The Clean Energy Finance Corporation (CEFC) has announced it’s accelerating the electrification of Australia’s trucking fleet through a $70 million financing package for one of Australia’s largest heavy vehicle manufacturers.
The CEFC financing package is going to Volvo Group to target heavy-duty battery electric trucks and tackle the nation’s transport-related emissions.
The funding means eligible Volvo customers will receive an interest rate discount of up to 0.5 per cent to lease medium and heavy-duty battery electric vehicles and support the future value of heavy-duty battery electric vehicles.
The financing will also provide a residual value support mechanism to reduce operating lease costs.
MORE OWNERDRIVER TRENDING STORIES:
- Trucking associations slam HVNL reform
- NHVR starts Tasmanian heavy vehicle blitz
- Senator reveals sham contracting focus ahead of ATO meeting
- Long distance driver strikes lead to new EA
- Sitrak confirms new local dealer partner
“Our economy relies on the logistics and freight sector to transport goods right around the nation. With other sectors of the economy continuing to decarbonise, transport is expected to become our largest source of emissions as soon as 2030,” CEFC executive director Richard Lovell says.
“Switching to battery electric trucks is an important opportunity for freight operators and businesses to show real leadership on the path to net zero emissions, while managing a growing freight network and a stronger economy.
“This innovative transaction demonstrates how fleet operators can work with manufacturers and financiers to accelerate the transition to electrification. Reducing some of the financial risk associated with new technologies like BETs, and offering a competitive finance discount, helps lower the premium associated with this new technology.
“Sharing the risk aligns lenders, manufacturers and end customers in building momentum to help decarbonise our transport sector.”
Volvo Group Australia has committed to manufacture electric trucks at its Queensland production facility.
“The announcement of this finance comes at a critical time for Australia’s net zero ambitions. We know the cost of entry is a significant hurdle to overcome for many of our customers wanting to take the first steps towards implementing electric transport solutions in their businesses,” Volvo Group Australia president and CEO Martin Merrick says.
Subscribe to the weekly Owner//Driver newsletter here.