ABN AMRO helps clients cut through the maze of sustainability subsidies

In the Netherlands, sustainability subsidies are legion. There’s the Sustainable Energy Investment Subsidy Scheme and the Stimulation of Sustainable Energy Production and Climate Transition. Not to mention the Environmental Investment Credit or the Energy-Saving Investment Credit. Entrepreneurs looking to make their businesses more sustainable may well be eligible for any or all of these national schemes, to say nothing of the many financial incentives for sustainable or circular entrepreneurship which abound at the provincial and municipal level. With such a complex maze of resources, though, most have no idea where to start.

Untapped potential

“There’s so much untapped potential,” says Alexander Goense, a sector analyst with ABN AMRO’s Industry & Energy team. “If an entrepreneur can recover a portion of their investment through a subsidy, it can make all the difference in their choice between a traditional renovation or going the sustainable route. Research conducted by the Netherlands Enterprise Agency (RVO) shows that a staggering 71 percent of all companies that invest in making their business premises more sustainable do not avail themselves of subsidies. Either they just don’t know what their options are or they don’t have time to explore them.”

ABN AMRO aims to change that. In accordance with the bank’s Mission 2030, all real estate financed by the bank must have earned an average energy label A by 2030, while all the bank’s own premises must have obtained the label A by no later than 2023. By familiarising clients with all the potential subsidies out there – and thus facilitating the move towards sustainability – the new Subsidy Expertise entity fits seamlessly with that mission.

“Some schemes start during the year, and others stop accepting applications once all funds have been awarded,” explains Subsidy Expert Robert Schaper. “For those not familiar with all the options, it can quickly become a bit of a maze. We’re constantly monitoring the situation and any new opportunities. We use all that knowledge to engage with our clients, their building consultants and contractors.”

Climbing the rungs of the energy label ladder

Staffed by Robert and his colleague Wilbert van der Vliet, Subsidy Expertise specialises in investments of roughly 200,000 euros and over. Clients pay a fee for the service, but the subsidies granted are often sizeable – sometimes representing as much as 11 percent of the total investment. Indeed, it’s for this reason that subsidies could potentially provide a major boost to the transition to a more sustainable economy.

Robert says, “The client’s plans have to meet a range of conditions. In some cases, the choice between heat pump A and heat pump B can determine whether you’re entitled to a subsidy. For clients looking to do a remodel, what’s important is the number of rungs a subsidy will enable them to climb on the energy label ladder. At the end of the day, we take all these factors into consideration in our recommendations.”

ABN AMRO relationship managers can put business owners with new-build and remodelling projects in touch with a subsidy expert, who then reviews the client’s plans and the schemes available. ABN AMRO liaises with the building consultant, gathers all necessary documentation and files the application. It even submits the follow-up questionnaire from the grantor. Throughout the process, ABN AMRO monitors any agreements made so that all subsidy requirements are met.

The entire process usually takes a few months. Perhaps most importantly, Subsidy Expertise works on a “no cure, no pay” basis: if no subsidies are available or none is granted, the client pays nothing.

A total package

Subsidy Expertise was launched on 1 February, and initial results are very positive. Clients like the fact that they can simply hand everything over to an expert. “Their sense of relief is palpable,” says Alexander. “We let them get on with their business so they don’t have to worry about schemes or applications. We offer our clients a total financing package ranging from the bank’s own standard financing facilities all the way through to tax and other subsidy options. We’re really a one-stop shop.”

Regulations on the horizon

Robert advises entrepreneurs to enlist the aid of Subsidy Expertise at the earliest possible stage. “That way, there’s still time to make any necessary course corrections. Important choices made early on in the process will largely determine whether an application is successful and, if so, how much subsidy is ultimately awarded,” he says.

Another important thing to remember is not to wait too long to make the transition to sustainability, adds Alexander. “All office space measuring 100 square metres or more must earn at least an energy label C by 2023. Contractors’ schedules fill up quickly, and there are plenty of great schemes out there. If you can become more sustainable, go for it!”

Read all about Subsidy Expertise here (only in Dutch).