India’s electric freight sector has immense potential, but traditional financing and business models aren’t enough for increased adoption. New approaches are needed to overcome high upfront electric truck costs and range anxiety.
Financing models should also be revamped. New approaches such as battery financing, public-private partnerships for charging stations, leasing, green and sustainability bonds, and other new approaches can provide long-term financing for electric freight companies.
C40 Cities is driving the switch to electric freight vehicles (EFVs) in India through its Laneshift program. We’re working closely with shipping companies to identify ideal opportunities for EFV use. This results-focused approach ensures that plans translate into real-world projects. To further this goal, C40 Cities is hosting a workshop on “Financing Freight Electrification in India” in Delhi. This event will provide a platform for discussion with key decision-makers in India’s freight industry.

Objective of the session

The session on “Financing Freight Electrification in India” aims to:

• Discuss new financing mechanisms and business models to support the large-scale adoption of electric freight vehicles (EFVs).
• Discuss enabling conditions for driving these new models.
• Discuss financing frameworks for the transition to zero-emission freight.

The overarching objective is to enable stakeholders to take initial steps in implementing EFVs as part of their decarbonizing goals. Consignors can move to EFVs to reduce their scope 3 emissions, while Logistics Service Providers can move to EFVs to reduce operating costs. OEMs have a proactive role in developing EFVs and a reactive role in responding to market demand for EFVs. Financial institutions must develop new financing products, given the sector’s unique challenges.
This discussion will bring together all the stakeholders in the ecosystem to discuss current challenges – in terms of policies, regulations, costs, technologies, and financing. New financing and business models will be discussed to find the best way forward for the stakeholders regarding EFV adoption. The discussion will provide input for further development of financing and business models in the sector.