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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The transition towards more sustainable mobility is not only a technological issue, but also a strategic commitment involving key investments, which could boost the automotive industry in Mexico in a positive context of foreign investment.

Within the framework of LATAM Mobility & Net Zero Mexico 2024 , in the panel Technological Advances in the automotive sector towards Sustainable Mobility , moderated by Kathy Ardila, business leader of Invest in Latam , leaders of the automotive industry shared their visions on the future of electric mobility and the energy transition in Mexico and Latin America.

In this regard, Anel Hernández, director of operations at Yutong , highlighted that the country is leading initiatives such as the implementation of electric trolleybuses , which demonstrates its commitment to green mobility and highlighted how foreign investment has been key in the growth of electromobility in Mexico.

“We are seeing a positive impact on foreign investment in Mexico, with more than 50 brands working in the automotive sector,” he said.

Edgar Suárez, country manager of Zeekr Mexico , stressed that the country ranks seventh worldwide in automotive production . However, he warned that to maintain that competitiveness, it is crucial that it advances in the infrastructure necessary to support the mass adoption of electric vehicles.

For his part, Óscar Hernández, Product Director of BYD México , highlighted the progress towards the electrification of vehicles as a key trend in the industry , which is why he pointed out the importance of education for both users and new generations of engineers , who must understand the benefits and characteristics of electric cars and how this technology represents a sustainable evolution in the automotive sector.

“It is essential that universities and factories understand this new technology, so as not to lose competitiveness in the global market,” added Edgar Suárez, highlighting the need for collaboration between universities, government and industry to educate the professionals of the future and ensure a continuous supply of spare parts and new technologies.

The role of financing in the energy transition

Marisol Rodríguez, automotive sales director of Grupo Financiero Banorte , highlighted the fundamental role of financing in the adoption of hybrid and electric vehicles .

He noted that Mexico leads sales of green cars in Latin America, with an annual growth of 70% , however, subsidies and tax incentives play a crucial role in making electric vehicles more accessible.

“We offer differentiated rates for green cars, much more competitive than for gasoline cars, but it depends on alliances with brands and subsidies that make prices more accessible,” explained Rodríguez.

He added that collaboration between financial institutions and automotive brands is essential to offer attractive financing options that allow consumers to access more sustainable vehicles without this representing a prohibitive expense.

At the panel, the speakers agreed that there are still challenges in the sector, especially in terms of charging infrastructure and the lack of general knowledge about the benefits of these cars. However, sustainable mobility is an achievable goal if we continue to invest in technological innovation, education and strategic alliances between the private, public and academic sectors.

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Nearshoring has become an accelerator for the transformation of the mobility industry in Mexico and is driving vehicle automation, according to specialists during the panel The Nearshoring Opportunity for the Sustainable Mobility Value Chain , held at LATAM Mobility & Net Zero Mexico 2024 .

In this sense, according to the panelists, companies are relocating their operations in the country since they find an ideal environment to develop new value chains, amid the boom in electrification, automation and sustainability .

Alejandro Boué del Valle, Marketing Manager for Mobility & Transportation at Dow Latin America, highlighted that his company is working intensively to integrate solutions that optimize electrification and automation processes.

“In the automotive industry, new trends are driving the development of lighter and more durable materials, which are essential for electric vehicles and their components such as batteries and sensors,” Boué explained.

Another point highlighted was the need for greater infrastructure to support this transformation towards sustainable mobility. In this regard, Paulina Sánchez Romero, General Director of Sustainable Development in Sonora, highlighted the importance of creating a network of solar-powered electric chargers to support the growth of electric vehicles.

“In Sonora, we are promoting a strategic route to Arizona and California, aligned with the electrification policies of those states. We already have some electric chargers and we are working on expanding this infrastructure with clean energy,” said Sánchez Romero.

He also stressed that collaboration between the public and private sectors is essential to attract more investment and strengthen the electric mobility supply chain.

For her part, Shirley Wagner, a specialist in global sustainability, highlighted some of the challenges that Mexico faces in this transformation process, such as the lack of planning.

“It is essential to plan appropriately so that sustainable mobility is implemented effectively and with benefits for local communities. Regulation and infrastructure are essential, but so is technology transfer and training of specialized mobility talent,” said Wagner.

He also said that foreign investments must meet sustainability and energy efficiency standards , aspects that are becoming key requirements at a global level.

Experts agreed that nearshoring also involves a complete reconfiguration of supply chains, which opens up opportunities for key sectors such as battery, semiconductor and electric vehicle production.

For them, the transition to electric mobility is driving demand for more advanced components, and Mexico has the potential to become a global leader in this field. However, they assured that to achieve this, investment in infrastructure, clear regulations and training of specialized talent must continue.

Finally, Sánchez Romero added that concrete measures are already being taken in Sonora to develop industrial parks focused on electromobility and training programs are being implemented in collaboration with international institutions, such as Taiwan, to prepare future professionals in this sector.

“We are making progress in creating a comprehensive ecosystem that combines manufacturing, clean energy and talent development. Nearshoring is a historic opportunity, but it will only be sustainable if we coordinate efforts between the government, the private sector and academia,” concluded Sánchez.

The panelists highlighted that Mexico has a unique opportunity to establish itself as a leader in sustainable mobility, as long as collaboration between governments, industry and academia is maintained to address the challenges of infrastructure and talent.

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Carbon credits 2.0 allow companies to generate additional income by reducing CO2 emissions in electric transport projects. During LATAM Mobility & Net Zero Mexico 2024 , Susana Ricaurte, leader for Latin America and the Caribbean at Zeroca , explained the key points that companies should consider.

In this regard, Ricaurte explained that for each ton of CO2 that a project reduces, a certificate is awarded that can be sold in local or international markets .

He also indicated that in the carbon credit market there is a focus on bilateral agreements between countries, where commitments to reduce emissions are key to guaranteeing the credibility of offsets.

However, the specialist explained that the carbon market is not a complete solution to cover the high costs of transport electrification, but it does represent an additional source of financing that can close significant gaps.

Through contracts that can extend until 2030, projects can receive payments for verified emissions reductions , allowing companies to earn revenue as they move toward electrifying their fleets.

He said his company has already implemented such projects in several countries , including Chile and Uruguay, Colombia and more, and continues to develop electromobility programs for other markets in the region.

“We already have programs that we are advancing in the region, such as Chile, which has a bilateral agreement with Switzerland. We are developing an electromobility program for different modes of transport,” Ricaurte said.

Ricaurte also highlighted that the success of these projects not only accelerates the adoption of electric vehicles , but also contributes to the fulfillment of national commitments under the Paris Agreement .

The expansion of carbon credits globally, with bilateral agreements between countries such as Switzerland and Chile, opens up new opportunities for emerging economies in Latin America, where the electrification of transport is emerging as a key solution to reduce the carbon footprint.

“As a company, we do all the registration and development of the documents in order to have a registration in the standard and then we do the international monitoring. We really take on all the risk, that is to say, we earn in the end a success commission, a success commission specifically for the level of reductions that each of the projects that are part of the community program have,” Ricaurte said.

He also said that electromobility projects can monetize their sustainability efforts, while contributing to global emissions reduction goals.

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Representatives from the governments of the State of Mexico, Tamaulipas and Puebla discussed the importance of sustainable mobility as a central axis for the country’s development, during the panel Perspectives for Sustainable Mobility in Mexico in the new six-year term, developed within the framework of LATAM Mobility & Net Zero – Mexico 2024 .

In this regard, Ninfa Cantú, Secretary of Economy of Tamaulipas, emphasized the importance of social development through successful mobility policies.

“Sustainable mobility is essential for Mexico’s comprehensive economic and social development, as it is based on three pillars: environmental protection, economic efficiency and social development,” said Cantú.

He stressed that the main challenge lies in proper coordination between the different levels of government and the private sector.

“It is not only the answer to the current pollution challenges we face, but also to the urban congestion that leads to greater stress,” Cantú added.

He also highlighted efforts in Tamaulipas to form integrated regional councils for economic development. “We have seven regions in which all levels of government participate, working towards a common goal: the benefit of everyone in Tamaulipas,” said Cantú.

He also mentioned projects such as the integrated transport system in the south of the state and an electric transport project in Reynosa that will benefit 1.5 million people.

For his part, Daniel Sibaja, Secretary of Mobility of the State of Mexico, acknowledged the challenges that this entity faces in terms of mobility.

“The problem we are facing is that public transport is more expensive and inefficient,” Sibaja said.

The Secretary also stressed the need to invest in mixed projects that include the private sector and the creation of metro routes in the State of Mexico.

“We need to change the way these models operate. A public policy without a budget is a promise,” said Sibaja.

He also mentioned initiatives such as a trust fund for infrastructure and welfare, and projects to improve the regulation and modernization of public transport.

Along the same lines of mobility, María Fernanda García, head of the Puebla Undersecretariat of Mobility and Road Safety, shared the progress and challenges in Puebla . She highlighted that conventional transport in Puebla is 100% concessioned and underlined the importance of comprehensive planning.

“So far, we have not been able to complete a system for planning or digitizing routes. We need this type of planning with private partnerships,” said García.

He also highlighted the importance of focusing on active mobility and promoting local talent.

“The next step would be bike lanes, active mobility and encouraging young people from Puebla and companies that want to participate,” García said.

The panelists made it clear that although there are significant challenges in terms of sustainable mobility in Mexico, there are initiatives and collaborations underway that promise important advances. However, they explained that coordination between governments, the participation of the private sector and the use of emerging technologies are key to transforming mobility in the country during the new administration.

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