WASHINGTON, DC, March 20, 2026 - The World Bank's Board of Directors approved a new project in Brazil's Legal Amazon to support jobs, expand renewable energy generation, and lower energy costs across one of the world's most ecologically significant regions. The project will help create quality jobs, expand access to reliable electricity for more than one million residents currently without basic energy services, and support the Amazon in attracting investment and securing its share of the growing global clean energy economy.
The Legal Amazon spans nine states and nearly 60 percent of Brazil's territory. Despite its size and natural wealth, the region has historically been left behind. With the International Labor Organization projecting 15 million new clean energy jobs across Latin America by 2030, this project positions the Legal Amazon to claim its share of that opportunity.
The total investment amounts to US$627.75 million, combining a US$100 million IBRD loan from the World Bank, US$400 million in counterpart financing from the Brazilian government, US$125 million in commercial financing, and a US$2.75 million Energy Sector Management Assistance Program (ESMAP) grant for technical assistance. The operation will be implemented through Banco da Amazônia, which will channel financing to private sector developers and utilities working to transform the region's energy matrix.
The project is expected to increase renewable energy generation across the Legal Amazon and generate significant lifetime cost savings through reduced diesel consumption. It will also support provision of electricity to the over one million residents currently lacking basic electricity access in the region.
Project highlights
The main pillars of action include:
- Investments in renewable energy, grid enhancement and energy efficiency: A dedicated credit line will allow private sector developers, independent power producers, utilities, and commercial and industrial companies to finance renewable energy installations, critical grid upgrades and energy efficiency measures. These investments will unlock the creation of quality green jobs in the region, displace diesel-based generation systems, reduce electricity tariff burdens shared by all Brazilian consumers, and improve the resilience of energy infrastructure against climate shocks such as droughts.
- Technical assistance and capacity strengthening: Supported by an ESMAP grant, this component will assess the feasibility of additional financial products for the energy transition, strengthen BASA's institutional and operational capacities, and implement a gender and inclusion program to ensure the benefits of the energy transition, including employment opportunities, are broadly shared, including among women and marginalized communities.
"Brazil's Legal Amazon holds immense potential for energy transition, where isolated systems currently dependent on diesel can increasingly deploy renewable and sustainable sources, reducing electricity costs for consumers across the country," stressed Cécile Fruman, World Bank Country Director for Brazil. "By channeling financing through BASA to crowd in private investment, this project will help transform the Amazon's energy systems, cutting costs, expanding access, and strengthening resilience, while contributing to Brazil's clean energy future."
Website: www.bancomundial.org.br
