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Volvo announces EIB backing in fully electric car platform

Volvo says the European Investment Bank’s investment will see it move one step closer to carbon neutral operations

Volvo has signed a financing agreement with the European Investment Bank (EIB) worth €420 million to support its decision to become a fully electric and carbon neutral manufacturer. 

Volvo says the EIB’s funding will support the development of a fully electric car platform, as well as the necessary research, development and roll-out of resourceefficient, advanced manufacturing technologies for electric cars. 

The European Union (EU) has progressively introduced more stringent environmental regulations for road transport, with the aim of making all new passenger vehicles sold emissions free by 2035. 

The project is expected to result in even safer and more sustainable technologies for e-vehicles, including reduced weight and faster charging. Volvo says this can help lower the barriers in purchasing an electric car.  

The operation is in line with the EIB’s goal to finance a just and swift transition to a netzero economy in both Europe and across the world. 

EIB vice president Thomas Ostros says Sweden should be proud of the leading role that Volvo has taken in making the road transport industry more sustainable. 

“Making cars that run on electricity instead of fossil fuels is only one part of the puzzle,” Ostros says.  

“The industry itself is still very carbon-heavy, something that Volvo is actively working on changing.  

“As the EU climate bank, this is one of the many facets in the green transition that we are financing, and we’re glad to partner with Volvo to accelerate the change.” 

Volvo chief financial officer Johan Ekdahl says that it is continuing to work diligently towards becoming carbon-neutral by 2040. 

“One way in which we are aiming to do that is by eliminating tailpipe emissions from our model lineup and investing towards becoming a fully electric car company by 2030,” Ekdahl says. 

“We have a long-term relationship with the EIB, and we are happy that they continue to support us on that exciting transformation journey.”

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