Electricity consumption for city street lighting in Rio de Janeiro is among the highest in the world, partly reflecting outdated technology, which has resulted in high carbon emissions.

Solution and Impact

A DFC investment guaranty to Smart RJ Concessionária de Iluminação Pública SPE S.A. (Smart Rio) will support the modernization and maintenance of public lighting systems in Rio de Janeiro. Once fully implemented, the project anticipates a reduction of between 120,000 and 150,000 tons of CO2 equivalent per year.

DFC’s investment will help update public light fixtures with light-emitting diode (LED) bulbs, reducing the public lighting system’s electricity consumption by 40 to 60 percent while also lowering the cost of operating the city’s public lighting system.

Smart Rio will also use funding to install and maintain a variety of smart infrastructure solutions—including traffic management modules, Wi-Fi access points, and sewage monitoring sensors—that will advance the digitalization of essential services and improve traffic congestion, security, and sewage control.

Smart Rio’s climate-friendly infrastructure model advances inclusive growth for the city’s residents, with 74 percent of public lighting modernization serving lower-income neighborhoods.