Brazil’s electromobility bill submitted for president's signature

After back and forth between the upper and lower houses of Brazil’s congress, the bill establishing the Mover green mobility and innovation program was finally approved and has been sent to President Luiz Inácio Lula da Silva to be signed.   

Meanwhile, the senate is moving forward with the analysis of a bill that creates a regulatory framework for the green hydrogen market. 

The electric mobility proposal outlines financial incentives of 19.3bn reais (US$3.6bn) over five years and a reduction in the tax on industrialized products (IPI) to stimulate research and development of technological solutions and the production of vehicles with lower greenhouse gas emissions.

Mover was approved without the inclusion of an amendment to establish minimum local content requirements in oil and gas exploration and production contracts, a point that came under fire from the industry. 

In order to gain access to the Mover incentives, companies must have projects approved by the government and invest a minimum percentage of their gross revenue from automotive goods and services in research and development of solutions aligned with decarbonization and the incorporation of assistive technologies in vehicles.

Projects will also be accepted for new products or vehicle models, for research and innovation services or automotive engineering, for the installation of recycling or circular economy units in the automotive chain, relocation of industrial units and assembly and production lines, and the installation of vehicle gas filling stations.

The products covered include light automobiles, trucks, buses and chassis with engines, self-propelled machinery, auto parts and systems or strategic solutions for mobility and logistics. 

The qualification will be valid until January 31, 2029, and the credits cannot be accumulated with those of Rota 2030, which ended as of April this year.

HYDROGEN

On Wednesday, the Senate's special committee on green hydrogen approved the bill that establishes the regulatory framework for the production of low-carbon hydrogen and determines tax and financial incentives for the sector.

The bill creates the national low-carbon hydrogen policy, which includes the national hydrogen program, the low-carbon hydrogen development program (PHBC), the national hydrogen certification system and the special incentive regime for low-carbon hydrogen production (Rehidro).

The bill was being voted on by the full senate when this story was published.