In line with the European Union’s push for a green transition, Volvo Car Corporation (Volvo Cars) and the European Investment Bank (EIB) have signed a EUR 420 million financing agreement in support of the Swedish carmaker’s decision to become fully electric and carbon neutral. The operation is expected to contribute to the decarbonization of road transport, a major source of emissions and pollution globally.
The European Union (EU) has introduced progressively more stringent environmental regulations for road transport, intending to make all new passenger vehicles sold emissions-free by the middle of the next decade.
According to EIB, the funding will support the development by Volvo Cars of a new, fully electric car platform, as well as the necessary research and development and roll-out of resource-efficient, advanced manufacturing technologies for electric cars.
The project is expected to result in even safer and more sustainable technologies for e-vehicles, including reduced weight and faster charging, which can help lower the barriers to purchasing an electric car.
Volvo Cars continues to work diligently towards the ambition of becoming a climate-neutral company by 2040. One way in which we are aiming to do that is by eliminating tailpipe emissions from our model line-up and investing towards becoming a fully electric car company by 2030. We have a long-term relationship with the EIB and are happy that they continue to support us on that exciting transformation journey, said Johan Ekdahl, CEO of Volvo Cars.
The funding operation is fully in line with the EIB’s goal to finance a just and swift transition to a net-zero economy, both in Europe and across the world.
I think Sweden can be proud of the leading role Volvo Cars is taking in making the automotive industry more sustainable. Making cars that run on electricity instead of fossil fuels is only one part of the puzzle. The industry itself is still very carbon-heavy, something that Volvo Cars is actively working on changing. As the EU climate bank, this is one of the many facets in the green transition that we are financing, and we’re glad to partner with Volvo Cars to accelerate the change, said Thomas Östros, EIB’s VP.