Enhancing vehicle renovation and operating efficiency in Mexico’s federal freight sector (Mexico)


General Information of the NAMA

GENERAL INFORMATION
Country  Mexico
National implementing entity (NAMA owner) Ministry of the Environment and Natural Resources, Ministry of Communication and Transportation
Development stage Implementation
International partners Deutsche Gesellschaft für Zusammenarbeit (GIZ), German NAMA program
Total costs USD 19.76 million
Duration
SCOPE OF THE NAMA
Type of NAMA Supported (with unilateral elements)
Type of action Policy or program
Scope of action National
Type of approach Improve
Transport mode Road cargo

Mexico´s GHG-emissions have risen by over one third since 1990. The transport sector is a major contributor to Mexico’s GHG-emissions, and has had an increasing relative share of overall emissions in recent years, rising from 28% in 1990 to 33% in 2010. The Mexican Government has pursued a number of interventions aimed at modernising the federal trucking fleet and increasing operating efficiency in the sector. These measures have include a scrapping program, the Program for the Modernisation of the Federal Motor Carrier fleet and the Clean Transportation Program (similar to the US Smart Way Program). These schemes have had some success in modernizing the fleet and increasing operating efficiency. However, take up amongst the smaller fleet carriers has been lower than that of larger operator.

The objective of the NAMA is to support these two federal programs in Mexico.. It will develop a financial scheme for the ‘man-truck’ (owner operator, up to five vehicles) and smaller fleet carriers (up to 30 vehicles) sub-sector, and support the alignment of existing federal regulations that relate to the vehicle renovation program. SCT data on freight fleets suggest that vehicles operated by owner-operators and small fleets make up over 60% of the total number of freight vehicles on the road.

The main objective of the NAMA is to therefore to improve energy efficiency in the federal road freight transport sector through the modernisation of the fleet, the inclusion of technologies and training programs for drivers which reduce fuel consumption of trucks and thereby reduce greenhouse gas (GHG) and criteria pollutants emissions.

The interventions of the NAMA are the following ones:

  1. Include «Eco-driving» courses for truck drivers as a part of the mandatory courses of the Ministry of Communication and Transportation (SCT) taken by road hauliers every two years.
  2. Technological improvement: Improve aerodynamics, automatic inflating systems (AIS), among others.
  3. Modernisation of the vehicle fleet, via the scrapping and renovation of road transport fleet.

Combining the three interventions can increase the fuel-saving potential.

Mitigation potential

MITIGATION IMPACT
Expected mitigation impact Total mitigation cannot be calculated with the accumulated sum of the three interventions.

The mitigation potential is being estimated for each intervention:

  1. Eco-driving courses: Between 2 and 3.5MtCO2e/year.
  2. Technological improvement: Between 0.3 and 1MtCO2e/year
  3. Modernisation of the fleet: average of 2 MtCO2e/year.

Due to the fact that the sector is highly dynamic, the baseline CO2 emissions were calculated via a bottom-up approach since it gives a higher certainty.

The input data used for this methodology are:

  • Vehicle fleet
  • Intensity of use
  • Efficiency
  • Fuel information

These parameters, defined in the next section, are being used to calculate the following variables:

  • Mileage per vehicle type
  • Net emissions
  • Total emissions
  • Fuel consumption

The following section describes the calculation of these variables in broad terms:

1. The vehicle fleet (number of vehicles), is being multiplied by the intensity of use (km/year) to obtain mileage per vehicle type (km/year). Vehicles are then being classified into four different types: C2, C3, T2 and T3. This variable allows calculating fuel consumption and total emissions.

2. By multiplying gross efficiency (km/lt) with a loss factor “on road”, one calculates net efficiency (km/lt). Dividing mileage by net efficiency, we obtain total fuel consumption per year (lts/year).

3. Finally, dividing the emission factor (kgCO2/lt) by the net efficiency, one obtains net emissions of the vehicles (kgCO2/km). The product resulting of the multiplication of the latter by mileage equals total emissions per year (MtCO2/year).

 

Financing

COSTS
Total costs USD 19.76 million
Funder German NAMA program
Costs for preparation
Costs for implementation

The NAMA is part of the Mexican – German NAMA Program (ProNAMA) and received USD 2 million support.

The three interventions have different states of financing:

Intervention 1 requires additional external funding for eco-driving courses.

Intervention 2 received sufficient funding from the national development bank (NAFIN) and commercial banks.

Intervention 3 requests additional support from the Mexican government to broaden the scope of the intervention.

Over the UNFCCC process, USD 70,000 are requested in the form of a loan or grant.

MRV

Concept: 

Indicators:

Co-benefits

Ecological:

  • Reduction of criteria pollutant emissions (particulate matter, black carbon, carbon monoxide and nitrogen dioxide, among others)

Societal:

  • Improvement of road safety

Economic:

  • Rise in the sector’s competitiveness by increasing job opportunities for owner operators and smaller fleet carriers