The Global Innovation Lab for Climate Finance has selected utility financing for clean transport among fresh concepts for scaling up investment in low carbon development. Clean Energy Works championed this approach, advancing from field of more than 100 contenders.
Electric buses and other high-use EVs have the best business case for electrification, yet the upfront cost can still be 50 percent higher than a fossil fueled vehicle. To clear this barrier and accelerate deployment of clean transport, utilities can offer to finance the on-board batteries and charging station.
Using a system called Pay As You Save® (PAYS®), multiple utilities have experience financing energy efficiency upgrades in buildings through a terms of service agreement. Clean Energy Works proposed a similar approach to the transportation sector, starting with clean transit, a win-win for the power sector and the public.
The Global Innovation Lab for Climate Finance will work with experts and investors to analyze and stress-test this concept, catalyze partnerships in both the public and private sectors, conduct rigorous financial analysis, and connect Clean Energy Works with decision-makers who can apply this breakthrough solution.