New analysis from Carbon Tracker finds that accelerated battery electric vehicle adoption in Colombia could save around US$40 billion in fossil fuel import costs through to 2050. It would also reduce pollution-related health costs and avoid climate-related economic damage.

London, 20 April, 2026 – Colombia’s continued reliance on internal combustion engine (ICE) vehicles is creating long-term economic liabilities and increasing exposure to imported refined fuels, according to a new report from Carbon Tracker. Transport accounted for 75% of Colombia’s oil consumption in 2023, with over 25% imported. Under a business-as-usual pathway, Colombia could spend up to US$226bn on fuel import for road transport through to 2050.

By contrast, an accelerated transition to battery electric vehicles (BEVs) would avoid 600 million barrels of oil equivalent (BOE) in fossil fuel use through to 2050 and deliver around US$40 billion in fuel import savings.

The report argues that continued ICE vehicle sales lock Colombia into decades of higher fuel demand, health costs and climate-related economic damage. Carbon Tracker estimates that every new petrol and diesel vehicle sold today adds substantial lifetime costs: nearly US$6k per passenger car, US$120k per medium-duty truck, US$278k per heavy-duty truck and US$350k per bus.

The analysis also points to the pressure on public finances. Carbon Tracker estimates fossil fuel subsidies at around US$6.8bn in 2025, compared with US$6.3bn in government revenues from fossil fuel sales, leaving a shortfall of US$0.5bn.

At the same time, the report finds that the global automotive market is shifting rapidly in ways that de-risk BEV adoption. China’s manufacturing expansion has helped cut battery costs by more than 80% since 2013, while expanding model availability and strengthening supply chains. For emerging economies such as Colombia, this is improving access to lower-cost electric mobility.

Carbon Tracker argues that Colombia is well placed to move faster in BEV adoption. The report highlights three key advantages: a relatively low (car ownership per capita), an electricity system primarily (72%) dependenton (clean) hydropower, and limited exposure to legacy domestic automotive manufacturing. Electricity also remains cheaper than petrol or diesel for road transport, lowering the lifetime ownership cost of BEVs compared to ICE cars for consumers.

Alongside the economic case, the report finds that an accelerated BEV transition could generate health cost savings from lower levels of harmful air pollution. It also estimates that lower vehicle fleet emissions could avoid up to c US$35bn (present value) in climate-related economic damages through to 2050.

Ben Scott, report author and Head of Energy Demand at Carbon Tracker, said:

“Colombia has a clear opportunity to avoid deeper dependence on imported transport fuels and the long-term costs associated with continued ICE vehicle sales. The country has structural advantages that support transition to BEVs, while providing an opportunity to phase down fuel subsidies, reducing pressure on public finances.”

The report calls on the Colombian government to develop a joined-up economic and industrial strategy that positions BEVs as a key sector in a modernised, low-carbon economy. It recommends strong supply-side regulations, co-ordinated fiscal reform, and targeted charging infrastructure rollout.

Read the full report here.

Lea la versión en español y descargue el informe.

 

Notes to editors

Leapfrog to Electric: Colombia. The Economic Benefits of Pro-Electric Vehicle Policy can be downloaded, free at [Link]. This report was produced in association with Polen Transiciones Justas.

Spokesperson: Ben Scott, Head of Energy Demand, Carbon Tracker

For more information and to arrange interviews please contact:
media@tracker-group.org

About Carbon Tracker

Carbon Tracker is a not-for-profit independent financial think tank that seeks to promote a climate-secure global energy market by aligning capital markets with climate reality. Part of the Tracker Group, Carbon Tracker’s research on the carbon bubble, unburnable carbon and stranded assets started a new debate on how to align the financial system with the energy transition to a low-carbon future.