San Jose Costa Rica. MARCH 6-9, 2023: Conversion of Diesel to Electric Buses in Costa Rica. Impacts, investments and financing

Objective: Document and promote the proposal to convert internal combustion vehicles to electric vehicles due to their economic and environmental advantages, in working meetings with national actors linked to the renewal axis of the electric bus fleet of the National Decarbonization Plan-2050 ( PND-2050). Presentation of the work carried out by the DDE-ECLAC in the field of electromobility and financing and investments for the replacement of sustainable buses to different entities, and presentation of progress of the products related to the impact study for the case of retrofit, within the framework of Technical Assistance to MIDEPLAN.

Participating entities: the Ministry of Public Works and Transportation (MOPT), the Ministry of Planning and Economic Policy (MIDEPLAN), the Ministry of Environment and Energy (MINAE), the Ministry of Foreign Affairs and Worship (RREE), the Council of Public Transportation (CTP), the National Bank of Costa Rica (BN), the Bank of Costa Rica (BCR), the National Insurance Institute (INS), the Promerica Costa Rica Bank, the German Cooperation (GIZ), the Cooperation French Association (AFD), the Costa Rican Institute of Electricity (ICE), private public transport operators, the National Chamber of Transport (CANATRANS), the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) and various private sector actors such as the companies ICICOR and FORTECH that work on projects with positive impact to mitigate climate change.

Results: ECLAC’s work on electromobility, financing and investment for the replacement of sustainable buses in Costa Rica was presented in substantive meetings and workshops, with discussions of economic, financial, regulatory and operational viability; as well as feedback with sectors involved in achieving the objectives of the electric bus renewal axis of the PND-2050 of Costa Rica. All institutions rated the results, discussions, conclusions and recommendations as being of very high interest and usefulness. SE-CEPAL received a letter of thanks and a request for Technical Assistance from ICE and CANATRANS.

50. The possibility of implementing a pilot program for the conversion of diesel buses to electric buses was widely debated and considered by the counterparts as a favorable mechanism for both the expansion of local capacities, as well as the needs and challenges that the sector currently faces. . There was an excellent local reception of the proposals, with a proactive request for participation by each national entity, involvement, ideas for materialization and even offering financing from development and private banks for such a project. In this regard, the government of Costa Rica (MINAE, MOPT, MIDEPLAN, CANATRANS) requested the continuity of ECLAC support in the process of dialogue and coordination of actors to advance the regulation and financing for the electromobility strategy of the public transportation in Costa Rica, including support in the preparation of a conversion pilot. MIDEPLAN valued ECLAC’s technical assistance by requesting that the financial component module be deepened regarding the potential of financing with sustainable bonds (as an incentive for investment) and the maintenance of the support received to date −by the DDE− in the technical meetings of the Public Transport Electrification Committee (CETP).