Financing e-buses in São Paulo: the partial subvention model

Since 2018, São Paulo has been committed to achieving a zero-emission bus fleet by 2038. To overcome the high upfront costs of e-buses, the city introduced a “partial subvention” model in December 2023. This approach, designed to address the financial challenges of transitioning to electric buses, subsidizes e-bus purchases, reducing the financial burden on operators. By leveraging the city’s ability to secure lower-cost financing, the model offers a cost-effective solution for a cleaner, more sustainable public transportation system. This strategic approach, supported in part by the TUMI E-Bus Mission, provides insights into overcoming financial barriers for a cleaner and more sustainable public transportation.