On November 4, executives from the automaker Renault in Brazil met with the executive secretary of the Ministry of Economy, Marcelo Guaranys. On the agenda, a request: the French manufacturer, which is one of the leaders in electric vehicles in Europe, asked the government to find a way to postpone rules that determine the manufacture of cleaner cars in Brazil and that are expected to come into force in the beginning of 2022.
Documents obtained by BBC News Brasil show how Renault asked the Ministry of Economy to intercede with the Ministry of Environment to obtain the postponement.
When wanted, Renault and the Ministry of Economy said they would not comment on the matter. The Ministry of Environment (MMA) did not respond to the questions sent. The National Association of Automotive Vehicle Manufacturers (Anfavea), sent a note saying that it does not comment on the actions of its members, but reinforced its position by postponing the new rules. The Brazilian Institute of Renewable Natural Resources (Ibama) stated that the decision on the matter does not depend on the organ.
Renault is one of the largest car manufacturers in the world and one of Europe’s leaders in electric vehicles.
Its action with the Brazilian government, however, is the most recent episode of an intense movement in the automotive sector that wants the Brazilian authorities to delay the entry into force of the rules of the Vehicle Emission Control Program (Proconve), which began in 1986 This process is led by Anfavea.
Proconve foresees a gradual reduction in the level of gases and particles emitted by vehicles in Brazil.
Scientific studies show that reducing these emissions contributes to combating climate change and reducing the incidence of respiratory diseases.
The maximum allowed emission levels for cars manufactured and sold in the country are defined by resolutions of the National Council for the Environment (Conama) and classified by “ranges”.
The current range for passenger cars is called the L-6. For heavy vehicles such as trucks and buses, it is called P-7.
In 2018, the agency stipulated that the new phase for light cars, called L-7, and for heavy vehicles (P-8) will start to take effect from January 1, 2022.
In the case of passenger vehicles, this means that from next year, automakers and importers will only be able to sell cars that meet the cleanest rules.
For heavy vehicles, the P-8 phase schedule also starts on January 1st, but is phased through 2033.
In the current L-6 phase, passenger cars can emit up to 1.3 milligrams of carbon monoxide into the atmosphere for every kilometer driven. With the new rules, this limit is lowered to 1 milligram per kilometer, a reduction of 23%.
Another change is in the emissions of aldehydes, a toxic substance that can be carcinogenic. Today, the limit is 20 milligrams per kilometer. The new rules provide for 15 milligrams per kilometer, a drop of 25%.
In heavy vehicles, the expectation is that the introduction of the P-8 band will bring a reduction of up to 90% in the emission of particulate matter compared to the current standard.
Since last year, however, automakers have announced that they would have difficulties in meeting the deadlines stipulated in 2018.
Automakers blame pandemic for delay
Their main argument is that the logistical crisis caused by the pandemic delayed the process of adaptation of the national automotive industry to the new standards required. They cite, among other things, the lack of components like chips that rely on semiconductors.
Non-governmental organizations, however, counter-argument that a delay in the validity of the new norms would bring harm both to the environment and to the health of the population.
A study by the International Council on Clean Transport (ICCT) indicates that the P-8 standards have been in place in most of Europe since 2015.
The study also indicates that, in 30 years, the reduction in emissions from this type of vehicle would prevent 74 thousand premature deaths in Brazil.
Through normal channels, the rules of Proconve can only be changed by Conama, a body made up of different segments of society, but which, during the government of President Jair Bolsonaro, had its composition altered, increasing the participation of the government.
In May of this year, Anfavea sent a letter to the Ministry of Civil Affairs, Environment and Economy asking for a one-year postponement of the new rules. When contacted, the Ministry of Economy said it would not comment on the matter. The Civil House and the MMA did not respond to the questions sent by the report.
Anfavea also sued the Federal Public Ministry (MPF) in an attempt to obtain a position in favor of the postponement of the rules, but the agency rejected the request.
An opinion from the MPF in April this year said that the extension of the deadline for the entry into force of the new phases of the program would be “unreasonable” and could pose a risk to the environment and health.
In another opinion, the 4th Chamber of Coordination and Review of the MPF, responsible for evaluating issues on the environment, took a stand against the postponement of the new rules.
Renault called for economic action at the Ministry of the Environment
Documents obtained by BBC News Brasil show how Renault is trying to obtain a government decision to postpone the rules that would oblige it to manufacture cleaner vehicles in Brazil. The request was for a three-month delay so that the company could continue to manufacture more polluting vehicles than those provided for by Proconve.
In a letter sent to the Ministry of Economy on October 6, the French manufacturer asks, verbatim, that the folder make an “action” with the MMA to resolve the matter.
“Given the problem, we are making a demand to the Ministry of the Environment to allow us to produce vehicles of the current LEV6 phase, in the first three months of 2022 […] Therefore, we request an action from this ministry with the Ministry of the Environment, justifying the adoption of an exceptional and urgent measure”, says the document signed by the Institutional Relations director at the automaker, Marcus Vinícius Aguiar.
The term “urgent” used by Renault is an allusion to the fact that the watch is running against the manufacturer’s intention, as the rules are expected to take effect in just over a month.
In the official letter, Renault says that the crisis caused by Covid-19 affected its activities and made it impossible to manufacture L-6 vehicles scheduled to be produced in 2021. According to it, there would be 25,000 vehicles whose production was halted due to a lack of components.
As there is still no certainty about the arrival of these parts, the risk is that these vehicles may be unable to be sold in 2022, when the new pollutant emission rules would come into force. According to the factory, the estimated loss would be R$ 55 million.
On November 4, three executives from Renault in Brazil, including the president, Marcos Gondo, met with the executive secretary of the Ministry of Economy, Marcelo Guaranys, in Brasília. Guaranys is “number two” in the folder.
The following week, on November 12, an email shows a new action by Renault with the Ministry of Economy to obtain approval.
The Institutional Relations director, Marcus Aguiar, sent copies of official letters he received from Ibama about the postponement to the folder. In the email, he says that Ibama would have positioned itself in favor of the postponement.
The official letters, which BBC News Brasil also had access to, say, however, that Ibama would be available to “format or propose guidelines” on the matter, but that the postponement of the rules would be a decision that does not depend on the organ.
“The solution to the demand of vehicle assemblers to make the rules of Proconve more flexible depends on the decision of the higher authorities, in particular, the MMA and Conama, as well as relevant actors, such as the Ministry of Economy, therefore, no additional manifestation in the present case”, says one of the documents. A second official letter, signed by the president of Ibama, Eduardo Bim, follows the same line.
Asked about Renault’s action, the Ministry of Economy said it would not comment on the matter.
NGOs criticize the performance of automakers
For the advocacy coordinator of the Health and Sustainability Institute (ISS), Hélio Wicher Neto, the attempt by Brazilian automakers to postpone the entry into force of the new phases of Proconve is unjustifiable. According to him, the automakers would have had enough time to adapt to the new rules.
“From a technical point of view, we do not find technical justification for suspending the period for starting the new phases. The foreseen technologies have now been available for more than a decade in other countries. In addition, the adaptations were planned since 2018. It was time enough to make this transition,” he said.
The coordinator of Rede Nossa São Paulo (RNSP), Carol Guimarães, says that any extension of deadlines could have impacts on the health of the population and on the finances of municipalities.
“The longer it takes, the more pollutants will be emitted and this will have a significant impact on people’s health. In addition, it has a federative impact because this decision is taken at the federal level, but most of the population is assisted in funded health care units for municipal and state resources”, he explained.
The expectation, now, is whether the government will give in to the pressure of the automakers or if it will keep the expected norms. Entities that are part of Coalizão Respirar, which works to improve air quality, are evaluating legal strategies to prevent a change in the government’s position.
BBC News Brasil sent questions to Renault and Anfavea. The French automaker said it would not speak out.
Anfavea, through a note, said that it maintains “dialogues with authorities” to show the impacts of the pandemic on the automotive sector. According to the organization, the situation was aggravated this year by the lack of components.
“Since the middle of this year, these impacts have been aggravated by the lack of components, especially electronic items that depend on semiconductors, a topic that is public and notorious. The global semiconductor crisis, which should extend into the next year, has caused several stoppages in our production lines and demanded great planning effort from the Engineering, Logistics, Purchasing and Manufacturing areas of our associates”, says an excerpt of the note sent by the organization.
When contacted, Ibama, said it does not have any technical opinion on the requests from Anfavea and Renault, affirmed that “it will provide all assistance in an eventual proposal to change the resolution”, but said that the decision involves the Ministries of Economy and Environment
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