Peru’s transport sector is a significant contributor to national greenhouse gas (GHG) emissions, with fossil-fueled vehicles dominating all categories, ranging from motorcycles to buses and heavy-duty trucks. The uptake of EVs remains marginal, with EV sales and vehicle stock well below 1%. This mitigation activity promotes the widespread adoption of EVs with financial incentives through payment for monitored and certified GHG reductions. Various vehicle categories are included in the activity.

The activity is managed by Grutter Consulting AG, which acts as the owner and aggregator. It facilitates participation from diverse project participants (PPs) such as vehicle operators, vehicle manufacturers, and leasing companies. Grutter Consulting structures and manages the activity as well as its monitoring, and also provides technical assistance as well as support in accessing upfront finance for EVs.

The KliK Foundation’s contribution is vital to overcoming Peru's key barriers to mass EV deployment: high upfront costs of EVs, lack of profitability in operating EVs and information and know-how barriers linked to EVs. Carbon revenues help make EV investments financially viable, providing a vital incentive for their adoption and reducing the financial risk of investors through a revenue stream based on the environmental performance of the EVs.

The business model developed by Grutter Consulting enables various small and large entities to join the activity under a Program of Activities (PoA) structure, reducing transaction costs, increasing actual financial transfers to the investor, and facilitating broader participation by entities across Peru.

Technology employed: The activity deploys battery electric vehicles across various vehicle categories.

Environmental benefits: The replacement of internal combustion engine vehicles significantly reduces emissions of fine particulate matter (PM2.5) and nitrogen oxides (NOx), improving air quality. EVs also reduce noise pollution, particularly in dense urban areas. The activity indirectly supports sustainable battery management, aligned with Peru’s roadmap for a circular economy that includes reuse, recycling, and safe disposal of EV batteries.

Social and economic benefits: Reduced air pollution lowers the incidence of respiratory and cardiovascular diseases, contributing to public health improvements. Energy consumption decreases as EVs are more efficient than fossil fueled vehicles, supporting Peru’s energy efficiency goals. The shift also lowers long-term operating costs for vehicle owners and enhances national energy security by reducing fossil fuel dependency.

SDGs: The activity supports SDG 3 (Good Health and Well-being), SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action), contributing to both environmental and socio-economic development in Peru.