four buses parked in a row
four buses parked in a row

Climate change

Financing India’s e-mobility transition

Macquarie Asset Management has developed a blended finance platform with the Green Climate Fund, aimed at accelerating the adoption of electric vehicles across India and offering a model for mobilising capital for climate-focused initiatives in emerging markets

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SectorClimate change
Sub-sectorTransportation
LocationIndia

Opportunity

Road transport accounts for 12 per cent of India’s energy-related CO2 emissions and this is projected to more than double by 2050 under current policies.1

This has prompted the Government of India to prioritise transportation in its efforts to achieve net zero carbon emissions by 2070.2

At the same time, India’s electric vehicle (EV) market is rapidly expanding, supported by government policies, increased investment by manufacturers, and a growing range of EV products. By 2035, the market is projected to generate a $US200 billion opportunity, creating new jobs, boosting domestic manufacturing, and accelerating the shift to clean mobility.3

Approach

In 2024, Macquarie Asset Management (MAM) launched Vertelo, a fleet electrification solutions platform in India, as part of a blended finance partnership with the Green Climate Fund (GCF).4

The United Nations Framework Convention on Climate Change (UNFCCC) established the GCF in 2010 to support developing countries in their climate change mitigation and adaptation efforts.

Vertelo aims to accelerate fleet transitions to electric vehicles and the development of a broader EV ecosystem. The platform provides integrated solutions, including charging infrastructure, energy management, fleet management, end-of-life asset management services, and flexible leasing and financing options to lower the upfront costs of EV adoption.

Over a planned ten-year period, Vertelo aims to deliver an estimated lifetime reduction of around 9.5 million tonnes of CO2 equivalent emissions.5

Since launch, Vertelo has partnered with leading original equipment manufacturers and fleet operators, including Eka Mobility, JBM, MG Motors, Switch Mobility, Tata Motors, and Eicher Volvo, to expand the availability of EVs and related services in India.

Integrated into Vertelo’s business plans are design features aimed at addressing women’s safety concerns on public transport. These include designated seating, duress buttons and improved lighting at waiting areas, and security cameras on buses and at depots.

Outcome

In July 2025, after close to twelve months of operations, Vertelo attracted private sector capital with a $US205 million institutional equity raise. This, unlocking further capital from the GCF, brought total commitments to $US405 million for the large-scale climate solution.6

This milestone was made possible because of Vertelo’s unique blended finance structure, which combines commercial and catalytic funding. It’s model facilitates investment opportunities for institutional investors through addressing and creating a risk mitigation mechanism that is often required to encourage investment into emerging sectors and markets.

The funding moves Vertelo closer to its $US1.5 billion target over the ten-year investment period and supports the broader adoption of EVs in India.7

Vertelo’s approach offers a practical and scalable model for mobilising capital for climate-focused initiatives in emerging markets, while also aiming to deliver attractive financial returns for investors.

Coin Pile, Stacked Money, Currency Stack, Money Stack, Wealth Stack, Monetary Stack, Dollar Coin Collection, Coins, Stacks

$US1.5b

target over the investment term

Date, Calendar, Schedule, Day, Month, Appointment, Timeline, Reminder, Year

10-year

implementation period

Carbon capture, CO2 trapping, CO2 storage, Carbon dioxide capture and storage, CCS, Greenhouse gas capture, Carbon dioxide mitigation, Carbon tax, Carbon dioxide, Co2 emission, Net zero

~9.5 MtCO₂e

potential lifetime reduction of GHG emissions5

Our investment in Vertelo reflects our global strategy of investing in growing businesses and emerging sectors within the energy transition domain. We’re committed to leveraging Macquarie’s global expertise and deep local insights to develop Vertelo into a best-in-class platform, driving meaningful impact and setting new benchmarks for sustainable investment in the market.” 

Abhishek Poddar
Managing Director
Macquarie Asset Management

  1. IEA, ‘Transitioning India’s Road Transport Sector’, July 2023.
  2. Ministry of Environment, Forest and Climate Change, Government of India,‘India's Long-Term Low-Carbon Development Strategy’, 2022.
  3. NITI Aayog, ‘Unlocking a $200 Billion opportunity: Electric Vehicles in India’, August 2025.
  4. ‘Macquarie Asset Management launches Vertelo, a new $US 1.5 billion EV fleet solutions platform’, 22 April 2024.
  5. Methodology for emissions reduction calculation. Emission reductions are based on the business plan at the time of the funding proposal, May 2022. As the EV platform entails funding of both electric vehicles (EVs) and EV charging infrastructure, a combination of two existing peer-reviewed methodologies was used to assess the level of GHG emissions reduced by the platform over the implementation period of 10 years. Both the methodologies are based on the core principles of Tier 1 and Tier 2 methods  specified under 2006 IPCC Guidelines for National Greenhouse Gas Inventories, and 2019 IPCC Guidelines Refinement.
    Methodology 1,  AMS-III.C.: Emission reductions by electric and hybrid vehicles — Version 15.0 is applicable to Electric vehicles (E-buses, electric light commercial vehicles (like electric trucks), two/three and four wheelers). There is a limitation where this methodology can be used only for small scale projects (projects which reduce GHG emissions less than or equal to 60 ktCO2 equivalent annually), but given no other viable option, this methodology was used.
    Methodology 2, VM0038 - Methodology for Electric Vehicle Charging Systems, version 1.0 is applicable to EV charging systems, including their associated infrastructure.
    The baseline scenario for computation is defined as the GHG emissions reduced due to the replacement of internal combustion engine (ICE) vehicles across Indian urban and semi-urban setup by funding comparable electric transportation vehicles (i.e. e-buses, e-cars, e-three wheelers and e-two wheelers.) and funding electric charging infrastructure (ECI) to support the operation of comparable electric vehicle fleets.
  6. ‘Macquarie Asset Management raised $US405 million for Vertelo,’ helping to drive India’s EV transition’, 22 August 2025.
  7. Green Climate Fund, ‘India E-Mobility Financing Program’, accessed August 2025.

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