KfW Research: Most German municipalities have increased their biodiversity expenditure

• 57 per cent of municipalities are spending more on preserving biological diversity than five years ago
• 15 per cent of municipalities already have an overarching biodiversity strategy
• Large municipalities are more active than small ones

Biodiversity is moving more into the focus of German municipalities. In a survey conducted on behalf of KfW Research, 15 per cent of municipalities reported that they already had an overarching biodiversity strategy. A further 18 per cent responded that they were planning to introduce such a strategy.

“In the long term, only intact, diverse ecosystems will supply us with raw materials, drinking water and food, as well as offer natural protection from extreme weather. The ongoing destruction of nature and its diversity is both a global and a local problem,”

said Dr Dirk Schumacher, Chief Economist of KfW.

“In Germany, municipalities are increasingly investing in the protection of biodiversity – and thereby in quality of life on the ground. But the poor state of municipal budgets and scarcity of available land areas pose major challenges for municipalities.”

Various measures are being adopted to help preserve biodiversity. Eighty-five per cent of municipalities reported that they were active in the planting or care of trees along roads and 81 per cent were managing green spaces in a way that boosts biodiversity. That means, for example, planting meadows with native flowering plants instead of grass, mowing gently or avoiding herbicide use.

In the past five years, 58 per cent of the surveyed municipalities invested in the renaturation or creation of water bodies and 56 per cent each in retention areas in built-up spaces or in natural flood control. A notable 38 per cent have planted greenery on roofs or facades of public buildings and 33 per cent have supported educational offerings on the topic of biodiversity. Generally speaking, large municipalities with more than 50,000 inhabitants are more likely to be active in biodiversity than smaller ones.

A total of 57 per cent of municipalities stated that their expenditure in that area has risen in recent years. Furthermore, more than half of municipalities expect to spend more on biodiversity measures in the coming years. Given the tight budget situation of many municipalities, that will be a challenge. In the survey, 86 per cent of municipalities mentioned “insufficient budget funds” as a major challenge in the implementation of biodiversity measures.

Biological diversity is decreasing rapidly around the world and in Germany. Three fourths of terrestrial ecosystems and two thirds of marine ecosystems have already been severely compromised or destroyed. One million of the estimated nine million species on the Earth are in danger of extinction. The strongest driver of biodiversity loss is the destruction of natural ecosystems, particularly for agriculture. Further drivers are over-exploitation of natural resources (for example from fishing and hunting), climate change, environmental pollution and the spread of invasive species.

The municipal survey was conducted on behalf of KfW Research in September and October 2025.

The study can be found at Focus on Economics | KfW.