Coalition for the Decarbonisation of Road Transport (CDRT)

Transport is the largest contributor to UK domestic greenhouse gas emissions, responsible for 24% of domestic emissions in 2019. Within the sector, road transport was the largest emitter of GHGs, with cars alone contributing 55% of this total.

Reducing transport emissions is a crucial part of tackling climate change, meeting the UK’s net zero target and embracing the 2030 internal combustion engine (ICE) phase out, with the additional benefits of reducing air and noise pollution and creating skilled jobs across the supply chain.

Road transport is a complex and inherently interconnected ecosystem and the financial solutions needed to support and enable decarbonisation require a collaborative approach across multiple sectors and value chains within the future mobility ecosystem, underpinned by a strong policy and regulatory framework. Both public and private finance have a critical role to play.

The Green Finance Institute established the Coalition for the Decarbonisation of Road Transport (CDRT) in May 2021 to unlock the financial barriers to the decarbonisation of road transport and enabling infrastructure, initially in the UK, to support the transition to a zero-carbon and climate resilient economy.

In November 2021, the CDRT released Road to Zero: Unlocking public and private capital to decarbonise road transport, a report which focuses on two key aspects of the road transport decarbonisation challenge: Purchase and Leasing of Electric Vehicles by consumers and accelerating the roll out of Electric Vehicle Charging Infrastructure. The report comprises a market-led review of the barriers to mobilising capital towards these areas and proposes a portfolio of 18 demonstrator solutions, co-designed alongside members of the Coalition, to address the challenges identified.

In May 2022, the CDRT released Powering the Drive to Net Zero: Unlocking Public and Private Capital for the UK Battery Sector. This report highlights the opportunity to invest in the burgeoning global demand for EV batteries, which will underpin the future of road transport. But warns that there is a narrow window to seize this opportunity, and significant barriers to investment must be overcome. The CDRT puts forward a series of solutions to overcome barriers that are holding back investment and is now working towards piloting and launching these demonstrator solutions.

“Finance is the engine of this transition. It is a critical enabler in helping the real economy transition to a net-zero carbon model, and multiple financial players must be engaged to scale investment.”

Minister Trudy Harrison, Parliamentary Under Secretary of State for Transport (Department for Transport)

Our focus areas

01.

Purchase
and Leasing

Co-design new and enhance existing financing solutions to encourage increased EV adoption.

02.

Charging
Infrastructure

Link public and private finance to unblock barriers to the creation of a strategic vehicle charging network.

03.

Battery Technology

Unlock the required capital across the battery technology ecosystem at scale and speed.

Our demonstration projects

Local Climate Bonds

A crowdfunding approach to fund local authorities to finance charging infrastructure

EV Infrastructure Charging Guide

A charging infrastructure guide covering fundamentals of electric vehicle (EV) charging
Read more

EV Loan Securitisation

Securitisation of EV loans to allow aggregation and sale on secondary markets
Read more

Battery Investment Facility (BIF)

A public/private facility to unlock investment in the battery supply chain
READ MORE

Demand Aggregation Finance

An online service establishing a critical mass for EV chargepoint demand
Read more

Battery Passport

Scheme to record an individual battery’s constituent parts and ensure transparency through the supply chain
Read more

Lenders’ Handbook

Guide to help potential investors understand the key battery technologies
READ MORE

Utilisation Linked Finance

Loans for chargepoint operators, local authorities and small businesses repayable based on utilisation
READ MORE

Transport Infrastructure Facility (TIF)

A public/private facility to de-risk investment in charging infrastructure

Property Linked Finance

Long-term funding for EV chargepoint installation attached to properties instead of owners

Bundled Finance Solutions

Bundled vehicle / infrastructure finance packages

Offtake Support Mechanism

Tool to provide supply chain stability

Battery Health Certificate

A standardised battery health certification scheme for used vehicles

Means-Tested Subsidised Loans for Used EVs

Low-cost motor finance for used EVs targeted at lower income groups

Total Cost of Ownership

A concise, comparable set of principles providing comparable total cost of ownership information for EVs to consumers

Salary Sacrifice for SMEs

Scheme to allow employees of SMEs to benefit from tax and national insurance advantages

EV Infrastructure Investor App

An application that curates data to assist EV charging infrastructure investors

Battery Value Guarantee

A mechanism for the battery within an EV to have a guaranteed end-of-life value

Regional Area Tendering

Procurement framework to enable local authorities to aggregate and tender charging infrastructure projects

Local Authority Toolkit

Best practice frameworks to help local authorities navigate charging infrastructure installation processes

Sustainable Import Guarantee (SIG)

A new financial instrument to incentivise sustainable supply chains, specifically through trade finance

Offtake Support Mechanism

Tool to provide supply chain stability

Our Reports

Our coalition members

Members of the Coalition for the Decarbonisation of Road Transport include individuals from:

If you are interested in joining the Coalition, contact CDRT@gfi.green

Coalition for the Decarbonisation of Road Transport