On May 28, 2024, the Brazilian Chamber of Deputies approved the Mover initiative, formally known as the Green Mobility and Innovation Program (Projeto de Lei 914/2024). This landmark initiative now moves to the Senate for further approval.
Key Objectives of Mover
The Mover initiative aims to significantly reduce carbon emissions from Brazil’s automotive fleet, including cars, buses, and trucks. It was initially introduced by President Luiz Inácio Lula da Silva in March 2024 and is set to replace the previous measures under the Rota 2030 and Inovar Auto programs.
Financial Incentives
The program outlines substantial financial credits to support companies in their efforts to decarbonize. These incentives amount to:
- R$ 3.5 billion in 2024
- R$ 3.8 billion in 2025
- R$ 3.9 billion in 2026
- R$ 4 billion in 2027
- R$ 4.1 billion in 2028
The total investment sums up to R$ 19.3 billion, promoting substantial growth and innovation in the green technology sector.
Innovations and Requirements
The Mover initiative introduces several key innovations:
- Comprehensive Scope: Unlike previous programs, Mover covers not just passenger vehicles but also buses and trucks.
- Stringent Emission Measurements: It adopts a “well-to-wheel” approach, assessing emissions throughout the entire energy cycle used in vehicles. Eventually, it will expand to a “cradle-to-grave” analysis, accounting for the full lifecycle carbon footprint.
- Mandatory Recycling: New vehicles must include a minimum amount of recycled materials, promoting sustainability in manufacturing.
- Green Taxation: Implements a “bonus-malus” system for IPI (Industrial Product Tax) based on energy source, consumption, engine power, recyclability, and structural performance.
Support for Research and Development
To meet these new requirements, the Mover initiative provides financial credits proportional to investments in research and development (R&D). Companies can earn between R$ 0.50 and R$ 3.20 for every real invested in R&D, depending on specific criteria defined in the program’s regulations.
Industry Impact and Future Prospects
The Mover initiative has already stimulated significant investment announcements within the automotive industry, totaling around R$ 130 billion in 2024 alone. The program is poised to drive Brazil towards achieving a 50% reduction in carbon emissions by 2030, aligning with global sustainability goals.
Conclusion
The approval of the Mover initiative marks a significant step towards a greener future for Brazil’s transportation sector. By advancing sustainable practices and promoting innovation, Brazil is positioning itself as a leader in the global effort to combat climate change.
For more detailed information, visit Ministry’s official website.