The Brazilian Senate has unanimously approved the foundational text of the MOVER program, marking a significant step towards sustainable mobility and industrial innovation. This program, which stands for “Mobilidade Verde e Inovação” (Green Mobility and Innovation), aims to revolutionize the automotive industry in Brazil by promoting the development and adoption of electric and hybrid vehicles.
MOVER Program
The MOVER program is designed to achieve several critical objectives:
- Decarbonization of the Automotive Fleet: One of the core goals is to reduce carbon emissions by encouraging the shift from traditional internal combustion engine vehicles to electric and hybrid models. This aligns with Brazil’s commitment to decarbonizing its industries, combating climate change and achieving sustainability.
- Investment in Research and Development: The program provides substantial financial incentives for companies to invest in research and development (R&D). These investments are expected to lead to advancements in technology that will make electric vehicles (EVs) more affordable and accessible.
- Economic Growth and Job Creation: By fostering innovation and modernization within the automotive sector, MOVER aims to stimulate economic growth. The program is expected to generate new jobs, particularly in the fields of manufacturing, R&D, and infrastructure development.
- Infrastructure Development: Alongside vehicle innovation, MOVER supports the development of necessary infrastructure, such as charging stations, to ensure that the transition to electric vehicles is smooth and efficient.
Financial Incentives and Support
The program outlines a comprehensive financial framework to support its initiatives:
- Credits and Fiscal Incentives: Companies investing in EV technology can benefit from up to R$19.3 billion in financial credits between 2024 and 2028. These credits can be used to offset federal taxes, thereby reducing the financial burden on businesses adopting green technologies.
- National Fund for Industrial Development: The creation of the National Fund for Industrial and Technological Development (Fundo Nacional para Desenvolvimento Industrial e Tecnológico – FNDIT) will channel resources into priority programs within the automotive supply chain, ensuring that all sectors benefit from the transition.
Industry Response and Future Projections
The approval of MOVER has already sparked significant interest and commitment from major automotive players. Companies like Stellantis, Volkswagen, Toyota, and General Motors have announced substantial investments in Brazil, aiming to expand and modernize their operations in line with MOVER’s objectives. The National Association of Motor Vehicle Manufacturers (Associação Nacional de Fabricantes de Veículos Automotores – Anfavea) projects that these initiatives could lead to investments totaling around R$100 billion in the coming years.
Environmental and Social Impact
Beyond economic benefits, MOVER is positioned to make a considerable environmental impact. By facilitating the shift to cleaner vehicle technologies, the program supports Brazil’s broader environmental goals, including reducing greenhouse gas emissions and fostering a greener economy. Additionally, the program’s focus on job creation and industrial growth underscores its potential to enhance social equity and economic inclusion.
Conclusion
The unanimous approval of the MOVER program by the Brazilian Senate is a pivotal moment for the nation’s automotive industry and its environmental strategy. With robust financial incentives, a focus on innovation, and a commitment to sustainability, MOVER sets the stage for Brazil to become a global leader in green mobility. As the program progresses, it promises not only to transform the automotive landscape but also to drive significant economic and environmental benefits for the country.
For more details, Ministry of Development, Industry, Commerce and Services website.