WASHINGTON — The World Bank Board of Directors has approved the first phase of the Brazil Electromobility Multiphase Programmatic Approach (MPA), to help cities modernize their public transport systems, improve service quality, and reduce emissions through the introduction of electric buses (e-buses) and associated infrastructure.
Phase 1, implemented by Caixa Econômica Federal (Caixa), represents a US$500 million investment in cleaner, more efficient urban mobility. The operation will support the creation of a national credit line to finance the replacement of diesel buses with e-buses, the upgrading of depots and power distribution networks, and the provision of technical assistance to cities and operators. By catalyzing new investments along the electric mobility value chain, the program is expected to create jobs in manufacturing, operations, maintenance, and high-skilled services, while supporting a just and inclusive workforce transition.
“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. Made possible by the strategic partnership between Caixa and the World Bank, this initiative ensures investments, technical assistance, and innovation to accelerate the energy transition and align the country with national decarbonization goals,” stated Jean Rodrigues Benevides, Acting Vice President of Caixa.
“This program is a turning point for urban transport in Brazil. It will improve daily commutes, cut emissions, and open new opportunities for quality jobs,” said Cécile Fruman, World Bank Country Director for Brazil. “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 of users.”
The Project Development Objective is to improve the quality and reduce the emissions of public transport in Brazilian cities. Phase 1 will support the deployment of approximately 540 e-buses and related charging and grid infrastructure, directly benefiting an estimated 1.3 million residents living near public transport corridors and some 280,000 regular users and drivers. Cleaner vehicles and more reliable services will help reduce noise, greenhouse gas (GHG) emissions and air pollution in participating cities.
Investment and Job Creation
Under Component 1 (US$490 million), Caixa will offer dedicated credit lines for e-bus fleets and associated infrastructure, including depots, charging stations, grid upgrades, and complementary measures such as bike lanes and accessibility improvements. These investments are expected to stimulate demand for domestically produced e-buses and components, leveraging Brazil’s strong industrial base in bus manufacturing and helping sustain and create jobs in assembly plants, supply chains, construction, and long-term operations and maintenance.
Component 2 (US$10 million) will fund a Project Development Facility and institutional strengthening. This includes support for structuring bankable e-mobility projects, improving Caixa’s appraisal systems, and developing a carbon market service to aggregate and trade credits from e-bus projects. The project also includes targeted measures to increase women’s participation in the e-mobility workforce, offering professional training and job placement support for female fare collectors and other workers transitioning into roles such as drivers, technicians, and fleet managers in a safer, cleaner work environment.
The program is expected to mobilize additional public and private investment over time by improving business models, concession contracts, and risk-sharing arrangements. By addressing key barriers, such as lack of long-term finance, limited technical capacity, and grid constraints, the operation will help lay the groundwork for a second wave of private capital mobilization and further job creation in the electric mobility sector.
Implementation and Alignment with Climate Goals
Caixa will act as the financial intermediary and implementing agency for Phase 1, drawing on its extensive experience in infrastructure finance and its nationwide presence in 99 percent of Brazilian municipalities. A dedicated project management unit will coordinate credit operations, technical assistance, and environmental and social risk management, in line with the World Bank’s Environmental and Social Framework.
