Aviva, through its in-house capital unit Aviva Capital Partners, has partnered with Rock Rail and the UK Infrastructure Bank to provide a new funding platform for zero emission bus financier ‘Rock Road’.

The Rock Road platform, owned by Rock Rail and Aviva, is designed to offer a finance solution for UK bus operators and public transport authorities to decarbonise their fleet, while minimising capital outlay and outsourcing key ownership risks around residual value and battery replacement.

The partnership, alongside a debt facility from UK Infrastructure Bank and HSBC UK, is committing an initial £100m to fund up to 250 zero emission buses and associated infrastructure.

This is intended to help establish a scalable funding model to accelerate fleet decarbonisation, crowd in further private capital and in turn, reduce the reliance on public money to fuel the transition.

The partnership has already signed its first deal to fund 60 battery-electric buses that will be leased to The Go-Ahead Group and deployed on routes throughout London, reducing carbon emissions and improving air quality across the capital.

Commenting on the news, Decarbonisation Minister, Anthony Browne, said: “It’s fantastic to see Rock Rail, the UK Infrastructure Bank and Aviva join forces to make it easier and quicker for operators to decarbonise their bus fleets, with a commitment to provide £100m in funding for 250 new electric buses.

“This comes only days after we invested £143m to roll out almost a thousand zero-emission buses all over England, as we continue to work closely with industry to provide passengers with modern and cleaner buses while growing the economy.”

Adding to this, UK Infrastructure Bank CEO, John Flint, said: “The vast majority of the UK's 36,500 buses are still diesel powered and so replacing these with a cleaner, greener alternative will be key in decarbonising the transport sector and achieving UK net zero targets. This will require a massive scale up of investment.

“The bank’s financing has been crucial in helping to bring the innovative Rock Road leasing scheme to the market, which will reduce cost for operators and help improve the uptake of zero emission buses across the UK.”

Aviva chief financial officer, Charlotte Jones, added: “Aviva is investing across the UK to stimulate growth, help communities get ready for the future and support the transition to net zero. This investment will make it easier for transport authorities to decarbonise their networks whilst continuing to provide a valuable public service.”

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