A new finance initiative aims to decarbonise the transport sector in Europe.

The European Commission and the European Investment Bank (EIB) have come together to create the Cleaner Transport Facility (CTF), a project which will support investment in alternative fuels and technology.

It will help channel money into the deployment of not only cleaner vehicles but also the associated infrastructure such as charging and refuelling stations.

The goals of the CTF are aligned with EU policies, such as the recently introduced Low Emission Mobility Strategy, to help tackle climate change, clean the air and reduce noise pollution.

Violeta Bulc, EU Commissioner for Transport, 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.”

The first project under the facility is expected to be signed early next year and will support the purchase of new hydrogen buses and surrounding infrastructure in Latvia.