São Paulo has secured two international loans totaling $496.6 million to support the electrification and modernization of its public bus fleet. The city finalized agreements with the Inter-American Development Bank and the International Bank for Reconstruction and Development, each providing $248.3 million.
The funding is expected to support the deployment of over 1,100 electric buses, though this figure represents an estimated financing capacity rather than a confirmed order. The IDB loan specifically covers the procurement of approximately 582 buses, alongside digital applications and technical planning.
The World Bank portion, totaling $248.3 million, includes $243.05 million dedicated to fleet decarbonization and offsetting the cost difference between electric and diesel vehicles. Disbursement of the funds will occur over five years in five tranches, contingent on meeting specific deployment targets.
As of June 2026, São Paulo operates 1,759 electric buses, including 1,570 battery-electric models and 189 trolleybuses. This is a significant increase from the 460 electric buses reported at the start of 2025. BYD supplied 265 of the 500 most recently added vehicles.
The city has committed to ending the procurement of diesel-only buses. Under a program running from 2025 to 2028, officials aim to replace 2,200 diesel units with cleaner alternatives. Current electric operations are estimated to save 57 million liters of diesel annually.