The International Finance Corporation (IFC), a member of the World Bank Group, has committed US$100 million to Element Fleet Management Corporation to drive the adoption of electric vehicles (EVs) and associated charging infrastructure in Mexico. The investment marks the first tranche of a broader US$600 million financing package aimed at advancing vehicle electrification in alignment with Mexico’s climate and decarbonisation targets.
The initial investment includes a US$75 million A loan from IFC’s own account and an additional US$25 million in B loans or parallel loans mobilised from other lenders. The financing is structured as a sustainability-linked loan, tying disbursements to measurable targets related to decarbonisation and gender inclusion.
The funds will support the acquisition of battery electric vehicles (BEVs), hybrids (HEVs), and plug-in hybrids (PHEVs) for Element’s fleet clients, as well as the development of supporting infrastructure. By 2029, the initiative is expected to reduce annual greenhouse gas emissions by over 9,000 metric tonnes of CO₂ equivalent, bolstering Mexico’s pledge to cut emissions by 35% by 2030.
“This financing is a testament to our commitment and an enabler to create an enduring legacy of sustainable and positive impacts,” said Manuel Tamayo, President of Element Mexico. “Sustainability is at the core of our purpose.”
Juan Gonzalo Flores, IFC Country Manager for Mexico, described the investment as “groundbreaking,” highlighting its potential to catalyse the adoption of innovative fleet management models and inspire wider uptake of EVs. In addition to environmental goals, the loan framework also includes provisions to increase female workforce participation within Element’s Mexican operations, reinforcing the transport sector’s role in building inclusive and resilient economies. Over the past decade, IFC has committed more than US$11 billion to support transport infrastructure in emerging markets.
