BNG launches green loans pilot for social housing associations
04 November 2025BNG has launched a pilot for green loans, specifically developed for Dutch social housing associations that invest in sustainable new-build and renovation projects. With this new type of financing, BNG wants to help speed up the process of making the Dutch housing stock more sustainable.
The first green loans have now been granted to social housing associations Alwel, De Alliantie, and Ymere, marking the official launch of the pilot. Karo van Dongen, director at Alwel: ‘The fact that we were able to conclude a solid non-guaranteed financing arrangement with BNG was pleasing enough. The first loan being a green loan to boot makes it even more satisfying. Thanks to BNG, we can now make sustainable new-build rental homes for the mid-range segment a reality.’ Among the projects made possible by Alwel’s financing arrangement is the construction of 50 sustainable apartments as part of the new Fonkel Breda development. These are affordable apartments for first-time buyers and tenants that combine sustainability with affordability.
Sustainability as a driver
As a public bank, BNG wants to help finance a more social and sustainable Netherlands. With the green loan, BNG encourages social housing associations to explicitly incorporate sustainability into their investment decisions. Social housing associations that meet pre-established sustainability criteria receive a one-off ‘green bonus’. This bonus is paid as soon as the new-build project demonstrably meets the criteria energy efficiency, sustainable material use and climate adaptation. When renovating a rental property, its energy rating must be improved by at least two steps reaching a minimum of energy label B, as defined by the Dutch national energy labelling system for buildings (EPBD-compliant). The sustainability criteria are in line with relevant construction and environmental standards in the sector.
In the pilot project, BNG and social housing associations are jointly exploring how to further define the sustainability criteria and how these can be monitored and reported in a transparent manner. Ultimately, the aim is to make the financing product available to the entire sector, with the green loan being used for both financing under the terms of the Social Housing Guarantee Fund and non-guaranteed financing arrangements.
Anticipating the capital market
With this pilot, BNG is taking an important step towards issuing green bonds linked to demonstrably sustainable real estate investments. By making transparent how sustainable their investments are, BNG wants to strengthen the position of housing corporations on the capital market through the issuance of green bonds.
Jasper Willems, sector specialist for housing at BNG, expects this type of financing to become a standard in the housing sector in the future: ‘We see it as our responsibility to play an active role in encouraging sustainable investments in social housing. By anticipating increasing demands regarding sustainability and transparency now, we we are laying the foundation for a future-proof financing model that aims to better safeguard the availability of capital for social housing associations.’