Mass Car Electrification Activity Authorised by Senegal and Switzerland

Senegal and Switzerland have authorised the ‘Senegal Mass Car Electrification Programme’. This greenhouse gas mitigation activity marks Senegal’s first mitigation activity to be authorised and implemented under Article 6 of the Paris Agreement and the bilateral climate agreement between the two countries. Developed by Motion Energy Group Pty Ltd, implemented by Mbay Mobility Sarl and supported by the Foundation for Climate Protection and Carbon Offset KliK, the activity will generate substantial emission reductions while advancing several UN Sustainable Development Goals (SDGs) in Senegal. By purchasing the resulting Internationally Transferred Mitigation Outcomes (ITMOs), the KliK Foundation helps unlock the investment required to implement the activity at scale and deliver long-term climate and development benefits.

“Climate action is of great importance in Senegal, and the country is committed to achieving the objectives of its Nationally Determined Contribution. The international carbon market mechanism is seen as a great opportunity to mobilise investment and accelerate the implementation of transformative and innovative mitigation activities. It is of great pleasance that Senegal and Switzerland have approved its first mitigation activity under their bilateral climate agreement, marking an important milestone in their cooperation under Article 6.2 of the Paris Agreement. This activity will greatly benefit the country's energy transition”, states Papa Lamine Diouf, Head of Mitigation and Carbon Market Division at the Directorate for Climate Change, Ecological Transition and Green Finance, Senegal.

Accelerating the transition to clean mobility

The Senegal Mass Car Electrification Programme focuses on the displacement of Dakar’s aged, diesel-powered taxi fleet, to maximise emissions avoidance associated with high vehicle use. This activity falls under Senegal’s eligibility category 5, ‘Transport’ sub-section 5.1 ‘improving the efficiency of passenger and freight transport’ and under annex L to the Swiss Federal Office for the Environment (FOEN) guidance ‘Offsetting CO2 emissions: Projects and Programmes’.

The activity promotes the development on an electric vehicle (EV) ecosystem in Senegal by facilitating the import of new state-of-the-art, market appropriate EVs, developing a fintech solution to increase financial accessibility, and creating a state-of-the-art digital vehicle management system to capture key data and decrease asset risk for financiers. In doing so, the activity helps overcome the key barriers to broad EV uptake in Senegal and accelerates the shift towards clean mobility.

With this major milestone, Senegal and Switzerland confirm that the emission reductions generated by the activity are additional to Senegal’s Nationally Determined Contribution (NDC) under the Paris Agreement.

Why this activity matters

Currently, almost the entire light vehicle fleet in Senegal is made up of older fossil-fuelled vehicles. Of the 25,000-strong fleet of taxis in metropolitan Dakar, the average age of taxis is 23 years, and in 2019 only 2% of the newly registered taxis were hybrid taxis. Air pollution from transport has major health consequences and causes significant social and economic harm through illness and absence from work. Moreover, formal credit facilities are difficult to access for individuals in Senegal making the cost of EVs prohibitive for most people and creating a significant barrier to accessing EVs, including in commercial applications.

In 2021, transport was the second largest category of Senegal’s Total Final Energy Consumption (TFEC) and Senegal’s transport sector was entirely reliant on oil, made up of diesel (68%) and gasoline (31%). According to the International Energy Agency, over the period from 2011-2021, transport emissions in Senegal grew by 50%. At present, Dakar is one of the fastest growing cities in Africa which, along with increasing GPD and urbanisation trends, is expected to experience ongoing increases in mobility needs in the short and longer term.

The documentation of the activity can be found on the website of the Swiss Federal Office for the Environment (Registered compensation projects abroad (carbonoffset.admin.ch)).

“The carbon certification and carbon credit revenues will have a catalytic effect in terms of unlocking access to commercial credit and climate finance, further accelerating the transition to sustainable, electric mobility in Senegal,” says Matthew Sellar, CEO of Mbay Mobility.

"It is fantastic to have made it to this point, and a significant milestone for both Senegal and Switzerland in the context of Article 6.2. Taxis are amongst the hardest working vehicles on Dakar's roads, so unlocking the funding to replace them with EVs delivers not only significant emissions reductions, but also air quality, employment and fuel security benefits well beyond the vehicles themselves. Carbon finance under Article 6 has made this possible, and we see it as the foundation for electrifying transport right across the region,” remarks Ben Cavanagh, Director, Motion Energy Group Pty Ltd

„The transport sector is a significant source of emissions. By focusing on taxis, which spend an above-average amount of time on the roads and have high fuel consumption due to the age of the fleet, the programme can make an important contribution to the transformation of the sector. The KliK Foundation is excited to support the activity,” comments Ursula Flossmann-Kraus, Director Carbon Procurement, KliK Foundation.

About Motion Energy Group Pty Ltd

Motion Energy Group Pty Ltd is a carbon project developer solely focused on carbon finance for the clean transport sector. Working under compliance, voluntary and Article 6 market frameworks across the developed and developing world, it combines digital monitoring, reporting and verification (dMRV) technology with market expertise to support electric vehicle programmes and enable the finance that makes them viable. Motion Energy developed the Senegal Mass Car Electrification Programme, including its methodology and monitoring approach, and is responsible for taking the activity through certification.

About Mbay Mobility

Mbay Mobility is an electric mobility fintech focused on accelerating the transition to clean transport at speed and scale in French-speaking West and Central Africa. Through its digitally enabled lease-to-own model, Mbay enables drivers who are underserved by formal financial institutions to access electric vehicles and ultimately build ownership of an income-generating asset. Mbay combines vehicle financing with the charging, maintenance, telematics and payment infrastructure needed to support EV deployment. Starting in Senegal, the company is building a scalable model that can reduce transport emissions and air pollution while expanding financial inclusion and economic opportunities for commercial drivers.

About the KliK Foundation

The KliK Foundation fulfils the legal obligation on Swiss motor fuel importers, mandated under the Swiss CO₂ Act, to offset part of the carbon emissions from the Swiss transport sector. To this end, the KliK Foundation supports and organises not only national but also international greenhouse gas mitigation activities, in accordance with Article 6.2 of the Paris Agreement. It finances the deployment of climate-friendly technologies and innovations through the purchase of the resulting ITMOs.