President of the Republic sanctions Law that encourages electric mobility in transport in Panama

This Presidency of the Republic release was published using machine translation.

Panama, April 25, 2022. Law 162 that encourages electric mobility in land transport and whose purpose is to reduce the emission of greenhouse gases by increasing the use of renewable energies, was sanctioned this afternoon by the President of the Republic Laurentino Cortizo Cohen, in an official ceremony that took place in the Yellow Room of the Presidential Palace.

The Vice President of the Republic and Minister of the Presidency José Gabriel Carrizo Jaén signed the document and the sanction was immediately given by President Cortizo Cohen.

The new law regulates the development and operation of electric mobility in Panama, promoting the transition from internal combustion to electric transportation. In addition, it implements measures and incentives in the public, private and academic sectors.

"This new law is in line with the Government's energy strategy of migrating towards less polluting energy sources, a policy that today becomes more important with the rise in hydrocarbon prices subject to geopolitical factors, external factors," said the president.

The public institutions of the National Government, autonomous and semi-autonomous, must progressively replace their fleet of vehicles that use fuel for electric cars. As of the year 2025, 10% of the vehicles of public entities and collective and selective transport must be electric; in 2027 that percentage increases to 25% and in 2030 it will be 40% electric cars.

In the case of mass transportation, collective and selective public transportation certificates, a minimum of 10% of the car fleet must be electric in 2025; for the year 2027 the percentage increases to 20% and in 2030 a 33%.

The Land Transit and Transportation Authority (ATTT) will carry out the annual review so that transport operators comply with the replacement of internal combustion vehicles with electric ones. Failure to comply will cause the cancellation of the operation certificate.

The head of the Executive explained that the energy transition is contemplated in the Government plan, with proposals for the change of technology in various areas of production as a route towards a more modern, cleaner country in harmony with the environment.

Electric transport units will carry a green plate. The National Secretariat of Energy and the municipalities will manage everything related to the electric charging stations.

In addition, the municipalities will manage the exemption from the payment of vehicle license plates for a period of five years, counted from the date of purchase of new electric cars, and from the date of enactment of the Law for electric cars previously acquired.

Cortizo Cohen highlighted that Panama continues adding actions that position us as one of the leading countries in the campaign to reduce the carbon footprint, thus contributing to stop the advance of global warming.

President Cortizo Cohen was accompanied in the sanction act of Law 162 by the Vice President of the Republic and Minister of the Presidency José Gabriel Carrizo Jaén; the National Secretary of Energy Jorge Rivera Staff; the administrator of the National Public Services Authority of Panama, Armando Fuentes Rodríguez; Deputy Edison Broce (sponsor of the Law), the director of the United Nations Program for the Environment in Latin America and the Caribbean Jaqueline Álvarez; representatives of banking entities and private companies.