Catalysing the Low Carbon Transition and Electric Mobility Development Through National Bank of Costa Rica
Costa Rica has set out to implement a very ambitious National Plan for Decarbonization 2018-2050 (Plan Nacional de Decarbonización, PND). In order to assist Costa Rica in achieving its carbon neutrality objectives, the EU -through LAIF- partnered with AFD and the National Bank of Costa Rica (BNCR) and decided to dedicate a total of 83.600.000 euros to this aim.
This project aims at catalysing the financing of the low carbon transition in Costa Rica. This will be achieved via the mobilisation of the banking sector; by promoting investments and key infrastructures in priority areas for sustainable socio-economic development including SMEs, private sector development, e-mobility, energy, water and environment with a focus on climate change mitigation and adaptation.
More specifically, the project will strive to support electric mobility schemes though a dedicated technical assistance, given that the transport sector is the main source of CO2 emission in the country.
This project will achieve the following results:
- The emergence of a structured climate finance offer in Costa Rica.
- The contribution to Costa Rica’s neutral carbon objective and an improvement of air quality.
- An improvement of the country’s resilience to climate change
More specifically, the project is declined into the following two components:
- A non-sovereign credit line to finance climate mitigation and adaptation investments in Costa Rica.
- A Technical Assistance Facility to:
- support the design, ownership and implementation of a dedicated climate strategy, through new guidelines, internal processes, training modules and tools inspired by best international practices and adapted to the specificities of climate finance in Costa Rica – in particular the crucial role of e-mobility solutions and the need for climate adaptation financing.
- improve climate investments’ lending capacities through customised technical, commercial and risk-analysis support and the design/improvement of climate mitigation and adaptation related banking products (e-vehicles financing offers, green housing finance, etc.).
- provide transport clients and prospects (mainly bus operators) with technical and financial assistance, in order to structure and develop their e-vehicles purchase and operation projects.