Mato Grosso do Sul develops NGV incentive policies

The policy of incentives for the use of natural gas for vehicles responds to and reflects a green agenda, based on sustainable development, which is one of the hallmarks of the Governor of Mato Grosso do Sul.

June 24, 2023. The policy of incentives for the use of natural gas for vehicles (NGV) responds to and reflects a green agenda, based on sustainable development, which is one of the hallmarks of the Governor of Mato Grosso do Sul, Eduardo Riedel. It is a clean energy, which emits fewer gases that cause the greenhouse effect, compared to gasoline and ethanol. This is in line with the Carbon Neutral State strategy.

Among the measures adopted by the Government is the exemption of the IPVA (cars with CNG), reduction of the ICMS from 17% to 12% for the product, as well as the exemption of a series of fees from the Detran-MS (Transit Department of the State of Mato Grosso do Sul). There is also a R$1,000 “fuel allowance” for those who convert new vehicles.

“CNG has an advantage over gasoline and ethanol, since it has fewer emissions of polluting gases. It is also part of the state carbon neutralization policy by 2030, which is one of the hallmarks of state management. This is clean energy,” says Augusto Castro, Business Competitiveness Coordinator for Semadesc (Ministry of the Environment, Development, Science, Technology and Innovation).

Castro recalls that Mato Grosso do Sul is the entrance to the gas pipeline and that the incentive policy strengthens a sector that was practically inactive. “We are going to promote this incentive to clean energy, which in addition to helping the environment, also brings cost savings to drivers, who will have more income. It also contributes to entrepreneurship”.

According to a Semadesc survey, CNG emits 20% less carbon dioxide (CO2) than gasoline and 15% less than ethanol. Despite not being a renewable energy, it is considered clean. Encouraging this consumption is working for good sustainability practices (less impact on the environment) and supporting the international climate agenda, with the reduction of carbon emissions.

The General Director of MSGÁS, Rui Pires dos Santos, stressed that natural gas is a transition fuel. “It is considered a clean energy source compared to other types of fuel. With good planning it is possible to obtain the maximum opportunities with all the sources of natural gas and for this our company defends the valuation of the economic, environmental and social benefits”.

Governor Riedel stressed that this policy of incentives for the sector demonstrates once again how a development agenda can be reconciled with the environment. This is how a green, prosperous and inclusive State is produced, which has its social concern.

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