Financing for Low-Carbon Auto-Rickshaws

The Climate Policy Initiative describes a proposed loan product delivered via a non-banking financial company (NBFC) to enable auto-rickshaw drivers in India to transition from renting conventional vehicles to owning electric ones.

• The 'Financing for Low-Carbon Auto-Rickshaws' instrument is designed to overcome barriers to vehicle ownership for drivers by providing 100% debt financing for the purchase price, eliminating collateral requirements, and offering lower interest rates compared to existing options in India, which are described as having predatory rates or partial financing.
• The proposed financial model utilizes a non-banking financial company (NBFC) that pools equity, debt (from domestic and foreign lenders), and concessional capital—such as impact capital or partial credit guarantees—to reduce borrowing costs. To manage risk, the instrument employs a community-driven loan collection system to encourage timely repayments.
• Transitioning auto-rickshaw fleets to electric models in India presents an opportunity to reduce annual carbon emissions by more than 22 million tonnes. For the drivers, switching from renting to owning an electric vehicle through this instrument is estimated to increase their income by 100-150%, or more than double their daily income.

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} }