- The World Bank has approved a $627.75 million project to expand renewable energy and create jobs in Brazil’s Legal Amazon.
- The initiative will improve electricity access for over one million people while reducing reliance on diesel and lowering energy costs.
The World Bank’s Board of Directors has approved a $627.75 million project to boost jobs, expand renewable energy, and lower energy costs in Brazil’s Legal Amazon. The initiative targets one of the world’s most environmentally significant regions.
The project will improve electricity access for more than one million people. It will also support job creation and attract investment into the clean energy sector.
Brazil’s Legal Amazon spans nine states and covers nearly 60 percent of the country’s territory. Despite its vast resources, the region has faced longstanding economic and infrastructure challenges.
However, the project aims to unlock new opportunities as the global energy transition accelerates. The International Labour Organization estimates that Latin America could create 15 million clean energy jobs by 2030.
The financing package combines multiple funding sources. It includes a $100 million IBRD loan from the World Bank and $400 million in counterpart funding from the Brazilian government.
In addition, the project includes $125 million in commercial financing. It also features a $2.75 million grant from the Energy Sector Management Assistance Program for technical support.
Banco da Amazônia will implement the project. The bank will channel funding to private developers and utilities working to modernise the region’s energy systems. A key objective is to expand renewable energy generation. The project will reduce dependence on costly diesel-based power systems.
By replacing diesel with cleaner energy sources, the initiative will generate long-term savings. It will also help lower electricity costs across Brazil.
The project will support investments in renewable energy, grid upgrades, and energy efficiency. Through a dedicated credit line, developers and companies can access financing for critical infrastructure. These investments will create green jobs and strengthen energy resilience. They will also improve reliability, especially during climate-related disruptions such as droughts.
In addition, the project includes technical assistance and institutional support. The ESMAP grant will help strengthen Banco da Amazônia’s capacity and assess new financing tools. The initiative also promotes inclusion. It aims to expand opportunities for women and marginalised communities in the clean energy transition.
World Bank Country Director for Brazil, Cécile Fruman, said the region holds strong potential for energy transformation. She noted that isolated systems can shift from diesel to renewable alternatives.
She added that the project will attract private investment and improve energy access. According to her, it will also reduce costs and support Brazil’s broader clean energy goals.