At the COP30 Local Leaders Forum, Bloomberg Philanthropies, Brazil’s Ministry of Cities and Ministry of Environment and Climate Change, BTG Pactual, the Mitigation Action Facility, and WRI Brasil announced plans for a €80 million ($ 92 million) Brazil E-Bus Credit Enhancement Fund aimed at fast-tracking the adoption of electric buses across the country’s major cities.
The initiative is expected to unlock around €450 million in private lending, enabling the deployment of more than 1,700 zero-emission buses and related charging infrastructure over six years — a 235% increase in Brazil’s current electric fleet. Partners include the Institute for Transportation and Development Policy (ITDP) Brasil, Catalytic Finance Foundation, and C40 Cities.
Anchored by a €24 million commitment from BTG Pactual, Latin America’s largest investment bank, and a planned first-loss grant from the Mitigation Action Facility, the fund will help de-risk investments, making lending to bus operators more affordable.
“Supporting the transition from diesel to electric buses helps reduce emissions, improve air quality, and modernise public transport systems,” said Roberto Sallouti, CEO of BTG Pactual.
“Brazil is showing how much progress can be made when cities and national governments work with the private sector to deliver climate solutions,” added Michael R. Bloomberg, UN Special Envoy on Climate Ambition and Solutions.
Jader Barbalho Filho, Brazil’s Minister of Cities, said the fund underscores the country’s broader decarbonisation agenda:
“This initiative builds upon our ongoing commitment to sustainable urban mobility and equitable development. We are strengthening cities’ capacity to respond to the climate crisis and improve daily life.”
The Mitigation Action Facility has awarded project preparation funding to WRI Brasil to develop a €25 million grant programme — including €16 million in first-loss capital for the fund and €9 million for technical assistance and capacity building. The first beneficiaries are expected to include Rio de Janeiro, Salvador, Curitiba, and Belo Horizonte, with expansion planned nationwide.
“By electrifying bus fleets, we not only cut emissions but also make cities quieter and healthier,” said Adalberto Maluf, National Secretary for Urban Environment.
BTG Pactual Asset Management was chosen to manage the fund after an international selection process led by Catalytic Finance Foundation and WRI Brasil.
“The fund shows what can be achieved when real municipal needs inform private finance solutions,” said Mark Watts, Executive Director of C40 Cities.
Clarisse Cunha Linke, Director of ITDP Brasil, noted that the fund integrates gender equity and social inclusion principles, creating opportunities for women across the transport value chain.
Luis Antonio Lindau, Director of WRI Brasil Ross Center, added: “Almost 90% of public transport in Brazil relies on city buses. Enabling their transition to electric models is essential to improving quality of life and achieving net zero by 2050.”
The Brazil E-Bus Credit Enhancement Fund is seen as a replicable model for other emerging economies seeking to scale up urban climate investment while aligning financial innovation with social and environmental goals.
