Within the framework of the Green Climate Fund (GCF), CAF -development bank of Latin America- will allocate US$122 million to promote electric mobility in Panama, Paraguay and Uruguay through the Electric Mobility and Low Carbon Transportation Program (E-MOTION).
The plan will act as a market accelerator, enable the adoption of electric mobility and help bridge the gaps between pilot projects and the mass deployment of heavy-duty electric vehicles.
Four Aspects
According to an official press release, the project will have four components. The first is aimed at creating the ecosystem and enabling conditions to facilitate the transition to electric mobility. The remaining three components, co-financed by CAF, will develop innovative business schemes to deploy large-scale electric bus fleets.
It also encompasses light-duty commercial vehicles (public and private) and fast charging infrastructure. In addition, E-MOTION will have a gender action plan to improve equitable, safe, inclusive and sexual harassment-free access to public transport.
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A Boost in the Region
Sergio Díaz-Granados, CAF’s executive president, noted that Latin America and the Caribbean has strong competitive advantages to promote sustainable transportation and, specifically, electric mobility.
“This financing reinforces the leadership of Panama, Paraguay and Uruguay in establishing public-private partnerships to reduce emissions in the transportation sector, one of the largest contributors to global warming, and to become benchmarks for green growth not only in Latin America and the Caribbean but in the rest of the planet. In addition, this initiative is part of our strategy to become the region’s green bank,” he said.
The adoption of electric mobility will enable countries to lay the groundwork for decarbonizing the sector, as well as improve air quality, reduce air pollution problems, 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 electric vehicle value chain.
These resources are part of the USD 231 million approved by the Green Climate Fund (GCF) in October 2022, and will contribute to providing a financial offer that will enable the transition to a better organized, more efficient, equitable, comfortable, safe, sustainable, resilient and affordable electric transportation system in Panama, Paraguay and Uruguay.
