IFC Partners with Localiza&Co to Finance Low-Emission Fleet for Green Mobility

The financing package consists of a BRL 1 billion loan provided by IFC in 2023, combined with an additional $472 million (BRL 2.6 billion) mobilized from eight international banks.

The International Finance Corporation (IFC) has partnered with Localiza&Co, Brazil’s largest car rental and mobility services company, to finance a major fleet modernization initiative aimed at accelerating Brazil’s shift toward a cleaner, low-emission transport sector. This marks IFC’s first-ever debt financing for a mobility service provider in Brazil, signaling a milestone in the organization’s support for sustainable urban transportation.

The financing package consists of a BRL 1 billion loan provided by IFC in 2023, combined with an additional $472 million (BRL 2.6 billion) mobilized from eight international banks. Together, these investments will enable Localiza&Co to expand and renew its fleet with energy-efficient and lower-emission vehicles, supporting national climate goals while generating economic opportunities across Brazil’s automotive, maintenance, and logistics sectors.

Supporting Brazil’s Clean Transport Ambitions

Brazil is rapidly expanding investments in sustainable transport as part of its climate commitments under the Paris Agreement. Road transportation accounts for a significant share of the country’s greenhouse gas emissions, making the adoption of cleaner fleets essential for long-term decarbonization.

“IFC’s investment in Localiza&Co will help advance Brazil’s ambition to transform its transport sector towards a cleaner, low-carbon standard, while demonstrating the commercial viability of sustainable business models,” said Manuel Reyes Retana, IFC Division Director for Brazil, Argentina, Paraguay, and Uruguay.

The expansion of energy-efficient fleets is expected to reduce emissions, lower vehicle operating costs, and improve air quality—particularly in major cities where the environmental burden of transport is greatest.

Localiza&Co: Scaling Sustainability Through Innovation

Localiza&Co, already a leader in the region’s mobility market, has been undertaking major steps to strengthen its environmental, social, and governance (ESG) profile. A key component of this partnership is the company’s work on its first Sustainability-Linked Framework (SLF), developed with IFC’s technical support.

The SLF will:

• Set measurable sustainability performance indicators

• Help channel new green and sustainability-linked financing

• Strengthen investor confidence

• Guide the company’s long-term emissions reduction targets

• Support innovation in fleet management and mobility solutions

The framework is designed to attract future global capital for sustainable mobility initiatives, enabling Localiza&Co to maintain its leadership in Brazil’s transition to cleaner transportation.

A Strategic Partnership Fueling Responsible Growth

Localiza&Co’s CFO Rodrigo Tavares emphasized the strategic importance of the partnership:

“We see the partnership with IFC as a significant recognition of Localiza&Co’s maturity in governance, sustainability, and positive social impact. This new fundraising expands our capacity to invest responsibly and with a long-term vision, while strengthening our reputation in international markets.”

Through fleet electrification, efficiency upgrades, and circular economy initiatives, the company aims to reduce lifecycle emissions and align its operations with international ESG standards.

Broad Economic Impact Beyond Mobility

The financing will not only contribute to emissions reduction but also stimulate economic development in:

• Automobile manufacturing

• Auto parts industries

• Vehicle maintenance and digital services

• Urban mobility solutions

• Shared and rental transport markets

It will help create skilled jobs, improve standards across supply chains, and enhance Brazil’s competitiveness in the growing green mobility sector.

IFC’s Long-Standing Commitment to Brazil

IFC has been investing in Brazil’s private sector since 1957, supporting projects that promote:

• Urban development and mobility

• Social inclusion and access to services

• Productivity and competitiveness

• Efficient use of natural resources

• Climate mitigation and adaptation

Its latest partnership reinforces IFC’s strategy of mobilizing global financing to strengthen sustainable infrastructure while helping private-sector leaders reduce carbon emissions at scale.

A Key Milestone for the Future of Mobility in Brazil

The IFC–Localiza&Co partnership sets a new benchmark for sustainable transport financing in Brazil. By supporting fleet renewal and promoting low-carbon vehicles, the initiative advances national climate goals, catalyzes innovation, and demonstrates that economic growth and environmental sustainability can go hand-in-hand.

As Brazil continues its transition toward greener cities and cleaner mobility, collaborations like this one will play a crucial role in shaping a more sustainable and resilient future.