Representatives from various financial institutions highlighted the importance of their role in the decarbonization of transport and in the financing of sustainable projects, according to the Sustainable Investments in Clean Transport panel of LATAM Mobility & Net Zero Mexico 2024 .
For Mariuz Calvet, Chief Sustainability Officer at Santander Mexico , most of the environmental impact of these companies does not come from their offices, but from the industries and sectors to which they lend money. She said that this impact leads financial institutions to develop solutions and products that support the transition towards cleaner and more sustainable transport.
The panellists also commented that the main challenge for banks and investment funds is that their carbon footprint is mainly linked to the projects they finance.
“99% of a bank’s environmental footprint is in its investment portfolio, in who it lends money to,” Calvet explained.
This reality forces financial institutions to implement risk strategies that thoroughly evaluate their clients’ activities, especially in sectors that are large emitters of CO2 , such as transportation, energy and mining.
The panellists also explained that the transport sector is one of the largest generators of emissions and is considered a key area for implementing sustainable financing solutions.
Faced with this reality, financial institutions have designed products that allow transport companies to adopt cleaner technologies, with the aim of significantly reducing their emissions.
These products include green loans , sustainable bonds and other financial tools linked to sustainability.
Financial companies are also launching products regulated by global associations that ensure that financing is aligned with internationally recognised sustainability principles, such as green loans that allow companies to access financing on preferential terms if the funds are used to reduce their environmental impact.
For his part, Raúl Rodríguez, Senior Transport Specialist at the IDB, explained that the transport sector presents significant challenges in the transition towards clean technologies. He warned that transport is one of the most difficult sectors to decarbonize , but also one of those that can generate the greatest positive impact if policies and technological solutions are addressed correctly.
“Public and private transport in Latin America is responsible for 40% of CO2 emissions, and it is essential to reduce dependence on private vehicles and promote the use of cleaner and more efficient public transport,” said Rodríguez.
He also explained that a major challenge is that the transition requires not only the adoption of electric or less polluting vehicles , but also comprehensive planning of public transport systems.
Rodríguez stressed the importance of cities focusing not only on electrification, but also on a general reduction of the private vehicle fleet and on improving the efficiency of mobility systems.
Another challenge highlighted by the panel is the fiscal impact of the transition; in many countries, a significant part of tax revenues comes from fossil fuels.
“By reducing the use of these fuels, governments will see a drop in their tax revenues, which represents a risk that must be managed effectively,” said Rodriguez.
Fabiola Gómez, senior programme coordinator at the German bank KFW, also pointed out that it is crucial to include digitalisation and sustainability approaches in mobility projects.
“Digitization allows for better planning and efficient use of resources, which in turn reduces financial risks and maximizes the impact of sustainable projects,” said Gomez.
He also mentioned that cooperation between development and private banks has been key to closing financing gaps in clean transport projects.
The panelists agreed that decarbonization is an ongoing process, and financial institutions have the responsibility to accompany their clients on this path. They assured that with the implementation of appropriate public policies, the transportation sector in Latin America has a great opportunity to advance towards a more sustainable future.
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