The World Bank has announced a new financing package aimed at supporting the electrification and modernization of São Paulo's urban transport system. This initiative, undertaken in partnership with the city government, represents a significant step towards a more sustainable and inclusive future for São Paulo.
The project is expected to benefit 114,000 public transport users and 2.92 million residents along the newly electrified corridors by providing cleaner and quieter transit options. Additionally, it aims to stimulate local e-bus manufacturing, which could lead to job creation and innovation.
São Paulo faces several mobility challenges, including rising emissions and traffic congestion. Despite its economic strength, the city struggles with social disparities, with over half of its greenhouse gas emissions originating from motorized transport.
The financing operation amounts to US$248.3 million and is designed to improve public transport quality while reducing emissions. It aligns with São Paulo’s Climate Change Law that targets a fully zero-emission bus fleet by 2038.
Currently, São Paulo’s public transport system contributes significantly to local pollutant emissions. Air pollution levels have exceeded World Health Organization (WHO) limits for over two decades. A study suggests that meeting WHO air quality standards could prevent over 5,000 premature deaths annually in the city.
"Sustainable urban transport is at the heart of resilient cities and inclusive growth," said Johannes Zutt, World Bank Country Director for Brazil. "By supporting São Paulo’s transition to a zero-emission bus fleet...we are not only reducing emissions but also improving quality of life."
Key components of the project include electrifying the bus fleet, strengthening transport management through digital solutions, expanding cycling infrastructure, boosting public transport ridership policies, and implementing a gender equity program in the transport sector.
The Inter-American Development Bank (IDB) is co-financing this program with an equivalent loan amounting to US$248.3 million. The initiative aims to mobilize an additional US$125 million in private capital.
This operation aligns with Brazil’s Country Partnership Framework (CPF) as well as São Paulo’s long-term mobility strategies.