Response from NWB Bank to the coalition agreement

Response to the coalition agreement: NWB Bank emphasises the urgency of tackling societal challenges and the crucial role of public banks in financing the transition

Economic and geopolitical developments underline the need for greater resilience and a clear focus on long-term earning capacity. The coalition agreement presented on 30 January reflects this reality, rightly focusing on key societal priorities such as water quality, sustainability and housing. Strong public services and a climate-proof society are essential for resilience and future prosperity. Delivering on these ambitions requires a robust financial sector that can mobilise and channel the necessary investments. As a sustainable, efficient, socially engaged and well-capitalised public bank, NWB Bank is a key partner in financing sustainability and the public (water) sector.

The water sector is facing challenges linked to climate change, water availability and the circular economy. Water authorities are making substantial investments to address more extreme weather patterns, rising sea levels, land subsidence, salinisation, desiccation and increasingly stringent environmental standards. At the same time, water companies must be able to guarantee reliable supplies for the future. NWB Bank welcomes the new government’s recognition of the importance of nature conservation and restoration, water quality, tackling desiccation and restoring ecosystems. As the bank of and for the public water sector, NWB Bank supports water authorities and drinking water companies in delivering these future-oriented plans by providing appropriate lending at competitive rates.

The new cabinet also rightly prioritises accelerating the transition to sustainability, a prerequisite for achieving the goals of the Paris Climate Agreement. This calls for sustained investment in areas such as renewable energy, sustainable agriculture and the greening of the existing housing stock. Sustainability and economic growth are rightly not presented as opposites. Investments in sustainability and plans to address grid congestion and reduce nitrogen emissions can act as powerful drivers of sustainable economic growth and long-term prosperity. In line with its strategy as a sustainable water bank, and drawing on its expertise in financing sustainability initiatives, NWB Bank views itself as an indispensable partner in financing this transition.

Housing associations and local authorities also form a core part of NWB Bank’s client base. Together with partners such as Aedes and Housing Europe, NWB Bank is actively engaged at both the European and national levels in promoting the availability of affordable housing in the Netherlands. The societal challenge in the housing sector is immense and requires swift, decisive action. The importance of sufficient affordable housing and liveable neighbourhoods cannot be overstated. NWB Bank is keen to support and finance the new cabinet’s ambitions in social and mid-range rental housing, as well as the development of water-positive, liveable residential areas.

Lidwin van Velden, CEO of NWB Bank, commented: ‘The Netherlands is facing major societal challenges in the areas of water, nature, climate, sustainability and housing. Amid these societal challenges, NWB Bank clearly sees an opportunity, with the new cabinet rightly indicating that water and soil should be guiding principles. There is a lot of catching up to do, which will require substantial investment. The new cabinet’s plans demonstrate a commitment to stable, forward-looking and sustainable government policy. This aligns with NWB Bank’s strategy and ambition. NWB Bank is eager to support the new cabinet in financing these societal challenges and will leverage its expertise to turn these plans into reality alongside its public partners.’