WASHINGTON, DC, May 15, 2025 - The World Bank has approved a new financing package to support the electrification and modernization of São Paulo's urban transport system, in partnership with the city government. This initiative marks a major milestone in the city's journey toward a greener, more resilient, and inclusive future.
This project will directly benefit 114,000 public transport users and 2.92 million residents along the electrified corridors, providing cleaner, quieter, and more accessible transit options. It's also expected to stimulate local e-bus manufacturing, driving job creation and innovation.
São Paulo, the largest city in Latin America, faces major mobility challenges including rising emissions, traffic congestion, and growing inequality in transport access. Despite its economic strength, significant social disparities persist, and over half of the city's greenhouse gas emissions originate from motorized transport.
The US$248.3 million financing operation aims to improve public transport quality, reduce emissions, and strengthen urban mobility management. It also supports São Paulo's ambitious Climate Change Law, which targets a fully zero-emission bus fleet by 2038 - the largest fleet transition of its kind in Latin America.
Cleaner air, healthier lives
São Paulo's public transport system currently accounts for 47% of local pollutant emissions, contributing to air pollution levels that have exceeded World Health Organization (WHO) limits for the past 22 years - sometimes reaching four times the recommended threshold. A recent study indicates that if São Paulo were to meet WHO air quality standards, the city could prevent over 5,000 premature deaths annually and save up to US$15.1 billion per year in health and productivity costs.
By replacing diesel buses with electric vehicles, the project will directly improve air quality and promote better public health, particularly in densely populated and socially vulnerable areas.
"Sustainable urban transport is at the heart of resilient cities and inclusive growth. By supporting São Paulo's transition to a zero-emission bus fleet and promoting stronger mobility management, we are not only reducing emissions but also improving quality of life, creating economic opportunities, and establishing a model for Latin America," said Johannes Zutt, World Bank Country Director for Brazil. "The World Bank is proud to support São Paulo's leadership in building a greener, smarter, and more equitable future."
Key project components
- Electrification of the bus fleet: Support for the acquisition of e-buses and operational modernization to cut greenhouse gas and local pollutant emissions.
- Strengthening transport management: Implementation of digital and technical solutions for more efficient, integrated, and inclusive public transport.
- Promoting sustainable and inclusive mobility: Expansion of cycling infrastructure, policies to boost public transport ridership, and a gender equity program to increase women's participation in the transport sector.
The Inter-American Development Bank (IDB) is co-financing the program with an equivalent US$248.3 million loan. Together, the initiative is expected to mobilize an additional US$125 million in private capital, emphasizing its transformative potential.
Aligned with Brazil's Country Partnership Framework (CPF) and São Paulo's long-term mobility and sustainability strategies, this operation is a key step in building a healthier, smarter, and more equitable urban future.
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