Colombia could save US$40 billion by accelerating electric vehicle adoption
Electric and hybrid vehicles. Photo: Courtesy: Upme.
TL;DR
- Colombia could save US$40 billion in fossil fuel imports by 2050 by accelerating electric vehicle (BEV) adoption.
- A faster transition to electric mobility would also reduce health costs linked to air pollution and decrease climate change economic damages.
- Transport represented 75% of Colombia's oil consumption in 2023, with over 25% of that being imports.
- Under current trends, Colombia could spend up to US$226,000 million on road transport fuel imports until 2050.
- Electrifying transport would avoid the use of 600 million oil equivalent barrels by 2050.
- Fuel subsidies could reach US$6,800 million in 2025, resulting in a deficit.
- Colombia has favorable conditions for EV adoption, including a hydro-dominant electricity matrix (72% hydroelectric power).
- Traveling with electric energy costs 28% to 55% less per kilometer compared to gasoline or diesel.
- Accelerated EV adoption could prevent up to US$35,000 million in climate-related economic damages by 2050.
- Recommendations to the government include developing an integrated strategy, supply-side regulations, fiscal reforms, and deploying charging infrastructure.