Electric buses can make cities more livable by improving air quality, reducing emissions and noise, and lowering operating costs over time. E-buses are also cheaper than diesel buses for cities to operate over time, and can significantly reduce demand for fuel imports and draws on foreign currency reserves. Yet adoption has been slow because of the high upfront costs of buses and charging infrastructure, along with uncertainty about financing models and responsibilities. Unlike conventional fleets, e-bus systems require investments in batteries, charging networks, and digital management systems, making electrification a broader transformation in how public transport is financed, managed, and operated. Ensuring a future of well-funded, zero-emission public transport based around bus electrification is also a key component of ITDP’s strategic vision.

Despite growing investor interest in zero-emission mobility, much climate finance still favors private vehicle electrification, leaving a significant funding gap for public transport. However, declining technology costs, new business models, and policy priorities around energy security, industrial development, and job creation are making e-bus projects increasingly attractive to private investors. Policymakers who prioritize transport electrification to reduce fuel imports and support industrial development and domestic manufacturing provide strong signals to the private sector.