64 Step 1: Overview of current financing and valuation of products and services First of all, an overview was made of the various products and services that woodland and nature areas currently supply to society and the financing and valuation methods that are applied in practice, such as market forces, subsidies, sponsoring and memberships, payment in kind, reinvestment of construction profits into new green development, and so on. Based on a detailed matrix, indicating the beneficiaries and payers for each product, the applied financing and valuation methods, and the amount of financial cover versus the costs, an analysis was made of the bottlenecks that currently impede the financing of woodland and nature products and services. The following situations are distinguished here: 1. Mismatch between payer and beneficiary A certain social group or private company/recipient/user (i.e. not society as a whole) is the user and beneficiary of a specific service or product, whereas the service is paid for by the government with public money. 2. Mismatch between payment and costs A second bottleneck (discrepancy) arises when the sum paid (from the public purse) fails to cover the cost of providing the product or service. This may be of a generic nature (because the payment is structurally too low) or due to local or regional differences in costs. 3. No or insufficient payment A third bottleneck occurs when there is no payment or if the payment is insufficient (i.e. it only relates to part of the production process or covers a limited portion of the costs). The matrix shows, for instance, that 33% to 40% of the 60 identified products and services receive no or insufficient financial compensation. Table 2.1 of this report pinpoints the current financing bottlenecks for each product or service category. The main bottlenecks are: • Offering a physical location and setting for recreation and other social activities For instance, national government pays to create public access to a nature area, while the main beneficiary is a local running club. This is an example of a mismatch between payer and beneficiary. Alternatively, national recreation subsidies may fail to take account of regional differences in the intensity of (recreational) usage. As a result, a mismatch can exist near cities between e.g. the national (generic) payment for providing access to a nature area and the high local costs for maintaining recreational facilities and removing large amounts of litter and waste due to intense recreational use. • Offering a setting for homes, work, infrastructure and other economic activities A mismatch can occur here between the payer and beneficiary because, for instance, the local pancake restaurant benefits from a favourable location in a green setting, while the woodland and nature maintenance is paid for from generic (national) subsidies. The pancake restaurant makes no (direct) payment to the woodland owner for offering the attractive setting. Another example would be the provision of a regional subsidy to build tourist infrastructure, but without earmarking funds for maintaining this new infrastructure in the future. In this case, the payment is insufficient. Pagina 72

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