With the goal of accelerating the adoption of electric vehicles (EVs) and charging infrastructure solutions in Mexico, the International Finance Corporation (IFC) announced a $100 million investment in Element Fleet Management Corporation (Element) to advance its electrification goals.
“This will help Element increase the proportion of these types of vehicles in its fleet, contributing to significant greenhouse gas (GHG) emissions savings, estimated at 9,093 metric tons of carbon dioxide (CO2) equivalent per year by 2029. This supports the country’s commitment to reduce GHG emissions by 35% by 2030,” Element, a fleet management company, detailed in a statement.
Of the total disbursement, $75 million is in additional type A loans and $25 million in type B or parallel loans to be mobilized.
“This is the first installment of a $600 million financing package to support Element’s commercial vehicle electrification efforts in Mexico , which is aligned with the country’s decarbonization and climate goals,” the firm explained.
The investment will facilitate the acquisition of EVs by Element customers in the country, including battery electric vehicles, hybrids, and plug-in hybrids, as well as the development of associated charging infrastructure, depending on the vehicle technology.
“This funding is a testament to our commitment and an enabler for creating a lasting legacy of sustainable and positive impacts within our communities. We are proud to lead these efforts in the region,” said Manuel Tamayo , president of Element in Mexico.
According to the company, the financing from IFC, a member of the World Bank Group , will be structured as a sustainability-linked loan , with key performance indicators related to decarbonization and also includes an emphasis on increasing women’s participation in the workforce.
“By promoting the adoption of electric vehicles, this investment will contribute to improving the sustainability of Mexico’s transportation sector. This investment demonstrates the viability of an innovative fleet management model to increase access to electric vehicles,” said Juan Gonzalo Flores, IFC Country Manager for Mexico.
Over the past decade, IFC has committed and mobilized more than $11.3 billion for transportation projects in emerging markets.
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