Financing options for zero-emission transport in Mexico

Many cities in Latin America and the Caribbean have large numbers of public bus fleets with internal combustion engines, a situation that generates high levels of environmental and noise pollution. There is a real demand from cities to consider a transition to electric fleets. However, in Mexico, 84% of state revenues come from federal sources and this generates a high dependence from local governments on them to finance their mobility projects, a significant obstacle to the adoption of electric vehicles.

Local governments are investigating alternative financing sources to allow them to deliver their transportation priorities. While some cities have retained their existing business model with new sources of finance, others have innovated with new business models, involving a new range of actors, both public and private.

The CFF is providing direct support to two cities in Mexico – Monterrey and Guadalajara with technical assistance to accelerate the development of their zero‑emission bus projects. This guide aims to raise awareness of the range of financial options in Mexico available to implement electromobility and sustainable transport projects at both the municipal and state levels.

The report covers:

• Public resources
• Financing sources from international agencies
• Private resources
• Resources available from development banks
• How cities are deploying alternative business models to accelerate zero-emission bys deployment