Electric fleets offer a great opportunity to significantly reduce the emissions of Canada’s road transportation sector (which roughly accounts for 22% of the country’s total greenhouse gas emissions).
The challenge: Electrifying truck fleets requires support from a whole ecosystem of actors – from getting the right manufacturer and project developer, to accessing financing.
In 2022, Vancity Community Investment Bank (VCIB) formed a values-aligned partnership with Seven Generation Capital (7Gen), an organization that works to remove barriers to electrification for medium and heavy-duty commercial fleets.
VCIB’s first round of financing with 7Gen supported the acquisition of ten electric trucks and the required fast chargers, to be leased to GoBolt, a growth logistics firm that offers secure storage and e-commerce fulfillment to big retailers.
“7Gen’s electric vehicle (EV) and charger leasing model makes all the difference for businesses looking to make the switch to clean energy,” said Alfred Lee, Manager, Climate Finance at VCIB.
According to 7Gen’s projections, this EV fleet is estimated to reduce CO2 emissions by 4,140 tonnes over the trucks’ seven-year lease period, which accounts for an annual reduction of 491 tonnes compared to trucks using internal combustion engines.
While similar business models have been used to finance technologies like solar panels, this loan was one of the first of its kind in Canada for EVs.
Leading the charge in EV fleet adoption
Last year, VCIB provided additional financing to help 7Gen lease 21 EVs and 37 chargers at multiple GoBolt locations across Canada (in Vancouver, Toronto, and Calgary). Additionally, VCIB’s financing recently supported 7Gen in leasing over 50 EVs that are helping electrify fleets for leading logistics and delivery companies across the country.
“To make these projects work, we need a lender who’s pragmatic and willing to work with us to figure out the details,” says Frans Tjallingii, 7Gen’s CEO.
“Financing is not just about the money, it’s about value alignment and finding a financing partner who shares your goals.”
As part of the Vancity Group, VCIB is committed to becoming net-zero by 2040 across its lending portfolio. 7Gen’s service model and VCIB’s specialized financing reveals a new business model that can facilitate Canada’s EV fleet transition.
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If you would like to learn more about VCIB’s climate finance products, please reach out to Jon Carrick, Senior Business Development Manager, Climate Finance at jcarrick@vcib.ca or 236-308-3916.
