The World Bank expects the number of people living in cities to more than double by 2050. The projected 6.8 billion urban residents by that date – 70% of the global population – will put increased pressure on municipal utilities, infrastructure, and the urban environment.
Cities account for two thirds of global energy consumption and over 70% of global CO2 emissions. As city populations increase – along with traffic and emissions – a multitude of as-a-service solutions offer cleaner, more sustainable urban futures. With over half of urban air pollution coming from passenger vehicles, solutions focused on mobility, so called mobility-as-a-service (MaaS), offer a clear response to climate and environmental challenges.
According to Sébastien Dessillons, Head of Global Sectors, BNP Paribas CIB: “As cities grow, emissions and congestion will increase proportionally, unless new models emerge to address this reality. The transition to connected EVs is one building block for a more sustainable future, but mobility-as-a-service can really drive change and transform the industry by delivering end-to-end multimodal travel that can include public transport, cycling and ridesharing seamlessly all in one journey and with one payment channel. This will reduce emissions, support the energy transition and make the cities of the future more sustainable and more liveable.”
❝ The transition to connected EVs is one building block for a more sustainable future, but mobility-as-a-service can really drive change and transform the industry by delivering end-to-end multimodal travel that can include public transport, cycling and ridesharing seamlessly all in one journey and with one payment channel. ❞
Mobility-as-a-service
Mobility-as-a-service brings together the full range of transport services into one single application alongside an integrated payment option, providing customers with an end-to-end service and an alternative to personal vehicles, supporting the transition to more sustainable transportation.
Cities generate more than 80% of GDP. The United Nations expects the world to have 43 so-called megacities with more than 10 million inhabitants by 2030 versus 31 today. But air pollution costs the average European city resident €1,276 per year according to the European Public Health Alliance. Time lost due to congestion further dents productivity. Implementing, and securing investment for, sustainable urban solutions unlocks opportunities to develop efficient, thriving cities.
Cities leading the charge
As urbanisation accelerates, cities are adapting to meet consumer demand and build the cities – and mobility – of the future. This requires strong transportation and policy support. With recent legislation to limit the number of personal vehicles – London’s ultra-low emission zone (ULEZ), French regulation on low-emission mobility zones in large cities – users are looking to new transportation options.
Brussels has developed Floya, an app for users to plan, book and pay for different modes of transport in the city. Other cities like Berlin and Helsinki have set up their own MaaS applications, with multimodal mobility offering economic, environmental and societal benefits for the cities of the future.
Innovative sustainable finance solutions
Robust transportation systems are key in connecting all urban areas, opening access to employment and supporting a just transition. A number of cities are supporting alternatives to personal vehicles: cycle lanes, bicycle parking spaces, and subsidies for active mobility solutions, development of electric vehicle (EV) charging stations, and carsharing solutions.
In order to implement such a vast range of mobility options, cities are increasingly tapping into innovative sustainable finance solutions, for example climate, social and/or sustainability bonds.
According to Benjamin de Forton, Debt Capital Markets, SSA, BNP Paribas CIB: “Municipal authorities are increasingly issuing sustainable and climate bonds to support their transition and offer sustainable services for urban populations. As the number of city dwellers grows, mobility solutions will be more and more important, and BNP Paribas is well placed to accompany these issuers in meeting their sustainability objectives.”
❝ As the number of city dwellers grows, mobility solutions will be more and more important, and BNP Paribas is well placed to accompany these issuers in meeting their sustainability objectives. ❞
Salma Guerich, Debt Capital Markets, SSA, BNP Paribas CIB adds: “Many cities are actively integrating sustainability into development plans to support alternative mobility solutions. This both addresses climate and sustainability objectives and meets investor interest in this type of issue.”
❝ Many cities are actively integrating sustainability into development plans to support alternative mobility solutions. This both addresses climate and sustainability objectives and meets investor interest in this type of issue. ❞
Unlocking the full potential of MaaS with innovation and technology
As cities expand and transportation management challenges grow, innovation and technology will be critical to developing multimodal platforms, apps and payment solutions, and transitioning to electric vehicles. Barcelona has paved the way: the city has drawn on a public-private partnership to develop a platform to coordinate, monitor and communicate e-mobility activities.
A key component will be charging infrastructure as well as the development of efficient batteries. The number of charging stations, having sufficient battery to reach a destination, the location and distance between charging points, the quality of chargers and the length of charging time are key concerns for drivers. Battery-as-a-service is one way to address this, whereby users take out a subscription service to swap an empty battery for a charged one rather than waiting hours for a battery to charge. This is fast developing in Asia for electric cars and scooters, and is set to spread across the world.
According to Joachim Reinboth, Co-Head of Automotive and Mobility Services, BNP Paribas CIB: “New models and technologies are unlocking new possibilities, with energy-as-a-service, smart charging, battery-as-a-service and vehicle-to-grid technology allowing energy in the vehicle to be injected back into the grid. The MaaS ecosystem is evolving, with both tech and automotive players innovating and expanding their offering.”
❝ New models and technologies are unlocking new possibilities, with energy-as-a-service, smart charging, battery-as-a-service and vehicle-to-grid technology allowing energy in the vehicle to be injected back into the grid. ❞
A Group-wide approach
Mobility is a central component of BNP Paribas’ GTS 2025 Strategic Plan, with the ambition of being the privileged partner of our corporate and individual clients to support them in their transition to sustainable, secure and accessible mobility.
Accelerating its investments in this key sector, the BNP Paribas Group recently launched BNP Paribas Mobility, bringing together all its mobility brands under one umbrella: Arval BNP Paribas, BNP Paribas Personal Finance, BNP Paribas CIB, BNP Paribas Leasing Solutions and BNP Paribas Cardif.
Supporting all players across the mobility value chain, the Group offers market-leading expertise and tailor-made solutions to meet the needs of our full range of clients: infrastructure players; vehicle manufacturers, equipment suppliers and distributors; corporations for their vehicle fleets and new mobility offers and services; and individual customers to help them adopt more environmentally friendly modes of transport.
As part of this mobility strategy, BNP Paribas has also among other initiatives developed the Mobility4You platform and mamGO mobility platform for individual customers, and launched a partnership with the luxury EV producer Zeekr.
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