CAF pushes Latam electric mobility with multi-million-dollar funding

Latin America development bank CAF is pushing electric mobility in Panama, Paraguay, and Uruguay with US$122 million in funding under its electric mobility and low carbon transport program E-Motion.

Together with the global initiative Green Climate Fund (GDF), a total of US$231 million is going to the E-Motion program and it will be carried out in four parts. 

While the first is aimed at creating an ecosystem and enabling conditions to facilitate the transition to electric mobility, the three remaining parts (co-financed by CAF) are aimed at developing innovative business schemes.

They include deploying a large-scale network of electric bus fleets, a network of light commercial vehicles (LCV) for both public and private use, and a fast-charging infrastructure grid.

According to CAF president Sergio Díaz-Granados (pictured left), Latin America and the Caribbean have strong competitive advantages when it comes to promoting sustainable transport, especially in terms of electric mobility.

Due to the high participation of renewable energies, Latin America and the Caribbean boast one of the cleanest electricity generation regions in the world. Renewable energy generation represents 100% of the market in Paraguay, 98% in Uruguay, and 81% in Panama.

“The financing reinforces the leadership in the three countries by supporting the establishment of public-private partnerships aimed at reducing emissions in the transport sector, one of the largest contributors to global warming,” Mr. Díaz-Granados said in a bank release.

“It will help the three countries become benchmarks for green growth not only in Latin America and the Caribbean but throughout the world. This initiative is part of our strategy to become the green bank of the region," added the executive.

As these initiatives seek to provide sustainable urban mobility by way of electric vehicles and other e-transport modes, it will encourage new and innovative business models, modernize transportation, and lay the foundations of decarbonization for fleets in Latin America.   

For more on sustainable fleet and mobility solutions in the Latam region, don’t miss the upcoming Fleet LatAm Expert Meeting on April 20.

Top photo: CAF building (courtesy of CAF)