Starting in 2021, European carriers will have access to all-electric versions of Volvo's line of heavy-duty trucks. The announcement came in conjunction with Volvo Group's Capital Markets Day, where the company laid out its strategy to provide solutions that are “100% safe, 100% fossil-free and 100% more productive.”

The company said it views the commercialization of electric vehicles as a key component of this strategy, with the thought that by 2030 electric vehicles will account for at least 35% of vehicle sales and at least 50% of revenues.

The OEM is currently testing electric versions of its Volvo FH, Volvo FM and Volvo FMX trucks, which will be available for regional hauling and construction fleets in Europe. Sales of the trucks will begin next year, with volume production starting in 2022.

"By rapidly increasing the number of heavy-duty electric trucks, we want to help our customers and transport buyers to achieve their ambitious sustainability goals. We're determined to continue driving our industry towards a sustainable future," said Roger Alm, president of Volvo Trucks.

The Volvo FL Electric and Volvo FE Electric have been in use in Europe since 2019, while the VNR Electric will be available for North American fleets on Dec. 3.

Volvo Trucks also plans to manufacture hydrogen fuel cells trucks in the second half of the decade to address the need for long-haul trucks, helping achieve its objective of producing a fossil-free product range by 2040. The Volvo Group has also set a net-zero emissions company target of 2050. In order to be transparent on its progress, the company is committing to the Science Based Targets initiative, which defines a company’s efforts to reduce greenhouse gas emissions as “science-based” if they are in line to meet the goals of the Paris Agreement.

"To reduce the impact of transport on the climate, we need to make a swift transition from fossil fuels to alternatives such as electricity," said Alm. "But the conditions for making this shift, and consequently the pace of the transition, vary dramatically across different haulers and markets, depending on many variables such as financial incentives, access to charging infrastructure and type of transport operations."

Volvo Group also announced the launch of the Green Finance Framework to assist in the financing of clean transportation investments and projects. The program will allow the Volvo Group to issue green bonds and other green financial assistance to projects in areas such as research and development and manufacturing of electric vehicles, machines, and engines with zero tailpipe emissions. Funds will also be used by Volvo Financial Services to offer green loans to customers who buy electric vehicles from the OEM.