Electric Mobility
FINANCING FOR ELECTRIC BUSES IN SAN JOSE

Developing financing mechanisms for the massification of electric buses in the city of San Jose

Period
Ongoing
Country
Costa Rica
Funder
IDB

CONTEXT

The transport sector in Costa Rica represents around 44 per cent of CO2 emissions. The main problems facing the sector are the rapid growth of the vehicle fleet in the country, about 5 per cent per year, and the long useful life of vehicles, with an average of 16 years.

In 2019 Costa Rica launched the National Decarbonisation Plan as a public commitment to “go beyond the usual” in global efforts and commitments to aspire to become a modern, green, emission-free, resilient and inclusive economy, where human rights and gender equality are respected. The plan consists on making significant changes and modifications in its mobility and transport offer (public and private), in the management of its forms of energy, in sustainable construction and the industry installed in the country, as well as in the management of waste from its citizens and companies.

Costa Rica’s goal is to have 70 per cent of buses and taxis to be zero emissions and the train will operate 100 per cent electric in 2035. And in 2050, 100 per cent of buses and taxis zero emissions. In addition, an increase of at least 10 per cent of displacements in non-motorised modes is expected within the main urban areas of the greater metropolitan area.

PROJECT

BASE, with the support of the Inter-American Development Bank (IDB) and the leadership of the Presidency of the Republic of Costa Rica, is advising the government on the incorporation of electric buses into the urban transportation system of the city of San José.

The project aims to help implement pilot tests with local operators on 11 routes in the city of San José, and to provide guidelines on the most wp-contentropriate technologies, the optimal charging system, and financing models to facilitate their access and scale up the use of these electric bus technologies in Costa Rica’s public transportation system. BASE has been analysing different electric bus technologies and has generated various analyses that compare the economic and environmental benefits of electric buses versus conventional buses in Costa Rica and in other countries in the region.

BASE is carrying out evaluations of the possible opportunities and restrictions for the financing, acquisition and incorporation of electric buses in public transportation in San Jose and develop a profitability analysis of electric bus technologies that could be used to replace current technologies, and will study the profitability differences for service lines that are most relevant to the city. Based on the local context, BASE will also analyse alternatives to boost the financing of clean technology fleets and design in greater detail the financing mechanism and the implementation strategy.

Contact persons
Francisco Ramírez Cartagena
Sustainable Finance Senior Specialist
Experience in: Latin America, Africa
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