USD 231 million to scale up electric mobility in Panama, Paraguay and Uruguay

CAF statement

This is an automated translation of the original press release issued in Spanish

With the aim of moving towards a clean, better organized, more efficient, equitable, comfortable, safe, sustainable, resilient and affordable transportation system, CAF and the GCF will allocate USD 231 million for the Electric Mobility and Low Carbon Transportation Program ( E-MOTION) , which will function as a market accelerator, will allow the adoption of electric mobility and will contribute to closing the gaps between pilot projects and the massive deployment of intensive use electric vehicles.

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 regulatory frameworks and capacities, 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-duty commercial vehicles (public and private) and fast-charging infrastructure. In addition, EMOTION will have a gender action plan to improve equitable, safe, inclusive and sexual harassment-free access to public transportation.

“This financing reinforces the leadership of Panama, Paraguay and Uruguay in establishing public and private alliances to reduce emissions in the transportation sector, one of the sectors that contributes the most to global warming, and to become benchmarks of green growth not only in Latin America. 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, the reduction of emissions and the connection of cities and communities in Panama, Paraguay and Uruguay. By promoting clean, safe, and reliable transportation, this program will make a big difference in the lives of people residing in the cities targeted by this program. From the GCF we will continue to support electric mobility initiatives in association 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, specifically, 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 98%.

The adoption of electric mobility will allow countries to lay the foundations to decarbonize the sector, as well as improve air quality, reduce problems associated with atmospheric pollution and reduce dependence on imported fossil fuels. All of 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 transportation systems and promoting a holistic change in sustainable urban mobility that allows its sustainability over time.