In June 2013, Mexico took a big step toward a low-carbon economy and improved public health by implementing a new fuel-efficiency standard for light vehicles– the first fuel-efficiency standard in Latin America. EMBARQ Mexico played a major role in developing this new standard, writing the draft regulation, proposing mechanisms for economic flexibility, and assisting the government of Mexico during the negotiation process.
National fuel-efficiency standards are critical tools in reducing CO2 emissions and improving public health. Yet, Mexico was the only OECD country without a fuel-efficiency standard, and Mexican car manufacturers were hesitant to support a new fuel-efficiency regulation.
For four years, EMBARQ and our partner, Centro Mario Molina, collaborated with the Mexican government to help develop a new fuel-efficiency standard. Originally, EMBARQ Mexico offered the Mexican government our transport and economic expertise. Then, when negotiations between the government and the car industry broke down, EMBARQ and Centro Mario Molina stepped in and presented Mexico’s National Environmental Ministry (SEMARNAT) with a fully written draft regulation and strong technical support. This draft brought the automotive industry to the negotiation table, and won EMBARQ a voting seat on Mexico’s National Standardization Committee of Environment. Finally, on June 21, 2013, the final fuel-efficiency standard was released, with recognition for EMBARQ’s contributions published in the official journal text.
The new standard mandates a new vehicle fleet average of 14.9 kilometers per liter of gas (or 35 miles per gallon) by 2016. This will reduce CO2 emissions by 170 megatons– the amount of CO2 captured by a forest 10 times the size of Mexico City. It’s a win for people and the environment – consumers will save $2,700 USD each in fuel over the lifetime of a regulated vehicle.
In addition, Mexico patterned their standard on U.S. and Canadian regulations, meaning these three countries now have a harmonized fuel-efficiency standard. Mexico exports 81 percent of its cars to the global market, so this regulation could make the Mexican car industry more competitive globally.
The Mexican experience, tools, and methodology can be replicated in other developing countries that are in the process of implementing fuel-efficiency standards. Furthermore, expanding this regulation to other countries creates incentives for an increasingly homogeneous and more efficient global automotive industry.
EMBARQ Mexico is part of the EMBARQ network. EMBARQ is a program of the World Resources Institute. EMBARQ helps cities make sustainable transport a reality.