Enforcement of NOM-044 Faces Challenges

Starting Jan. 1, 2025, Mexico will implement updated provisions under Mexican Official Standard NOM-044-SEMARNAT-2017 (NOM-044), which will phase out the certification for the production and importation of heavy vehicles with Euro V and EPA 07 technologies. However, industry representatives caution that the transition could pose significant challenges for the sector, particularly due to the lack of infrastructure for Ultra-Low Sulfur Diesel (ULSD) across the country.

The Push for Cleaner Technologies

NOM-044 sets emission limits for diesel engines in vehicles weighing over 3,857kg, encouraging the adoption of international standards like Euro VI and EPA 2010. These technologies drastically reduce nitrogen oxides (NOx) and particulate matter emissions. Euro VI, for example, cuts NOx emissions by 80%, while EPA 2010 technology can reduce particulate matter by up to 97%. While these advancements promise long-term environmental and economic benefits, their successful implementation relies heavily on the availability of ULSD — a key factor for these technologies to function properly, MBN reported.

The transition to Euro VI and EPA 10 technologies aligns with broader international goals to reduce CO2 emissions from the transport sector. According to the International Energy Agency (IEA), transport emissions have been rising steadily, and the demand for freight transport, particularly in emerging regions like Latin America, is expected to triple by 2050. To meet global climate targets, a reduction in emissions of over 3% per year until 2030 is required, as previously reported by MBN.

Back in April, Guillermo Rosales, Executive President, Mexican Association of Automotive Distributors (AMDA), expressed concerns that the limited availability of ULSD in Mexico could hinder the adoption of these technologies. This, he suggests, could lead to a tendency to retain older, more polluting vehicles rather than upgrading to newer, more efficient models.

Rogelio Arzate, Executive President, National Association of Bus, Truck, and Tractor Truck Producers (ANPACT), highlights that these technologies have the potential to reduce emissions, improving air quality in urban areas. However, Arzate adds that the adoption of Euro VI and EPA 2010 technologies is only feasible if there is a consistent and reliable supply of ULSD, which contains less than 15 parts per million (ppm) of sulfur compared to the 500ppm found in regular diesel, as previously reported by MBN.

ULSD now is available in about 80% of Mexico’s major highway corridors and cities, says Arzate. However, the industry has called for improved infrastructure and signage at fuel stations to make ULSD more accessible, which would facilitate the adoption of cleaner technologies and support a sustainable, low-emission transportation system.

Challenges in Fuel Distribution and Production

The issue of ULSD availability has been an ongoing concern. Mexico relies heavily on fuel imports, particularly from the United States, and struggles with its own production. Carlos Vallejo, Founder, QUA Energy Consulting, points out that the country’s fuel infrastructure is not fully equipped to meet the demands of the transport sector. He adds that PEMEX has failed to supply ULSD consistently to service stations due to inadequate infrastructure and slow refinery modernization.

Vallejo suggests an extension for NOM-016 while PEMEX and other stakeholders resolve these infrastructure and production issues. He also recommends a review of fuel distribution permits to ensure a stable supply of ULSD and minimize the risks of supply shortages that could disrupt the adoption of cleaner technologies.

Meanwhile, the confirmed dissolution of Mexico's Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH) has raised concerns over the enforcement of NOM-044. 

Government Action and Future Prospects

As part of its efforts to address the ULSD shortage, in August, PEMEX started production at the Olmeca Refinery in Dos Bocas, Tabasco. This refinery has a processing capacity of 340,000b/d. However, experts argue that more investment in fuel infrastructure is necessary to ensure that ULSD is available nationwide to support the new emission standards.

The Mexican Petroleum Institute (IMP), mentioned back in August that with the startup of the catalyst plant being carried out by the IMP in the municipality of Boca del Rio, Veracruz, catalysts for the production of ultra-low sulfur sustainable fuels will no longer be imported products provided exclusively by foreign companies.

The Role of the Industry and Policy Alignment

While the shift to cleaner technologies is vital to the environment, experts warn that the transition must be carefully managed to avoid disruptions. AMDA has raised concerns about the sudden shift in regulatory conditions, noting that the industry may face challenges in meeting production and import commitments due to the lack of legal certainty regarding the future of vehicle certifications.

However, the limited availability of ULSD across the country remains a problem. This shortage raises significant concerns and is expected to impact the entire road transport supply chain, including the manufacturing of auto parts, vehicle sales, maintenance, cargo, and passenger services, says AMDA.

In 2021, several industry organizations, including AMDA, AMIA, AMTM, ANPACT, ANTP, CANACAR, CANACINTRA, CANAPAT, CONATRAM, CONCAMIN, COPARMEX, and INA conducted a study on ULSD availability in Mexico. The study found that while the number of stations in compliance with regulations increased from 2016 to 2018, the availability of ULSD in the country started to decrease in 2019, dropping from 81% in 2018 to 72.6% in 2021.

The study also found infrastructure issues, reporting that ULSD availability is not aligned with the needs of transporters. While some stations have ULSD, the majority do not display the official signage required by regulations. Finally, the study also found that without a guarantee of ULSD availability, transporters may hesitate to renew their fleets. Many will prefer to keep their existing vehicles or import used vehicles that run only on regular diesel.

For the transition to succeed, collaboration between the government, fuel providers, and industry stakeholders will be essential. ANPACT has called for closer cooperation with authorities like SEMARNAT and SICT to ensure a smooth fleet renewal process, emphasizing the need for infrastructure investments and financial mechanisms to support the adoption of cleaner technologies.