IFC invests $10 billion in Element Fleet to accelerate electric vehicle rollout in Mexico

Decarbonization Catalyst: IFC’s $10 billion investment is part of a $60 billion program to help Mexico meet its 35% emissions reduction goal by 2030.
Fleet Electrification Drive: Funds are used to support commercial fleet acquisition of BEVs, HEVs, PHEVs, and charging infrastructure.
Sustainability-Linked Incentives: Loans link financing to environmental and gender inclusion benchmarks to promote impact and accountability.
The International Finance Corporation (IFC), part of the World Bank Group, has committed $10 billion to Element Fleet Management Corporation to accelerate Mexico’s transition to electric vehicles (EVs). This marks the first phase of a larger $60 billion financing program designed to align with Mexico’s national climate and decarbonization goals.

The loan is a sustainability-linked loan consisting of a $75 million A loan from IFC’s own funds and a $25 million B loan, or parallel loan, from an external lender. The structure links funding to specific decarbonization and gender inclusion outcomes.

“This financing demonstrates our commitment and helps create lasting, sustainable, positive impact,” said Manuel Tamayo, President of Element Mexico. “Sustainability is at the core of our purpose.”

Manuel Tamayo, President of Element Mexico

The investment will be used to acquire battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) for Element’s fleet customers, and to develop the necessary EV infrastructure. The program aims to reduce CO2 emissions by more than 9,000 metric tons per year by 2029.

Describing the transaction as “groundbreaking,” Juan Gonzalo Flores, IFC’s Country Manager for Mexico, stressed the project’s potential to “promote the adoption of innovative fleet management models and inspire wider use of electric vehicles.”

The loan also includes provisions to increase female workforce participation in Element’s Mexican operations, highlighting the role of sustainable transportation in promoting inclusive economic growth.

Over the past decade, IFC has invested more than $1.1 billion in transportation infrastructure in emerging markets, positioning itself as a key enabler of low-carbon transition pathways for the private sector.