22 entrepreneurs meet to stimulate investment in zero-emission freight corridors – WBCSD

New York, September 30, 2024 – CEOs and directors of 22 companies from the automotive, financial, retail and infrastructure sectors, as well as government representatives from the United States and the United Kingdom, gathered during Climate Week in New York to urge cooperation on the financing of zero-emission vehicles in strategic corridors freight.

The event was organized by the World Business Council for Sustainable Development (WBCSD) in partnership with the Sustainable Markets Initiative, with support from BloombergNEF and the Smart Freight Center, and hosted by Bank of America.

Current investments in the electrification of road freight transport need to increase approximately tenfold, to approximately $200-300 billion per year by 2030, to support the transition to electric medium and heavy-duty vehicles needed to achieve global climate goals (IEA, BloombergNEF).

Companies implementing fleets and infrastructure, private investors and governments must agree with them common transport electrification strategies to reduce risks and optimize investments, freight and supporting policies.

Green road corridors concentrate electrified infrastructure along major freight routes and connect key industrial clusters, ports and cities. As such they provide key opportunities for collective investment to realize a net-zero transformation of transport and industrial systems.

Businesses and governments are mobilizing private capital and developing policy packages to support industrial and operational decarbonization plans.

At the event, executives and public officials recognized the urgency and opportunity to align these efforts to collectively accelerate electrification investments along major freight corridors, especially in India, Mexico, Poland and the US.

They cited the following collaborative opportunities for companies and governments around the world to accelerate sector transformation:

• Express clear, aggregated demand signals for medium and heavy duty trucks (e-MDT). Fleet owners and operators must collectively communicate their electrification plans to secure and guide the investment plans of governments and private financiers along major freight corridors around the world. This approach has already proven successful in India, where a demand signal from 15 corporations for 7,700 trucks is the justification for national plans to implement charging infrastructure and mobilize capital for e-trucks. Companies are currently focusing on the demand signal for zero-emission light-duty vehicles and MDHVs in Mexico’s freight corridors and cities, which is expected to be announced during COP29.
• Identification and activation of effective financial mechanisms facilitating the use of private capital, as well as innovative fleet operating models to increase efficiency and optimize capital and operational expenses. Pooling of vehicle loans or leasing, payment security mechanisms or electricity cost guarantees are promising measures to reduce the risk of large infrastructure investments.
• Use aggregated operational data to optimize charging infrastructure planning and investments. Given the capital intensity of e-truck fast charging infrastructure, consolidating data related to fleet operations can help charging point operators (CPOs) and their financial sponsors address the risks associated with uncertain demand and operational complexity.
• Introduce consistent fuel specifications, goals and implementation plans for clean transportation infrastructure – in particular the modernization of charging infrastructure and the power grid – to highlight the plans of vehicle and battery manufacturers, charging service providers and utilities. They should be accompanied by streamlined and accelerated permitting to enable rapid adoption.

Deeksha Vats, Group Chief Sustainability Officer, Aditya Birla Group, said: “Decarbonizing logistics is a key step towards achieving our sustainability goals. Additionally, electrifying India’s truck fleets represents a transformative sustainability opportunity. We look forward to further opportunities to align transition strategies with other companies and the government as a partner of the Zero Emission Vehicle Emerging Markets Initiative (ZEV EMI).”

Alan Brookes, CEO of Arcadisstated: “Making the transition to zero-emission freight transport takes more than just vehicle adoption – it requires solid infrastructure development. Businesses and governments must work together to ensure the necessary charging and power networks are in place. We are excited that the radical collaborations led by WBCSD are paving the way for action and moving us closer to a net zero trajectory.“

Yoshinami Takahashi, Corporate Vice President, Chief Operating Officer (Responsible for Fujitsu Uvance), Fujitsucommented: “Fujitsu Uvance is committed to creating a sustainable society through digital solutions. By working with companies from ZEV EMI, Fujitsu aims to accelerate the solution of social problems. Recent achievements include a successful pilot project for electric vehicle charging infrastructure in India, which reduced fuel costs by 13%. To further intensify these efforts, Fujitsu is committed to expanding data sharing frameworks and working with enterprises and governments to unlock the potential of digital collaboration for a more sustainable future.

Adrian Leach, Global Head of Energy Transition, DLLsaid: “At DLL, our commitment to financing the energy transition is aligned with our goals to reduce the greenhouse gas (GHG) emission intensity of our portfolio and develop new sources of business and revenue based on sustainability. Our goal is to offer businesses tailored asset financing solutions that meet their unique energy needs across the value chain, through a strategic approach designed to support growth, reduce risk and drive meaningful change, ultimately contributing to a more sustainable future. As we continue to refine our financial offerings, working with key stakeholders, including governments, will be key to unlocking and scaling cleaner energy networks.

Jennifer Jordan Saifi, CEO of the Sustainable Market Initiativehe added: “The urgency of the climate crisis requires immediate, coordinated action between businesses, governments and investors, which is essential to stimulate green markets and unlock the opportunities of the zero-emissions transition. The Sustainable Markets Initiative is committed to accelerating this change in the transport sector and is supported by the ambition expressed by businesses and governments during this discussion, and looks forward to support for practical implementation.

Christoph Wolff, CEO of Smart Freight Center (SFC), he said: : “As the global logistics industry moves towards decarbonization, the need for urgent and coordinated action has never been clearer. Collaboration is key, whether it’s common standards, new financing models or strategic, timely infrastructure deployment. At Smart Freight Center, we are committed to accelerating this transformation by aligning industry actions based on collective demand and combining opportunities with financing through real pilot projects along major global freight corridors around the world. SFC’s aspiration is to contribute to the deployment of 5,000 zero-emission trucks next year.”

Karen Fang, Managing Director and Global Head of Sustainable Finance at Bank of America said: “Clear signals from industry, together with supportive policies, will be key to accelerating capital flows into sustainable infrastructure. By supporting our 10-year goal to mobilize and leverage $1.5 trillion in sustainable finance by 2030, we help clients transform, knowing it will deliver both long-term financial gains and the progress needed to advance a low-carbon economy. “

Jon Moore, CEO of BloombergNEFsaid: “We are seeing significant progress in the deployment of zero emission trucks, with more companies and governments investing in decarbonising freight transport. However, the pace of regulatory adoption must accelerate to meet urgent climate challenges. Scaling manufacturing, infrastructure and financing solutions is critical to making zero-emission trucks the standard across industries.”

What’s next?

Companies across the transport sector are mobilizing in public-private dialogues to drive the creation of markets for ZEVs along strategic road freight corridors around the world as part of the Zero Emission Vehicle Emerging Markets Initiative (ZEV-EM-I) and the Collective for Clean Transport Financing (CCTF), both form part of the ZEVTC Global Transformation Global Transformation Roadmap Architecture. In 2024 and 2025, this business coalition will focus on catalysing the electrification of road transport in selected countries, including: in India, Mexico, USA and others.

For more information, please contact Thomas Deloison.