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Latin America and the Caribbean hop into electric mobility

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Photo by Empresas Públicas de Medellín

Air pollution kills nearly 7 million people every year around the world. The situation could worsen in the coming years in Latin America and the Caribbean, where transport – a rapidly growing sector – is the main source of greenhouse emissions.

The region’s vehicle fleet is expanding faster than any other in ​​the world and could triple over the next 25 years. This would result in a collapse of the cities’ road infrastructures and in a proportional increase of pollutants.

To avoid this dramatic scenario, several countries in the region are implementing innovative laws and projects to promote electric mobility and introducing clean vehicles into their public transport.

If the current fleet of buses and taxis of 22 Latin American cities were replaced with electric vehicles right now, the region could save almost US$64 billion in fuel by 2030, avoid the emission of 300 million tons of carbon dioxide equivalent, and save 36,500 people from premature death, revealed a UN Environment and International Automobile Federation (FIA Region IV) study, supported by the Spanish Agency for International Development Cooperation (AECID) and the European Union.

UN Environment, through its MOVE platform and with the support of Euroclima+ project, is assisting Argentina, Colombia and Panama with their national electric mobility strategies, and is also helping Chile and Costa Rica in their plans to expand the use of electric buses.

Costa Rica is one of the regional leaders of the transition. The Central American country wants to be the first “decarbonized” nation in the world, as its President, Carlos Alvarado, announced last May during his inauguration.

The country already has an energy matrix that is almost a 100 per cent clean, which helped to reach an important record in 2017: more than 330 continued days consuming electricity only from renewable sources. But transport still depends on fossil fuels and is responsible of 68 per cent of energy sector emissions. The public sector is therefore paying greater attention to electric mobility.

Earlier this year, Costa Rica adopted a groundbreaking law in the region to encourage electric vehicles. The law creates economic incentives to the public and private sectors and introduces benefits, like better access to loans. Additionally, three electric buses will travel across the country as part of a pilot plan.

In the southern part of the continent, Chile is working to have the second largest electric buses fleet in the world, right after China, which currently has 150,000 units. The Chilean government approved a plan last year to gradually introduce 200 electric buses into the transport system of Santiago, Transantiago, and is aiming to exceed 2,000 buses by 2025.

Gianni López, a civil mechanic engineer at the Mario Molina Development and Research Center, says, at this stage, electromobility in Latin America and the Caribbean is mostly competitive in cargo and public transport vehicles.

“In the short term, the region will not have a transition like Norway’s, the world leader. The difference in prices between conventional and electric cars in our countries are still huge and can only be amortized through intensive uses,” such as buses, taxis, company fleets or cargo transport, explains López.

Gonzalo Pacheco, General Manager of the Chilean company Movener, says Chile and the rest of the region need to improve after-sales and maintenance processes, as there are only a few experts in the region and the local universities still do not offer this kind of training.

However, the charging infrastructure is seen as the great challenge of Latin America and the Caribbean.

“Although electric cars can be charged at home, users suffer from the so-called ‘anxiety range’. They are afraid the car will run out of energy before reaching the destination,” says Gastón Turturro, Engineering Professor at the University of Buenos Aires.

Gustavo Mañez, UN Environment Climate Change Coordinator in Latin America and the Caribbean, believes this is far from the truth. “Everyone in the region has electricity outlets at home or at work, and considering that vehicles are parked more than 90 per cent of the time during the day, they could be charged virtually anywhere at a cost almost 10 times lower than that of fossil fuels,” he explains.

Uruguay has recently taken important steps in this field: the country has built electric charging stations in 300 km of its main touristic roads, now the first ‘electrified’ route in the region. The South American country intends to cover 20 per cent of the 9,000 km of its national roadways by 2020. In addition, it has exempted commercial electric vehicles from import taxes.

Argentina has also shown determination. The Government has recently approved a decree that reduces duties on the import of electric cars from 35 to 2 per cent and has presented a law in the National Congress to encourage electric mobility, “very similar to that of Costa Rica and which will mark a precedent in the region,” says Turturro.

The country will also release a dozen of electric buses in Buenos Aires by the end of the year: “If we electrify the capital bus fleet, we could even have a 25 per cent reduction in emissions,” adds the expert.

In Colombia, Medellín prepares the deployment of 1,500 electric taxis by 2020, 500 of which will operate this year. While in Mexico – one of the world’s largest automotive producers –, two large companies, Zacua and Giant Motors, lead projects to manufacture 100 per cent national electric cars.

“Latin America has the greenest electricity matrix in the world, the fastest growing emissions of the transport sector and the highest use per capita of public transport globally. The region is uniquely positioned to take advantage of electric mobility”, adds Mañez.

The transition to electric mobility will help Latin American countries reduce emissions and fulfill their commitments under the Paris Agreement. The pact, signed in 2015 by nearly 200 countries, aims to keep the global temperature rise well below 2 degrees Celsius above pre-industrial levels by the end of the century and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.

UN Environment Office in Latin America and the Caribbean launched the MOVE platform in 2016 to accelerate the transition to electric mobility in the region. Since its creation, MOVE has positioned itself as a flagship community of practice in the provision of technical assistance, resource mobilization, capacity building and knowledge creation on electric mobility in the region.

UN Environment

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Urban Development

City Climate Finance Gap Fund completes first year of operation

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The City Climate Finance Gap Fund (the Gap Fund) has approved technical assistance for 33 cities across the developing world since its operational launch in September 2020, filling a critical gap in technical assistance funding to help cities turn their climate ambitions into finance-ready projects.

Marking its one-year operational launch anniversary today, the Gap Fund has received over 140 expressions of interests and approved technical assistance for 33 cities in India, Mexico, Ethiopia, Morocco, Democratic Republic of Congo, Panama, Senegal, Vietnam, Kosovo, Montenegro, Ecuador, South Africa, Vanuatu, Colombia, Indonesia, Brazil, Guatemala, Uganda and Ukraine. An additional 30 cities are currently undergoing a detailed assessment for potential Gap Fund support, with a total target of at least 180 cities.

The Gap Fund is currently capitalized at €55 million, with a target of at least €100 million and the potential to unlock an estimated €4 billion in investments. The aim is to help cities understand their exposure to climate challenges, develop plans and strategies to reduce emissions and vulnerability to climate risks, and identify and prioritize climate-smart urban infrastructure investments.

The Gap Fund demonstrates a unique collaborative model: With funding from Germany and Luxembourg, the Fund is co-implemented by the World Bank and the European Investment Bank in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit and works directly with city groups and networks including GCOM, ICLEI, C40 and CCFLA. This concerted effort has helped raise awareness about the importance of cities and urban systems in the climate agenda and could not come at a more critical time, as the latest Intergovernmental Panel on Climate Change (IPCC) report confirms that cities are the hotspots of global warming, with the global urban climate finance gap estimated in the trillions of dollars, especially in South Asia and Sub-Saharan Africa.

The Gap Fund also contributes cutting-edge knowledge, tools and recommendations. For example, by featuring in theState of Cities Climate Finance Report Part 2: Enabling Conditions for Mobilizing Urban Climate Finance, whichprovides critical systems-level conceptual frameworks and recommendations for city, country and climate decision-makers. The Gap Fund has also developed or packaged user-friendly practical tools and notes for operational practitioners and project developers on the ground.

The way cities develop in the coming years, especially in these regions, will influence the trajectory of future greenhouse gas emissions, and the susceptibility of cities to increased flood risks and urban heat island effects. The focus on cities is also reflected in the World Bank’s Climate Action Plan, which has identified cities and urban systems as a focus area on a par with energy, transport, food and industry.

Some of the Gap Fund’s most recent grant activities include:

  • San Miguelito, Panama: Identify climate-smart and energy-efficient urban interventions for new cable car infrastructure, with the potential to cut emissions and reduce vulnerability to floods.
  • Dakar, Senegal: Integrate low-carbon and climate-resilient considerations into the planning, development and construction of affordable and green housing in the greater Dakar region, including piloting  a green building certification incentive for building developers.
  • Mangalore and Kolar, India: Prepare a climate diagnostic report for solid waste management as well as an action plan for improving and financing low-carbon solid waste management services, including a pre-feasibility study.
  • Bogota, Colombia: Provide technical assistance for greenhouse gas and air quality analytics, city-wide coordination and recommendations to incorporate low-carbon and climate-resilient considerations in the Low-Carbon Vital Neighbourhoods in Bogota– the first pilot in Latin America to implement a “Proximity City Urban Development Model” (also known as the 15-minute city model).
  • Chefchaouen, Morocco: Prepare a study on low-carbon solid waste management activities including waste sorting, biogas recovery, leachate treatment and the use of solar energy.
  • Vinnytsia, Ukraine: Support climate change adaptation measures along the Southern Bug River, such as new green spaces along the embankments, development of beaches to improve river transport and the construction of a new bridge to improve walking routes north and south of the city.
  • Campinas, Sao Paolo State, Brazil: Promote climate change adaptation and reduce flood risks through nature-based solutions along the Capivari river.
  • Danané, Côte d’Ivoire: Support the deployment of a fleet of 600 low-carbon, low-cost solar tricycle taxis to meet the city’s most pressing mobility needs for people, including expectant mothers, and cargo.
  • Escuintla, San José and Iztapa, Guatemala: Assess the quality of existing waste generation and characterisation data of municipal solid waste and make any necessary additions, compare organic solid waste treatment alternatives and suggest improvements to the existing organisational structure and governance.
  • Santa Marta, Colombia: Improve and enhance the city’s urban forest and forest management, and identify funding opportunities at regional, national or international level as well as links to other potential natural infrastructure projects along Santa Marta’s ecological corridors.
  • Rio de Janeiro, Brazil: Improve hydrological modelling to assess urban flood risks and economic modelling to assess the viability of restoring wetlands as a natural barrier in flood-prone areas and carry out stakeholder consultations.
  • Makindye Ssabagabo, Uganda: Study existing waste generation, carry out a characterisation study of municipal solid waste using random and seasonal data, and compare organic solid waste treatment alternatives.
  • Palembang, Musi Rawas and Lubuklinggau cities, Indonesia: Prepare a cost-benefit analysis, strategy and action plan for green, resilient construction and energy-efficient affordable housing in these three cities. Project would help inform the national Government One Million Housing program which aims to provide incentives for developers to build 220,000 homes per annum and to upgrade 160,000 affordable homes. 

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Urban Development

WEF Launches Toolbox of Solutions to Accelerate Decarbonization in Cities

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With the percentage of people living in cities projected to rise to 68% by 2050, resulting in high energy consumption, greater infrastructure needs and, carbon emissions, cities have a critical role to play in the race to reach net zero. To help address this challenge, the World Economic Forum, is releasing today the first iteration of its Toolbox of Solutions, designed and built in collaboration with Accenture.

The toolbox is an interactive digital platform containing more than 200 practical solutions to help city leaders, national governments and businesses evaluate and identify optimal solutions for near-term implementation, kick-starting their decarbonization journey. The first-of-its-kind toolbox draws on input and case studies from more than 110 cities, businesses, academics, civil society leaders and other urban stakeholders around the world and across sectors to capture best practices and case studies for urban transformation and decarbonization.

The solutions include policy, business and finance models that result in reduced emissions and other valuable outcomes such as job creation and improved air quality. These solutions are also tailored to specific city attributes including the electricity grid’s health, local population density and income level.

“Decarbonization solutions already exist – we don’t need to wait for the next big innovation. This platform provides examples of policies and business models that have been used successfully around the world. We are starting with 200 solutions and expect to have many more over the course of the next year,” said Kristen Panerali, Head of Energy, Materials and Infrastructure Programme, Net-Zero Carbon Cities, World Economic Forum.

“Urban ecosystems are pivotal in our global journey to net zero, driven by clean and smart electrification. These sustainability initiatives can help accelerate efforts to address climate change with practical and integrated energy solutions for urban transformation for cities of any size around the world,” said Jean-Marc Ollagnier, Chief Executive Officer, Europe, Accenture.

Achieving net-zero emissions at city scale will require a transformation in how energy is produced, distributed, and consumed. A related report shows how the built environment and mobility can serve as a catalyst for urban transformation and decarbonization anywhere in the world.

The Toolbox of Solutions is part of the Forum’s Net-Zero Carbon Cities programme, which brings together businesses with city, regional and national government leaders to accelerate urban transitions to a net-zero future. The programme’s objective is to align and scale efforts across businesses, cities and national-level governments to deliver urban ecosystems that are sustainable, resilient and equitable. The programme aims to enable transformation towards clean electrification and circularity, using integrated energy solutions to address energy, buildings and mobility. The Net-Zero Carbon Cities programme is co-chaired by Jean-Pascal Tricoire, Chairman and Chief Executive Officer, Schneider Electric, and Francesco Starace, Chief Executive Officer, Enel.

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Urban Development

As cities fill tech gaps, power of smart cities unleashes

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Governing Smart Cities, a report released today by the World Economic Forum, provides a benchmark for the ethical and responsible use of smart city technologies by looking into the inner workings of 36 Pioneer Cities. The authors of the report seek to help city leaders identify gaps, protect long-term interests and keep up with the pace of technology.

According to the report, cities of all sizes, geographies and levels of development have serious governance gaps, such as the failure to designate a person accountable for cybersecurity or to assess privacy risks when procuring new technology systems. However, leaders can close these gaps and protect long-term interests by acting now.

Written in partnership with Deloitte, the report follows the call to action from G20 ministers in 2019 that resulted in the creation of the G20 Global Smart Cities Alliance. The Alliance and its partners represent over 200,000 cities, local governments, leading companies, start-ups, research institutions and civil society communities. It acts as a platform to help cities strengthen their knowledge, expertise and governance of smart city technologies. The Forum is its secretariat.

The 36 Pioneer Cities surveyed span six continents and 22 countries, and have populations ranging from 70,000 to over 15 million. Policy experts and government officials were interviewed from January to March 2021 to assess the implementation of a set of five essential policies identified by the G20 Alliance last year.

Key findings

Nearly all the cities surveyed – including those that are generally regarded as leading global cities – have critical policy gaps related to their governance of smart city technologies

Despite an unprecedented increase in global cybersecurity attacks, most cities have not designated a specific government official as ultimately accountable for cybersecurity.

While the majority of cities recognize the importance of protecting the privacy of their citizens, only 17% of cities surveyed carry out privacy impact assessments before deploying new technologies.

Less than half of the cities surveyed have processes in place to ensure that technologies they procure are accessible to elderly residents or individuals with limited physical abilities.

Open data policy is perhaps the only area in which most cities in the sample have achieved a level of basic implementation. Even here, only 15% of the Pioneer Cities have integrated their open data portals with their wider city data infrastructure, which is a necessary step towards making a city “open by default”.

“Cities are continuing to invest heavily in new technologies to automate and improve city services and urban life. Yet our findings validate our fears that most cities are falling behind when it comes to ensuring effective oversight and governance of these technologies,” said Jeff Merritt, Head of Internet of Things and Urban Transformation, World Economic Forum. “The G20 Global Smart Cities Alliance is working with cities across the globe to address this gap, beginning with more than 15 policy workshops with city officials this summer.”

“Cities have an array of opportunities to become more resilient and sustainable. Technology is an enabler but, to fulfill its full potential, Cities need to revise their governance, operational, and financing models. Here lies the biggest challenge Cities face. Deloitte is proud to have worked with the Forum in this initiative. It is fundamental for us all to gain consciousness of the complexity of the issues and focus on how the moment we are all living can be a key opportunity”, said Miguel Eiras Antunes, Global Smart Cities Leader, Deloitte Global. “Now is the moment for a great urban transformation. Addressing urban challenges through the lenses of sustainability, inclusion, and technology is critical to develop and implement a roadmap to guide cities with their governance of smart technology and make an impact that matters.”

How to take action

The report concludes that city leaders and officials need to take action before these governance gaps become material risk and affect residents. The report’s authors also call for national policymakers, civil society and the business community to help support local governments in overcoming these challenges. Inclusion, data privacy and cybersecurity attacks are top concerns and the G20 Global Smart Cities Alliance has a mandate to help cities close the governance gaps that this report has uncovered. Cities looking for assistance in identifying and addressing their policy gaps are encouraged to contact the Alliance via their website.

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