From Fossil Fuels to Clean Mobility: The Role of Circular Economy in Financing the Transition of Commercial Transport

Leasing models are highly dependent on the value retention of the leased asset. Battery electric vehicles currently suffer from rapid and steep depreciation over the lifetime of the vehicle. This reduces the attractiveness of transitional financing with these assets, as they carry significant risks for the bank or leasing institution.

Circular economy approaches that aim to close the loop on the value of BEVs support transition financing by increasing longevity and predictability.