Like many countries, Uruguay faces challenges related to transportation sector emissions, which is a significant contributor to its carbon footprint. Adopting EVs and FCEVs and charging infrastructure provides a crucial solution to mitigate these emissions. The activity addresses this challenge by promoting the deployment of EVs, including vans, trucks and intercity buses, and the necessary charging infrastructure to support them. This shift to electric mobility reduces reliance on fossil fuels and lowers emissions from transportation. Uruguay has a very clean electricity production, with around 90% of electricity generated by renewables. Excess renewable electricity supply is available, especially during the night, due to a large share of wind power plants. Hydrogen-powered vehicles use only green hydrogen produced from renewable sources.

The activity is driven by Zeroca, which manages and operates the activity, covers transaction costs, and produces the necessary reporting. Zeroca contracts with various project participants (PPs), such as vehicle owners, operators, vehicle leasing or financing companies, and charge point operators and investors.

The KliK Foundation's contribution is essential in overcoming financial barriers. Carbon revenues generated through emission reductions provide a crucial supplemental revenue source, making EV investments financially more attractive. Thus, a critical barrier to adopting electric mobility is lowered.

The activity is not part of Uruguay's Nationally Determined Contributions (NDCs) as it focuses on specific measures and investments not yet addressed by national policies. Taxis and urban buses are excluded from the activity as national policies already foster these vehicles, and the corresponding emission reductions are accounted for under Uruguay's unconditional contribution to the Paris Agreement targets.

Technology employed: The activity utilises EVs and FCEVs operated with green hydrogen. It also includes charging infrastructure.

Environmental Benefits: By replacing fossil fuel vehicles with electric ones, the activity reduces the emissions of fine particle matter and NOx, which are critical air pollutants. EVs also reduce noise levels of mobility. Uruguay is in the process of approving the legislative framework for appropriate EV battery re-usage, re-cycling or disposal based on extended producer responsibility and tracking of batteries in line with legislation for example in the EU.

Social/Economic benefits: The shift to electric mobility will enhance public health by reducing air pollution and respiratory diseases. The activity reduces energy usage as electric engines are factor 3-5 times more efficient than internal combustion engines and enhances energy security by reducing reliance on imported fossil fuels. It also provides economic benefits by reducing the total cost of ownership for EVs and by reducing the economic costs of pollution.

SDGs: The activity contributes to the achievement of several Sustainable Development Goals (SDGs), including SDG 3 (good health and well-being), SDG 7 (affordable clean energy), SDG 11 (sustainable cities and communities), and SDG 13 (Climate Action).