The mitigation activity promotes the adoption of electric vehicles (EVs), including buses and trucks. Outside urban public transport buses in the metropolitan area of Santiago, EV market penetration rates are less than 1%, and sales shares of EVs are below 2%. Urban public transport buses operating in the metropolitan area of Santiago are excluded from the activity. Fossil-powered vehicles are thus clearly the baseline. The mitigation activity creates a financial incentive which accelerates the uptake of commercial EVs in the country.

The activity is distinct from Chile's nationally determined contributions (NDC) package as it addresses vehicle categories and infrastructure not covered by national policies until 2030. The crediting baseline used is dynamic and includes reduced carbon credits gained relative to the implementation of zero-emission vehicles in Chile.

The business model involves Zeroca BV aggregating multiple projects and companies, thus reducing transaction costs, allowing smaller companies to profit from the climate finance mechanism, and increasing the proceeds that go to the investor.

Technology employed: The activity utilises battery and fuel cell electric vehicles operated with green hydrogen. It also includes charging infrastructure and battery swap stations.

Environmental benefits: By replacing fossil fuel vehicles with electric ones, the activity reduces the emissions of fine particle matter and NOx, which are critical air pollutants. Electric vehicles also emit significantly less noise and use much less energy than fossil vehicles. Chile is in the process of approving the legislative framework for appropriate EV battery reuse, recycling, or disposal based on extended producer responsibility and battery tracking in line with legislation, for example, in the EU.

Health benefits: The shift to electric mobility will enhance public health by reducing air pollution and respiratory diseases.

Affordable clean energy: EVs consume 2-3 times less energy than fossil units for the same service level.