Citizen vs. Energy Regulatory Commission over increase in the percentage of ethanol in gasoline in Mexico

Location

CDMX Mexico

Status
Resolved at the final stage
Start date
August 7, 2017
Date of judgment or latest existing decision
On January 15, 2020, the Supreme Court of Justice of the Nation issued a ruling.
Summary

A resident of Mexico City filed an injunction against the modification to NOM-016-CRE-2016, the standard for petroleum product quality specifications, issued by the Energy Regulatory Commission. The modification increased the percentage of ethanol in gasoline from 5.8% to 10% outside the Mexico City Metropolitan Area, the Guadalajara Metropolitan Area, and the Monterrey Metropolitan Area.

The complainant alleged violations of various human rights, stating that the increase in ethanol would cause "a substantial deterioration in air quality resulting from the formation of ozone, which in turn would have a negative impact on the environment and health."

The Supreme Court of Justice of the Nation decided to grant the plaintiff's protection and declare the modification of the rule unconstitutional, stating the following:

"[…] this Second Chamber considers it necessary to grant the responsible authority and the others that may be competent in the matter, a period of one hundred and eighty days, counted from the day after this sentence is notified, within which they must allow, without being able to exercise their sanctioning powers, that acts related to the production and marketing of Premium and Magna gasolines that use ethanol as an oxygenate, in a volume of up to 10%, be carried out.

Once this period has ended, NOM-016-CRE-2016 must be observed and applied immediately, as it was previously established prior to the modifications made by the challenged Agreement."

Implementation

On September 18, 2020, the CRE published, in the Official Gazette of the Federation (DOF), Agreement A/009/2020 through which, in compliance with the Court's ruling, it reverses the modification to the Official Mexican Standard NOM-016-CRE-2016, leaving the maximum permitted content of ethanol at 5.8% by volume.

Regarding the 180-day period granted by the Court so that permit holders who market gasoline with 10% ethanol are not sanctioned, the CRE indicated that "as of March 19, 2021, the handling of gasoline with an ethanol content higher than 5.8% by volume will be subject to sanctions."

Climate element

The Court's ruling states that the use of ethanol as an oxygenate in gasoline can increase tropospheric ozone emissions, and that this is one of the main compounds contributing to climate change, which can jeopardize the enjoyment of a wide range of human rights. In this regard, it indicates that the regulation of ethanol "must be analyzed and subject to state deliberation, with the most comprehensive scientific information possible, within the broader context of the international commitments undertaken by the Mexican State to combat global warming," that is, through its Nationally Determined Contributions (NDCs). Therefore, the precautionary principle should have been observed in the procedure for modifying the regulation, and "a detailed assessment of the potential risks or uncertainties regarding this state of affairs should have been carried out, in order to determine whether or not it is appropriate to modify or cancel such regulation, and to what extent."

Claimants
  • Citizen residing in Mexico City
Defendants
  • Congress of the Union of the United Mexican States (the “Congress of the Union”) made up of the Chamber of Deputies and the Chamber of Senators.
  • Constitutional President of the United Mexican States.
  • Governing Body of the Energy Regulatory Commission (“CRE”), who is called through its President.
  • Petróleos Mexicanos (PEMEX).
Territorial context

Mexico, due to its geographical location, boasts a diverse climate and abundant natural resources: 34% of its national territory is covered by forests and jungles, and it has an indigenous population of 7.4 million. These characteristics make it highly vulnerable to the effects of climate change. Meanwhile, Mexico City is one of the most polluted cities in the world, and the number of environmental emergencies is steadily increasing.

Rules and principles invoked

Standards

  • International Covenant on Civil and Political Rights.
  • Paris Agreement.
  • American Convention on Human Rights.
  • Political Constitution of the United Mexican States.
  • General Law on Climate Change.
  • Federal Law on Metrology and Standardization.
  • Agreement A/28/2017 of the Energy Regulatory Commission that modifies the Official Mexican Standard NOM-016-CRE-2016, Quality specifications of petroleum products.
  • NOM-016-CRE-2016, Quality specifications for petroleum products.

Beginning

  • Caution.
  • Public participation in environmental matters.

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Instance
Judicial
Actor type
Natural person
Topic
Acuerdo de París y compromisos climáticos
Air pollution
Citizen participation
Violation of human rights
Defendant type
State
Grounds for claim
Paris Agreement and climate commitments
Right to a healthy environment
National legislation
Regional or international treaties