The International Finance Corporation (IFC) has announced a $100 million investment in Element Fleet Management Corporation to accelerate the electrification of commercial vehicle fleets across Mexico, as part of a broader $600 million climate-aligned finance package. This move is designed to directly support the country’s 2030 goal to cut emissions by 35%, while fostering inclusive and sustainable economic development.
Structured as a sustainability-linked loan, the financing ties disbursements to measurable environmental and social outcomes—specifically CO₂ emissions reduction and gender inclusion. IFC will provide a $75 million A loan from its own balance sheet and mobilize $25 million from external lenders.
“This financing is a testament to our commitment and an enabler to create an enduring legacy of sustainable and positive impacts,” said Manuel Tamayo, President of Element Mexico.
Key Features of the Program:
- Target investment: Battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrids (PHEVs)
- Scope: Charging infrastructure development and full fleet transition support
- Impact goal: Cut more than 9,000 metric tonnes of CO₂ annually by 2029
- Social inclusion: Linked gender equity metrics to boost female participation in Mexico’s mobility sector
Element Mexico, a subsidiary of one of the world’s largest fleet managers, will use the capital to expand sustainable mobility offerings for corporate clients. The move aligns with Mexico’s Nationally Determined Contributions (NDCs) and the country’s growing interest in electrified transport as a lever for green growth.
“This project sets a regional benchmark,” added Juan Gonzalo Flores, IFC Country Manager for Mexico. “It catalyzes innovative fleet models and accelerates the private sector’s leadership in the low-carbon transition.”
IFC’s Broader Climate Role:
This investment builds on IFC’s $11 billion commitment to transport infrastructure over the past decade, reinforcing its position as a pivotal player in mobilizing capital for climate-smart transportation in emerging markets.
With Mexico’s commercial vehicle emissions representing a significant share of its transport-sector footprint, the IFC-Element partnership is expected to drive rapid electrification, reduce urban air pollution, and demonstrate how sustainability-linked finance can unlock private sector action on climate and equity.
