This NAMA Support Project (NSP) will set the course for the development of electro mobility in Colombia by building a regulatory and financial enabling environment that will allow for the massification of electric vehicles, creating substantial demand by 2024 – when electric vehicles are expected to achieve price parity with fossil technologies.
In 2012, mainly due to fossil technologies, ground transportation in Colombia was responsible for up to 25.6 MtCO2e of greenhouse gas emissions, representing 9.9% of the overall country emissions. To reduce the climate impact of the transportation sector and achieve the country’s NDC, the Colombian Ministry of Transport has committed to build a public fleet of up to 557,000 electric cars in the country by 2030, which would result in more than 3.69 MtCO2e of avoided emissions per year.
The NSP will build the institutions and capabilities to support the development of electric mobility, including the design and implementation of corresponding policy. It will establish the regulatory and technical standards for commercialisation and operation, implement a large-scale communications and capacity building strategy, define an electricity tariff scheme for transportation and establish quotas for the governmental fleet to showcase the benefits of electric vehicles, and thus stimulate market demand.
In order to induce electric vehicle uptake, the NSP plans to introduce two financial mechanisms: a cross subsidy scheme, based on energy efficiency and GHG emission rates, and a mix of dedicated financing tools to facilitate private financing through credit lines, with preferential interest rates that better assure profitability for early investments into electric mobility in Colombia.