Sweden: EIB supports industrial research in new, innovative, clean transport technology in electric vehicles with €500 million loan to AB Volvo

Sweden: EIB supports industrial research in new, innovative, clean transport technology in electric vehicles with €500 million loan to AB Volvo

European Investment Bank — 2022-10-26

News from Brussels

The European Investment Bank (EIB), the EU climate bank, is a leading financier and catalyst for technological progress, competitiveness, and research, development and innovation (RDI) in Sweden and in the European Union. This RDI project by Volvo is backed by the EIB as it will support the decarbonisation and electrification of heavy-duty commercial vehicles, including the electrification of fleets, the rollout of high-performance charging networks, and the development of hydrogen fuel cell technology and infrastructure. It will focus on the electrification of commercial vehicles, which is still at a very early stage with much lower penetration levels than for passenger cars and light commercial vehicles. The project will not only contribute to decarbonising the transport sector and reducing emissions by motor vehicles, but also to enhancing the safety of vehicles and developing a more efficient and sustainable European transport system.

EIB Vice-President Thomas Östros, responsible for Sweden, said: “We are pleased to support AB Volvo — a Swedish and global market leader in heavy-duty vehicle manufacturing — to promote a paradigm shift in innovative and clean technologies within the transport sector. Volvo’s RDI projects will bring us one step closer to a low-carbon economy. Thereby pushing the boundaries for the automotive industry in Europe to identify cleaner, safer and smarter solutions, which will benefit us all.”

President and CEO of Volvo Group Martin Lundstedt said: “The necessary transformation of the transport and infrastructure industry into sustainable solutions is urgent. We are leading the transformation today, but want to further accelerate our research and development within electromobility, safety solutions and autonomous transport solutions. With the EIB’s collaboration, this acceleration can continue.”

Supporting EU Innovation and Climate Goals

The scope of the project is consistent with the Bank’s Climate Bank Roadmap objectives and the EIB’s Public Policy Goal “Innovation; Digital and Human Capital”. Moreover, the project supports the EU policy priorities under Horizon Europe Pillar 2 (Climate, Energy and Mobility — Smart Mobility). Lastly, Volvo Group’s pathway to reach the goals of the Paris Climate Agreement has been validated by the Science Based Targets initiative (SBTi), confirming that the Group’s climate targets are in line with what the latest climate science deems necessary to keep global warming at bay.