SUMMARYThis study determines the factors responsible for the growth of transport sector CO 2 emissions in 20 Latin American and Caribbean (LAC) countries during the 1980-2005 period by decomposing the emissions growth into components associated with changes in fuel mix (FM), modal shift and economic growth, as well as changes in emission coefficients (EC) and transportation energy intensity (EI). The key finding of the study is that economic growth and the changes in transportation EI are the principal factors driving transport sector CO 2 emission growth in the countries considered. While economic growth is responsible for the increasing trend of transport sector CO 2 emissions in Argentina, Brazil, Costa Rica, Peru and Uruguay, the transportation EI effect is driving CO 2 emissions in Bolivia, the Caribbean, Cuba, Ecuador, Guatemala, Honduras, Other Latin America, Panama and Paraguay. Both economic activity (EA) and EI effects are found responsible for transport sector CO 2 emissions growth in the rest of the Latin American countries. In order to limit CO 2 emissions from the transportation sector in LAC countries, decoupling of the growth of CO 2 emissions from economic growth is necessary; this can be done through policy instruments to promote fuel switching, modal shifting and reductions in transport sector EI.