In Latin America and the Caribbean, the transport sector is one of the biggest sources of greenhouse gas emissions. Even though the region has one of the cleanest energy grids in the world, with 45 percent of energy production derived from hydropower, the transport sector remains largely powered by fossil fuels and accounts for an average of 39 percent of emissions from the energy sector. With the region becoming increasingly urbanized, transitioning to low-emission transport systems is essential to achieving the reductions in emissions needed to tackle climate change in line with commitments made under the Paris Agreement.
In the region, the adoption of electric vehicles is generally perceived as a key solution for transport sustainability. However, mitigating emissions in the transport sector can be achieved through a variety of solutions, some with far more potential than electrification. The electrification of the transport sector must carefully consider the energy matrix and its resilience in each country. How energy is produced in the present and how it will be supplied in the long term, including when stressed with additional demands or potential external disruptions, is key. For example, in Ecuador, a two-year severe drought threatened the country’s confidence in hydropower, which currently accounts for about 79 percent of its energy generation, therefore raising questions about the viability of transport electrification. Furthermore, while in some countries in the region, like Costa Rica, Paraguay and Uruguay, almost all energy comes from renewable sources, others – particularly in the Caribbean – depend almost entirely on fossil fuels to cover their energy needs, with their energy resilience being vulnerable to hazardous climatic conditions. Beyond considering the energy matrix, national and local administrations also need to carefully evaluate their population’s transport needs and demands, as well as their resources and capacities.
Fully comprehending how all these factors intertwine in a local context requires the joint intervention of the public and private sectors, civil society, professional associations and academia in a detailed exercise of evaluating all alternatives and reaching long-term agreements.
As part of UNDP’s support to countries to submit more ambitious national climate pledges and achieve their climate goals, we are trying to understand the main limitations to accelerating progress on reducing emissions in the transport sector and work with countries to address them. Our recent comprehensive study analyzes how all 20 countries in Latin America and the Caribbean have included specific measures on transportation in their Nationally Determined Contributions (NDCs).
