Unlocking Capital for Zero-Emission Trucks

The document identifies access to finance as a primary barrier to zero-emission truck (ZET) adoption in India due to investor hesitancy and higher interest rates compared to diesel trucks. It proposes three financial mechanisms—risk-sharing facilities, tailored insurance, and Mobility-as-a-Service (MaaS)—drawing on examples from California, China, and Europe to accelerate India's ZET market growth.

• Access to finance is a major obstacle for ZET adoption in India, where securing commercial loans is more difficult and carries higher interest rates than for diesel trucks, largely because investors perceive risks due to a lack of operational proof points for the new technology.
• The document identifies three specific financial solutions used globally that could be adapted for India: risk-sharing facilities (such as California's $30 million loan guarantee program), tailored insurance (as seen in China's regulatory and private initiatives), and Mobility-as-a-Service (MaaS) models that redistribute ownership risks through leasing and bundled services.
• The Indian government has taken an initial step toward supporting ZETs through a INR 500 Crore allocation under the PM E-Drive Scheme.

APA

RMI (2025). Unlocking Capital for Zero-Emission Trucks. https://rmi.org/resources/unlocking-capital-for-zero-emission-trucks/

Chicago

RMI. Unlocking Capital for Zero-Emission Trucks. 2025. https://rmi.org/resources/unlocking-capital-for-zero-emission-trucks/.

Wikipedia

{{cite report |author=RMI |title=Unlocking Capital for Zero-Emission Trucks |date=14 February 2025 |url=https://rmi.org/resources/unlocking-capital-for-zero-emission-trucks/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025unlocking, author = {{RMI}}, title = {{Unlocking Capital for Zero-Emission Trucks}}, institution = {RMI}, year = {2025}, month = feb, url = {https://rmi.org/resources/unlocking-capital-for-zero-emission-trucks/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }