The Green Finance Institute (GFI) has launched the Coalition for Decarbonisation of Road Transport.
The Coalition brings together global experts and leading figures from finance, automotive, energy and infrastructure sectors to accelerate the transition to zero emission vehicles.
To deliver on this challenge the Coalition will focus on unlocking the level of private finance necessary for transport decarbonisation. Analysis from the Green Finance Institute, with support from KPMG’s Future Mobility Team estimates that more than £150 billion of gross capital investment may be required to decarbonise the UK road transport sector between 2021 and 2030. This will require a significant acceleration in the rate of investment in zero-carbon transport solutions.
Three core areas have been identified by the Coalition that require the development of finance solutions:
More financial options are needed to help consumers overcome the barriers to choosing electric over fossil-fuel vehicles. The focus will be on mitigating the upfront costs of EVs and to drive the EV market to maturity. The finance sector needs to focus on providing affordable finance solutions for consumers and small businesses to enable the move to zero emission vehicles.
GFI estimates that a further 6.7 million charging points will be required to meet the demand from EVs, at a cost of £20 billion. Collaboration between the Public and Private sector will be required to deliver a large-scale national rollout of charging points in the UK.
The UK will need to scale up current levels of investment into electric vehicle battery manufacturing. The UK requires at least three gigafactories and more than £5 billion investment to support the number of zero emission vehicles needed by 2030.
Dr Rhian-Mari Thomas OBE, chief executive of the Green Finance Institute, said:
“The Green Finance Institute has already demonstrated the impact of bringing together experts to co-design innovative financial solutions and promote the enabling conditions needed to channel capital towards net zero goals.
Identifying the most effective interventions and public investments in order to catalyse private sector finance requires thorough, detailed analysis as well as creativity and ingenuity. We’re excited to be working with KPMG and our founding coalition members to tackle the challenge of financing the decarbonisation of road transport.”
To achieve the UK’s plan for net zero greenhouse gas emissions by 2050, it’s essential to deliver the decarbonisation of transport in the UK. The UK has already committed to phase out the sale of new petrol and diesel cars and vans by 2030. Transport in the UK is largest contributor of UK greenhouse gas emissions, contributing 24% of 2019 total emissions.
For further information of the Green Finance Institute Coalition on Transport visit www.greenfinanceinstitute.co.uk/launch-of-the-coalition-for-the-decarbonisation-of-road-transport/