On January 11, 2024, the Ecuadorian parliament approved the(LOCE), which reforms the Organic Law of the Public Electricity Service and the . Subsequently, on February 28, 2024, the LOCE Regulations came into force, issued by .
As of 2030, all vehicles that enter the service of public and commercial transportation must be battery electric vehicles (BEVs) or zero-emission vehicles (ZEVs). Starting in 2024, the (GAD), in coordination with the National Committee for Electrical Efficiency, will develop the studies and infrastructure necessary to guarantee this electric fleet on a mandatory basis. Previously, article 14 of the Organic Law of Energy Efficiency established that starting in 2025, all vehicles incorporated into the public transportation service must be EVs. The island territories of Ecuador are not currently included in this zero-emissions process.
In addition, through the relevant ministries, in coordination with the GAD, the Ecuadorian Government will create a scrappage plan for the work vehicles and public transport vehicles that go out of service and are replaced by EVs.
Likewise, the LOCE modifies the , establishing ten years, that is, until January 2034, for commercial land vehicles (tourist, school and institutional transportation, taxis and heavy cargo) to be replaced by EVs, provided that the necessary infrastructure that allows the provision of the electric transport service is guaranteed. This represents an extension of the previous term, which was five years and expired in August 2026.
The LOCE establishes as a second transitional provision that the (COMEX) includes agricultural machinery that runs on clean energy sources with 0% tariff rates within a maximum period of 120 days from January 11, 2024.
Additionally, the LOCE reformed the, establishing a zero rate for transfers and imports of BEVs for private use, public transport and cargo. Likewise, BEVs will be exempt from the excise tax.