EIB and ALD | LeasePlan Sign New Sustainable Financing Agreement To Accelerate the Uptake of Green Vehicles in Europe
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Following on from the major financial partnership signed in 2019 to support the transition to a sustainable economy via green vehicle development, the European Investment Bank (EIB) and ALD | LeasePlan, the leading global sustainable mobility player, have launched a new operation to further accelerate the growth of the ALD | LeasePlan hybrid and electric vehicle fleet in Europe.
This operation breaks down into a €300 million credit envelope from the EIB (on favourable financial conditions) and an equivalent €300 million investment made by ALD | LeasePlan for a duration of three years. It will enable ALD | LeasePlan to further develop its range of electric vehicles (battery electric vehicles and plug-in hybrid electric vehicles) across the European Union, in the countries covered by both companies.
EU targets for tackling climate change — which involves a major reduction in CO2 emissions — effectively require a gradual move to electric or plug-in hybrid cars. In most EU countries, plug-in hybrid electric vehicles (PHEVs) still account for the largest number of green vehicles on the road. However, battery electric vehicles (BEVs) are proven to have a greater impact in reducing carbon emissions when looking at the full supply chain from production to the road.
Covering a period of three years and considering the existing constraints on the range of electric vehicles and the charging infrastructure available in Europe, this new operation will co-finance an eventually equal number of BEVs and PHEVs (15 000 vehicles in total over three years). The PHEV vehicles involved are capped at a maximum level of emissions of 50 g CO2/km (one-third lower than in 2019).
“Through our financing to support European companies in their energy transition, the EIB is playing its part in driving the low-carbon transformation of the entire automotive sector,” explained EIB Vice-President Ambroise Fayolle. “I am delighted that the EU climate bank is able to provide this loan to support the greening of ALD | LeasePlan’s fleet of hybrid and electric vehicles. ALD | LeasePlan is a European leader in sustainable mobility, and plays an essential role in disseminating these best practices among small and medium companies (SMEs), which are among its most important customers.”
“The recent acquisition of LeasePlan by ALD positioned our company as the leading global sustainable mobility player with a total fleet of 3.3 million vehicles managed worldwide. We intend to keep leveraging our unique position on the European market to lead the energy transition and provide our customers with the mobility solutions they need to succeed,” said ALD | LeasePlan Chief Financial Officer Gilles Momper. “This co-financing operation will contribute to further reducing carbon emissions in transport by accelerating the adoption and penetration of green vehicles in the European countries we are covering.”
With 29% of new passenger car deliveries being BEV or PHEV, ALD | LeasePlan maintained its leading position in Europe in the first quarter of 2023, well ahead of the market (20%).