Last call for SEMARNAT: the standard for more efficient vehicles


International fuel prices have risen significantly in recent weeks. To avoid transmitting the full real price to consumers, the government decided to once again subsidize gasoline. Something that hadn’t happened for several years.

Fortunately, the current federal government did not keep its promise to reduce fuel prices. Until a few weeks ago it was a good business to import large volumes of fuels to which, depending on the international price, up to 3 and a half pesos of Special Tax on Production and Services (IEPS) per liter of gasoline was applied. This became one of the main sources of income for the Ministry of Finance.

The IEPS had been used as a cushioning mechanism for retail prices. When the international price of oil fell, the IEPS was applied to its full extent. When the international price rose, the amount applied by the IEPS was reduced. At least since 2018 and until recently, the IEPS had been clearly positive.

At times like this, in which the government has decided to apply a fuel subsidy so that the increase in prices to the public is moderate and does not skyrocket, we can only point out once again that very little has been done for introduce policies and regulations that encourage better efficiency of the vehicle fleet. In other words, to improve the average fuel efficiency of vehicles circulating in Mexico.

As we have pointed out on several previous occasions, the automotive industry successfully maintains a “regulatory capture” of the sectors that should regulate its activity: fundamentally the Ministry of the Economy and the Ministry of the Environment. This is not something new. For more than 20 years, it has been the industry itself that, in fact, has established the parameters of the standards that determine the levels of pollutant emissions, fuel efficiency, and the safety characteristics of the new vehicles that are marketed in Mexico. Contrary to what many environmentalists thought, this situation did not change with the arrival of the current administration.

This is the last opportunity for SEMARNAT to publish a good vehicle efficiency standard (the update of NOM-163-SEMARNAT-ENER-SCFI) that really improves the average performance of vehicles sold in our country in the rest of this decade. There is a high risk that the government publishes the version of the standard proposed by the industry. That version would offer minimal benefits, if any. Some analyzes of Mexican think-tanks consider that this version would be of no use since the proposed parameters constitute a future vehicle efficiency scenario that would be very similar to the scenario of not publishing anything. Were the industry-imposed standard to be published, it would be yet another embarrassment to the international community concerned about climate change. Most G20 countries (including the US and China) introduced fuel efficiency standards years ago that have already made their vehicle fleets more efficient than ours.

SEMARNAT has had the proposed regulation with the changes proposed by civil society groups for a couple of years. A feasible and necessary proposal. This version of the rule, when published, would immediately become the most cost-effective measure undertaken by this administration to begin combating our greenhouse gas emissions. A good standard would be one of the pillars that can be included in the revised version of Mexico’s Contributions to the Paris Agreement (NDC). Mexico has committed to deliver to the Climate Change Convention this year – now yes – more ambitious goals for climate mitigation (reduction of carbon dioxide emissions). We can’t miss another chance.

The publication of a good standard could not be more timely. We need to address fuel consumption from the demand side. Better vehicle efficiency will mean that our fleet consumes less fuel on average (by improving performance in kilometers per liter). To meet a good standard, it is enough that in the short term vehicle manufacturers sell fewer models and units of 6 and 8-cylinder vehicles. It’s that simple. So that no one gets confused and thinks that the efficiency of the fleet is only improved by buying electric cars.

Today there are many compact cars, subcompact cars and of course many of the hybrids on the market that have a fuel efficiency of 18 to 24 km per liter. While the 6 and 8 cylinder trucks (as well as some sports cars) have a performance of less than 10 km per liter.

In addition to a good standard, the time has come for consumer awareness and a cultural change. It is difficult for the car to stop being a symbol of social status overnight. For some people, the type of car that is chosen allows alleviating insecurities in the eyes of others. Being accepted, admired or at least not being considered as “poor”. If you can’t help but show off with the car to show that you have high purchasing power, buy a high-end electric car. If you want to show an elemental environmental conscience for no reason, do not buy a 6 and 8 cylinder truck again. With less than what these types of vehicles cost, you can buy one of the various hybrid cars available on the market, saving thousands of pesos in your annual fuel consumption.

* The author is a Ph.D. in Environmental Sciences from the Imperial College of Science, Technology and Medicine.



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