Finally, after a long process, the Colombian Ministry of Transport officially launched the Technological Advancement Fund to facilitate the energy transition of the vehicle fleet.
“Our Fund will focus on public transport. Currently, we have around one million vehicles in this segment under the direction of the Ministry of Transport’s policies, which is responsible for regulations across all modalities,” explains María Constanza García Alicastro, Minister of Transport of Colombia.
It will fall directly under her department’s jurisdiction and will focus on four key sub-sectors: heavy-duty vehicles, light-duty vehicles, taxis, and public transport.
“Our targets are set for 2026 and 2030. Just in the transition of these four transport modalities, we estimate that by 2030 the market will have an approximate value of 35 trillion pesos,” García Alicastro reveals at the Feria de Economías para la Vida.
The role of local authorities will be essential, given that the operation of taxis and public transport depends on municipal regulations.
The Technological Advancement Fund has an autonomous capital from which resources will be managed, and in its first year of operation, it has 12 billion Colombian pesos, starting its implementation in the municipality of Soacha.
The resources are managed through this structure, which includes a governance scheme with the participation of a technical manager, which will be undertaken by the National Development Finance (FDN).
This technical manager will provide assistance in designing the most suitable formulas to facilitate technological advancement in each sub-account.
“We aim to design the necessary incentives to make a fair energy transition a reality. This is a process that will take years and will evolve as market characteristics and conditions change,” states the Minister of Transport.”
What are the initial steps of the Technological Advancement Fund to modernise transport in Colombia?
In its first phase, the Fund aims to cover the price difference between combustion vehicles and electric or low-emission units.
As explained: “In the case of taxis and light-duty vehicles, we plan to cover the price difference between a petrol vehicle, which costs around 80 million pesos, and a zero-emission vehicle, which could cost between 105 and 110 million pesos.“
Additionally, financing options at favourable rates will be facilitated in collaboration with banks.
In this regard, each sub-account has its own targets and deadlines.
For example, in the case of taxis, a significant transition is projected towards 2026 and 2030, with an estimated market of 35 trillion pesos by 2030, of which ten trillion corresponds solely to the taxi sector.
The resources will come from the fund itself, as well as from vehicle owners and financing obtained at the best possible rates.
Regarding heavy-duty vehicles, the renewal process has already begun with the scrapping of over 20,000 old vehicles and the renewal of 8,600 units between 2015 and 2023.
The Technological Advancement Fund aims to accelerate this process by integrating additional incentives to promote greater adoption of clean technologies in this sector.
“Decrees or resolutions alone are not enough; we need synchronisation among all the actors involved,” emphasises the Minister of Transport.
The process involves actors from the public sector, both at national, territorial, and municipal levels, who are responsible for regulating and implementing the necessary policies for the transition.
Moreover, equipment suppliers, including vehicles, charging infrastructure, and energy commercialisation, play a crucial role in ensuring that the technologies are available and accessible.
“What we need is to synchronise this entire ecosystem and achieve cooperation between the public and private sectors, as well as with the whole industry that can emerge from this process,” she explains regarding this initiative, which is directly related to reindustrialisation.
She adds: “Of the more than 120 goals we have in our reindustrialisation plan, four are focused on the transport sector. One of them is the production and assembly of zero and low-emission vehicles.”
The Automotive Sector in Numbers: The Path to Electrification in Colombia
When analysing the current landscape, the taxi sector reports approximately 217,000 units, of which 85% use petrol and 15% use compressed natural gas (CNG).
For heavy-duty vehicles, which include more than 305,000 units, diesel remains the dominant fuel.
In public transport and light-duty vehicles, diesel and petrol also prevail, although progress is being made towards the adoption of cleaner technologies.
Regarding the available options for this transition, the market already offers a variety of technological solutions for different types of vehicles.
“In the taxi sector, we already have zero-emission vehicles available. Currently, there are nine approved brands in the country that can market zero-emission electric vehicles,” she points out.
The public transport system, which includes 16,000 co-financed vehicles, is also making steady progress.
Bogotá, for example, is preparing a tender that will include zero-emission articulated vehicles and low-emission bi-articulated vehicles, allowing for greater competition between technologies.
Other Colombian cities are also preparing tenders to incorporate electric and low-emission vehicles into their mass transport fleets.
The heavy-duty vehicle sector will also benefit from this Technological Advancement Fund.
Currently, four brands offer cargo vehicles that run on compressed natural gas, and six international brands offer options in this segment.
For light-duty vehicles, there are 20 lines of electric vehicles available, along with options running on natural gas.
“This is very significant because it debunks one of the main myths: the technology is already available in the country and ready for implementation,” she emphasises regarding the data provided.
To learn more about electromobility in the region, visit Mobility Portal Latin America.
