enabling TRANSPORT DECARBONISATION investments

Cities around the world are prioritising the reduction of pollution and congestion through decarbonised mass transport of people and goods.

Outcomes of this effort include improving community health, lifting productivity, reducing fuel cost, sustainable urbanisation, energy independence and addressing climate change.

Investors around the world have responded by allocating significant funds to transport decarbonisation. A part of the investment portfolio that complements traditional energy and transport infrastructure investments, directly delivers ESG benefits and incorporates increasingly proven technologies which are now reducing investment risk.

Much of the opportunity for infrastructure investors centers on mass transport decarbonisation through delivery of new energy infrastructure at source, at depots, ports and on-route for lower emissions buses, trucks and vans. For industry and transport operators the opportunity typically focuses on lowering fuel, emissions and maintenance costs. 

Investments in this sector offer the opportunity to capture value from a broad range of sources depending on how the investment is structured. These are typically a mix of energy generation, energy retail, new fuels and gases, distribution network operation, transport operating cost reduction, vehicle leases, grid scale batteries, incentives, land optimisation, mass transport adoption and carbon markets. 

All driven by the opportunity, and in many cities or supply chains the necessity, to lower pollution.

 Transport decarbonisation investors are experiencing complexities in both mature and developing markets which are preventing funds for investments from being deployed.

Market constrains being experienced include: energy security and stability, social licence, geopolitical risks, incentives, approvals, co-investor attraction, contract tenures, quality customers, fleet cost, carbon value capture and aggregating demand. These constrain access to investments, returns and decarbonisation at scale which are key to large investors, population centres and economic zones.

At a project level, investors are faced with: constrained urban environments, network limitations, technology interoperability, mixed trial results, standards differences, energy trading constraints, land access and skills access challenges. These are making modelling, diligence, build and operation difficult.

One way to address these complexities, noting transport decarbonisation cuts across multiple value chains, is to form joint ventures between energy companies, infrastructure investors, transport operators, industry and government. These can focus on a specific city, industrial region or economic zone and are known as “powerhouse partnerships”.

Tilde delivers industry expertise and relationships which support investors to navigate market, project and powerhouse partnership complexities. Our mission is to partner with investors to enable city scale investments in transport decarbonisation. Because we believe in the benefits for all stakeholders.