New measures: Motorists cross the International Friendship Bridge from Brazil to Ciudad del Este, Paraguay. Brazil’s green programme also increases the mandatory sustainability requirements for vehicles sold in the country, including the measurement of carbon emissions. — Bloomberg
BRASILIA: The Brazilian government has published a provisional measure establishing new guidelines for the local automotive sector, including fleet sustainability requirements and incentives for the production of new technologies.
Called “mover”, the national green mobility and innovation programme replaced the previous programme.
It will promote the expansion of investments in energy efficiency, include minimum recycling limits in vehicle manufacturing and charge less tax to those who pollute less, creating the Green IPI tax, according to a statement on Saturday from the Development, Industry, Commerce and Services Ministry.
The tax incentive for companies to invest in decarbonisation and comply with the programme’s mandatory requirements will be 3.5 billion reais in 2024, 3.8 billion reais in 2025, 3.9 billion reais in 2026, four billion reais in 2027 and 4.1 billion reais in 2028, amounts that must be converted into financial credits.
The programme will ultimately reach more than 19 billion reais (US$3.9bil) in credits granted, the statement said. The average annual incentive in the previous programme was 1.7 billion reais until 2022.
The new programme also increases the mandatory sustainability requirements for vehicles sold in the country, including the measurement of carbon emissions “from well to wheel.”
In the case of ethanol biofuel, for example, emissions will be measured from the planting of sugarcane to the burning of the fuel, the statement said.
In the medium term, the new programme foresees an even broader measurement, known as “from cradle to grave”, which will be valid from 2027 and will cover the carbon footprint of all components and all stages of production, use and disposal of the vehicle, it said.
President Luiz Inacio Lula da Silva also signed a bill that provides incentives for the modernisation of the country’s industrial park to stimulate economic sectors to invest in new machines, equipment, devices and instruments.
Text will be sent to the National Congress and initially foresees 3.4 billion reais for the programme. — Bloomberg
