Loxam Urges Government to Embrace Rental Models in Circular Economy
Loxam advocates for greater government support for equipment rental to enhance sustainability in France.
Key Points
- • Loxam calls for improved government policies to support rental models.
- • Gérard Déprez highlights barriers due to cultural attachment to ownership.
- • Current fiscal policies discourage rental by preventing VAT reclamation.
- • Loxam is adapting its investment strategy based on low demand for low-carbon equipment.
In a significant call for policy reform, Loxam has emphasized the critical role of equipment rental in the energy transition during its recent RSE meetings. Held on June 19 at Hangar Y in Meudon, Loxam's president, Gérard Déprez, argued for improved government support of rental models to accelerate decarbonization efforts. He highlighted a prevailing cultural mindset in Europe that prioritizes ownership, which, combined with fiscal policies that disincentivize renting—such as the inability for public entities to reclaim VAT—hinders the adoption of sustainable practices.
Déprez noted that despite the rental model being successfully utilized in the restoration of Hangar Y, public sector entities continue to favor ownership due to these ingrained habits. He pointed to recent political shifts as evidence that decarbonization is becoming a lower priority for the government, spotlighting delays in implementing the Corporate Sustainability Reporting Directive (CSRD) and potential changes to Low Emission Zones (ZFE).
Additionally, Loxam has modified its investment strategy, scaling back on low-carbon equipment in light of dwindling demand. Industry leaders advocate for a fundamental shift in consumption habits, suggesting a move towards rental and enhanced circular supply chains as necessary to mitigate unsustainable consumption levels. The advancement of circular economy practices, particularly through public procurement, was also recognized as essential to furthering green initiatives and driving economic value.