Fossil fuel subsidies in Latin America and the Caribbean represent a significant fiscal burden—absorbing between 0.6% and 1.3% of GDP between 2015 and 2021—while hindering progress toward sustainable mobility. With only 5.63% of the region’s bus fleet electrified as of 2023, this report offers a roadmap for governments aiming to align public spending with climate and development goals. 

It highlights how redirecting subsidies can unlock transformative benefits: accelerating the adoption of electric buses, improving urban infrastructure, attracting private investment, and enhancing air quality and social equity. The report outlines three strategic areas for reform: enabling policy frameworks, targeted subsidy reallocation, and institutional strengthening with public engagement.