According to a report released last week by the European Investment Bank (EIB), the European innovative transport sector could be lacking up to €13bn in investments annually.
The ‘Financing innovation in clean and sustainable mobility’ report was prepared by InnovFin – EU finance for innovators, a joint initiative between the European Investment Bank and the European Commission’s Horizon 2020 framework programme. It seeks to investigate finance issues and bottlenecks limiting or delaying investment in the European innovative transport sector.
The report welcomes the fact that overall funding in transport innovation has doubled annually over the past five years, but warns that the distribution of funds has been limited to specific business models and individual companies, many of which are based outside the EU.
Ultimately, the EIB’s findings reveal a funding gap of between €5.5-13bn impacting the growth stages of projects in three key areas:
- Urban green mobility solutions;
- Low carbon vehicles; and
- Automated and connected road transport.
The study narrows the focus to identify the critical gaps in funding of companies developing technologies and services in this area, and also issues a series of recommendations to allow the European innovative transport sector to maintain a competitive edge.
What has the EIB recommended?
The EIB’s recommendations include introducing a clear and standardised definition and regulation of mobility services, which would apply across the EU; encouraging member states to develop public support and grant programmes tailored to fast-growing service companies; and aligning European policies and legislation on autonomous driving to create a technology-friendly testing environment.
EIB President Wener Hoyer emphasised the bank’s role in supporting the transition towards renewables and reducing emissions in transport. He explained: “European institutions have a pivotal role to play in the setting of targets, standards and regulatory principles, but even more so in spurring investment into cleaner and more sustainable mobility. The EIB is playing a major role in the decarbonisation of transport in Europe: lending to sustainable transport sectors has been steadily increasing and now constitutes the majority of our yearly transport lending volumes.”
