Signature(s)
Summary sheet
- Services - Transportation and storage
The operation concerns the deployment of a fleet of c. 19,000 zero-emission electric light commercial vehicles across 4 EU countries.
The aim is to accelerate the transition towards zero emission road transport, which will generate substantial environmental economic benefits by reducing greenhouse gas emissions, air pollution and noise. The project will also contribute to support the development of the cleaner automotive industry through the accelerated deployment of electric vehicles and, indirectly, their associated infrastructure. Finally, this project addresses the sub-optimal investment situations associated with imperfect competition and incomplete markets, by contributing to increase the level of competition and enable the development, adoption and scale up of electric vehicles.
The project concerns the deployment of a fleet of zero-emission electric Light Commercial Vehicles (LCV) with the goal of reducing road transport carbon emissions.
It fits within a wide range of European policy measures aimed at achieving a more sustainable and lower carbon emissions transport sector such as the EU Green Deal and the Sustainable and Smart Mobility Strategy. The project also contributes to the EIB's objectives of sustainable and decarbonised road transport and is consistent with the Bank's Climate Bank Roadmap and Transport Lending Policy.
The Electric LCV market is still at an early stage of development in Europe with operational performance uncertainty and high upfront costs. The project contributes to mitigate negative externalities in the form of the reduction of GHG, air pollutants (Nitrogen Oxides, Particulate Matter) and noise emissions through the electrification of road transport. These benefits are not fully captured by road transport pricing.
The project has a 100% share of Climate Action and is eligible under Article 309 point (c) common interest. Investments located in regional development areas will also be eligible under Article 309 point (a) projects for developing less developed regions.
The project is part of a wider Promoter's long-term strategy for a sustainable business development. The EIB's contribution to this investment in fleet decarbonisation is expected to materially contribute to the Promoter's ambition to reach a share of low emission vehicles (EVs and Plug-in hybrids) in new car deliveries of 50% in 2026.
The project is in line with European policy to electrify the European light vehicle fleet, a policy which has been estimated to generate an economic return of ERR=8%.
EIB would provide an adequate financing to the borrower, allowing it to further diversify its financing sources. The Bank's tailor-made product will provide the company with long maturity and other attractive financial conditions that will allow the borrower to expand their EV fleet in the identified market gap. Moreover, EIB's involvement would have a signalling effect on the soundness and quality of the project, facilitating funding from other players.
The new vehicles are expected to be much cleaner than market average. Significant benefits in terms of fuel consumption, reduced polluting and carbon emissions are expected and will be further assessed during appraisal. The acquisition of vehicles does not fall under Annex I and II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU (amending 2011/92/EU). Nevertheless, all environmental issues including possible environmental and operational authorisations, will be reviewed during the due diligence process.
The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the promoter is after all subject to EU public procurement legislation Directive 2014/25/, where applicable, then the Bank would require the promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation 2014/25/EU, where applicable, as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.