São Paulo, November 13, 2025 – Decarbonizing road freight transport in Brazil, essential for meeting the goals of the Paris Agreement, is projected to require approximately R$ 3.42 trillion in investments over the next 25 years. This investment will cover everything from producing new fuels and expanding and modernizing infrastructure to renewing the vehicle fleet. This is the finding of the study “Roadmap to Net Zero Road Freight Transport,” conducted by the UN Global Compact Network Brazil. The work, supported by Scania and in strategic partnership with the National Transport Confederation (CNT), will be launched during COP30 in Belém.
Prepared by Mitsidi Consultoria, the document presents an unprecedented mapping of support mechanisms—financing lines and incentive measures—available for sector decarbonization. It analyzes the maturity level of low-carbon technologies and their costs, in addition to suggesting practical actions companies can adopt to reduce emissions in freight transport.
“This work reinforces that Net Zero is not just a response to the climate crisis but an opportunity to reposition Brazil as a global protagonist in the energy transition. With innovation, planning, and cross-sector cooperation, it is possible to transform one of our economy’s greatest challenges into a driver of sustainable development,” states Guilherme Xavier, Director of the UN Global Compact Network Brazil.
The document is based on the findings of the “Net Zero Commercial Road Transport 2050” study, launched in 2022 by the UN Global Compact and Scania, which proposes a structured strategy to accelerate the gradual replacement of fossil fuels with 5 technological alternatives: renewable biodiesel, green diesel (HVO), biomethane, battery electric vehicles (BEV), and green hydrogen-powered electric vehicles (FCEV). The study also considered the emissions reduction targets assumed by Brazil and formalized in its Nationally Determined Contribution (NDC).
“Our mission goes beyond offering technologies that contribute to decarbonizing the heavy transport sector. We work on enabling emissions reduction and addressing the challenges we still face to scale alternatives to fossil fuels,” says Patrícia Acioli, Director of Corporate Communication and Sustainability at Scania.
According to the projections, the country has the potential to reduce heavy road transport emissions by up to 73%, provided there is coordinated action between the government, private sector, financial institutions, and civil society, contributing to Brazil achieving its NDC target. Residual emissions (16.17 MtCO₂eq in 2050) are expected to be neutralized by 2050 using capture technologies and/or carbon credits, aiming to achieve carbon neutrality.
Multisectoral Collaboration and Future Vision
Two years ago, the UN Global Compact Network Brazil and Scania joined forces to create the Biofuels and Electric Hub. The proposal is to foster a discussion center focused on decarbonizing road transport, bringing together experts, researchers, entrepreneurs, decision-makers, and the government to promote an environment that favors the generation of projects and initiatives accelerating the sector’s transition to a low-carbon economy. The Hub involves the participation of almost 90 companies representing 15% of the national GDP.
The project aims to offer participating companies a capacity-building journey through clinics, seeking an understanding of biofuels and electrification for decarbonizing the road transport sector, potentially extending to the value chain. The journey also provides networking among its members through regular meetings for project implementation and sharing best practices.
Challenges and Opportunities
Responsible for the majority of freight transport in the country, road transport is also one of the main emitters of greenhouse gases (GHG). Transitioning from fossil fuels to sustainable alternatives is inevitable, although it involves significant challenges and opportunities.
The study proposes improving financing and incentives for adopting low-carbon technologies, stimulating integration among stakeholders and collaboration across different links in the value chain.
The publication gathers key market insights and presents structuring actions for the short, medium, and long term, both at the macro level—involving banks and governments—and at the micro level, aimed at companies. Risks and mitigation strategies for each stage of the transition are also identified.
Among the main obstacles highlighted are bureaucracy in accessing credit, lack of adequate infrastructure, and the absence of clear public policies that drive the replacement of fossil fuels.
“The findings of the technical report serve as guides for prioritizing actions and help us mobilize infrastructure and public policy actors, aiming to create pathways for a business environment that accelerates the necessary advances,” emphasized Patrícia.
The survey reinforces that decarbonizing road freight transport is not only an environmental necessity but also an economic opportunity. With productive potential, energy diversity, and innovation capacity, Brazil can lead low-carbon mobility on the global stage.
“An important highlight is the promotion of solution diversity and a vocational perspective aligned with the specificities of each region of the country. This is not just a path to environmental prosperity but also to economic and social prosperity,” concludes Ana Carolina Dias, PhD, Manager of Energy Transition and Sustainable Mobility, the study coordinator at Mitsidi.
Key highlights of the publication include:
- Financing as the Central Axis of Transition: 21 support mechanisms were mapped, with a predominance of biofuels. Focus on the production line and creating lines for small and medium-sized enterprises. Most private capital does not advance. Estimated investments total R$ 3.42 trillion by 2050, with an annual average of R$ 136.84 billion and the projected creation of 42,000 new refueling points.
- Technological Preferences: Biomethane and electric vehicles lead business choices, followed by renewable biodiesel, green diesel, and hydrogen.
- Main Barriers: High cost for renewing fleets with more sustainable vehicles; difficulties in accessing credit; lack of clarity in public policies driving the adoption of these technologies; and absence of adequate infrastructure are the main obstacles.
- Structuring Actions: The roadmap proposes 132 initiatives distributed across four objectives: facilitate financing for sustainable fleets; diversify investments and incentives; create an infrastructure and regulation ecosystem; and broaden engagement between government, companies, and society.
- Projections for 2050: A required fleet of 1.27 million long-haul electric and biofuel-powered trucks, generation of 833,000 cumulative jobs, and a reduction of 1.63 GtCO₂.