financing sustainable mobility: business models for low and zero emissions bus fleets
TRANSCRIPT
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www.TransformingTransportation.org
Financing Sustainable Mobility:
Business models for Low and zero
emissions bus fleets
Benoit Lefevre, Director Energy, Climate & Finance, WRI Ross Center
for Sustainable Cities
Presented at Transforming Transportation 2017
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TRANSFORMING TRANSPORTATION 2017, THURSDAY 12TH JANUARY
FINANCING SUSTAINABLE MOBILITY:
BUSINESS MODELS FOR LOW AND
ZERO EMISSIONS BUS FLEETS
Benoit Lefevre, PhD.Director Energy, Climate & Finance, WRI Ross Center for Sustainable [email protected]
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LOW AND ZERO EMISSIONS BUSES ARE ALREADY A
REALITY AROUND THE WORLD
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MAIN BARRIERS FOR IMPLEMENTATION
More expensivevehicles and
infrastructure
Lack of knowledge and fear of change
Perceivedtechnology risk
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Seattle: Hybrid-electric, Opportunity charging
Foothill: Battery electric
Toronto: Hybrid-electric
Philadelphia: Hybrid-electric
Bogota: Hybrid-electric
Curitiba: Hybrid-electric
Auckland: Hybrid-electric, Battery electric
Tianjin: Battery Electric
Zhuhai: Battery Electric
Shenzhen: Battery Electric
Nanjing: Battery Electric
Gumi: Opportunity Charging
Berlin: Opportunity Charging
Turin: Opportunity Charging
Colombo: Hybrid electric, Battery electric
Singapore: Hybrid electric, Battery electric
London: Hybrid electric, Battery electric
Paris: Hybrid electric, Battery electric
Gothenburg: Hybrid electric, Battery electric Stockholm: Hybrid electric
Rome: Battery Electric
Americas Asia-Pacific Europe
N. America LAC Asia Oceania Europe
5 2 9 2 10
THERE ARE LESSONS TO BE LEARNT FROM THESE EXAMPLES:
WE REVIEWED OVER 60 REAL WORLD CASES AND FOCUSED ON
UNDERSTANDING 20 IN DETAIL
41%
15%
44%
Technologies
Batteryelectric
Opportunitycharging
Hybrid electric
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WE FOCUSED IN UNDERSTANDING HOW THESE CITIES HAD
BUILT THEIR BUSINESS MODELS TO ACHIEVE IMPLEMENTATION
How to structureimplementation and distribute risks
What investmentsneed to be made?
Sources of funding to payfor theinvesments
How to mobilizeinvestmentcapital
Buses de bajas
emisiones
Delivery mechanisms
Financial products
Investment components
Funding sources
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WE IDENTIFIED SEVERAL SUCESS FACTORS THAT SOME CITIES
HAVE BEEN DEPLOYING TO ACHIEVE IMPLEMENTATION
1. Grants2. New
stakeholders
3. Operational innovations
4. Innovative financing
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WE IDENTIFIED SEVERAL SUCESS FACTORS THAT SOME CITIES
HAVE BEEN DEPLOYING TO ACHIEVE IMPLEMENTATION
1. Grants2. New
stakeholders
3. Operational innovations
4. Innovative financing
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IN MOST REVIEWED CASES, THERE ARE GRANTS
PROVIDED BY NATIONAL OR SUB-NATIONAL
GOVERNMENTS
• Providing grants to pay for additional investment costs– One-time payments
– Throughout the life of the asset
• Grants for additional operational expenses.
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WE IDENTIFIED SEVERAL SUCESS FACTORS THAT SOME CITIES
HAVE BEEN DEPLOYING TO ACHIEVE IMPLEMENTATION
1. Grants2. New
stakeholders
3. Operational innovations
4. Innovative financing
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MANUFACTURERS BECOMING MORE INVOLVED AND
ELECTRICITY COMPANIES ENTERING THE
TRANSPORTATION BUSINESS
• Manufacturers assuming new
responsibilities
– Tranining for operators and
longer maintenance contracts.
– Providing financing
– Offering complete solution
packages that include charging
infrastructure.
Retrieved from Google Map
• Electricity companies providing:
• Long-term electricity price stability and lower prices
(i.e. bulk discounts).
• Paying for charging infrastructure
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WE IDENTIFIED SEVERAL SUCESS FACTORS THAT SOME CITIES
HAVE BEEN DEPLOYING TO ACHIEVE IMPLEMENTATION
1. Grants2. New
stakeholders
3. Operational innovations
4. Innovative financing
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MANUFACTURERS, OPERATORS AND AUTHORITIES
DEVELOPING NEW WAYS OF OPERATING
• Smaller batteries and
opportunity charging
schemes
• Fast top-up stations
• Battery swapping
schemes
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WE IDENTIFIED SEVERAL SUCESS FACTORS THAT SOME CITIES
HAVE BEEN DEPLOYING TO ACHIEVE IMPLEMENTATION
1. Grants2. New
stakeholders
3. Operational innovations
4. Innovative financing
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FINANCIAL MECHANISMS THAT CAN HELP REDUCE
THE ADDITIONAL RISK
• Reducing the cost of
financing by providing
guarantees.
• Longer depreciation
periods to pay for
additional costs
• Separating asset ownership & service provision
• Providing other ways of paying for the most
expensive assets (e.g. buses, batteries, charging
infrastructure) such as by leasing them.
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WHAT OTHER MECHANISMS CAN TRANSIT
AUTHORITIES IMPLEMENT TO MAKE THESE
INVESTMENTS A REALITY?
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KEY QUESTIONS TO ANSWER IN THIS SESSION
• What changes can cities introduce in their current model of acquisition, ownership, operations, etc. in order to facilitate the introduction of a significant number of low and zero-emission buses?
• What are the most appropriate innovations in business models that will allow to pay for the additional infrastructure required for low-emission buses, such as batteries and recharging stations?
• What responsibilities and risks should be taken by vehicle suppliers to make these technologies take off more massively?
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TRANSFORMING TRANSPORTATION 2017, THURSDAY 12TH JANUARY
MERCI !Benoit Lefevre, PhD.Director Energy, Climate & Finance, WRI Ross Center for Sustainable [email protected]