing urban sprawl
General objectives keywords
Responsible National authority
Stakeholder Involved Regional authority; District authority/District parliament; Planners; Entrepreneurs/businessmen;
Reference Thomas Preuß/Uwe Ferber (2006): Circular Flow Land Use Management: New Strategic, Planning and Instrumental Approaches for Mobilisation of Brownfields =>
General assessment of strength and weakness Strength: Effective tool to contain urban sprawl, activate brownfield potentials and to preserve open space. Advantage is that it tackles two issues at the same time, that of urban sprawl and that of financing of brownfield redevelopment costs.
Weakness: Only feasible if implemented on supra-regional, national level. Otherwise, the instrument could put off potential investors.
Date of entry 09/05/2007
Legal status mandatory for responsible body AND mandatory for end-user
Extension pilot status
Comment Not implemented, but part of the discussion in the context of the federal German sustainability strategy.
Type of monitoring Report basing on quantitative indicators
Preconditions for implementation Requires national legislation and administration of the fund for brownfield development. Specifically, the regional administration (municipality or city region) of the fund for activation and rehabilitation of brownfields needs to be laid down in the respective federal planning law.
General comment
Ranking 5
Status municipal administration, local residents, NGOs, superordinate authorities
Remark Acceptance by biggest share of local residents likely, however not from those that are charged the levy.
Ranking 0
Remark No implementation so far.
Status Legislation, political will, staff
Ranking 3
Status direction of effect, type of effect, acceptability, perpetuity
Ranking 4