New EUR 80 Million Fund Announced by Bloomberg Philanthropies, Brazil’s Ministry of Cities, BTG Pactual, the Mitigation Action Facility, and WRI Brasil to More than Double Brazil’s Electric Bus Fleet
First-of-its-kind initiative launched at COP30 Local Leaders Forum aims to mobilize EUR 450 million and deploy more than 1,700 electric buses across Brazil until 2030.
Rio de Janeiro, Brazil — Today, Bloomberg Philanthropies, Brazil’s Ministry of Cities and Ministry of Environment and Climate Change, BTG Pactual, the Mitigation Action Facility, and WRI Brasil announced the intended launch of a first-of-its-kind EUR 80 million Brazil E-Bus Credit Enhancement Fund to accelerate the transition to clean public transport across Brazilian cities.
The new fund, announced at the COP30 Local Leaders Forum, aims to unlock approximately EUR 450 million in private lending to deploy more than 1,700 new zero-emission buses and related charging infrastructure in Brazil over six years—a 235% increase in Brazil’s current electric fleet. It was developed in partnership with the Institute for Transportation and Development Policy (ITDP) Brasil, Catalytic Finance Foundation, and C40 Cities.
Building on Brazil’s leadership, this announcement helps address a challenge cities and local governments face worldwide when trying to finance green infrastructure. Despite being responsible for the majority of global emissions, they often struggle to access affordable capital because lenders perceive municipal projects as too risky. The Brazil E-Bus Credit Enhancement Fund tackles this barrier head-on by de-risking senior investors’ lending risk, making it possible for cities to invest in projects that reduce pollution, improve public health, and create jobs.
Anchored by a EUR 24 million commitment from BTG Pactual, Latin America’s largest investment bank, and a planned first loss grant from the Mitigation Action Facility—a multi-donor programme providing technical support and climate finance for ambitious mitigation projects across priority sectors —the fund aims to unlock affordable lending to bus operators to accelerate the shift from diesel-powered to zero-emission vehicles, delivering cleaner air and reducing greenhouse gas emissions.
This initiative represents a practical step toward cleaner and more efficient urban mobility. Supporting the transition from diesel to electric buses helps reduce emissions, improve air quality, and modernize public transport systems. It is about aligning economic development with sustainability in a way that delivers long-term value for cities and communities,” says Roberto Sallouti, CEO of BTG Pactual
“Brazil is showing how much progress can be made when cities and national governments work together with the private sector to find and implement climate solutions,” said Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions and Founder of Bloomberg L.P. and Bloomberg Philanthropies. “This fund will help to deploy zero-emissions buses in cities across the country, while also sending a message to the world that when it comes to global progress, the more nations look to local and private sector leaders as full partners, the faster we’ll move.”
“This initiative builds upon the Brazilian government’s ongoing commitment to decarbonizing urban mobility across our cities. It exemplifies how the urban agenda is not only central to achieving our climate goals, but also instrumental in driving mitigation, adaptation, and resilience measures,” said Jader Barbalho Filho, Brazil’s Minister of Cities. “By advancing sustainable mobility and more equitable urban development, we are strengthening cities’ capacity to respond to the climate crisis and to improve people’s daily lives.”
“The public transport system is a pillar of sustainable mobility. By electrifying bus fleets, we not only cut emissions but also make cities quieter and healthier, while offering higher-quality public services. This fund is a concrete example of how government and the private sector can work together to accelerate decarbonization and improve air quality,” said Adalberto Maluf, National Secretary for Urban Environment, Water Resources, and Environmental Quality, Ministry of Environment and Climate Change.
The Mitigation Action Facility has awarded project preparation funding to WRI Brasil to develop a EUR 25 million grant program aimed at accelerating the deployment of electric buses in Brazil. The proposed program would provide EUR 16 million in first-loss capital to establish the Brazil E-Bus Credit Enhancement Fund, and EUR 9 million for Technical Assistance to strengthen financial and policy frameworks at the municipal and national level. It will also support local manufacturing capabilities to meet the growing demand for electric buses. Bus operators in Rio de Janeiro, Salvador, Curitiba, and Belo Horizonte are expected to be among the first to benefit, with plans to expand the initiative to additional Brazilian cities in the coming years.
“The Brazil E-Bus Credit Enhancement Fund is envisaged as a pivotal step toward sustainable urban mobility. By aiming to support transport service operators in the transition from internal combustion engines to electric buses, the initiative seeks to help reduce GHG emissions, strengthen local manufacturing, and foster knowledge sharing across cities. With strong partnerships and innovative financing solutions, it has the potential to unlock private sector investment, accelerate Brazil’s decarbonisation goals, and contribute to a more inclusive, resilient urban transport sector, provided it advances as currently envisioned in its preparation phase,” said Dr. Sören David, Head of the Technical Support Unit, Mitigation Action Facility.
“Rio de Janeiro is proud to be one of the first cities in Brazil expected to benefit from this first-of-its-kind fund, showing how local leadership can help drive the green transition,” said Eduardo Paes, Mayor of Rio de Janeiro. “Innovative financing mechanisms like these will help Rio towards our goal of making 100% of the city’s bus fleet low-carbon, with a significant portion electrified. This will improve our air quality, reduce emissions, and make daily life better for Cariocas.”
BTG Pactual Asset Management was selected to manage the Brazil E-Bus Credit Enhancement Fund following an international competition led by the Catalytic Finance Foundation and WRI Brasil, who jointly designed the fund structure with support from Bloomberg Philanthropies and MAF, in partnership with C40 Cities.
The fund aims to demonstrate a replicable model that other countries can adapt to unlock climate investment at scale.
“The Brazil E-Bus Credit Enhancement fund shows what can be accomplished when cities’ real-life investment opportunities and barriers to finance inform the design of private finance solutions,” said Mark Watts, Executive Director of C40 Cities. “C40 is proud to have contributed the data and analysis on city e-bus investment opportunities in Brazil to the design of the fund, drawing on our capacity building work with Brazilian cities in collaboration with the country’s Ministry of Cities, and building upon our leadership of the Zero Emission Bus Rapid-deployment Accelerator (ZEBRA), alongside the International Council on Clean Transportation (ICCT).”
“Catalytic is proud to have contributed its blended financial expertise to the design of the E-bus Credit Enhancement Fund with Bloomberg Philanthropies’ support, helping turn an early concept into reality,” said David Albertani, CEO of Catalytic Finance Foundation. “Innovative financial mechanisms like this are essential to closing cities’ climate finance gap, and we are excited to replicate this success across new geographies.”
“The Brazil E-Bus Credit Enhancement Fund marks a transformative milestone for the country’s public transport system. By reducing financial risk and unlocking private investment, it will accelerate the transition to clean buses, bringing us closer to a tipping point for nationwide e-bus adoption. Crucially, the mechanism is being designed with Gender Equity and Social Inclusion (GESI) best practices at its core. These principles are not add-ons; they are foundational pillars. This means creating tangible opportunities for women across the public transport value chain – from bus manufacturing to operations – and improving service quality to make public transport truly inclusive for all. It is a model of how collaboration between government, philanthropy, and the private sector can deliver climate solutions with real, lasting impact,” said Clarisse Cunha Linke, Brazil Director, ITDP Brazil
“Almost 90% of public transport in Brazil relies on city buses,” said Luis Antonio Lindau Director of WRI Brasil Ross Center for Sustainable Cities. “Enabling their transition to electric models is essential to improving the quality of life for millions of citizens and helping the country get on track toward net-zero by 2050. As countries and financial institutions move from commitments to action, blended finance mechanisms like this credit enhancement fund are key to making electric mobility a reality.”
###
About Bloomberg Philanthropies:
Bloomberg Philanthropies invests in 700 cities and 150 countries around the world to ensure better, longer lives for the greatest number of people. The organization focuses on creating lasting change in five key areas: the Arts, Education, Environment, Government Innovation, and Public Health. Bloomberg Philanthropies encompasses all of Michael R. Bloomberg’s giving, including his foundation, corporate, and personal philanthropy as well as Bloomberg Associates, a philanthropic consultancy that advises cities around the world. In 2024, Bloomberg Philanthropies distributed $3.7 billion. For more information, please visit bloomberg.org, sign up for our newsletter, or follow us on Instagram, LinkedIn, YouTube, Threads, Facebook, and X.
About the Brazilian Ministry of Cities:
The Ministry of Cities leads Brazil’s efforts to build more sustainable, resilient, and inclusive urban environments. It formulates and implements policies on urban planning, housing, sanitation, and mobility, with a strong focus on reducing inequalities and improving conditions in peripheral areas. The Ministry supports local governments through financing, regulation, and technical assistance, ensuring that investments promote inclusion, sustainability, and climate resiliences, spurring Brazil’s advance towards a low-carbon, people-centered model of urban development.
About the Brazilian Ministry of Environment and Climate Change:
The Ministry of the Environment and Climate Change (MMA) is the Federal Government body responsible for leading national policies aimed at protecting the environment, promoting the sustainable use of natural resources, and addressing climate change. It works to ensure that the country’s economic and social development occurs in harmony with the conservation of ecosystems and the improvement of the population’s quality of life. Within the urban agenda, the MMA reaffirms its commitment to transforming Brazilian cities into greener, cleaner, more inclusive, and resilient spaces through the Resilient Green Cities Program — an initiative that integrates policies, agendas, and actors to expand urban green areas, implement nature-based solutions, promote sustainable mobility and low-carbon technologies, and strengthen environmentally sound urban waste management.
About BTG Pactual:
BTG Pactual (BPAC11) is the largest investment bank in Latin America and operates in the markets of Investment Banking, Corporate Lending, Sales & Trading, Asset Management, Wealth Management, and Banking. It has established itself as one of the most innovative investment platforms in the country, with a complete transactional bank to support the life stages and financial journey of its clients. Additionally, it is a pioneer in the ESG agenda, with financial products that support the transition to a greener, more sustainable economy. Internationally recognized and the recipient of numerous awards, the bank has over 8,000 employees in Brazil, Chile, Argentina, Colombia, Peru, Mexico, the United States, Portugal, the United Kingdom, and Luxembourg.
About the Mitigation Action Facility:
The Mitigation Action Facility is a joint initiative of the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), UK’s Department for Energy Security and Net Zero (DESNZ), the Danish Ministry of Climate, Energy and Utilities (KEFM), the Danish Ministry of Foreign Affairs (MFA), the European Union, and the Children’s Investment Fund Foundation (CIFF). The multi-donor programme provides technical support and climate finance for ambitious mitigation projects with an aim of decarbonising key sectors of the economy and society.
About WRI Brasil:
WRI Brasil works to improve people’s lives, protect and restore nature and stabilize the climate. As an independent research organization, we use our data, expertise and global reach to influence public policy and catalyze change in systems such as food, land use, and water; energy; and cities. WRI Brasil is part of the World Resources Institute (WRI). Founded in 1982, WRI’s more than 2,000 staff work on the ground in more than a dozen focus countries and with partners in over 50 nations.