The Inter-American Development Bank (IDB) has published a new report on transportation sector pathways towards year 2050 in the Latin America and the Caribbean (LAC) region, that analyzes the state of transport as an active and passive subject of climate change, identifies gaps with respect to the countries that are at the forefront of the sector’s transformation worldwide, and proposes policy recommendations based on the best practices of such countries and on the concept of just transition, in order to build an institutional and policy architecture to accelerate the pace of systemic change that the sector needs to comply with international objectives.

The transportation sector is the largest source of CO2 emissions in the LAC region, accounting for 40% of total emissions. Road transportation accounts for 92% of total emissions, domestic aviation for 4%, domestic navigation for 2%, and rail transportation for 1%. Although transportation is mentioned in 19 of the 26 Nationally Determined Contributions (NDCs) of LAC countries, only two set emission reduction targets.

Finally, the authors conclude that promoting a systemic transformation of transportation can generate new income sources for the region in the form of renewable energy production for transportation, strategic positioning in the reconfiguration of global transport networks, generation of green jobs within the framework of industrial reconversion, and attraction of international investments and funds to catalyze the changes required by the sector in the fight against climate change. LAC region needs to deploy a battery of funding and financing mechanisms to guarantee the necessary resources for the sector to develop efficient, inclusive, and sustainable transportation systems.