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The convenience and cost of vehicles powered by internal combustion engines has made them our most popular mode of transport for a century. But fueled now by the urgency to reach net zero carbon emissions as quickly as possible, a seismic shift is happening across the world. A shift towards green mobility, requiring transformation and international collaboration across all levels of the value chain.

Nikunj Pokhrel
Sustainability Advisor, Nordic Investment Bank

“Green mobility is put simply, it’s a mobility without using or without emitting greenhouse gases. So we are looking at the transition where it’s the electrified vehicles. But not only that, it’s also, for example, using synthetic fuels, eFuels will be needed to get there. For example, hydrogen is increasingly in demand and in need to support this vision. But we are not only talking about the private vehicles, we are also talking about when we say green mobility, the public transportation, for example, trains, locomotives, ferries, they all need to be transitioning towards mobility without emitting the greenhouse gases.”

While 95% of the world’s transport energy is still driven by fossil fuels and the transport sector produces one quarter of all energy related emissions, new and emerging technologies are driving the transformation from low to zero carbon vehicles, to new power sources and digital infrastructure. And despite the clear intent to reduce carbon emissions, there is still a critical need to accelerate the speed of innovation across all levels of production. From the responsible mining and manufacturing of vehicles and batteries, right through to re-use and recycling. A transition which requires a scale of investment only possible through collaboration.

Nikunj Pokhrel
Sustainability Advisor, Nordic Investment Bank

“For green mobility, we need many things to happen. So, for example, we need the renewable energy sources. We need the batteries for electric vehicles. We need charging stations. We need supportive regulatory laws. And we at Nordic Investment Bank, we don’t necessarily only look at the green mobility from one lens, we take the entire value chain approach. We are financing projects for renewable energies in our member states. We are financing battery-related projects. So Nordic Investment Bank looks at this value chain approach and we are financing projects that enables this transition comprehensively.”

The net zero transition in public mobility requires a rapid uptake of electric transportation. The Nordic Investment Bank providing significant investment to fast track the speed and scale of change required, including more than 180 million US dollars in loans, to Scania’s research and development on new electric buses and trucks. $44 million to Northvolt for the ongoing construction of its large scale lithium ion battery manufacturing plant. More than $12 million to Helgeland Kraft for the rollout of electric vehicle charging infrastructure across Northern Norway, and an upgrade to a hydropower plant. And more than $420 million backing Denmark’s State Railway to transition its aging fleet into electric powered locomotives.

Nikunj Pokhrel
Sustainability Advisor, Nordic Investment Bank

“Innovation is essential to achieve the green transition. As we stand here today, we have the right technologies, we have the expertise. We have even the companies willing to commit to this transition but what we are clearly lacking is more of a private, public and academia collaboration. So if we can bring or accelerate this partnership between these three key enablers, I would think that we would definitely move a lot more faster with the transition. But also we’ll see more of the innovative products and technologies to accelerate the transition.”

Governments play a key role, shaping policy, making strategic investments and establishing regulatory frameworks that enable genuinely transformative initiatives. The solution lies in multiple stakeholders working together to reimagine a sustainable transport sector that also yields economic advantages.

Nikunj Pokhrel
Sustainability Advisor, Nordic Investment Bank

“We are creating a whole new industry of batteries for electric vehicles. We are creating new jobs that comes with that. We are generating additional renewable energy into our grids that again, creates a lot of new jobs that creates the socio economic benefit to the member states. But not only that, I mean, when you think about the spillover effects, for example, moving away from the fossil fuel vehicles and transitioning to electric vehicles will basically give us good air to live at.

Which means reduced hospital admissions that comes with the health risks and from the air pollutions. So like I said, I think we have a lot of economic benefits, many of which we are already realizing, many still to achieve as we move towards this transition.”

In the ongoing journey towards greener transportation, the way forward is clear: collective action, innovation and shared commitment, steering us all towards a cleaner, more efficient and environmentally sustainable future.