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Crux Brazil series: Supporting electric mobility during a pivotal policy window in Brazil

Leading up to COP30 in Brazil, the Crux Alliance is highlighting our Alliance members’ work to promote a thriving and equitable 100 percent clean energy economy in Brazil.

The regulatory framework for electric vehicles (EVs) in Brazil has been advancing rapidly. In 2024, the government enacted the Green Mobility and Innovation Program (MOVER), which focuses on promoting green technologies in the transport sector and establishes mandatory energy efficiency and CO2 targets for light and heavy vehicles. Implementing decrees issued in recent months further defines certain aspects of the program, setting rules and implementation timelines for compliance with targets and establishing new incentives for light-duty vehicles based in part on their propulsion technology, fuel, engine power, and recyclability.

ICCT Brazil researchers have played a critical role in informing Brazilian policymakers and shaping the public discourse around these regulatory developments. A July 2024 policy brief examined the potential for MOVER to reduce average GHG emissions from new vehicles sold in Brazil, simulating different combinations of vehicle technologies in the Brazilian fleet. A March 2025 working paper studied the decarbonization potential of different vehicle powertrains in Brazil, finding that battery electric vehicles have much higher emissions reduction potential compared to their hybrid counterparts. Leading news outlets such as O Estado de S. Paulo and industry publications, including Canal VE amplified this finding in the context of MOVER incentives for flex-fuel hybrids.

In July 2025, ICCT Brazil published a flagship report, The Transition to Electric Vehicles in Brazil’s Automotive Industry and its Effects on Jobs and Income, which found ambitious but feasible vehicle electrification would generate more than twice as many jobs as the Baseline scenario by 2050. Published in partnership with the UN Environment Programme, the report was unveiled at Transição Justa na Descarbonização da Indústria Automotive (Just Transition in the Decarbonization of the Automotive Industry), an event attended by stakeholders including representatives from Brazil’s Ministry of Environment and Climate Change, the Ministry of Labor and Employment, the Ministry of Development, Industry, Trade and Services, the Ministry of Finance, the International Labor Organization, and the National Transport Confederation. The study received wide coverage in influential general and trade publications, including O Estado de S. Paulo, Canal VE, and InsideEVs Brasil.

ICCT-hosted panel discussion featuring The Transition to Electric Vehicles in Brazil’s Automotive Industry and its Effects on Jobs and Income at Transição justa na descarbonização da indústria automotive, June 10, 2025.

Looking ahead, the ICCT will continue to provide timely, high-impact insights on regulatory developments in Brazil. Forthcoming research will examine to what extent the targets and timelines announced under MOVER will position Brazil to advance in its transition to electrification and assess the commitment of global automakers to decarbonizing road transport in the country.

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