The European Investment Bank (EIB) and the European Commission have presented a new Cleaner Transport Facility (CTF), which aims to finance decarbonisation of the transport sector in Europe.

The objective behind the CTF is the deployment of alternative fuels in the transport sector, and to support the accelerated deployment of cleaner transport vehicles and their related infrastructure needs, such as for charging and refuelling

The new initiative is expected to promote socio-economic benefits including reduced health costs due to cleaner air and lower noise pollution.

"The new initiative is expected to promote socio-economic benefits including reduced health costs due to cleaner air and lower noise pollution."

EIB vice-president Pim van Ballekom said: “The EIB’s lending in the transport sector is becoming increasingly greener.

"Last year marked the first year in which the majority of transport projects financed by the EIB in EU Member States were in sustainable transport.

“With the CTF we aim to support the accelerated deployment of cleaner transport vehicles and their associated infrastructure across all EU countries.

“This is a process that must be accompanied by a change in the use of public resources, through an intelligent diversification of instruments to achieve and maximise sustainable investment.”

The support for alternative fuels and cleaner technology in transport is aligned with European Union (EU) policies on climate action and sustainable transport.

EU Commissioner for Transport VioletaBulc said: "Our goal is to increase the efficiency of the transport system by making the most of digital technologies, sustainable transport and further encouraging the shift to lower emission transport modes.

“Only if the deployment of low-emission alternative energy for transport is accelerated can we achieve the decarbonisation of the sector and ensure that global warming is kept well below 2°C.

“I am looking forward to the progress we will achieve with the Cleaner Transport Facility and further good cooperation with the European Investment Bank."

Projects that deploy alternative fuels, and which are in accordance with the directives on the deployment of alternative fuels infrastructure, will be a part of CTF. These alternative fuels include electricity, hydrogen, biofuels and natural gas.