Established by the Green Finance Institute in January 2021, the Coalition for the Decarbonisation of Road Transport (CDRT) brings together an expert multi-stakeholder group focused on identifying the most promising market solutions to scale up the investment in zero-emission road transport and supporting infrastructure.
In its latest report, the CDRT looks at the opportunity to invest in the burgeoning global demand for EV batteries, which will underpin the future of road transport.
Powering the Drive to Net Zero concludes that only the private sector can provide finance at the pace and scale needed to enable the transition to cleaner road transport. Yet, at present, organisations across the battery supply chain find it hard to secure the high levels of funding needed to scale up because battery developments are often considered high risk.
The report finds that innovative financial solutions including de-risking mechanisms such as guarantees, along with supportive government policies, are essential to unlock the larger sums of capital needed to build battery supply chains.
The CDRT report 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.
Lauren Pamma, Programme Director, CDRT, said: “The global EV market is racing to scale up the battery supply chain. This demand means new opportunities for investment in the UK, but only if the barriers to realising these opportunities are removed. Cross-sector collaboration has been critical to identifying the solutions that will de-risk investment and unlock the capital required to build the battery supply chain that will secure the future of the UK’s automotive industry.”