The Government of Argentina presented the draft Law for the Promotion of Sustainable Mobility. The project aims to promote the conversion and use of sustainable, domestically produced vehicles, and proposes a series of tax benefits to stimulate demand and promote strong investment in the automotive industry.

The Ministry of Productive Development stated that it will enable the repositioning and expansion of the Argentine automotive industry’s capacities, promote investments of 8.3 billion dollars, create more than 20,000 skilled jobs and obtain an accumulated saving of 10.7 million tonnes of CO2.

The project establishes a stimulus regime for both demand and supply for 20 years, with diminishing returns over time to accelerate investment. It also promotes the creation of the National Agency for Sustainable Mobility, in order to promote scientific and technological development and to transfer it to the sectoral production system.

In addition, the Sustainable Mobility Trust Fund (FODEMS) will be created to guarantee the availability and sustainability of the financing required by the Regime, with resources from different sources oriented towards the investment necessary for the reconversion.