Energy transition goals: Energy access and reliability. Renewable energy scale-up. Industrial competitiveness. Problem description: Chile’s transport sector is the largest source of national emissions, with Santiago facing air quality, affordability and service quality challenges. Despite strong renewable power generation, the transport system risked undermining Chile’s 2050 carbon neutrality goal. Solution description: The government set bold targets (100% electric buses by 2040, zero-emission vehicle sales by 2035) and embedded electrification into a wider mobility agenda.50 Large-scale procurement delivered 2,500 e-buses (the largest fleet outside China), supported by financing models, fare integration and service upgrades. Complementary measures – metro expansion, bus rapid transport (BRT) upgrades and anti-fare-evasion efforts – reinforced both decarbonization and accessibility. Enablers used: Regulation and political commitment: Integrated climate and air quality policy; vehicle emissions standards. Infrastructure: Deployment of charging infrastructure, battery management and renewables integration. Education and human capital: Skills development for bus operators, maintenance teams and urban planners. Financial investment: Government-backed financing and guarantees for electric bus procurement. Stakeholders involved: –National ministry of environment and transport. –Energy providers and bus manufacturers. –Commuters and urban communities. Outcomes achieved: –Expanded access to clean, affordable mobility by achieving 30% fleet electrification by 2023 and improved public health (70% fewer bad-air days). Exportable lessons: –Align policies for long-term certainty: Bundle climate, air quality and transport objectives into a coherent strategy to create predictable signals for investors and operators. –Use public-private partnerships to de-risk adoption: Leasing models with utilities and energy companies can cover upfront costs, while operators focus on service – making large-scale rollouts financially viable. –Pair electrification with service upgrades: Enhancing comfort, reliability and passenger experience builds public support and accelerates adoption.CASE STUDY 1 Electrification of urban transport with renewables in Chile (2017-ongoing)49 Energy Transition Readiness: Latin America and the Caribbean 22

Latin America&Caribbean Energy Transition 2025