20 Feb 23

IFC and ALD Partner to grow green fleets in Emerging Markets

IFC and ALD Partner to grow green fleets in Emerging Markets

World Bank Group member IFC and ALD, a leading global vehicle leasing company and a subsidiary of Societe Generale, have announced a partnership to reduce carbon emissions in transport in emerging markets by accelerating the adoption of green vehicles.

The US$400 million IFC investment will help ALD 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 is expected to add 15,000 green vehicles, potentially reducing carbon emissions by 22,180 tons a year across the target countries by 2026. 

“The adoption of green vehicles is an important part of reducing carbon emissions in emerging markets,” said Makhtar Diop, IFC Managing Director. “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."

Large investment to support green fleets

Promoting E-mobility is one approach that IFC is focusing on to support the global transition to a low-carbon economy. This is the largest single investment IFC has made in support of green vehicles.

“As a leading global sustainable mobility provider, our role is to make the energy transition happen across the 44 countries where we operate,” said Tim Albertsen, CEO of ALD. 

This partnership and investment are aimed at helping to execute ALD’s core strategy, Move 2025.

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 in the electric vehicle supply chain is key to unlocking their growth in emerging markets.

Image: Diony Lebot, Deputy CEO of Societe Generale & Chair of ALD Board of Directors;  Makhtar Diop, IFC Managing Director; Tim Albertsen, CEO of ALD

Authored by: Alison Pittaway