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Signature(s)

Amount
€ 500,000,000
Countries
Sector(s)
France : € 45,000,000
Sweden : € 455,000,000
Industry : € 500,000,000
Signature date(s)
19/10/2022 : € 45,000,000
19/10/2022 : € 455,000,000
Link to source

Summary sheet

Release date
18 November 2022
Status
Reference
Signed | 19/10/2022
20200742
Project name
Promoter - financial intermediary
VOLVO TRUCKS CLEAN TRANSPORT RDI
AB VOLVO
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 500 million
EUR 1234 million
Location
Sector(s)
Description
Objectives

The project concerns the promoter's investments in the period 2021-2024 for the development of electric vehicle technologies, active and passive safety and autonomous driving technologies, as well as non-powertrain related energy efficiency improvements.

The project will help strengthening the company's technology competence and will contribute to the ongoing transformation of the heavy-duty vehicle sector. In particular, it concerns vehicle electrification for the decarbonisation of the transport system, autonomous driving for safe and connected mobility, as well as the development of a safer and more sustainable European transport system.

Additionality and Impact

The project is of high strategic importance for Volvo AB. By supporting this project, the Bank will help the promoter in developing electrification technologies of commercial vehicles where this is practically at its nascence, as well safety technologies for vehicle operators as well as vulnerable road users, and overall the development of a more sustainable and efficient European transport system. 

The project contributes to the Bank's Innovation, Digital and Human Capital policy objective. The project components concerning RDI on electrification technologies will also contribute to the EIB Climate Action and Environmental Sustainability (climate action mitigation) policy objective.

The promoter's investments address the market failures and gaps associated with (i) imperfect competition and incomplete markets for very innovative and still not close to viable market stage electrification, vehicle automation and connectivity technologies, and those addressed by (ii) projects with positive knowledge, environmental and safety externalities generation.

In addition to the benefits described above, the project will have a positive effect in terms of knowledge generation and diffusion, as well as on employment, through both the increase of highly skilled R&D jobs, and the development and re-skilling of the company's R&D resources. 

The project will be managed and implemented by a promoter with very strong capabilities and expertise. It is fully aligned with the developments of technology, market and societal trends and fully supports the promoter's decarbonisation strategy and vision.

The Banks technical contribution and advice for the project is explained by (i) the guidance provided to align the project scope definition with the policy objectives at project origination and during the due diligence; and (ii) the monitoring requirements, given the associated sector risk.

The Bank's contribution to the project is supported by a combination of its advantageous terms, flexible availability and utilisation of the loan, as well as helping crowd-in other financiers, thereby facilitating the project's financing and full implementation.

Environmental aspects
Procurement

The project concerns investments in research and development that are expected to be carried out in already existing and authorised facilities. The project does not fall under any of Annexes of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending Directive 2011/92/EU and therefore it does not require screening or EIA Report. Further details will be analysed during the due diligence. The results of this R&D project are expected to contribute to the development of a more sustainable European transport system.

The promoter has been assessed by the EIB as being a private company not operating in the utilities sector and not having a status of a contracting entity, thus not being subject to EU rules on public procurement.

Link to source

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Documents

Environmental and Social Data Sheet (ESDS) - VOLVO TRUCKS CLEAN TRANSPORT RDI
Publication Date
13 Dec 2022
Document language
Main Topic
Lending
Document Number
143655009
Document Focus
Environmental Information
Project Number
20200742
Sector(s)
Regions
Countries
Publicly available
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