Comprehensive Guide to Financing the Zero-Emission Trucking Transition in India

The document argues that financing is the primary barrier to the adoption of zero-emission trucks (ZETs) in India because financiers perceive them as nascent asset classes with uncertain residual values. It proposes a framework to unlock investment across ZET manufacturing, purchase, charging infrastructure, and grid upgrades through a combination of diverse financial tools, risk-managing business practices, and strategic de-risking interventions.

• Financial institutions are hesitant to fund zero-emission trucks (ZETs) and their infrastructure because they are considered emerging asset classes with perceived risks regarding asset and residual value, unlike the well-understood economics of diesel trucks.
• To scale the ZET transition, the report suggests a framework focusing on four industry segments: manufacturing, vehicle purchase, charging infrastructure, and grid upgrades, utilizing three primary levers: a mix of financial tools (debt, equity, risk-sharing, and viability gap financing), ZET-specific business practices (leasing, insurance, and warranties), and de-risking practices (demand aggregation, reducing information asymmetry, corridor development, and aftermarket support).

APA

RMI (2024). Comprehensive Guide to Financing the Zero-Emission Trucking Transition in India. https://rmi.org/resources/outlook-on-zero-emission-truck-financing-in-india-insight-brief-for-public-sector-decision-makers/

Chicago

RMI. Comprehensive Guide to Financing the Zero-Emission Trucking Transition in India. 2024. https://rmi.org/resources/outlook-on-zero-emission-truck-financing-in-india-insight-brief-for-public-sector-decision-makers/.

Wikipedia

{{cite report |author=RMI |title=Comprehensive Guide to Financing the Zero-Emission Trucking Transition in India |date=18 September 2024 |url=https://rmi.org/resources/outlook-on-zero-emission-truck-financing-in-india-insight-brief-for-public-sector-decision-makers/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024comprehensive, author = {{RMI}}, title = {{Comprehensive Guide to Financing the Zero-Emission Trucking Transition in India}}, institution = {RMI}, year = {2024}, month = sep, url = {https://rmi.org/resources/outlook-on-zero-emission-truck-financing-in-india-insight-brief-for-public-sector-decision-makers/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }