IFC and ALD, a leading global vehicle leasing company and a subsidiary of Societe Generale, today announced a partnership to reduce carbon emissions in transport by accelerating the adoption and penetration of green vehicles in emerging markets.
The US$400 million IFC investment will help ALD grow its green fleet, a combination of hybrid, plug-in hybrid and battery electric vehicles, in seven countries –Türkiye, Mexico, India, Serbia, Romania, Bulgaria, and Croatia. The financing, which was intermediated by Societe Generale on behalf of ALD, is expected to add 15,000 green vehicles with the potential to reduce carbon emissions by 22,180 tons a year across the target countries by 2026.
Transport is the fastest-growing contributor to climate change, already accounting for 23 percent of global energy-related greenhouse gas emissions—17 percent from road transport alone—a prime target for decarbonization. The innovation and financing of green vehicles could cut millions of tons of carbon emissions produced by the transport sector in cities across the globe every year.
“The adoption of green vehicles is an important part of reducing carbon emissions in emerging markets.” said Makhtar Diop, IFC Managing Director. “Partnering with global players like Société Générale and ALD is an opportunity for IFC to scale financing for sustainable mobility and reflects our commitment to innovative financing models for climate solutions.”
Promoting E-mobility is one approach that IFC is focusing on to support the global transition to a low carbon economy. This is the largest single investment IFC has made in support of green vehicles.