Government launches Mover, replacement for the Rota 2030 program – 12/30/2023 – Market

President Luiz Inácio Lula da Silva (PT) signed this Saturday (30) a provisional measure that creates Mover (Green Mobility and Innovation), a program that will replace Rota 2030 and become the new strategic plan for the development of the automotive sector in the Brazil.

According to the government, Mover expands the sustainability requirements of the automotive fleet and encourages the production of new technologies in the areas of mobility and logistics.

In this new stage, the program wants to encourage decarbonization, encouraging the production of new technologies, promoting the use of biofuels and other alternative energies.

The new set of rules will promote the expansion of investments in energy efficiency, including minimum recycling limits in vehicle manufacturing and charging less tax to those who pollute less, with the creation of the so-called “Green IPI”.

Focusing on the automotive sector’s decarbonization agenda, the program will have tax incentives for companies to invest in mechanisms to reduce their climate footprints and comply with Mover’s mandatory requirements. The idea is to reach R$19 billion in credits granted over the next five years.

For 2024, the incentives will be R$3.5 billion and should reach R$4.1 billion in 2028. In Rota 2030, the average annual incentive was R$1.7 billion.

According to the government, the amounts must be converted into financial credits.

The new regime establishes, for all companies involved in the automotive chain, the goal of reducing carbon emissions by 50% by 2030, indicating minimum requirements so that vehicles leave factories more economical, safer and less polluting.

Furthermore, Mover increases green requirements for vehicles sold in the country, establishing the measurement of carbon emissions “from well to wheel” — which consider the entire cycle.

From 2017 onwards, the measurement should be even broader, known as “from cradle to grave”, covering the carbon footprint of all components and all stages of production, use and disposal of the vehicle.

The launch of the Mover was scheduled for September, but went through back and forth due to impasses between automakers, associations and ministries.

In a statement, Anfavea (National Association of Motor Vehicle Manufacturers) said that the launch of Mover is excellent news for the entire Brazilian automobile industry chain.

“Mover continues two previously published programs, InovarAuto in 2012 and Rota 2030 in 2018, which have been successively establishing public policies for the sector, bringing obligations and providing predictability for companies that invest in research, development and innovation, as well as functional, efficiency and vehicle safety improvements”, said the entity.

Mover news in relation to Rota 2030

• It ceases to be a policy limited to the automotive sector and becomes a “low-carbon sustainable mobility and logistics” program
• Rota 2030 established that all vehicles sold in the country must comply with energy efficiency requirements that take into account emissions “from the tank to the wheel”. Now, efficiency will be measured by the “well to wheel” system and there will be a requirement for recycled material in the manufacture of vehicles. From 2027 onwards, the measurement will be complete, in a classification “from cradle to grave”
• Reward and penalty system for charging IPI, based on criteria such as: energy for propulsion; consumption; engine power and recyclability
• Envisages encouraging the relocation of factories from other countries to Brazil
• Import Tax Reduction for manufacturers who import parts and components without similar national ones, as long as they invest 2% of the total imported in research, development and innovation projects in programs in the supply chain