The road freight sector is responsible for 20% of greenhouse gas emissions globally. In recent years, battery electric and hydrogen fuel cell electric trucks have become market ready with successful pilots being deployed in multiple regions. New policies in California and European Union force a significant ramp up by obliging OEMs to accelerate the transition, and international shippers have committed to significantly reduce scope 3 emissions in their supply chains this decade. We see a huge latent demand for electric trucks. However, there are still several structural barriers for fast-tracking the ramp up of electric trucks, including infrastructure build-out, carrier engagement and finance. This framing paper discusses how financing is affecting the transition towards electric trucks and how it can be part of the solution. It is part of a series of discussions on financing the transition to electric trucks.
Published Mar 2023
Organization: Smart Freight Centre, CALSTART, and the Government of the Netherlands