COP29: The Challenge of Responsible Transport in Mexico

After the recent COP29, held under the slogan, “Solidarity for a Green World”, the urgency of reducing greenhouse gas (GHG) emissions became clearer than ever. The decisions taken at this global summit have outlined a challenging but necessary roadmap to curb climate change and limit global warming to 1.5°C above pre-industrial levels. However, the road to this goal is complex and full of obstacles, especially for sectors such as freight transport, which accounts for 29% of global emissions within the transport sector.

For Mexico, the challenge is greater, as it is not only about reducing emissions, but doing so while taking advantage of the nearshoring phenomenon, which promises 20% growth between 2024 and 2026, according to recent estimates by the National Chamber of Freight Transportation (CANACAR). This expansion could be a historic opportunity for the freight transportation industry, but if it is not managed responsibly and with a long-term vision, we run the risk of aggravating the climate problem instead of contributing to its solution.

Mexico ranks prominently among the Top 10 countries with the highest GHG emissions in the transportation sector. Of the 148 million tons of CO₂ emitted annually, 80% comes from transportation, with a vehicle fleet that in many cases is obsolete and inefficient. In addition, the growth of cross-border trade with the United States, which, according to CANACAR, is projected to increase 6% annually until 2027, requires a modern and sustainable infrastructure that is still in the process of development.

This scenario is unsustainable without immediate and effective action. The renewal of the truck fleet, the adoption of clean technologies and the use of alternative fuels are not luxuries or long-term goals; they are urgent needs to ensure responsible economic growth aligned with the COP29 commitments.

At ELAM-FAW, we believe that the future of freight transportation lies in efficiency, speed and sustainability. Our cargo trucks integrate advanced technologies that improve safety and operational efficiency, while significantly reducing environmental impact. Features such as intelligent sensors, ADAS (Advanced Driver Assistance Systems) and high-performance engines are already a reality in our vehicles.

Likewise, the adoption of natural gas-powered trucks represents one of the most viable strategies to reduce CO₂ emissions in the short term. According to our analysis, the price of diesel in 2024 has outperformed natural gas by 191% on average. This makes natural gas a more economical and sustainable option. It is an opportunity to reduce operating costs and strengthen the reputation of companies committed to sustainability.

However, natural gas is only a transition fuel. The ultimate goal must be the electrification of freight transportation. Electric and hybrid engines are marking a fundamental shift toward more environmentally responsible practices. In this regard, investment in electric charging infrastructure and energy storage is crucial to facilitate this transition.

It is important to emphasize that the nearshoring phenomenon has brought a surge in investment and increased demand for freight transportation. Mexico has a unique strategic position to become an international logistics leader, but this opportunity comes with great responsibility. We cannot talk about logistics efficiency without considering the environmental impact of an aging and polluting vehicle fleet.

Fleet renewal is an urgent challenge. The 2.4% growth in the federal public transportation vehicle fleet in 2024 is insufficient to meet demand in a sustainable manner. If we are to take advantage of the current economic momentum without compromising our climate goals, we must accelerate the replacement of obsolete trucks with more efficient and cleaner units.

At ELAM-FAW, we are committed to this transformation. The implementation of natural gas trucks and the development of electric technologies aim to benefit the environment and offer competitive advantages to our customers. Operational efficiency and sustainability are two sides of the same coin in modern transportation.

In addition, we are integrating EURO VI-compliant engines, in line with the NOM-044-SEMARNAT-2017 regulation, which limits emissions of pollutants such as carbon monoxide and nitrogen oxides, thereby decreasing pollution and improving air quality. Adopting EURO VI tractor-trailers brings significant advantages: reduced operating costs thanks to the integration of new technologies, lower risk of penalties for non-compliance with regulations, and improvements in public health. Although the initial investment may be higher, the long-term savings and compliance with future regulations make this transition a profitable and sustainable decision.

Financing and Public Policies

The COP29 agreements establish that developed countries will provide at least US$300 billion annually in climate finance until 2035. However, this amount is insufficient to meet the needs of developing countries, including the modernization of transportation in Mexico. It is critical that the Mexican government, in collaboration with the private sector, access these funds and use them strategically to drive the transition to cleaner transportation.

Public policy also plays a vital role. Tax incentives for the adoption of clean technologies, subsidies for fleet renewal, and investment in electric charging infrastructure are necessary measures to accelerate change. In addition, the carbon credit market, agreed at COP29, can be an effective tool to finance sustainable transport projects in the country.

The outlook for freight transportation in Mexico is undoubtedly encouraging, but only if we act with determination and vision. The combination of technological innovation, investment in infrastructure and appropriate public policies can transform the sector into a pillar of sustainable and responsible development. COP29 has given us a clear roadmap. It is now up to us to move toward these goals.