Environmental Opportunities in Mexico

An Expert's View about Climate in Mexico

Posted on: 29 Sep 2010

With the development of environmental legislation and awareness constantly increasing in the country, Mexico’s environmental market has been rapidly and steadily growing in recent years.

Sector briefing Environmental Opportunities in Mexico Why Mexico? With the development of environmental legislation and awareness constantly increasing in the country, Mexico?s environmental market has been rapidly and steadily growing in recent years. According to the Mexican National Institute of Ecology (INE), Mexico is the second most important environmental market in Latin America after Brazil and is estimated to be worth approximately $6 billion USD in total. Mexico imports 80% of its environmental equipment and services to fill the rising demand, which is generating an increasing pool of good opportunities for UK companies. ?Mexico is the the second most important Find general information on the Mexican market conditions on UKTI?s website. The environmental market in Doing Business Guide for Mexico gives an Latin America.? overview of Mexico?s economy, business culture, potential opportunities and an introduction to other relevant issue. UK Trade & Investment Sector briefing: Environmental opportunities in Mexico and Natural Resources (SEMARNAT), the Opportunities priorities set for 2007 to 2012 will be focused on the construction of municipal wastewater Currently, more than 60% of the Mexican treatment plants, potable water treatment population of 104 million live in cities with over plants, etc. 15,000 inhabitants, and more than 2,800 environmental services companies are SEMARNAT will also continue to make more operating in Mexico. Greater Mexico City has a sanitary landfills, promoting the remediation of population of 25 million, making it the largest soil contaminated sites and better medical metropolitan area in the western hemisphere. waste treatment facilities as high priorities. Opportunities for UK environmental companies 3. Environmental monitoring equipment & in Mexico are growing ? the main opportunities air pollution control are in the following areas: The Mexican government has presented ? Waste management and recycling several proposals for fighting air pollution, ? Water pollution control including incentives for using cleaner fuels and ? Air pollution control smog control measures. Mexican ? Contaminated land remediation environmental initiatives include developing ? Environmental monitoring equipment clean taxis and small buses in order to reduce and consultancy urban emissions, and improving environmental ? Energy Efficiency infrastructure. ? Green House Gas Capture and Storage ? Carbon Trading Other environmental initiatives throughout Mexico include: replacing, retrofitting and In addition, a federal tax incentive programme upgrading inefficient machinery, engines, and has been introduced, which allows private equipment for cleaner technology, emissions companies to write off the value-added tax for testing and control, reducing energy the purchase of pollution control equipment consumption, and cost-effective alternative used to comply with environmental regulations. energies and fuels. 1. Waste management and recycling 4. Contaminated land remediation During 2010, local, state, and federal According to the National Institute of Ecology environmental authorities plan to implement (INE) the most commonly treated water, wastewater, and solid waste projects contaminants in Mexico are hydrocarbons and that have been postponed during the last two muddy and drilling oils. Mexican companies years. are focused on contaminated land remediation technology using organic components and The total 2009 market for solid municipal biological methods (bioremediation). There are waste equipment was $932 million USD. It is also good opportunities for land clearing expected that the total market will increase by techniques; chemical oxidation and physical the end of 2010 and grow by 5% from 2009 to separation technology. 2010. 5. Energy Efficiency More than 92,000 tonnes of solid waste is generated in Mexico every day, and more than Electricity demand in Mexico has grown by 39 Mexican cities have private sector more than 4% a year since 1995. Managing involvement in solid waste management. this growth through energy-efficiency measures in the end-use sectors will be critical Approximately 80% of the waste generated is to mitigating greenhouse gas emissions. collected but only half of the solid waste collected receives proper handling, More than half of industrial energy use occurs confinement or treatment. in three subsectors: cement, iron and steel, and chemicals and petrochemicals. Many of 2. Water and wastewater treatment Mexico?s large-scale basic materials industries, including iron, steel, and cement, are among According to the National Water Commission the most efficient in the world. which is part of the Ministry of Environment UK Trade & Investment Sector briefing: Environmental opportunities in Mexico high number of CDM projects, it recorded a The problem is that a large portion of the share of almost 1.54% in Certified Emission industrial sector is made up of small and Reductions (CERs) for the registered measures, medium enterprises that often use old putting it in fifth place. equipment and lack access to technical know- how and financing for upgrades. These The UK is currently participating in 100 of the companies have relatively high energy 122 CDM projects in Mexico. The majority of intensity. The main sources of energy savings these projects with British participation relate in the industrial sector come from energy- to GHG mitigation and methane recovery (CDM efficiency improvements in motor and steam stats, 2010). systems and in kilns and furnaces, as well as from cogeneration?for which more than 85% So far, PEMEX, the State National Oil of the industrial potential has not been utilised. Company, has identified some 60 opportunities for CDM projects, which include projects to: Policies to improve efficiency in the residential, commercial, and public sectors?including ? Eliminate methane emissions; including a tightening and enforcing efficiency standards gas flaring project (these projects will for lighting, air conditioning, refrigeration, and reduce emissions by an estimated 761,861 buildings?will be critical to limit greenhouse tonnes of CO per year). 2 gas emissions. As the analysis shows, the ? To improve energy efficiency (estimated to investment required in all electricity-efficiency reduce CO emissions by 495,072 tonnes 2 interventions is significantly less than the annually). investment in power plants that would ? Reduce CO emissions by 1,050,456 tonnes 2 otherwise be needed. per year through cogeneration projects. 6. Green House Gas Capture and Storage So far, CDM has been slow to develop in other promising fields in Mexico. Extensive prospects The National Ecology Institute (INE) estimates for CDM projects are still seen in the electricity, oil and gas sector, in solid waste management that Mexico has a potential reduction and (reduction of landfill gas emissions) and in capture of 81 million tonnes of CO annually 2 energy-intensive industrial segments (e.g. in between 2008 and 2012, resulting in a Clean cement production or in the steel industry). Development Mechanism (CDM) market value of $480 million USD annually. ? Special Climate Change Programme Because of the high carbon intensity of its energy supply, there is still considerable scope Climate change is a priority for the Mexican for reducing greenhouse gas emissions in the government, who has made it a cornerstone of operating segments of the state-run petroleum its 2007-2012 National Development Plan, what? Company PEMEX and the national power which is the basis for all the current supplier CFE. administration?s policies. Mexico is one of the first developing countries to commit to a There are extensive prospects for reducing voluntary carbon reduction target to combat emissions, for example, in power and heat climate change. cogeneration or in using the gas that occurs during the petroleum production. This programme foresees far reaching reforms in the sectors that weigh most heavily on the 7. Carbon Trading country?s carbon footprint, such as transport and energy, which account for 18% and 27% Mexico is the fourth most active country in the respectively of GHG emissions. Such sector CDM accounting for 122 projects out of 2,184 emission reductions are embedded in the CDM projects worldwide (5.5%) (CDM stats, 4 Government of Mexico?s new Special Climate May 2010) as registered by the United Nations Change Programme (Programa Especial de Framework on Climate Change (UNFCCC), Cambio Climático, or PECC), which provides an falling behind China, India and Brazil. account of emissions by sector, creates a framework for monitoring improvements and Most of Mexico?s projects have been for establishes a blueprint for emission reduction methane recovery and emission mitigation initiatives. projects. Due, however, to its comparatively UK Trade & Investment Sector briefing: Environmental opportunities in Mexico In general, the environmental sector in Mexico offers some of the most exciting and realistic opportunities for cooperation with suitable UK companies and organisations. There are interesting opportunities for UK potential investors, project originators, consultants and low-carbon technology exporters in the following areas: energy efficiency, renewable energy, energy switch, waste management, forestry and oil and gas. If you have any questions on the opportunities above, contact the UKTI Mexico Environment contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to Mexico / environment opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website UK Trade & Investment Sector briefing: Environmental opportunities in Mexico Major events and activities UKTI contacts Climate Change and Private Sector Irasema Mendoza + Networking ? CO Head of Energy and Environment 2 Contact: UKTI Energy and Environment Team British Embassy Mexico Email: alejandra.espinosa@fco.gov.uk, Tel. +52 (55) 1670 3234 karim.lara@fco.gov.uk Fax +52 (55) 1670 3222 Time: 23 June 2010 (Monterrey, N.L.), 14 July Email: irasema.mendoza@fco.gov.uk 2010 (Culiacan, Sin.), 12 August 2010 (Jalapa, www.uktradeinvest.gov.uk Ver.), 7 September 2010 (Guadalajara, Jal.), 28 October 2010 (Cancun, Q.R.) Alejandra Espinosa Trade & Investment Officer The GREEN Expo (The Global Renewable British Embassy Mexico Environmental & Energy Network) Tel. +52 (55) 1670 3274 Contact: UKTI Energy and Environment Team Fax +52 (55) 1670 3222 Email: alejandra.espinosa@fco.gov.uk, Email: alejandra.espinosa@fco.gov.uk karim.lara@fco.gov.uk www.uktradeinvest.gov.uk Time: 28 ? 30 September 2010 www.ejkrause.com/thegreenexpo Karim Lara Trade and Investment Research Officer Semana Nacional de Energía Solar (Solar British Embassy Mexico Energy Week) Tel. +52 (55) 1670 3252 Contact: UKTI Energy and Environment Team Fax +52 (55) 1670 3222 Email: alejandra.espinosa@fco.gov.uk, Email: karim.lara@fco.gov.uk karim.lara@fco.gov.uk www.uktradeinvest.gov.uk Time: October 2010 www.anes.org/anes/index.php Waste and Recycling Expo Mexico Contact: UKTI Energy and Environment Team Email: alejandra.espinosa@fco.gov.uk Time: 23 ? 25 March 2011 www.wasterecyclingmexico.com Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Environmental opportunities in Mexico Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Mexican market are advised to you to meet contacts and promote your undertake as much market research and company in the Mexican market planning as possible in the UK. UKTI?s team in Mexico, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in the Mexican markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Mexican market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Environmental opportunities in Mexico
Posted: 29 September 2010

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