With the cities of tomorrow incorporating large-scale digitalisation, a new participatory eco-system is currently on the rise. Digital technology already offers citizens the possibility of taking part in city life. Very soon, it will become a means of inclusion. The smart city won't leave anyone behind.

By significantly increasing the capacity for communication and connectivity between individuals, digital technology is driving the collaborative economy and leading to the emergence of a new social model, less consumer-oriented and based on sharing. The city of tomorrow will not lose its soul because of the greater use of technology. Quite the opposite. Whether in matters of education, citizen action, supporting marginalised groups or even looking after the elderly, digital technology enables new solutions to be implemented.

Applications and platforms have become effective vectors for driving social innovation and making it easier to share. The key principles of collaboration and participation are intrinsic to the concept of the smart city, since hyper-connectivity links everyone together. It's a paradigm shift. If the smart city is to work well and fulfil all its promises, it must be built on a new, more inclusive model. Digital technology now offers a significant number of possibilities to make cities more cohesive.

Sharing economy

The collaborative economy will reach 570 billion euros by 2025

Development of the collaborative economy has accelerated considerably over the past few years. It can now be found in all types of communities. Its evolution into a complete and separate economic model has been supported by digital platforms, which provide it with the ideal infrastructure. Moreover, by establishing itself as a parallel economy and an alternative to the crisis, more and more people are being convinced. Whether you want to find a job, offer your services or sell something, all you need to do is log in. Disrupting the economy is now as easy as getting on to the internet.

If you believe the statistics published by auditing firm PwC, it's a booming market. The total amount of transactions in the collaborative economy currently stands at 28 billion euros and could, according to the latest estimates, grow twenty-fold to reach 570 billion euros by 2025. Bold figures that attest to a real increase in power. Start-ups have recognised the many advantages to be gained from this new market and are developing more projects in this area, giving greater impetus to the emergence of the collaborative model. Hence the social network Smiile, supported by the French insurance company MAIF, offers its members a whole range of services, from car-pooling, to group purchases and sharing goods and skills, it was designed to be driven by proximity and exchange. Smiile currently has 340,000 members and aims to reach a million within a few months.

Expert view
"We want to go beyond the purely virtual aspect of social networks by enabling those who live in the same neighbourhood to meet and create social links"
David Rouxel, Founder of Smiile

But this new type of social network is not simply restricted to connecting individuals. It is also an integration platform for start-ups and businesses in the collaborative economy. It has formed partnerships with almost 7,000 manufacturers and traders for their group buying offers, and also with companies such as Koolicar in order to secure a quality shared mobility service for its members. Even more significantly, David Rouxel, the founder of Smiile, is simultaneously developing Smiile City, which uses the same model but is aimed at town halls, local authorities and housing associations. It reinforces dialogue between residents of the same neighbourhood to make it easier for them to report specific problems, such as those to do with the road network for instance, by flagging information up to the mayor. Already piloted in several eco-neighbourhoods, Smiile City wants to become the indispensable tool for the smart city of tomorrow.

In the cities of the future, applications will have a special place. On the one hand, because their use will be made even easier and they will reach even more people due to hyper-connectivity. On the other, because they constitute a response to fears about massive job losses and the vulnerability felt by less highly-skilled workers. And there's more. Digital technology goes even further than reshuffling the cards in the world of work.

Fighting exclusion

 By digitalising its neighbourhoods, the Smart City will be able to better identify and account for marginalised groups. Digitalisation will bring considerable improvement to the living conditions of these groups thanks to an applications ecosystem. People suffering exclusion will therefore have a panel of specific Web 2.0 services at their disposal.

A very specific example: the English IT engineer and start-up founder Alex Stephany has just launched the Beam platform, short for 'Be Amazing', in order to help homeless people transform their lives. Beam is a social crowdfunding site which aims to raise funds and enable people who have their sights set on finding a job to get training or return to education. Beam uses the same model as all job centres everywhere: a manager is allocated to each member to take stock of their skills and professional aspirations in order to set up training opportunities. Then a budget is drawn up which includes all the necessary costs, such as accommodation, food and transport. Next the crowdfunding campaign is launched using targeted messaging supported by social networks, as well as distributing newsletters for each project.

Another relevant initiative that foreshadows what tomorrow may bring in using digital technology to care for the most disadvantaged is the Youth Homeless Databank, launched in England in 2016. It aims to provide accurate data on young rough sleepers so they can be cared for more effectively by social services.

Thanks to an application that pools data from local councils, welfare organisations and accommodation providers, it is possible to learn how many young people are living in vulnerable circumstances, and who and where they are. By sending this information to associations working with the homeless, the Youth Homeless Databank now plays a central role in helping to find them accommodation and reintegrating them into society. Here digital technology forms a link between institutions and associations, helping them to work more effectively in the field.

Finally, the increasing potential of the sharing economy and Web 2.0 solidarity undoubtedly only illustrates the transformations in the world of employment and social upheavals that Jeremy Rifkin foresaw in The Third Industrial Revolution. Better care can be provided for elderly people, both now and in the future, thanks to the internet of things and applications that monitor their health in real time. Vulnerable groups are better identified and more easily supported; the unemployed can find work thanks to collaborative platforms. African, Asiatic and South American countries can keep up thanks to Fab Labs which drive local social innovation and focus on 'co-making' and 'co-decision'. All this progress associated with the digital world represents the building blocks of the smart city, which, if it wants to fulfil its potential, must include as many citizens as possible in its project. The city of tomorrow will be collaborative and inclusive if it truly wants to become a reality.

Source : L’Atelier

A recently commissioned survey by BNP Paribas Fortis on mobility found that this remains a major challenge for the coming years. The bank is determined to play its part.

A survey among 2,000 people, and representative of the Belgian population, on mobility shows that the switch to electric driving is slowing. Almost 80% of those surveyed still drive a diesel or petrol vehicle, and more than a third of them have no intention of trading in their cars for a more environmentally friendly model any time soon. And yet almost 50% want to be driving electric by 2029. But before that switch, some hurdles first need to be cleared. According to two-thirds of respondents, the bank needs to take a proactive role in the transition to sustainable mobility.

• Only 10% of cars on the streets today are electric, hybrid or run on hydrogen. Users of these vehicles confirm they are very satisfied. Though most have their own charging station, public charging stations are a bottleneck.
• While fighting climate change remains the main argument for switching, changing mobility habits isn’t so easy. The switch to electric is slow, and more incentives are needed, such as new tax measures, and above all, a commitment from the government. Prices also need to come down. It is clear that the practical issues of driving and charging times mean people hesitate to make the switch.
• As a result, enthusiasm about new mobility initiatives is rather muted. Although, especially in big cities, an app that combines mobility options has good chances of success.
• Mobility and work are strongly linked. One in three people spend at least an hour a day travelling to/from work. It turns out that teleworking is a solution for only 50% of the people, and that the other half of the population don’t have the opportunity to work from home.
• More awareness needs to be created around new mobility. Not everyone is familiar with shared cars, bikes and charging stations yet.

Mobility partner

BNP Paribas Fortis is determined to contribute to more sustainable mobility and be a mobility partner for both professional and private customers. We are doing this by informing audiences of all the advantages of an environmentally friendly switch. And also by offering support through financing, insurance and leasing. Our goal is to provide a global response to tomorrow's mobility needs through innovative services.

More and more people are cycling to work. Mobility solutions expert Philippe Kahn explains how and why.

People are changing the way they travel to limit their environmental impact: behaviours are starting to shift, and the use of bicycles is rising, including and especially for travelling to and from work. We spoke to Philippe Kahn, Mobility Solutions Expert at Arval BNP Paribas Group, about these developments. 

Two out of three Belgians use soft mobility, mainly bicycles

According to Profacts’ “Mobility Tomorrow & Beyond” survey, two out of three Belgians have adopted soft mobility. "But the biggest change is the increasing use of bicycles for business travel and commuting. People are also using bicycles more on the school or nursery run, facilitated by the arrival of electric cargo bikes on the market," says Kahn.

A favourable regulatory framework

But what are the reasons for the increased use of bicycles for business travel?  “Let’s first take a look at how the regulatory framework has changed," says Kahn. "In Belgium, the creation of the federal mobility budget has made alternative ways of travelling attractive for all employees. The budget makes it possible to choose a comfortable company bicycle as part of a tax-friendly salary package. Moreover, this mobility budget can even be used to cover housing costs if you work from home more than half the time or if you live within 10 km of your place of work. So instead of having a company car, people can choose to have a combination of an electric bicycle and a contribution to their housing costs. Furthermore, two measures effective from 1 May 2023 should reinforce this trend: the bicycle allowance for commuting is increasing to €0.27 net per km travelled, and all Belgian employees will be entitled to this allowance. In practical terms, this means that those who choose to cycle for these journeys will be substantially rewarded.”

Investment in public infrastructure is paying off

Another important factor in the increased use of bicycles is the development of road infrastructure.

Philippe Kahn: "One factor that can convince people to cycle to work is the certainty of a safe journey. A few years ago, cycling to work in Brussels, for example, could be dangerous. But today, cycling infrastructure is making these journeys increasingly safe, in particular thanks to the cycle motorways on which only bicycles can travel. Infrastructure investments are now also happening in the rest of Belgium, not just Flanders and its major cities. In recent years, Brussels has undergone significant changes, and things are also starting to move in Wallonia.”

Half of all Belgians live within 15 km of their place of work

Distance from the workplace is also crucial in determining how attractive cycling is. "One in two Belgians lives within 15 km of their workplace, a distance that you can easily cycle," adds Kahn. "Along with the Improved infrastructure, this means that cycling to work is a realistic option for many Belgians. And the €0.27 per kilometre allowance will be an added incentive for them to make the change.”

78% of leased company bicycles are electric

To meet the needs of companies and their staff, Arval is now offering bicycle leasing. This full-service lease covers maintenance, breakdown assistance, insurance and repairs, as is traditionally the case for a car. Philippe Kahn points out some very significant trends in this area: "60% e-bikes and 18% speed pedelecs: in total, 78% of our leased company bikes are electric.

High-end bicycles costing several thousand euros, such as electric cargo bikes, are also highly successful, which is probably due to opportunity: the mobility budget or employer “cafeteria plan” benefits packages are making it possible for people to acquire these bikes. But it may also be a consequence of Belgium’s specific tax regulations: the more expensive the bicycle, the more significant the tax incentive. Another interesting observation is that when a  bicycle replaces a car, it’s usually the family’s second car. So we’re not yet seeing any radical replacement of cars by bicycles, but the emergence of the company bicycle is definitely reducing the total number of kilometres travelled by car.”

Digital applications: shifting up a gear

Lastly, Kahn points to another factor that could encourage more people to take up cycling to work. "I think that technology, and in particular digital applications, can make a big difference. We can expect strong growth in the market for apps dedicated to commuting by bike. The business model for on-the-go electric bike rental is already based on a smartphone app. So imagine the success of an application that gives you a safe and bicycle-friendly route for travelling to and from work, and the boost that this could give to this type of travel," concludes Kahn.

Producing biogas through fermentation of agricultural waste? That is exactly what they do at Biomethane du Bois d'Arnelle, Belgium's largest production facility in Hainaut.

You can spot the three large grey domes and a cone-shaped roof from a distance in the countryside around Frasnes-lez-Gosselies. This is a biogas production unit. It took its creator and CEO, Jérôme Breton, 12 years to complete this project due to the lack of a legal and administrative framework. But today, the unit is operational, producing 70,000 MWh of energy.

Turning food waste into biomethane

"We recycle food waste and agricultural materials, livestock manure, straw, beet leaves, peelings, etc. from farmers in a 15-km radius around the site", says Jérôme Breton. "We work with 100 farmers for whom this represents additional income. In digesters, i.e., concrete tanks that are heated to 40°C, bacteria digest the material and produce biogas, consisting of 45% CO₂ and 55% CH₄ methane. We recover this biomethane through filtration, before injecting it into the natural gas distribution network. Fermented matter or digestate, a black liquid that is rich in organic matter, which is very nutritious for crops, is spread as a fertiliser in the surrounding region, where it is used to permanently store CO₂ in the soil and completely replaces chemical fertilisers."

Unrivalled performance

About 15% of the biogas is converted into electricity and heat, half of which is used for the unit’s own needs. The remaining 85% is purified and transformed into biomethane. Once it has been injected into the grid, this biomethane can be used as fuel or as a raw material for petrochemicals. It can also be used to power turbines, and the heat generated can be recovered, just like in a car engine. “While a cogeneration engine, which produces electricity and heat simultaneously, has a total efficiency of between 40 and 80%, our system allows 99.5% of the biogas produced to be injected into the grid”, the young entrepreneur explains. "The pressure varies in a distribution network. That way, the infrastructure can absorb injections without the need for additional investments to store them."

Growing to valorise

The company also grows maize, beets and cereals to valorise them as biogas: "We made a deliberate choice to grow 600 hectares of energy crops to offer farmers a complementary diversification pathway. This accounts for 30% of our raw materials. These crops are stored to allow us to 'smooth' the inflows into our digesters, which depend on agricultural and food activity, on a seasonal basis."

BNP Paribas Fortis, the only bank with such advanced skills

Jérôme Breton says the project would not have been possible without the support of BNP Paribas Fortis. "We would not have gotten funding if it wasn't for the work of their expert. It is the only bank to have such high-level skills in-house. All the other partners also benefited from the analyses and information that he provided to us! A strong, lasting relationship of trust has developed as a result. In my model, I didn't want to rely on public financing for what I do. At the same time, I wanted to produce at the right prices. We produce and sell our biomethane at 100 euros per megawatt hour, while market prices were close to 350 euros last August."

Entrepreneurial success

At BNP Paribas Fortis, we are particularly proud to be supporting passionate, inspiring entrepreneurs. Because building the entrepreneurship of the future together is also an example of Positive Banking!

Elessent EMEIA is on a mission to make the chemical industry more environmentally friendly and sustainable through innovative methods and cleaner production processes.

"We strive to create cleaner, carbon-free production processes for our customers. Innovation is at the heart of what we do", says Sara Alvarez, Finance Manager at Elessent EMEAI. "We suggest less polluting alternatives to traditional industrial methods, allowing our customers to continue to develop products that are essential to our daily lives while significantly minimising their impact on the environment, particularly in terms of pollutants and CO₂ emissions."

4 key technologies

The metals, fertiliser, chemical and refinery industries make up the majority of the company’s customers, with Elessent EMEAI able to deliver complete turnkey production sites. Tjaart Van Der Walt, Director of Elessent EMEAI: "We have four flagship technologies. The first concerns the manufacture of a compound that is widely used in industry, from fertiliser manufacturers to pigment plants, namely sulphuric acid. This is obtained by burning sulphur. We have 90 years of expertise in site design – we have delivered more than a thousand sites – and process and energy recovery. These processes will be key to producing cleaner batteries."

Increased quality and yield

The company also has alkylation technologies (a reaction that is commonly used in organic chemistry) which is used to produce high octane fuels, for more efficient engines. These compounds are valuable for the petrochemical and refinery industries. "We operate at more than 100 alkylation sites around the world", continues Van Der Walt. "And 25 hydrocarbon hydrotreating sites. This is a crucial step in the refining process, during which some elements are removed from the oil. This includes reducing sulphur and nitrogen content to improve stability. Our proprietary soft hydrocracking technology allows us to recover more value from crude oil."

In addition to these processes, which optimise the quality and yield of hydrocarbons, the company also has “wet scrubbing” technologies, which are very effective in fume treatment.

Financial support and real industry expertise

"Our business is growing on a global scale. For our international expansion, we need the constant support of our bank, BNP Paribas Fortis, which, in addition to assisting us with the financial aspects, contributes its in-depth expertise in our industry", Sara Alvarez explains. "This cooperation is crucial in Morocco, Tunisia, India and South Africa, for example. For our long-term investments in these countries, we benefit from our bank’s advice, particularly in terms of resources and guarantees of payment: secured transactions, letters of credit, etc. The same goes for hedging currency risk, which is essential in the context of volatility. This partnership allows us to continue our international expansion."

Entrepreneurial success

At BNP Paribas Fortis, we are particularly proud to be supporting passionate, inspiring entrepreneurs. Because building the entrepreneurship of the future together is also an example of Positive Banking!