Brazil, Mexico Set 2040 Phaseout for Combustion Trucks

Brazil and Mexico have committed to ending sales of new medium- and heavy-duty internal combustion vehicles by 2040, with an interim target of requiring that at least 30% of new truck and bus sales be zero-emission by 2030. Both countries joined 40 existing signatories to the Global Memorandum of Understanding on Zero-Emission Medium- and Heavy-Duty Vehicles.  The announcement was made at the “Roadmap to Zero: Accelerate. Adopt. Deploy.” event during the COP30 summit in Belem, Brazil.

The Global MoU—co-led by the Government of Colombia and CALSTART’s Drive to Zero—was first introduced at COP26. According to CALSTART, the 42 signatory countries represent nearly one-quarter of the global truck market, while supporting organizations and endorsers generate more than US$1.3 trillion in annual revenues. Collectively, national governments participating in the agreement account for 40% of global GDP.

Mexico’s environment ministry described the MoU as a pathway for new investment and industrial development. “This collaboration not only reaffirms our political will, but also opens the doors to new opportunities for investment, production and innovation in zero-emission vehicles,” said José Luis Samaniego Leyva, undersecretary for sustainable development and the circular economy, SEMARNAT. He added that Mexico aims to align emissions reductions with a circular-economy model that supports national growth. His remarks follow Mexico’s recent announcement of new environmental regulations restricting the import of used diesel vehicles weighing more than 3,857 kilograms and capping engine age at 10 years.

Industry groups highlighted the market signal sent by Brazil and Mexico. “By sending a clear signal that they are open for business, these countries are poised to attract global fleet operators, infrastructure providers, and other zero-emission transport innovators,” said CALSTART CEO John Boesel.

Manufacturers echoed this sentiment. Scania CEO Christian Levin noted that technical solutions for heavy-duty decarbonization are already commercially available. “Their commitment paves the way for coordinated public–private action to deliver tangible results—reducing emissions, strengthening competitiveness, and creating inclusive economic opportunities,” he said.

Infrastructure developers emphasized the operational advantages driving adoption. “Electric vehicles deliver approximately 80% lower operating costs and eliminate particulate matter and CO₂,” said Gustavo Tannure, CEO, EZVolt. “By working collaboratively toward a zero-emission commercial-vehicle future, Brazil is embracing these critical economic and health benefits.”

CALSTART’s Stephanie Kodish underscored Latin America’s emerging role in the global supply chain. “Latin America is a hotspot for clean technology and zero-emission commercial vehicles,” she said. “Local communities will benefit from cleaner air, economic opportunities, and improved transport operations.”