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Kia México v. Procuraduría Federal de Protección al Ambiente (PROFEPA) - decision

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On January 18, 2022, Kia Motors México, S.A. de C.V. filed a lawsuit against the Procuraduría Federal de Protección al Ambiente (PROFEPA) before the Federal Tribunal of Administrative Justice, contesting a fine PROFEPA imposed on them for non-compliance with the NOM-163-SEMARNAT-ENER-SCFI-2013. In general terms, the NOM-163-SEMARNAT-ENER-SCFI-2013 establishes that, for certain car models, they must obtain a certificate of environmental compliance, and certify that their cars comply with certain carbon dioxide emissions parameters. One of the purposes of this Mexican Official Standard is to prevent atmospheric pollution and thus combat climate change.

Kia Motors was sanctioned with two different fines, for: 1) not having obtained the NOM Certificate of Environmental Compliance and, 2) not having accredited compliance with the criteria for the acceptance of carbon dioxide emissions, because the corporation failed to meet its environmental obligations to reduce CO2 emissions from their 2016 model year vehicles. However, PROFEPA imposed, for both sanctions, 7 fines, one for each car model. 

On August 11, 2022, regarding the first sanction, the Federal Tribunal of Administrative Justice decided that the fine, in relation to the Certificate of Environmental compliance was illegal. The Tribunal also decided that Kia could not be sanctioned for the same conduct 7 times. Considering that it was a single infringing conduct, only one fine could be applied, not 7.

PROFEPA filed an appeal on November 17, 2022, arguing that Kia should be fined for the 7 models of cars marketed, because each automotive line and model must comply with the carbon dioxide reduction, as each line and model has different specifications. By not complying with the NOM, none of the 7 models complied with the CO2 emission limits. PROFEPA made the example in its appeal that sanctioning the company with a single fine would be equivalent to a person who deprives a hundred people of their lives, being sanctioned only once for the crime of deprivation of life.

The Collegiate Court that heard the appeal, on September 22, 2023, decided that (1) the two sanctions were legal and that (2) based on Article 4 of the Constitution, which protects the right to a healthy environment, the "polluter pays" principle, the principle of prevention and the principle of in dubio pro natura, the company had to be fined for each model of automobiles.

The above, first, because environmental administrative law must function as an effective instrument in the prevention of environmental damage and, with it, dissuade potential offenders from committing damage to the environment. Second, because this interpretation of the NOM allows the protection of the right to a healthy environment and the fight against climate change.

In accordance with the decision of the Collegiate Court, the Federal Tribunal of Administrative Justice must issue a new decision with the new considerations issued by the Collegiate Court. This new decision is pending.

Kia México v. Procuraduría Federal de Protección al Ambiente (PROFEPA)

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Using laws and the legal system more broadly to protect vulnerable entities

The activities of industries that transforms raw materials into finished goods through industrial processes.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

This sector involves activities to move goods and people, alongside the storage of products.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Kia México v. Procuraduría Federal de Protección al Ambiente (PROFEPA) - decision

Policy instrument

Risk

Just transition

Fossil fuel

Greenhouse gas

Economic sector

Finance