Panama has pledged to provide greener solutions to polluting vehicles in the country in an effort to tackle air pollution.

National and local governments together with the private sector have launched a process to implement a National Electric Mobility Strategy.

A UN Environment assessment recently found replacing the current fleet of buses and taxis in Panama City with electric vehicles (EVs) could help save around $500 million (£392m) in fuel costs by 2030.

The transition to greener vehicles could also prevent the premature deaths of more than 400 people, it added.

The project will be supported by UN Environment and funded by the flagship climate program,e of the EU in Latin America, Euroclima +,

Panama’s Energy Secretary Victor Urrutia said: “Panama’s Ministry of Energy will guarantee users alternative solutions to sustainably move around and will encourage the installation of electric charging stations in strategic locations of the country.”

During the launch of the initiative, UN Environment and BMW’s EV unit BMWi also signed a memorandum of understanding that will allow joint efforts towards electric mobility in Latin America and the Caribbean through technical support.

A report from the International Energy Agency recently suggested around 55% of new vehicles sold globally will be electric by 2040.