The Green Finance Institute has put forward 18 solutions to help unlock the £150 billion of investment needed to help fund the transition to zero emission vehicles.
The cross-sectoral report covers two areas: consumer uptake of EVs, and EV charging infrastructure.
'Road to Zero: unlocking public and private capital to decarbonise road transport in the UK' has been developed by the Green Finance Institute’s Coalition for the Decarbonisation of Road Transport (CDRT), contributed to by more than 200 experts from across the sector.
It sets out the urgent need for private finance to flow into the sector, the barriers to this, and solutions needed to overcome them.
Lauren Pamma, programme director for the Coalition for the Decarbonisation of Road Transport (CDRT), said: “Our inaugural report has identified a number of barriers to EV adoption by consumers, and the roll out of public charging infrastructure which, if not overcome, risk disrupting the orderly transition needed to move the UK towards zero emission motoring.
“Our solutions have been co-designed with members to unlock those barriers and accelerate the pace of change.”
Dr Rhian-Mari Thomas OBE, Chief Executive of the Green Finance Institute, said decarbonising transport is a challenge that is too large and interconnected for any one part of the market to solve alone.
She said: “We need radical collaboration through public and private partnerships across finance and industry focused on tackling the barriers and unlocking the estimated £150bn of investment that’s required to accelerate the pace of change.”
Transport is the largest contributor to UK greenhouse gas emissions and the UK has committed to phase out the sale of petrol and diesel cars and vans by 2030.
Without financial solutions that can facilitate an inclusive transition to EVs, reduce the perceived risks faced by financial providers offering consumer finance to switch, and facilitate the roll out of charging infrastructure needed for EVs, the Institute said the market may fail to complete an orderly transition to all-new EV sales by 2030.
Solutions put forward in the CDRT’s report to support consumer purchase and leasing of EVs include:
- Increasing loan capacity in the market through securitisation of used EV loans to allow aggregation and sale on secondary markets
- Standardised battery health certification to give confidence to buyers in the used car market
- Bundled vehicle and infrastructure financing products enabling consumers through simplifying purchasing by making one monthly payment for EV costs, including the EV itself, chargepoints, and energy.
Solutions put forward in the report to boost a UK-wide EV charging infrastructure include:
- Provision of utilisation-linked loans for installing more widely distributed chargepoints
- A transport infrastructure facility that uses public and private finance to de-risk investments where there are market failures in the short term
- Creation of local authority toolkits to speed up and simplify the process of creating an extensive and reliable charging infrastructure.