BNP Paribas Personal Finance takes responsibility and commits its expertise to promote energy transition

BNP Paribas Personal Finance, the leading European provider of credit to individuals, is taking action to promote energy transition. While France prepares to host the COP 211, an event at which Heads of States will take a stand to vigorously tackle the major challenges of the 21st century, Asterès has just released the findings of the study commissioned by BNP Paribas Personal Finance in a paper entitled « Creating a thermal renovation ecosystem ». Astères shows in this report that we can shift from an energy-intensive economic model to a low-carbon sustainable model while protecting the environment and boosting growth by creating an ecosystem of thermal renovation of residential properties, with financing as the cornerstone. The various initiatives adopted include, for BNP Paribas Personal Finance, the creation of a joint venture with EDF, known as Domofinance. Created in 2003 as a subsidiary of BNP Paribas Personal Finance and EDF, Domofinance is a company that specializes in financing energy renovation projects.
By forging a first solid relationship between financial companies and energy providers, and proposing selective offers under proprietary brands such as Cetelem and those of LaSer Group, BNP Paribas Personal Finance has demonstrated its role as a responsible partner committed to using its expertise to promote energy transition. It plans to roll out these business models beyond the borders of France.

The challenge of the 21st century

Asterès reminds us that the economic history has always been marked by energy transitions. Driven by technological innovation and the prospect of a higher benefit to cost ratio, the previous energy transitions became « naturally » self evident at the end of the 20th century. The shift we need to make today is a huge challenge because it is not compelled by a technological leap forward but the recognition of negative external factors linked to the use of fossil energies. It is therefore not a spontaneous shift and consequently requires thinking that embraces long-term ecological logic and short and medium term economic interest.
According to Asterès, energy efficiency should allow us to cut down energy consumption while boosting our economic competitiveness. However, cutting down energy consumption implies numerous factors such as educating consumers, offering them innovative technologies together with the appropriate financing solutions to do so. The goal is to create an ecosystem that allows and facilitates the implementation of this energy transition. Although the subject of financing energy transition is not new, it requires huge financial resources (the International Energy Agency gives an estimate of trillions of dollars a year).

Asterès identifies the thermal renovation of residential properties as an ecological and economic priority that would significantly boost energy transition. The building sector accounts for 44.5% of final energy consumption, 70% of which is attributable to the residential subsector. Homeowners, both individuals and collective owners, are responsible for renovating their homes and need consumer credit to do so.


360° expertise to promote energy transition

Created in 2003, Domofinance is a subsidiary of BNP Paribas Personal Finance and EDF, specialized in the financing of residential property energy renovation operations, and leveraged by the know-how of its two shareholders.
As far back as in 2003, BNP Paribas Personal Finance and EDF had the foresight to understand that a partnership between an energy provider and financial company was key to the energy transition required at this end of century. The two European leaders then created Domofinance, a joint venture specialized in the financing of residential property energy renovation operations. This initiative also addresses the expectation of French consumers, concerned about more environmentally responsible ways of consuming. As the Observatoire Cetelem revealed in 2013, 67% of consumers consider environmental friendliness as a decisive factor in their consumption choices. To address this expectation, Domofinance enables its customers, both individual and collective homeowners, to reduce their energy bill and raise the value of their property, while minimizing the environmental impact of their energy consumption. This is a long-term ecological initiative which also meets the economic requirements of households in the short and medium term.

    Domofinance key figures

  • 55,000 new projects financed each year
  • 450,000 renovation projects financed since 2003

BNP Paribas Personal Finance commits to energy transition in the long term and in countries where the company operates

Leveraged by its long track record in partnerships, its collaboration with EDF and the success of Domofinance for example, BNP Paribas Personal Finance plans to assist its customers through new partnerships with EDF subsidiaries in countries where the two partners have a significant presence, or through partnerships with benchmark local energy retailers. Again, according to the Observatoire Cetelem which tracks consumer trends, European consumers are growing increasingly aware of the environmental and social impact of their every day consumption. For 55% of them, environmental friendliness is a decisive factor in their consumption choices. Since energy renovation is a key aspect of this concern, BNP Paribas Personal Finance seeks to address this expectation from European consumers by giving them the opportunity to finance their home renovation projects under the best possible conditions.

1 21st Conference of Parties

BNP Paribas Personal Finance takes responsibility and commits its expertise to promote energy transition – 8 july 2015