MOVER: Brazil’s Landmark Decarbonization Initiative

In a major milestone for Brazil’s decarbonization agenda, the MOVER (Green Mobility and Innovation Program) was inaugurated with a ceremony at the Palácio do Planalto. The program, inaugurated by Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, signals a deep commitment to reducing carbon emissions in the automotive sector and positions Brazil as a leader in global efforts to combat climate change.

At its core, MOVER seeks to incentivize investment in sustainable technologies aimed at reducing carbon emissions from various modes of transportation, including passenger cars, buses and trucks. By offering financial credits, the program enables automotive companies to transition to greener practices while reaping the economic benefits of an innovative and forward-looking framework.

The importance of MOVER was underscored by the presence of key dignitaries, including President Luiz Inácio Lula da Silva and several ministers, who emphasized its potential to revolutionize the automotive industry. Minister Alckmin described MOVER as the largest decarbonization program in history and highlighted its multiple impacts on innovation, production and job creation in the sector.

Beyond its immediate economic impact, MOVER embodies a strategic vision for sustainable development. Minister Fernando Haddad of the Ministry of Finance praised the program as a blueprint for future government initiatives, emphasizing the importance of long-term planning in fostering national growth. This sentiment was echoed by BNDES President Aloizio Mercadante, who drew parallels between MOVER and past industrial milestones, envisioning a future in which Brazil emerges as a global leader in sustainable industrialization.

Importantly, MOVER is not just a lofty aspiration, but a carefully crafted initiative supported by robust regulatory mechanisms. The program’s regulatory framework includes measures such as the “IPI Verde” (Green IPI), which adjusts taxes based on a vehicle’s level of sustainability, and mandates for vehicle efficiency, labeling, recyclability, and safety standards. These regulations reflect Brazil’s commitment to fostering a competitive automotive market while prioritizing environmental sustainability.

Looking ahead, MOVER sets ambitious targets, with a total of R$ 19.3 billion in financial credits to be allocated between 2024 and 2028. These credits serve as strong incentives for companies to invest in R&D and new production projects, laying the groundwork for a more sustainable and prosperous automotive industry.

MOVER’s comprehensive approach extends to the creation of the National Fund for Industrial and Technological Development (FNDIT), which will channel resources into priority programs for the automotive sector. By fostering innovation and collaboration across the industry’s value chain, MOVER aims to unlock Brazil’s full potential as a global hub for sustainable mobility solutions.

In summary, MOVER represents a significant leap forward in Brazil’s journey towards decarbonization and economic resilience. As the nation embarks on this transformative path, it reaffirms its commitment to balancing economic progress with environmental stewardship. With MOVER at the helm, Brazil is poised to drive innovation, prosperity and sustainability into the future.