What if the future of sustainable business is at the bottom of the ocean for once? Marine biodiversity contains resources that can meet the environmental challenges of many sectors. Perhaps yours, too. Find out more during an online event about the promising blue economy on 11 March 2021.
Blue is the new green
71% of our planet consists of water. Seas and oceans play a crucial role in our climate, and coastal areas can capture up to five times more CO2 than tropical forests. The blue economy wants to benefit from all these advantages to improve both the environment and our well-being,
With local being the keyword. And that's where the difference lies with the green economy, which also focuses on the environment and health, but not always in such a sustainable and smart way. Eating organically grown quinoa from Ecuador, for example, is healthy and eco-friendly, but transporting it here is expensive and creates high amounts of pollution.
What does the underwater world have to offer that can be reused, recycled or converted into new sustainable products? A lot, it turns out, as the unique properties of organisms such as algae, starfish, jellyfish or sea cucumbers can be transformed into sustainable products with high added value. This is a process that requires creativity and innovation, and is already with us today.
For your sector, too
The blue economy is expanding rapidly and could bring about a revolution in a wide range of sectors such as healthcare, food, the plastics industry, cosmetics, energy and even aerospace. It is fully capable of helping companies transform their traditional activities into a sustainable model. And in Belgium's ports, the country already has a huge advantage and excellent access to coastal and offshore areas.
Another scoop of microalgae?
Microalgae, for example, offer a lot of promise, as they can renew themselves and thrive both in the desert and in the ocean. They contain many healthy components, such as proteins, that can be used to develop food products.
When discussing the oceans, the plastic problem is never far away. Human beings are producing more and more plastic as the world's population grows, yet the problem with the existing plastic is that it's nigh on impossible to recycle as its components are hard to separate. By making a completely different type of plastic from biomass, its recycling is already considered at the design stage. A large amount of biomass remains unused in the oceans, and using smart, natural polymers could revolutionise plastic production, for example. These polymers are capable of self-renewal and can adapt to their environment.
Who will pay for it?
Great ideas, you think, but who will pay for them? The financial sector certainly wants to play a role in this revolution and is prepared to take risks and invest in new technologies, production systems and R&D.
This commitment was formalised in various ways during the climate week in New York at the end of September 2020. BNP Paribas signed the Principles for Responsible Banking (PRB) and joined the UNEP FI's Collective Commitment to Climate Action, a partnership between the United Nations Environment Programme and the financial sector. In terms of the maritime sector, the Bank committed to working with customers to preserve and sustain the oceans. Read more about this commitment here (only available in French).
Would you like to find out whether the blue economy could make a difference to your sector?
Sign up here for a free online event on this subject on 11 March 2021 (in English only), organised by BNP Paribas Fortis Transport, Logistics and Ports Chair.
Sunglasses that can help save the oceans
Yuma Labs makes sunglasses from recycled PET bottles. The Belgian firm has grown from a one-man startup into a company that manufactures items for other brands as well. But can the firm combine growth with sustainability? At BNP Paribas Fortis we certainly think so.
Yuma Labs (originally named YR Yuma) is the brainchild of Sebastiaan de Neubourg, explains his business partner Lenja Doms. She tells us: "Sebastiaan was working as a consultant, but he was itching to set up his own business. His idea was to use a 3D printer to make sunglasses from recycled plastic. He then found out at first hand why no-one had tried this before. Because it proved to be quite a bit harder than expected,” laughs Lenja.
By 2017 Sebastiaan had a workable prototype and he started a crowdfunding campaign for his sustainable sunglasses. It was an immediate hit. However, the project wasn’t first and foremost about achieving successful sales, reveals Lenja. “Sebastiaan saw the sunglasses primarily as a tool for making people aware of the basic principles of the circular economy. There’s no such thing as waste. A used Polyethylene terephthalate (PET) bottle provides the raw material for a new product, such as a pair of sunglasses.” And to complete the circle, the customer is encouraged to trade the sunglasses back in at the end of their life, in exchange for a new pair at an attractive discount.
Sustainable manufacturing, as Yuma Labs does it, inevitably means that the final product is more expensive. “Fully twice as expensive,” Lenja points out, explaining: “We certainly don’t want to see the circular economy pigeon-holed as the province of the elite. We already take account of the entire life-cycle of a product, and we take responsibility for the recycling and re-use of the materials. And let’s be quite clear about this: that’s more costly than just putting a product on the market without worrying about what happens to it later.”
Aiming for growth
In summer 2019, Lenja Doms and Ronald Duchateau came on board the Yuma team. This provided an opportunity to broaden the focus and look further than the consumer market. This month, Yuma Labs announced a collaborative project with a major fashion company. This upscaling will enable Yuma Labs to reach out to a much larger audience.
A good mix
In order to grow, a business needs financial resources. Yuma Labs has looked into quite a number of possible solutions, says Lenja. “These days there are a lot of initiatives designed to support sustainable businesses – from banks, the government and private investors. We’ve always tried to find the right balance between our own capital and external finance, and to achieve a good mix of different forms of finance between capital, grants and loans.”
Lenja has a golden tip for other businesspeople in the circular economy: "All too often I observe that the economic side of the story is neglected because companies keep on trying to find the perfect solution or the perfect product. There’s no sense in that. You shouldn’t try to be whiter than white.”
Creating added value
At BNP Paribas Fortis, Maxime Prové is the Account Manager for Yuma Labs. He endorses Lenja Doms’ view on this. “Entrepreneurs who set out to do sustainable or social business must also have a desire to create added value, otherwise the business won’t last,” Maxime points out, underlining: “You can’t pursue a sustainable, environmental or social business model unless it’s underpinned by a profit-making scenario. That’s the only way you’ll be able to grow, hire more people and make a greater impact.”
Photo: Karel Hemerijckx
In the future, will we use CO² to build?
It sounds somewhat futuristic, but today building with CO² is possible. Thanks to accelerates carbonation, CO² is used to produce building material. A sustainable footpath in Ghent illustrates how promising this new technology is.
In mid-December, CO2 Value Europe, a think- and do- tank representing the carbon capture and utilisation (CCU) community in Europe, held a webinar about the use of CO2 to create building material. Concrete examples of this sustainable technology were given to illustrate the potential they can offers, especially in the hard-to-abate construction sector. BNP Paribas Fortis and CO2 Value Europe are partners in issues related to financing innovative and sustainable technologies. As an institution, we work hard to promote corporate sustainability.
The second-most polluting industrial sector
As well as being one of the largest in the world, the cement industry's high levels of flue gas emissions also make it one of the most polluting. Cement is a crucial component in concrete, which is vital for the building sector. A sustainable alternative to cement could make a huge difference. One option here is carbonation, also known as CO2 mineralization. While this CCU technology is not yet well known, it has the potential to play a crucial role in mitigating climate change.
Giving nature a helping hand
Carbonation is a natural process, where minerals react with CO2 to create e.g. limestone and dolomite. In nature, this process takes thousands of years, but today, thanks to innovative methods, this time can be cut down to some minutes. This process requires relatively small amounts of energy and can be used to create several different products, including bricks where CO2 is sequestered permanently.
CO2 all the way
The development of CCU technology has accelerated sharply in recent years. We now have cement alternatives that meet the building sector’s technical requirements. There are various ways to store CO2 into construction materials. For example, CO2 can be injected as an alternative to water for hardening cement. What’s more, CO2 can be used to convert mineral waste from steel and mining industries into new products such as aggregates, which can be used as a basis for paving or building blocks.
Good for the planet
Mineralization of CO2 has a significant impact on the environment, because it has an effect at different levels. The annual global reduction in CO2 emissions is estimated to be 250 - 500 million tonnes by 2030 (source CO2 Value Europe).
- CO2 can be captured from flue gas emitted by industrial processes used to create steel, cement, and chemicals, with no need for concentration or treatment.
- CO2 can be captured directly from the atmosphere to create negative carbon emissions, i.e. carbon removal.
- In both cases, the CO2 will be stored permanently in building materials.
- Mineral waste and even construction waste are used together with CO2 to make new building materials, so it reduces landfills and the associated costs.
- Recycling carbon and construction wastes means fewer new natural resources are exploited.
What’s the catch?
New developments are never without their challenges, and this is no exception. Offering a competitive, quality alternative to concrete in a circular economy requires investment and adaptation.
- Factories will have to adapt their plants. Locating them close to significant sources of CO2, like a steel factory, is recommended so the CO2 and the waste fractions do not have to be transported.
- Manufacturing new products takes energy and creates CO2 emissions, even if the products are made using carbon dioxide and waste. It is why renewable energy should be used as much as possible to increase the sustainability of the processes.
- The commercialization of accelerated carbonation technologies is quite recent, and some processes are not optimally equipped for this yet.
- The lack of appropriate regulatory frameworks is also a drawdown to allow for a fast deployment of CCU technologies. This is an area CO2 Value Europe is especially working on.
Despite these challenges, Andre Bardow (Professor of Energy & Process Systems Engineering, ETH Zurich) told us during the webinar that he is convinced CO2 mineralization reduces the CO2 footprint from a life cycle perspective, even more than carbon capture and storage (CCS).
Zero domestic waste
There are already companies producing low-CO2 construction materials around the world. One of them is in Limburg. Orbix, in Genk, has successfully extracted minerals from steel production waste (known as slag) which are used as a basis for eco-friendly concrete stone. Not only is liquid CO2 used to produce concrete stone rather than polluting cement, but residual waste that would otherwise be dumped in landfill is also recycled.
There is a great example of this in Ghent, where Orbix worked with the Flemish research institute VITO to create the Stapsteen project for the city. Visitors can walk on Belgium’s first-ever circular economy footpath in the Leewstraat: 100m2 made entirely from sustainable bricks, saving a full 2 tonnes of CO2.
Do you have sustainability plans for 2021? Our experts at the Sustainable Business Competence Centre can provide advice about innovations like CO2 mineralisation and support your sustainable transition.
First green hedge in Belgium becomes a reality
BNP Paribas Fortis has become the first bank in Belgium to launch a green hedge. With this product, the bank gives clients the opportunity to integrate their sustainable objectives deep into their business operations.
Sustainability is now embedded in almost every company's mission. Companies undertake numerous ecological initiatives and finance sustainable investments with green loans. BNP Paribas Fortis is going one step further and is also offering its clients the opportunity to cover the financing risk with a sustainable hedge.
A Belgian first
The first green interest rate hedge in Belgium has become a reality. "We are delighted and proud to be able to achieve this first with Katoen Natie as true partners", explains Filip Moens, Head of Corporate Solutions in the trading room at BNP Paribas Fortis. "Katoen Natie already had a green loan with us and wanted to hedge the interest rate risk by switching from a variable to a fixed interest rate using an interest rate swap. Instead of opting for an ordinary interest rate hedge, we have attached additional green terms and conditions that mean Katoen Natie is strengthening its sustainable commitment."
Katoen Natie carried out an interest rate swap, but a green hedge can also be applied to exchange rate or inflation risks. Moreover, having an existing green loan is not a requirement.
Sustainable safety net
The green hedge stimulates sustainability, but goes even further and provides a green safety net, with the client paying a sustainability premium if the proposed terms and conditions are not met. BNP Paribas Fortis does not receive this premium itself, but instead invests it in an environmental project chosen in advance. "At Katoen Natie, for example, we chose a project that plants trees. The effect of this product is therefore twofold. On the one hand, it is an incentive for the client to actually fulfil their ecological commitment. However, if they fail to do so for any reason, the additional premium they pay will be spent on a green project. So it's a win-win situation for the environment", says Filip Moens.
Tailored to your business
"The strength of this product lies in its broad application", emphasises Filip Moens.
"Companies who do not have a green loan but want to integrate more sustainability into their corporate culture, can really make this ambition a reality thanks to the green hedge. The green terms and conditions linked to it are determined by mutual consultation. A lot is possible as long as these are sufficiently ambitious, achievable and measurable. These include switching to 80% renewable energy, making the fleet 100% electric in five years' time, and collecting litter as an annual team-building exercise. Companies can define conditions that are perfectly in line with their corporate culture. The same applies to the back-up project that we finance if the conditions are not met. Here, too, they can opt for a local project close to their heart."
No empty promises
A green hedge reinforces existing green projects and firmly underlines an active green commitment. This therefore concerns more than image. "This product integrates sustainability deeply into business operations and requires a serious and firm commitment from clients", says Filip Moens. "They have to be really motivated to do something about the environment. There is quite a lot of administration involved, such as an annual evaluation report and external audits. However, clients really do make a difference with this green choice."
As a true partner, BNP Paribas Fortis wants to make a positive contribution to companies' projects and growth. The green hedge is in line with companies' current sustainable mindset and fits perfectly with the bank's strategy: to build a positive, sustainable and clean future together with clients.
Electric cars are gradually becoming the norm
As of 2026, a favourable tax regime will only apply to electric company cars. This is an important step towards more sustainable mobility – and an extra reason to go all out in greening your fleet.
The evolution towards a greening of company cars has now also been laid down by law. Thanks to a number of tax changes, electric company cars or e-cars will be the most interesting choice from now on. The perfect time to start electrifying your fleet already today.
The tax deductibility for newly ordered non-emission-free vehicles (diesel, petrol and hybrid cars) will gradually be phased out. Up to 2026, however, this will be 100% for emission-free vehicles (purely electric or hydrogen-powered cars). Afterwards, this deductibility will gradually decrease to 67.5% by 2031.
Electric driving isn’t just more tax-efficient
Electric cars are already 100% tax-deductible. And yet most fleets aren't really green yet. One reason is that the purchase price of an electric or hybrid car is considerably higher than that of a comparable car with a combustion engine. There’s been a noticeable evolution here due to the market mechanism, though, and prices are now less far apart.
But the purchase price isn’t the only factor to consider. In making this choice, it’s actually better to look at the TCO (Total Cost of Ownership). This includes all expected costs: consumption, maintenance, CO2 contribution and tax deductibility. And these four elements are all more favourable for electric cars. If you use the TCO rather than purchase price as a yardstick, you’ll see that a green fleet of e-cars will be the most advantageous choice for your company in the future.
Even though electric driving is the future and it’s clearly time for a new mobility, the tax scheme for cars powered by fossil fuel won’t change overnight.
- Until 30 June 2023
For company cars ordered before 1 July 2023, the current conditions regarding tax deductibility will continue to apply. For company cars that are leased or rented operationally and for which the beneficial ownership is not transferred, the closing date of the lease or rental contract is considered. The costs of a diesel, petrol or hybrid car remain 50 to 100% deductible, while the costs of electric cars remain 100% deductible.
- Between 1 July 2023 and 31 December 2025
For non-emission-free vehicles ordered as of 1 July 2023 until 31 December 2025, a transition period will apply, and the deductibility is gradually phased out. From a maximum of 75% in 2025, to 50% in 2026, to 25% in 2027, and ultimately 0% deductibility in 2028. As of 2025 the minimal deductibility of 50% is abolished. The CO2 contribution for these cars will also increase significantly each year. Emission-free cars will remain 100% deductible.
- As of 1 January 2026 onwards
Non-emission-free vehicles ordered as of 1 January 2026 will no longer be deductible. Only emission-free vehicles such as electric cars will then be 100% deductible. But this favourable scheme will also be gradually phased out over the next few years, to 95% for vehicles ordered in 2027, to 90% in 2028, to 82.5% in 2029, 75% in 2030 and eventually to 67.5% in 2031.
- Plug-in hybrids (PHEV)
For plug-in hybrids (PHEVs) ordered as of 1 January 2023, the tax deductibility of petrol and diesel costs will be limited to 50%. Electricity and other costs are not covered by this restriction. This measure is designed to encourage the use of electric motors and PHEV. Otherwise, PHEVs will continue to follow the non-emission-free vehicle rules.
And for your employees?
If you allocate a company car that your employee can also use privately, this benefit will be taxed as a fixed benefit in kind that depends on the list price and CO2 emissions and the fuel type. The status of the company car as an alternative remuneration will remain in place until after 2030. For the time being, therefore, nothing will change in the benefit in kind of the company car with respect to the employee. Although electric vehicles generally have a higher list price, zero emissions can make up for the difference and in many cases, turn out favourably for your employee.
What about charging?
To help your employees make the most of an electric car, you can have a charging station installed at their home if possible. Both the device and the installation at your employee's home are 100% tax deductible and there is no additional tax benefit for them.
As a company, you can, under certain conditions, benefit from an increased cost deduction for the installation of charging stations on your company premises. This amounts to 200% for investments made in the period from 1 September 2021 to 31 December 2022 and 150% for depreciations relating to investments made in the period from 1 January 2023 to 31 August 2024. A condition is that the charging station is depreciated linearly over at least five taxable periods and at the earliest as of the fiscal year that is linked to the taxable period during which the charging station is operational and publicly accessible.
Switch to an electric fleet
In addition to favourable tax conditions, there are many other excellent reasons to opt for electric cars today.
- It is an environmentally friendly solution that leads to 17-30% less CO2 emissions than the emissions from ICE (Internal Combustion Engine) vehicles throughout the entire life cycle of the vehicle.
- A wide range of new models is already on the market today and will only increase in the coming years.
- Most new models already have a driving range of 300 to 600 km.
- Advantageous Total Cost of Ownership (TCO).
- Electric driving is pleasant and causes much less street noise.
- The public charging infrastructure is expanding rapidly.
- Access to low-emission zones and cities that ban diesel vehicles.
Nowadays, responsible fleet management is built around sustainability. Don't wait any longer to electrify your fleet and reduce your company’s ecological footprint. Our mobility partner Arval will help you to green your fleet and support you in your transition to electric vehicles.
Discover all our solutions or discuss them with your relationship manager.