WRI India, under NITI Aayog’s e-FAST India platform, brought together leading financiers for a focused consultation to inform next-generation policy on zero-emission trucking. This convening marked the final leg of a nationwide consultation series on the Bharat Zero Emission Trucking (BZET) Policy Advisory, led by the Office of the Principal Scientific Adviser to the Government of India.  

The latest dialogue explored how innovative financing structures, credit enhancement mechanisms, and demand aggregation can de-risk investments in zero-emission trucks and unlock capital at scale. 

Insights from the session will feed into the evolving BZET Policy Advisory to strengthen India’s green freight transition. 

Some key takeaways from the session:

• For the first 6,000–8,000 e-trucks, targeted project finance with tripartite escrow support (between shippers, transporters, and lenders) was identified as the fastest route to market growth. This can improve cash-flow security, asset utilization and deployment certainty.

• Residual value (RV) uncertainty was highlighted as a key financial concern for market development, due to the absence of a mature secondary market and reliable long-term data. However, technology risk has been significantly mitigated through OEM warranties and Annual Maintenance Contract (AMC) structures, making operating costs predictable.

• Participants also highlighted the need for a dedicated fiscal backstop to manage residual value (RV) risk for the first 50,000 e-trucks over the next 5–7 years. They emphasized the importance of focused policies supported by a robust RV framework that incorporates end-of-life considerations and disposal costs.