PAYS Industry Brief: An innovative finance approach for the roll out of electric buses
Public transport systems are primarily there to serve the poor and disenfranchised. These South Africans usually live the furthest from places of employment and spend ~43% of their monthly household income on transport costs.
At the same time, South Africa needs to decrease greenhouse gas (GHG) emissions, and transport accounts for 10% of the country’s emissions. Conventional buses are heavily reliant on liquid fuel. This is a carbon intensive fuel source and one that presents limited efficiencies and high GHG emissions.
Electric buses (e-buses) demonstrate the best business case for transitioning cities to cleaner, sustainable transport. However, the upfront cost of an electric bus is a lot higher than a conventional diesel bus
Pay-As-You-Save (PAYS) eliminates the biggest barrier to the uptake of e-buses – the upfront capital cost of purchasing the e-bus.
GreenCape have developed an industry brief that makes the case for PAYS as the financial mechanism to facilitate the transition from diesel buses to e-buses. Download our PAYS financing industry brief here.
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