CAF – development bank of Latin America -, with the support of the Green Climate Fund (GCF), will promote electric mobility in Panama, Paraguay and Uruguay through the Electric Mobility and Low Carbon Transport Program (E-MOTION).
With the aim of moving towards a clean, better organized, more efficient, more efficient, more equitable, comfortable, safe, sustainable, resilient and affordable transport system, CAF and the GCF will allocate USD 231 million for the Electric Mobility and Low Carbon Transport Program (E-MOTION), which will function as a market accelerator, will allow the adoption of electric mobility and contribute to closing the gaps between pilot
E-MOTION will have 4 components: the first is intended to create the ecosystem and enabling conditions to facilitate the transition to electric mobility (strengthening of regulatory frameworks and capabilities, promulgation of environmental regulations, etc.); while the remaining three components will finance through innovative business schemes the massive deployment of large-scale electric bus fleets, light-loading commercial vehicles (public and private) and fast In addition, EMOTION will have a gender action plan to improve equitable, safe, inclusive and sexual harassment-free access on public transport.
“This financing reinforces the leadership of Panama, Paraguay and Uruguay in establishing public and private alliances to reduce emissions in the transport sector, one of the most contributing to global warming, and to become benchmarks in green growth not only in Latin America but in the rest of the planet,” said Sergio Díaz-Granados, executive president of CAF.
“The Green Climate Fund (GCF) is pleased to support this innovative program that promotes electric mobility, emission reduction and the connection of cities and communities in Panama, Paraguay and Uruguay. By promoting clean, safe and reliable transport, this program will make a big difference in the lives of people who reside in the focus cities of this program. From the GCF we will continue to support electric mobility initiatives in partnership with leading entities in the region,” said Henry Gonzalez, Deputy Executive Director, GCF.
Latin America and the Caribbean have strong competitive advantages to promote sustainable transport and, in particular, electric mobility. The region has one of the cleanest electricity generation matrices in the world due to the high participation of renewable energies. The share of renewable energy generation in Panama’s energy matrix is 81%, while in Paraguay it is 100% and in Uruguay is 98%.
The adoption of electric mobility will allow countries to lay the foundations for decarbonizing the sector, as well as improving air quality, reducing the problems associated with air pollution and reducing dependence on imported fossil fuels. All this will contribute to promoting new economic activities and creating sources of employment related to the value chain of electric vehicles, introducing innovative public-private business models to modernize mass transport systems and promoting a holistic change in sustainable urban mobility that allows its sustainability over time.