High-Level Panel & Workshop: Zero Emission Trucks Are Here – How to finance the transition?

High-level Panel (16:00-16:40)
ITF23 creates a unique opportunity for the transport community to unite and align on climate action. Logistics emissions are set to increase 42% by 2050 according to the International Transport Forum and the OECD, contributing to the global climate threat. It is time to align with all relevant stakeholders towards sector decarbonization and start scaling-up zero-emission transport. 27 countries have committed to 100% new sales of trucks and buses in 2040 with an interim goal of 30% in 2030 in the Global MOU that was launched last COP26 in Glasgow and has continued to gain momentum. Since then many conversations and actions have taken place and one item clearly stood out as pivotal: financing the transition. The technologies needed for the shift to zero-emission trucks are there for a while now, and the total cost of ownership for nearly all use cases will be competitive by 2030 by the latest. But the scale-up to serious numbers of zero-emission freight vehicles requires solutions to overcome financing hurdles such as the upfront investment, investment in charging and refueling infrastructure, and investments in clean transportation in emerging markets. Why is this important? Because trucks represent 5% of road vehicles, but account for almost 30% of CO2-emissions AND because zero-emission trucks are reaching cost parity faster than previously predicted. This makes the transition not only needed but within reach: transitioning to zero emission trucks is a cost-efficient CO2-reduction strategy with high potential.

This session is all about ambitious leaders from both the public and private sectors who share how they are overcoming the financial gap and financial risks and who seek consensus on what is needed to scale-up the transition all over the globe.

Workshop (16:40-18:00)
The trucking sector stands for around 5% of the world's total emission and that share is expected to grow to 11% in 2050 if nothing is done. It is time to align with all relevant stakeholders towards sector decarbonization.

At COP26 and COP27, 27 countries committed to work towards 100% new sales of medium- and heavy-duty zero emission trucks (ZETs) in 2040, with an interim goal of 30% in 2030. Global MOU continues to gain momentum and all stakeholders are looking to move from ambition to action. One item has clearly stood out as pivotal: financing the transition. The total cost of ownership (TCO) of nearly all use cases will be competitive by 2030 at the latest; however, without effective financing solutions the upfront investments required by ZETs and infrastructure will remain cost-prohibitive and limit the transition. Since ZETs are reaching cost parity faster than previously predicted, an accelerated transition is not only important, but also within reach. Transitioning to zero emission trucks is a cost-efficient CO2 reduction strategy, with a big impact on the economy, health and air quality.

This session is all about the How? How can this transition be financed? Who is involved and who does what? And what can you do? Join us in an interactive session with experts and exchange ideas on how governments and business can take the next steps towards ZETs.

The interactive workshop allows you to:

• Expand your network on ze-trucks and connect with experts and peers from research, government, companies and NGOs
• Learn about the ambitions and best practices of frontrunning countries, regions, cities and businesses deploying innovative financial mechanisms and business models
• Share challenges you are encountering in ZET financing and brainstorm collaborative solutions
• Gather first ideas what you can do to speed up the transition

Participants interact in two rounds of moderated small-group discussions focused on financing issues related to:

• Manufacturing and supply of ZETs: Investment opportunities and challenges in manufacturing and supply of zero emission trucks (e.g. supply chain resilience and production scale up)
• Fleets and demand for ZETs and depot charging: Reducing financing hurdles for ZET deployment (e.g. CAPEX costs and SME solutions)
• Public infrastructure; How to finance public charging infrastructure and grid interconnection? (e.g. utility business models, planning and future proofing solutions)
• Regulations that encourage private sector investment in ZETs
• Incentives that effectively deploy public funding to leverage larger private sector investment in ZETs