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Accelerating the Decarbonization of the Latin America and Caribbean Transport Sector

By Santiago Nocelli Pac

During this year's UNFCCC Latin America and the Caribbean Climate Week (LACCW), the Council of Engineers for the Energy Transition (CEET) organized a workshop titled, "Technological Pathways for Decarbonizing the Latin America and Caribbean Transport Sector." CEET Member Irene Canas Diaz represented the Council with a presentation titled, “Decarbonizing Mobility: A Roadmap and Solutions Catalog for Sustainable Transportation.” The presentation provided a sneak peak of the CEET´s forthcoming catalog of policy briefs which provide recommendations intended to support countries selecting low-carbon technologies for the transport sector. 

The event, held both virtually and in person at the Marriott Panama Hotel in Panama City on October 26, brought together key stakeholders to explore innovative technological solutions aimed at accelerating the decarbonization of the region's transport sector. This dialogue sought to harness the expertise and guidance of the CEET to inform strategies and actions to achieve net-zero emissions by 2050. Key takeaways from the event include:

  1. Tackling Barriers for Electric Vehicles (EVs): Cesar Vargas of Development Bank of Latin America (CAF) highlighted two major barriers to scaling up electric vehicles in the LAC region: high initial costs and the need to create a supportive ecosystem. To address these challenges, CAF partnered with France and secured concessional funds to lower the initial costs of EV adoption. They received $90 million USD from the Green Climate Fund (GCF) to implement their program, focusing on Panama, Uruguay, and Paraguay. Technical assistance is provided to identify barriers and conduct GAP analysis to create more attractive conditions for EV adoption. The program is already operational, and focuses on public transportation, fleet replacement and expansion, and the development of a comprehensive charging network.
  2. The Positive Impact of Metro on Panama: Guadalupe Gonzalez, the Director of Electricity at the National Secretariat of Energy, explained the opportunities and challenges of decarbonizing the transport sector in Panama, as well as the strategies and policies to promote electric transport in the country and the positive impact that the Metro of Panama has had as a sustainable public transport solution. Mrs. Gonzalez also shared the barriers regarding the need to advance with charging infrastructure for electric vehicles and the importance of having a varied and sufficient supply of vehicles. 
  3. Fleet Replacement for Carbon Reduction: Agustina Calatayud, Group Head - Lead Transport Specialist, Inter-American Development Bank (IADB), emphasized that 40% of CO2 emissions in the LAC region come from the transportation sector, with a significant portion from passenger and city transportation. She stressed the importance of leveraging Corporate Social Responsibility (CSR) from the private sector to drive meaningful action. While the region currently has access to $500 million in financing for transportation initiatives, that number is insufficient to drive the necessary change. She called for the development of a public policy framework to enhance investments in sustainable transportation.
  4. Importance of Data, Infrastructure, and Innovation: Fernando Anaya of the MOVE Initiative under the UN Environment Programme (UNEP) discussed the role of NDCs (Nationally Determined Contributions) in the context of decarbonization efforts. The MOVE Initiative assists in studying baselines, public policies, and business models. The path forward includes data access and reporting for informed decision-making, infrastructure, and smart technology development, and assessing and prioritizing investments to mitigate emissions while fostering business models tailored to local conditions.
  5. The Role of Public Policy and Infrastructure Development: Eduardo López de Victoria, representing Asociación Latinoamericana de Movilidad Sostenible (ALAMOS), highlighted the importance of public policies for electric and sustainable mobility, charging infrastructure development, and encouraging car manufacturers to bring their vehicles to Latin America. ALAMOS is actively working on electric routes, connecting countries with electric vehicle infrastructure, which fosters cross-border electric travel.

The event offered valuable insights on the path toward decarbonizing the transport sector in the region. It demonstrated that by addressing barriers, fostering innovative solutions, and promoting a collaborative approach to the just energy transition, the Latin America and Caribbean region can move closer to its goal of achieving net-zero emissions by 2050. It is clear that with the right strategies, the vision of a sustainable and decarbonized transport sector is well within reach.

For those unable to attend, the full session is available on the SDSN YouTube Channel.

About CEET

Under the auspices of the United Nations Secretary-General, the Council of Engineers for the Energy Transition (CEET) is a global, high-level body of engineers and energy systems experts to contribute to the UN Secretary-General’s goal to build a coalition to achieve net zero emissions by 2050, and to the UN generally on engineering pathways to achieve comprehensive decarbonization by mid-century. CEET is chaired by the Sustainable Development Solutions Network (SDSN) and the United Nations Industrial Development Organization (UNIDO).