PIAGGIO RDI FOR E-MOBILITY

Promoter – Financial Intermediary

PIAGGIO & C SPA

Location

• Italy

Description

The project concerns Piaggio's investments in research, development and innovation (RDI) related to technologies applicable to electric two-wheelers and electric light commercial four-wheeler. The related activities will be carried out at the promoter's RDI premises in Italy, in the period 2022-2025.

Additionality and Impact

The project concerns the promoter's investments in sustainable powered-two-wheeler and light commercial vehicle electrification technologies and products, creating the conditions for their accelerated and wider market adoption. It will contribute to further knowledge creation, accumulation and diffusion and support the development of a relevant ecosystem of technology companies and the necessary skills through reskilling and upskilling of existing employees.

Such investments contribute to the Bank's "Innovation, Digital and Human Capital" public policy objective and a large part of them to EIB Climate Action and Environmental Sustainability policy objective. EIB financing supports the promoter's investments addressing i) the market failures and gaps associated with imperfect competition and incomplete markets for innovative PTW (Powered Two-Wheeler) and LCV (Light Commercial Vehicle) electrification technologies, ii) those addressed by projects with positive environmental and knowledge externalities generation.

The promoter's experienced management and R&D capabilities, its focus on R&D, innovation and sustainability, its technology edge and industrialisation capability will help implement a sound and sustainable project, integrating positive environmental and social dimensions, contribute to address and mitigate market failures, and through its additionality, contribute to the Bank's policy objectives.

The proposed operation meets the required funding needs of the promoter by providing an amortising loan with a long tenor and an adequate pre-amortisation period, together with a sizeable financing volume. The EIB loan is expected to further improve the promoter's maturity profile as well as the diversification of its funding sources.

The Bank's technical contribution and advice is primarily explained by the guidance and TA provided to align the project scope with policy objectives at project origination and the technical assistance to develop the promoter's decarbonisation plan.

Objectives

The primary objective is to develop zero-emission technologies and products for two-wheeler and light commercial vehicle applications. Investments also aim to set-up an "E-mobility" laboratory and testing centre, as well as to develop and deploy cybersecurity technologies. The project addresses the main societal trends driving the sector's development, notably the increasing urbanisation and the need to develop sustainable mobility solutions, particularly in urban and suburban areas.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 60 million

Total cost (Approximate amount)

EUR 120 million

Environmental aspects

The project consists of RDI activities that are not listed in any of the annexes of the environmental impact assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU. The environmental details will however be verified during the project appraisal. The outcomes of the project are expected to contribute to the decarbonisation and reduction of pollution of the transport sector, and the project has, therefore, a strong contribution to climate mitigation and to environmental sustainability.

Procurement

Piaggio & C. S.p.A. is a private company not operating in the utilities sector and not having the status of a contracting entity, and thus is not subject to EU rules on public procurement. Under these conditions, the procurement procedures followed by the promoter are suitable for the project.

Status

Signed - 28/12/2022