Willow in short-rotation coppice (SRC) for energy may be an attractive habitat for many breeding bird species. In this study, we systematically explore the possible relations between design and management of willow SRC and the occurrence of individual species and ecological groups of breeding birds. Methods were literature review and expert consultation. For government steering strategies to enhance bird-friendly design and management of willow SRC, two approaches are evaluated in the framework of agency theory: rewarding behaviour versus rewarding actual results. The analysis indicates considerable opportunities to increase willow SRC potentials, with limited productivity reduction, especially for breeding birds of shrubs and hedges. Exemplary design and management packages were developed, with corresponding breeding bird species and appropriate policy strategy. Notwithstanding the uncertainties and qualitative nature of the results, the analysis offers starting points for managers willing to pay attention to breeding birds. (C) 2004 Elsevier Ltd. All rights reserved.