The Ministry of Science, Technology, and Innovation (MCTI) in Brazil has launched an innovative strategy to evaluate the annual impact of the MOVER Program, which aims to stimulate investments in innovation and enhance the requirements for decarbonizing Brazil’s automotive fleet. MCTI’s comprehensive monitoring process will analyze various metrics to ensure the program’s effectiveness and alignment with national goals.
Objectives of Mover
The primary objective of Mover is to promote investments in new technological pathways while increasing the decarbonization demands for Brazil’s automotive sector. This initiative, which replaces the former Rota 2030 program, is designed to expand the development of the Brazilian automotive industry with a heightened focus on sustainability. Mover seeks to drive investments in energy efficiency and mandates minimum recycling levels in vehicle manufacturing. Additionally, it introduces the IPI Verde, a system where lower polluters benefit from reduced taxes.
Annual Impact Monitoring and Reporting
As outlined by Law 14.902, the MCTI is a key player in the Mover Monitoring Group. This group also includes representatives from the Ministry of Development, Industry, Commerce, and Services (MDIC), the Ministry of Finance, and the Ministry of Mines and Energy. Each year, the group will publish a report detailing the economic and technical outcomes of the program from the previous year. This annual report is crucial for tracking the program’s progress and ensuring transparency and accountability in the utilization of resources and the achievement of its goals.
The Role of FNDIT
A significant element of Mover is the establishment of the National Fund for Industrial and Technological Development (FNDIT) by the National Bank for Economic and Social Development (BNDES). The FNDIT is expected to provide precise resource allocation in strategic areas to foster innovation and attract investors. The program includes more than R$19 billion in financial credits, which companies can use to offset federal taxes. This funding will be available to companies that invest in decarbonization and meet the mandatory requirements. To date, 89 companies across nine states have already been qualified to participate in the program.
Funding Allocation
The R$19 billion budget is distributed over several years: R$3.5 billion in 2024, R$3.8 billion in 2025, R$3.9 billion in 2026, R$4 billion in 2027, and R$4.1 billion in 2028. This structured financial support aims to encourage sustained investment in the automotive sector’s green transformation, ensuring long-term benefits for the industry and the environment.
Conclusion
The Mover program marks a significant shift towards a more sustainable and innovative future for Brazil’s automotive industry. By incentivizing decarbonization and technological advancements, and through careful monitoring and strategic funding, Mover aims to position Brazil as a leader in green automotive technology. The involvement of MCTI and other ministries underscores the program’s importance and the government’s commitment to achieving its ambitious sustainability goals.