Global vehicle leasing company ALD and the International Finance Corporation (IFC) have partnered to expedite deployment of green vehicles in emerging markets to reduce carbon emissions in transport, the fastest-growing contributor to climate change.
With the IFC investment of US$400 million — the largest single IFC investment in support of green vehicles — ALD will grow its green fleet, a combination of hybrid, plug-in hybrid and battery electric vehicles, in seven countries: Turkey, Mexico, India, Serbia , Romania, Bulgaria and Croatia.
The financing, intermediated by Societe Generale on behalf of ALD, is expected to add 15,000 green vehicles, potentially cutting carbon emissions by 22,180 tons a year across the target countries by 2026. ALD is a subsidiary of Societe Generale, a French-based multinational financial services company.
“Partnering with global players like Societe Generale and ALD is an opportunity for IFC to scale financing for sustainable mobility and reflects our commitment to innovative financing models for climate solutions," said Makhtar Diop, IFC Managing Director.
“This financial partnership will further strengthen our sustainable mobility strategy in emerging markets where adoption of low-emission vehicles remains quite low and enable us to accelerate the transition to green vehicles to fight climate change on a global scale,” said Tim Albertsen, CEO, ALD.
The investment builds on IFC's early-stage market and project preparation ("upstream") work. A 2021 assessment focused on Brazil, India, and Mexico concluded that targeted and affordable financing along the electric vehicle supply chain is key to unlocking their growth in emerging markets.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.