In order to meet European climate goals, Belgium will need to secure €30bn worth of investments in energy-efficiency in the next 20 years, an average of €1.5bn per year. In order to encourage companies to invest, the VBO/FEB, the technology sector federation Agoria, and the financial sector federation Febelfin, have composed a model contract for the banking industry

The model contract aims at simplifying and aiding the banking industry in its process to offer credit to such energy investments. According to McKinsey, the potential for energy saving in Belgium is quite substantial. 48% of energy usage by public and business buildings can be saved, 22% for industrial buildings.

Banks have sufficient financing capacity; the problem they are facing is the difficulty in calculating the savings capacity of such projects. This is a vital calculation with regards to granting such credits because of the savings, and hence reimbursement capacity, they create.

That is why the three industry associations have created a reference tool for the banks to gauge and evaluate energy efficient investments and their returns on investment. This reference tool is based on scientific and technical studies, and on the practical experience of the technological companies.

The trio is also calling upon Belgian federal and regional governments to back the proposal. It is hoped that these governments would support the proposition by granting guarantees to energy efficient investments. This would make credit cheaper for companies making the investments. They also propose that public institutions set an example and invest in energy efficiency, with the goal of using 30% less by 2030.

According to President of the VBO/FEB, Thomas Leysen, “if we want to belong to one of the most energy efficient economies in 2030, we urgently need to make up for lost ground.” The VBO/FEB argues that motivation is not the hurdle that needs to be crossed; it is the financing of new investments for such new projects. The tool offered by the trio meets the demand of the business environment.

Importance is placed on investing in new technologies, in order to maintain Belgium’s position within the top energy efficient countries, and to increase the amount of investment put into R&D for such projects to become a reality. The money saved on green energy is reinvested into lowering the costs involved, therefore increasing the attractiveness of investment.

AmCham Belgium’s Position
In addition to supporting the drive for investment, the Chamber applauds the efforts made by the VBO/FEB, Agoria, and Febelfin. Facilitating access to credit will help to increase the attractiveness of Belgium as a place in which to invest.

AmCham Belgium’s recent position paper on improving ‘R&D Tax Incentives to Spur Innovation’ suggests concrete improvements in respect of the (i) partial exemption of wage withholding tax on researchers’ salaries, (ii) the investment deduction for R&D Investments as well as (iii) the enhancing of the legal security in respect of R&D incentives and grants. Additionally, various improvements to the Belgian Patent Income Deduction (“PID”) regime have been suggested to the former Minister of Finance, and these should be implemented as soon as possible.