World Bank Backs Brazil’s $500m Electromobility Plan to Cut Emissions, Create Jobs

According to Cécile Fruman, World Bank Country Director for Brazil, the programme represents a turning point for urban mobility.

The World Bank Board of Directors has approved the first phase of the Brazil Electromobility Multiphase Programmatic Approach (MPA), marking a major step toward cleaner, more efficient and inclusive urban transport across Brazilian cities. The programme aims to modernize public transport systems, improve service quality and significantly reduce emissions through the large-scale introduction of electric buses (e-buses) and supporting infrastructure.

Phase 1: $500 Million Investment in Clean Urban Mobility

Phase 1 of the programme, implemented by Caixa Econômica Federal (Caixa), represents a US$500 million investment to accelerate Brazil’s transition away from diesel-powered public transport. At its core, the operation will establish a national credit line to finance:

• Replacement of diesel buses with electric buses

• Upgrading of depots and charging facilities

• Strengthening of power distribution networks

• Technical assistance for cities and transport operators

By catalyzing investment across the electric mobility value chain, the programme is expected to stimulate job creation in manufacturing, construction, operations, maintenance and high-skilled technical services, while supporting a just and inclusive transition for transport workers.

Jean Rodrigues Benevides, Acting Vice President of Caixa, highlighted the programme’s significance:

“The Electromobility Project helps reduce emissions and improve air quality in Brazilian cities, marking a major step forward in the modernization of public transport through more efficient and sustainable services. This initiative accelerates the energy transition and aligns Brazil with its national decarbonization goals.”

Transforming Urban Transport and Daily Commutes

According to Cécile Fruman, World Bank Country Director for Brazil, the programme represents a turning point for urban mobility.

“It will improve daily commutes, cut emissions, and open new opportunities for quality jobs. By combining investment in electric buses and infrastructure with institutional reforms and capacity building, Brazil can attract private capital, strengthen its domestic industry, and make public transport more reliable and inclusive for millions.”

The Project Development Objective is to improve public transport quality while reducing emissions in Brazilian cities. Phase 1 will support the deployment of approximately 540 electric buses, along with charging systems and grid upgrades. The project is expected to directly benefit:

• 1.3 million residents living near public transport corridors

• Around 280,000 regular users and drivers

Cleaner fleets will reduce noise pollution, greenhouse gas (GHG) emissions and harmful air pollutants, delivering tangible health and environmental benefits.

Investment, Industry Growth and Job Creation

Under Component 1 (US$490 million), Caixa will provide dedicated financing for e-bus fleets and associated infrastructure, including depots, charging stations, power grid upgrades and complementary investments such as bike lanes and accessibility improvements.

These investments are expected to:

• Boost demand for domestically manufactured e-buses and components

• Leverage Brazil’s strong bus manufacturing base

• Sustain and create jobs across assembly plants, supply chains, construction, and long-term operations and maintenance

Institutional Strengthening and Workforce Inclusion

Component 2 (US$10 million) will finance a Project Development Facility and institutional strengthening measures. This includes:

• Support for structuring bankable e-mobility projects

• Enhancing Caixa’s appraisal and risk management systems

• Developing a carbon market service to aggregate and trade carbon credits from e-bus projects

The programme also incorporates targeted actions to increase women’s participation in the electric mobility workforce. Training and job placement support will help women—particularly former fare collectors—transition into roles such as drivers, technicians and fleet managers, benefiting from safer and cleaner working conditions.

Mobilizing Private Capital and Scaling Impact

By addressing critical barriers such as limited long-term finance, technical capacity gaps and grid constraints, the programme is designed to unlock additional public and private investment over time. Improved concession models, risk-sharing mechanisms and business frameworks are expected to lay the foundation for a second wave of private capital mobilization and further job creation in Brazil’s growing electric mobility sector.

Implementation and Climate Alignment

Caixa will serve as the financial intermediary and implementing agency for Phase 1, leveraging its extensive experience in infrastructure finance and its presence in 99 percent of Brazilian municipalities. A dedicated project management unit will oversee credit operations, technical assistance and environmental and social risk management, ensuring full alignment with the World Bank’s Environmental and Social Framework.

Overall, the Brazil Electromobility MPA positions the country as a regional leader in sustainable urban transport, supporting climate goals while delivering cleaner cities, better services and inclusive economic opportunities.