By Marina Grossi and Miguel Setas for Valor Econômico*

Mobility is one of the main challenges—and also one of the greatest opportunities—for decarbonization in Brazil. By connecting people and goods, the transportation sector directly impacts the economy, quality of life, and the environment. Today, it accounts for approximately 11% of gross national emissions—corresponding to 260 million tons of CO₂ in 2023, considering the "well-to-wheel" approach, which extends from extraction to fuel consumption. Reducing these emissions is strategic for accelerating the transition to a low-carbon economy, attracting green investments, and strengthening the competitiveness of the national economy.

Large-scale fleet electrification, rebalancing the freight transportation matrix, with a greater share of rail and waterway transport, and expanded use of biofuels, especially in heavy-duty vehicles and aviation: these measures could reduce greenhouse gas emissions from the transportation sector projected for 2050 by up to 60%, in addition to attracting more than R$600 billion in green investments to Brazil. Other efficiency and optimization levers, which account for approximately another 10% of decarbonization potential, also play a relevant role. Many of them have high feasibility for immediate implementation, such as infrastructure improvements, fleet renewal, public transportation incentives, and management and routing technologies.

The data comes from a study by the Transport Decarbonization Coalition, an unprecedented initiative we led alongside leading industry figures, bringing together more than 50 industry associations, companies, and academia, with the goal of making a concrete contribution to reducing emissions in the sector.

The Coalition offers society a structured action plan, based on operational data and technical projections, which proposes 90 concrete measures—the so-called "decarbonization levers"—measures that, when integrated, can position Brazil as a global leader in sustainable mobility.

For these initiatives to come to fruition, the study highlights the need for progress on five key fronts: 1) regulatory evolution, with the updating and improvement of legal frameworks that enable new business models and technologies; 2) financial incentives, with clear rules and regulatory frameworks that offer security to private investors; 3) strengthening an environment conducive to innovation, with the consolidation of research centers and technical institutions; 4) articulating strategic multisectoral collaborations, encouraging partnerships between governments, companies, and academia; and 5) technical training and education, with a focus on workforce qualifications.

In addition to proposing solutions, the Coalition quantifies possible paths. In the most transformational scenario, for example, it points to the possibility of electrifying more than 50% of the light vehicle fleet, with approximately 300,000 electric buses in circulation, and increasing the use of hydrogen, especially in the sectors most difficult to decarbonize, such as water transportation. This will require not only adequate legal frameworks but also the expansion of electric vehicle charging capacity, reaching between 990,000 and 1.9 million charging points in the coming decades.

Brazil has a significant competitive advantage: a predominantly renewable energy matrix, a consolidated biofuels industry, and a business sector eager to lead the ESG agenda by combining production with sustainable development. We are confident in COP30's strategic role as an international showcase for Brazil to consolidate its leadership as a country with innovative, impactful climate solutions. This is the ideal time to present a solid, coordinated, and evidence-based plan.

The idea for the Coalition arose from a challenge from Ambassador André Corrêa do Lago, president of COP30, during a meeting of the CEBDS Leaders' Council, a forum that brings together the CEOs of member companies. At the meeting, executives from different sectors were invited to articulate concrete proposals for the decarbonization of five key areas of the Brazilian economy. The transportation sector was the first to respond to the request, demonstrating the collective and coordinated effort of organizations across the entire industry chain to lead this agenda responsibly and expeditiously.

The joint development of an action plan of this magnitude symbolizes the model of cooperation needed to address global climate challenges. The initiative is led by the Brazilian Business Council for Sustainable Development (CEBDS), Motiva, the National Transportation Confederation (CNT), and Insper's National Observatory of Sustainable Mobility, with contributions from companies and associations in the road, rail, air, waterway, urban mobility, and infrastructure sectors. The strength of this document lies precisely in its representativeness: it comes not from a single organization, but from a multisectoral alliance, the result of an ambitious consensus to accelerate the decarbonization of a sector vital to the Brazilian economy.

This plan is just the beginning. The consensus built now needs to be translated into implementation. The Coalition is preparing to enter its next phase: ongoing advocacy and execution. There is important work to be done to ensure that the necessary investments and regulatory frameworks move forward.

Ultimately, this is an invitation—and also a call. A call to build a massive collective effort, as the Brazilian COP30 Presidency highlighted in its first letter. A collective effort of companies, institutions, and leaders who have voluntarily decided to unite and act collectively, in a coordinated, collaborative, and ambitious manner to transform the transportation sector into a driver of climate solutions.

This is, in essence, the nature of the Transport Decarbonization Coalition, where diverse hands come together to accomplish something no individual could achieve alone. In this spirit, we move forward firmly and confidently, knowing that together we can make COP30 in Belém a milestone not only for climate change, but also for civilization.

*Marina Grossi is president of CEBDS (Brazilian Business Council for Sustainable Development), an organization with 28 years of experience and 120 large member companies.

*Miguel Setas is CEO of Motiva, the largest mobility infrastructure company in Brazil.