The project “Fiscal Impact Analysis for Uruguay’s Transition to Electric Mobility” was implemented by Climate Lead Group for the Inter-American Development Bank (IDB) to assess the economic and distributive effects of decarbonizing Uruguay’s transport sector, which accounts for 51% of the country’s energy emissions.

Using an OSeMOSYS-based model programmed in Python and the Robust Decision-Making (RDM) methodology, the team analyzed transition scenarios toward 2050. Key activities included: (1) updating the model to incorporate fiscal and distributive variables; (2) creating data visualizations for policy-making; and (3) developing a technical manual for future replication.

Results showed that while full electrification could reduce tax revenues by over 50%, total vehicle fleet costs would decrease significantly. The final report, presented in a workshop with key stakeholders, provided recommendations for designing compensatory fiscal mechanisms to ensure an equitable transition aligned with Uruguay’s climate commitments.