The Automotive Industry Bolsters Circular Economy in Queretaro

Automotive Industry Tier 1 and Tier 2 companies are increasing their competitiveness by implementing circular economy projects aligned with global environmental goals.

On Sept. 25, 2015, the  UN established 17 Sustainable Development Goals (SDGs) to transform the world. It was an urgent call for action by all countries in a global partnership. The main goals were

Eradicate Poverty

Protect the Planet

Ensure Prosperity

The circular economy is aligned to at least seven  of the 17 objectives.  

Worldwide, automotive light vehicle OEM’s established specific goals and strategies. Some examples are:

Ford:  Sustainability Aspirations. The company is “working to revolutionize mobility, fueled by new challenges and the desire to help build a better world for everyone.”

GM: It sees “a world with Zero crashes, Zero emissions, Zero congestion.”

Nissan: Global and regional environmental management are focused on climate change, resources dependency, air quality, water scarcity.

VW: Is actively driving the transformation toward emission-free and digitally connected mobility.

Toyota: Life Cycle Zero C02 Emissions Challenge. Completely eliminate all C02 emissions throughout the entire vehicle life cycle. 

In Mexico, in Queretaro state, the government established a State Development Plan, considering the environment and infrastructure among the main Action Axes with specific activities to ensure a transition to a circular economy, including eight main activities and specific goals to:

- Reduce the emission rate by 8 percent by 2027

- Remain among the Top 3 places for access to potable water

Head of the Secretariat for Sustainable Development Marco Antonio del Prete Tercero implemented mechanisms for decarbonization of the economy considering the circular economy as one of the main systems.

The Queretaro Automotive Cluster also decided to take an active position on development and implementation of the Queretaro Circular Economy System because

1. It is an excellent tool to increase competitiveness with a sustainability base.

2. Iit is aligned to policies and requirements within the automotive industry, OEMs + Tier 1 + Tier 2 + Tier 3 + …….

3. Cooperate with implementation of government policies promoting collaboration and synergies between academia, government and industry.

4. Companies meet corporate sustainability goals

The Queretaro Circular Economy System integrates local companies, including customers, suppliers, partners and associates to create industrial chains. Once these companies start discovering new models, the participants immediately start breaking paradigms, switching from the traditional linear economic model to a new model based on the concept “rethink, reduce, reuse, refurbish, remanufacture, recycle.” Every company also starts implementing projects related to eliminating waste, extending product Lifetime, reducing carbon emissions and optimizing water cycles.

With all the supply chain actors aligned and focused on ensuring that  products, components and materials always maintain their utility and maximum value, they seek to decouple economic growth from the use of finite resources. The organizations put resources like materials, water and energy at the heart of projects to go beyond recycling.

The Economic Commission for Latin America (ECLA) — the Spanish acronym is CEPAL — is one of the five regional commissions of the United Nations. It was founded with the purpose of contributing to the economic development of Latin America, coordinating actions directed toward this end, and reinforcing economic ties among countries and with other nations of the world.

During the ECLA’s 39th session held in Argentina in October 2022, the panel,  “Toward transformation of the development model in Latin America and the Caribbean: production inclusion and sustainability,” the ECLA recognized the Queretaro Circular Economy System as a model to explore and consider as a success story to promote competitiveness on a regional basis, supported by the government, leadership from the industry and supported by academia.

The Queretaro Circular Economy System started in 2021 with Phase 0, with Phase 1 completed in 2022. Some results are:

• Two institutional chains with more than 70 people trained from  more than 20 institutions, including those from state and municipal authorities, universities, clusters, chambers and civic organizations. 

• 15 industrial chains, with more than 280 trained people, more than 170 projects from more than 140 automotive, aerospace, food and energy companies.

The Queretaro Circular Economy System established circularity metrics to establish, measure and manage all the projects:

• Tons of materials waste per year

• Cubic meters of water per year

• Gigawatts per year

• Tons C02 equivalent

• Amount of Investment 

With these common metrics, the entire system is aligned and working with a unique database that allows results to be shared and to start to develop symbiotic projects.

In parallel, with the universities including circular economy programs and adding research  and entrepreneurial projects for students related to the circular economy, the entire innovation ecosystem is working together to get Queretaro state to the next level, according to Gov. Mauricio Kuri’s policies.

#INNOVATION

#ACADEMICCONNECTION

#MOBILITY

#QROPOLODEINNOVACION

Three lessons learned:

1. Start today. Don´t wait for tomorrow

2. It all adds up. Never minimize 

3. Create community and get more people involved

If you are interested in receiving  a full copy of the ECLA October document, send me a direct message and I will share it with you.