Efficient Driving Systems (PROMOB-e)
Title: Efficient Driving Systems (PROMOB-e)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Ministry of Economy (ME)
Overall term: 2017 to 2020
Following the United Nations (UN) Paris Climate Conference (COP21), Brazil announced its intention to reduce its greenhouse gas emissions by 43 per cent (compared to 2005 levels) by 2030. In addition to increased use of renewable energy, the country is striving to improve its energy efficiency by 10 per cent. At present, the transport sector accounts for more than half of fossil fuel consumption and for 46 per cent of greenhouse gas emissions from Brazil’s energy sector. The Energy Research Company (EPE) in Brazil forecasts that the passenger car fleet will triple in size by 2050, with battery electric vehicles making up 10 per cent. However, growth is slow on the Brazilian market for battery-powered and plug-in hybrid vehicles.
The conditions to consolidate electrical mobility in Brazil have been strengthened.
Under the German Climate Technology Initiative (DKTI), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH works on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) to implement the DKTI Energy-Efficient Driving Systems project in cooperation with the Brazilian Ministry of Economy (ME).
PROMOB-e focuses on three areas of intervention:
- Developing public policy and strategies to promote energy-efficient driving systems;
- Articulating proposals for norms and regulations applicable to electric mobility; and
- Developing and spearheading business models and pilot projects.
PROMOB-e’s approach focuses on plug-in hybrid vehicles and battery-powered electric vehicles. The objective is to support pilot projects in urban mass transit systems as well as in public and private fleets with the development of innovative business models that highlight effective mechanisms to promote context-appropriate electric mobility.
In addition to the Ministry of Economy, PROMOB-e relies on several strategic partners—such as the Ministry of Science, Technology, Innovation and Communications (MCTIC) and the Brazilian Electricity Regulatory Agency (ANEEL) - for investment in research and development.
Other partnerships include the Ministry of Regional Development to streamline electric mobility in mass transit systems across Brazil, and the Ministry of Mines and Energy and the Brazilian Energy Research Company (EPE) to incorporate the demand of electric vehicles in the country’s national energy plans. ANEEL (the national regulatory agency for the power sector) and BNDES (the national development bank) are on board with their respective mandates to regulate supply of electricity to electric vehicles and provide funding solutions to electric mobility.
ANEEL passed the country’s first regulation on e-vehicle recharging in June 2018, whereby utilities, gas stations, shopping centres and other enterprises may offer commercial recharge services at prices freely negotiated in the market.
In December 2018, São Paulo’s mass transit municipal authority (SPTrans) published a call for “clean” buses to serve Latin America’s largest city. PROMOB-e has provided technical and economic feasibility assessments for the proposals—which are to include e-buses. Additionally, the Project has also contributed to a Task Force of the Working Group at the Ministry of Regional Development on electric buses.
To discuss the feasibility of implementing electric mobility in urban public transport in Brazilian cities, the project also contributes to a Working Group at the Ministry of Regional Development on electric buses, in addition to support through studies.
Additionally, in November 2018, the Brazilian Government signed a national policy of incentive to the automotive industry (Rota 2030), which reduces taxes (IPI) on hybrid and electric vehicles significantly. PROMOB-e has contributed in the discussions of the Task Force on e-mobility that resulted in the Rota 2030 (GT7), which gathered representatives of ministries, the industry and other organisations relevant to the sector.
In a partnership with PROMOB-e, ANEEL published a call for Research and Development projects in e-mobility in late 2018. Research and development (R&D) funding is expected to reach 200 million Euros in projects that will establish the Network for Innovation in the Power Sector (RISE), with significant impact on the consolidation of e-mobility in Brazil.
A successful partnership with ministries, government agencies and the industry is also underway to establish Brazil’s National E-Moblity Platform. The Platform is intended to be a permanent forum to discuss policies that will promote electric mobility in Brazil.