Financing for Low-Carbon Auto-Rickshaws

The 'Financing for Low-Carbon Auto-Rickshaws' instrument is a loan product delivered via a non-banking financial company (NBFC) to facilitate the transition from conventional to electric auto-rickshaws in India. It addresses barriers to ownership by providing 100% debt financing, removing collateral requirements, and offering lower interest rates. The model utilizes a community-driven collection system to reduce default risks and pools equity, debt, and concessional capital to lower borrowing costs. The initiative aims to reduce annual carbon emissions by over 22 million tonnes and significantly increase driver incomes compared to renting.

• The proposed financing instrument aims to overcome common barriers in the Indian market—such as collateral requirements, partial financing, and high interest rates—by offering 100% debt financing for the vehicle cost with no collateral and lower interest rates.
• Transitioning from renting to owning electric auto-rickshaws through this instrument is estimated to increase driver income by 100-150%, or more than double their daily income.
• The initiative has the potential to reduce carbon emissions by more than 22 million tonnes annually due to the high volume of auto-rickshaws in India.
• The financial structure will be a non-banking financial company (NBFC) that pools equity, domestic and foreign debt, and concessional capital (such as partial credit guarantees or impact capital) to reduce the cost of loans for drivers.

APA

Climate Policy Initiative (2020). Financing for Low-Carbon Auto-Rickshaws. https://www.climatepolicyinitiative.org/publication/financing-for-low-carbon-auto-rickshaws/

Chicago

Climate Policy Initiative. Financing for Low-Carbon Auto-Rickshaws. 2020. https://www.climatepolicyinitiative.org/publication/financing-for-low-carbon-auto-rickshaws/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Financing for Low-Carbon Auto-Rickshaws |date=3 August 2020 |url=https://www.climatepolicyinitiative.org/publication/financing-for-low-carbon-auto-rickshaws/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2020financing, author = {{Climate Policy Initiative}}, title = {{Financing for Low-Carbon Auto-Rickshaws}}, institution = {Climate Policy Initiative}, year = {2020}, month = aug, url = {https://www.climatepolicyinitiative.org/publication/financing-for-low-carbon-auto-rickshaws/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }