Three Wheels United, one of Enviu’s world changing companies, was picked during the Climate Finance Lab’s 2018 cycle as a new class of investment vehicle to combat climate change! This is spectacular news as the Lab aims to drive millions to finance initiatives in clean energy, low-carbon transit, and sustainable land use in Brazil, India, and Sub-Saharan Africa. Three Wheels United fits right into this line propelling sustainable transit forward in India. They do not only decrease emissions from auto rickshaws but also increase the income of drivers by facilitating their independence from renting. On average a Three Wheels United driver earns 70% more income than regular drivers.
The Lab, one of the best incubators
It is for good reason the Lab has been called out as one of the top 11 best bets of the MacArthur Foundation’s 100&Change competition. Since its start in 2014, the Lab incubated and launched 25 finance instruments that have mobilized nearly $1 billion dollars in sustainable investment to date. The Rockefeller Foundation, Bloomberg Philanthropies, and the U.S. Department of State are just a few on the list of funders of the Lab’s launched programs.
The Lab sees access to finance as a critical element in the race to tackle both climate change and development goals. The Lab’s network accelerates well-designed financial instruments, while at the same time reducing private investors’ risks and improving their financial returns.
The Lab sees access to finance as a critical element in the race to tackle both climate change and development goals.
Perhaps Cedrick, CEO of Three Wheels United, tells it best: “The Lab created a valuable and prestigious network of businesses and investors working to move toward a low- carbon, climate resilient economy,” he explains. “This is also the primary existence of Three Wheels United: in creating affordable green finance for sustainable transport. We will be proud to be part of its network and endorsed ideas.”
Low-Carbon Transit in India
India is one of the nations that needs more capital to build a green infrastructure. The Indian Government made it a national priority to drive development and access to electricity through cleaner growth, such as renewable energy and energy efficiency. By 2030 they aim to have 40% of their electricity generation capacity from non-fossil fuel sources. Definitely a big hairy audacious goal, which we can appreciate at Enviu.
This is where Three Wheels United comes in. There are 10 million auto-rickshaw drivers in India operating a fleet of approximately 5 million auto-rickshaws. They contribute to 10% of CO2 and 13-40% of particulate emissions (smog) in India. This results in 22 out of the world’s 50 most polluted cities being in India.
By financing asset loans for low carbon and electric auto-rickshaw drivers that leverage financial and urban technologies, such as inter-operative transportation data analytics and behavior driven loan portfolio management systems, Three Wheels United contributes to a more integrated and sustainable transit in India.
With the support of India Lab, Three Wheels United is launching a pilot of 200 smart electric auto-rickshaws integrated in the public transport system. This solves inadequate first and last mile connectivity, currently holding back the use of public transportation. This pilot alone leads to the avoidance of 14,000 tons of direct CO2 emission over the expected life cycle of the green vehicle!
The pilot with 200 smart electric-rickshaws already avoids 14,000 tons of direct CO2 emission over the expected life cycle of the green vehicle.
Ready to accelerate and change the world of sustainable mobility
But it does not stop there. Together with the Lab, Three Wheels United will work to create a financing instrument de-risking financing of smart electric auto-rickshaws. Hereby unlocking a tremendous opportunity not only reducing CO2 emission on large scale. But also potentially leading to 20-25% increase of public transportation, lowering the number of cars on the road substantially.
So, together with eight other initiatives, Three Wheels United will move forward in the Lab’s 2018 cycle for analysis, stress-testing, development, and prepare for launch at the at the NYC Climate week in September. Ready to accelerate and change the world of sustainable mobility!