The European Investment Bank (EIB) has issued a loan of €420 million to Volvo Cars in a push to develop a new all-electric car platform.
By entering a financing agreement, the two parties have agreed the funding will push the automaker in their plans to go fully-electric by 2030.
CFO of Volvo Cars, Johan Ekdahl, said:
“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.”
The investment loan will help to cover the automaker’s research and development, software development, and next-generation manufacturing technologies in order to boost the company’s fully-electric transition.
The agreement is hoped to contribute to the decarbonisation of road transport, a major source of global emissions and pollution.
EIB Vice-President, Thomas Östros, said:
“I think Sweden can be proud of the leading role Volvo Cars is taking in making the automotive industry more sustainable […] The industry itself is still very carbon-heavy […] As the EU climate bank, this is one of the many facets in the green transition that we are financing.”
The EIB is the lending arm of the European Union (EU) and stands as one of the largest providers of climate finance. The EU has introduced progressively more stringent environmental regulations for transport in the hopes of bringing down the global emissions rate.
