The World Bank has approved the first phase of the Brazil Electromobility Multiphase Programmatic Approach to support cities in modernizing public transport, improving service quality, and reducing emissions through the adoption of electric buses and related infrastructure. Implemented by Caixa Econômica Federal, Phase 1 represents a US$500 million investment aimed at accelerating cleaner and more efficient urban mobility while aligning with Brazil’s national decarbonization goals.
A central element of the program is the creation of a national credit line to finance the replacement of diesel buses with electric buses, along with upgrades to depots, charging facilities, and power distribution networks. The initiative also provides technical assistance to cities and transport operators, helping to strengthen project preparation and implementation capacity. By stimulating investment across the electric mobility value chain, the program is expected to generate employment in manufacturing, construction, operations, maintenance, and high-skilled services, while supporting a fair transition for workers affected by the shift away from diesel-based transport.
The project aims to improve public transport quality and significantly cut emissions in Brazilian cities. During Phase 1, around 540 electric buses and supporting charging and grid infrastructure will be deployed, directly benefiting approximately 1.3 million residents living near major transport corridors, as well as about 280,000 regular users and drivers. Cleaner fleets and more reliable services are expected to reduce greenhouse gas emissions, air pollution, and noise, contributing to healthier urban environments.
Most of the financing will be channeled through dedicated credit lines for electric bus fleets and infrastructure, encouraging demand for domestically produced vehicles and components and reinforcing Brazil’s strong bus manufacturing industry. Complementary investments, such as depot modernization, grid upgrades, and accessibility improvements, will further enhance the sustainability and inclusiveness of urban transport systems.
In addition, the program includes funding for institutional strengthening and project development, supporting the structuring of bankable electric mobility projects and improving Caixa’s appraisal systems. It also promotes social inclusion by supporting women’s participation in the electric mobility workforce through targeted training and job placement, helping workers transition into safer and more skilled roles within the sector.
Caixa will serve as the financial intermediary and implementing agency for Phase 1, leveraging its nationwide presence and experience in infrastructure finance. With dedicated project management and strong environmental and social safeguards, the program is designed to mobilize further public and private investment over time, laying the foundation for scaled-up electric mobility and sustained job creation across Brazil.
