In recent days, by means of the Cabinet Resolution N 103 of October 28, 2019, the Cabinet Council approved the document with the Electric Mobility National Strategy as advised by the National Secretary of Energy, which fosters the use of electric and hybrid means of transportation in the public and private sectors. This endeavor aims to introduce a sustainable mobility and a cleaner environment in Panama.

One mainstay of this action plan proposes the creation of a legal framework to regulate and promote the incorporation of electric and hybrid vehicles in the public and private national transport (selective or massive). Moreover, the acquisition of electric vehicles for the government entities' fleet and high impact fields, such as, selective public transport (taxis), industries and heavy equipment, are amongst the main objectives of this Strategy.

This legal framework for electric mobility will govern important terms, as follow:

a) Progressive electrification of public transport in the coming bids in order to procure electric vehicles for replacements and new purchases

b) Tax benefits

c) Licenses and permits to import electric vehicles, recharging stations and energy distribution to recharging stations

d) Calibration, sampling and homologation of electric meters with the regulatory entities

e) Import requirements for electric vehicles and recharging stations infrastructure

The Electric Mobility National Strategy sets concrete targets to achieve 25% to 40% in electric vehicles' sales in the national territory by 2030, a remarkable indicative of the Panamanian Government attempt to enhance this industry.

At present, Panama has high dependency levels on oil, most evidently in the transport sector, thereby resulting in significant greenhouse gas emissions that affect climate change and health. In order to reduce the reliance on fossil fuels, the National Secretary of Energy supports electric mobility deemed as efficient, economic and clean. The endorsement of this Electric Mobility National Strategy is in furtherance of developing innovative businesses in Panama. In this context, ARIAS Panama is qualified and disposed to provide legal counsel regarding incentives, licenses and other related regulations.