Full Title: Unlocking Capital for Zero Emission Trucks: Case Studies from Global Markets
Author(s): Zhinan Chen, Marie McNamara, and Samhita Shiledar
Publisher(s): Rocky Mountain Institute
Publication Date: February 20, 2025
Full Text: Download Resource
Description (excerpt):
In India, one of the major barriers to early ZET adoption is access to finance. Securing commercial loans for ZETs is more challenging, often with higher interest rates compared to diesel trucks. Investor hesitancy is driven by the risks associated with ZET technology, which is still new and lacks operational proof points. To address this, innovative financial solutions are needed to improve capital accessibility and reduce ownership costs. The government’s INR 500 Crore allocation under the PM E-Drive Scheme is a significant step, and now is the time to unlock private lending to support steady ZET adoption.
Globally, key ZET markets such as China, Europe, and the United States have begun piloting various financial solutions for ZETs. Studying how finance tools are designed and implemented in these regions provides valuable insights for Indian policymakers and investors, enabling them to leverage these lessons to accelerate ZET market growth. This insight brief highlights three key financial solutions, detailing their deployment in these regions and their potential applicability to India.
With government subsidies for ZETs and increasing interest from the private sector, India is in a prime position to utilize various financial solutions to sustain ZET market growth. By adapting global best practices for ZET financing to India’s unique market conditions, the country can build a thriving ZET market that offers both climate benefits and long-term business viability.