Investing in impact: cycling infrastructure and culture

Looking around Europe's cities, and the towns and rural areas in-between, it is encouraging to see the various initiatives and plans there are to lower barriers, and promote entry, into active mobility. One such form of active mobility is cycling, and with the recent European Declaration on Cycling which states that ‘…investment is a prerequisite for significantly improving cycling conditions and maintaining infrastructure.’?

Amsterdam, Barcelona and Paris are all examples of cities that have made large investments to increase bicycle use. They have done so through smart and swift urban planning not to mention a willingness, seen across the EU ecosystem, to trial and adopt new concepts in their cities to meet locally set targets. Other cities, like Stockholm, have incredible potential to replicate the success of these cities, as well as the results seen closer to home in the likes of Copenhagen.?

Paris and Barcelona: Policy and infrastructure garners results

Naturally when you think of cycling, both of culture and infrastructure, you will think first of Amsterdam and the Netherlands. This is of no surprise given the overwhelming and incredible popularity of the bicycle in the country and how in cities like Amsterdam the bike is a primary mode of transport and as such, is noticeably prioritised. This can also be seen outside the city, for example, at a recent Formula 1 race at Zandvoort you would find no space to park a car, but plenty of bicycle parking spaces instead. ?

Taking encouragement from the dedication and outstanding results seen in the Netherlands we see similar and productive efforts being produced elsewhere. A good example of how big changes can be implemented quickly is Paris, where Mayor Anne Hidalgo's policy to remove tens of thousands of car parks in the city came in tandem with streets being rebuilt for increased cycling and pedestrian traffic. The result speaks for itself: A recent study had found that 11.2% of trips in Paris are made via bicycle vs 4.3% in cars.?

Another example is Barcelona, where the transformation of the city has been driven by the superblocks vision: merge several blocks previously bounded by high-traffic streets, then remove the streets and replace them with walking and bike paths, playgrounds, benches, and park areas. Superblocks reduce accessibility for cars and other motorised vehicles, prioritising micromobility and active mobility, while other parts of the city have been connected by new tramlines. These new avenues are held in high regard by locals as a break from the busy city, and their design encourages more trips by foot and bike.??

But what is the deeper impact of these investments??

Copenhagen and Stockholm: Health benefits and fiscal potential?

“Cycling may not sound that innovative, and a challenge as an investor has been that the solutions are not necessarily very high-tech. Then you must look at other types of business models”, says Fredrik H?nell, director Impact Ventures in an interview with Impact Loop. “When you include impact in the calculation, it becomes an enormous amount at the societal level. Most people understand that cycling is good for health but are not necessarily aware of its financial benefits”. In Copenhagen, estimates have been made that societal gains in health add up to about one euro per kilometre, per cyclist. It may not sound like much but overall, it adds up to huge savings.??

In the case of Sweden, we certainly see an elongated country with incredible nature, but if you consider that 88% of the population lives in urban areas, you realise that the bicycle has untapped potential there. Almost one million Swedes cycle every day, an average of six and a half kilometres each, and when considering the aforementioned benefits seen in their close neighbour, Copenhagen, this adds up to a savings of nearly €2 billion a year.??

This is of course a significant amount of money, and the savings could be replicated across other European cities. This is including the given examples of Paris and Barcelona, not to mention it could be re-invested in similar or other initiatives which breed successes of the same standing.?

Infrastructure, financial reward and the investor role?

As we have seen in Paris and Barcelona, after building integral infrastructure, encouraging results in terms of bicycle uptake are seen and appreciated quickly. Evidence from Copenhagen suggests the returns in terms of health and financial benefit are enormous and to be taken into full account when thinking about initial cost.?

With the increasing emergence and development of cycle-friendly infrastructure it is the companies that can successfully deploy within the improved framework that will result in the biggest impacts – both in the financial sense and in time, culturally. Take a look at our portfolio for examples of cycling and other likeminded companies doing just that. ?