The World Bank’s Board of Directors has approved a major new project aimed at boosting jobs, expanding renewable energy, and lowering energy costs in Brazil’s Legal Amazon, one of the world’s most environmentally important regions. Announced on March 20, 2026, the initiative is designed to create quality employment opportunities, improve access to reliable electricity for more than one million people who currently lack basic energy services, and help the Amazon region attract investment as part of the growing global clean energy economy.
Covering nine states and nearly 60 percent of Brazil’s territory, the Legal Amazon is vast and resource-rich, yet it has long faced economic and infrastructure challenges. Despite its strategic importance, the region has historically lagged behind in development. With the International Labor Organization estimating that Latin America could generate 15 million new clean energy jobs by 2030, the World Bank project aims to position the Legal Amazon to benefit more directly from this regional transition and capture a meaningful share of emerging green employment opportunities.
The total value of the project is US$627.75 million, combining multiple sources of financing. This includes a US$100 million IBRD loan from the World Bank, US$400 million in counterpart funding from the Brazilian government, US$125 million in commercial financing, and a US$2.75 million grant from the Energy Sector Management Assistance Program (ESMAP) to support technical assistance. The project will be implemented through Banco da Amazônia, which will direct financing to private developers and utilities working to modernize and transform the region’s energy systems.
A central goal of the project is to expand renewable energy generation across the Legal Amazon while reducing the region’s dependence on costly diesel-based power systems. By replacing diesel with cleaner and more sustainable energy sources, the initiative is expected to generate significant long-term savings over the lifetime of the project. It will also help lower electricity costs for consumers across Brazil, since the burden of expensive diesel generation currently affects national tariff structures.
The project will support a range of investments focused on renewable energy deployment, grid enhancement, and energy efficiency. Through a dedicated credit line, private sector developers, independent power producers, utilities, and commercial and industrial companies will be able to finance renewable energy installations, critical grid upgrades, and efficiency improvements. These investments are expected to stimulate quality green jobs, improve the resilience of energy infrastructure against climate-related disruptions such as droughts, and strengthen the overall reliability of electricity supply in the region.
In addition to infrastructure financing, the project includes a technical assistance and institutional strengthening component supported by the ESMAP grant. This will help assess the feasibility of additional financing tools for the energy transition, build the institutional and operational capacity of Banco da Amazônia, and implement gender and inclusion measures to ensure the benefits of the transition are shared more broadly. The project specifically aims to increase access to employment and other opportunities for women and marginalized communities as the region shifts toward a cleaner energy future.
World Bank Country Director for Brazil, Cécile Fruman, said the Legal Amazon has enormous potential for energy transition, particularly as isolated systems that currently depend on diesel can increasingly adopt renewable and sustainable alternatives. She emphasized that by channeling financing through Banco da Amazônia and attracting private investment, the project can help transform the region’s energy systems, reduce costs, expand electricity access, and build greater resilience, while also supporting Brazil’s broader clean energy ambitions.
