CAF to Allocate USD 122 Million for Electric Mobility in Panama, Paraguay and Uruguay

CAF—development bank of Latin America—is set to allocate USD 122 million to promote electric mobility in Panama, Paraguay and Uruguay through the Electric Mobility and Low Carbon Transport Program (E-MOTION), which will serve as a market accelerator, will enable the adoption of electric mobility and will help close gaps between pilot projects and the massive deployment of use-intensive EVs. 

In total, CAF and the GCF will allocate USD 231 million for the four-phase E-MOTION program. The first part is aimed at creating the ecosystem and laying the foundations to facilitate the transition to electric mobility. The remaining three components, co-financed by CAF, will develop innovative business modes to deploy large-scale electric bus fleets, (public and private) commercial light-cargo vehicles, 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.

“Latin America and the Caribbean boasts strong competitive advantages to promote sustainable transport and, specifically, electric mobility. This financing reinforces Panama, Paraguay and Uruguay’s leadership in establishing public-private partnerships to curb emissions in the transport 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 worldwide. In addition, this initiative is part of our strategy to become the green bank in the region,” said CAF Executive President Sergio Díaz-Granados.

Latin America and the Caribbean boasts one of the cleanest electricity generation matrices worldwide thanks to the high share of renewable energy. The share of renewable energy generation in Panama’s energy matrix is 81%, Paraguay’s is 100%, while Uruguay’s is 98%.

The adoption of e-mobility will allow countries to lay the groundwork to decarbonize the sector, as well as improve air quality, reduce problems associated with air pollution and minimize dependence on imported fossil fuels. This will all help foster new economic activities and creating sources of jobs related to the EV value chain, introducing innovative public-private business models to modernize mass transport systems and promote a holistic change in sustainable urban mobility that secures sustainability over time.