opinion

Ruling on Modification to Ethanol Fuel Rule - opinion

<p>This entry was provided by the Sabin Center for Climate Change Law. Please see the terms of use for citation and licensing of third party data.</p>

Litigation

Sabin

Sabin Litigation

Filing Year For Action

On January 22, 2020, the Second Chamber of the Supreme Court of Mexico rendered a decisive judgment, nullifying a governmental agency's action aimed at permitting an elevated ethanol content within gasoline. The Court's ruling was underpinned by a profound consideration of both the precautionary principle and the fundamental right to a healthful environment, which necessitated a thorough assessment of the environmental perils associated with ethanol, notably its role in exacerbating GHG emissions.

In 2017, Mexico's Energy Regulatory Commission (ERC) unilaterally amended the official Mexican standard "NOM-016-CRE-2016" to increase the maximum ethanol percentage as an oxygenate in Magna and Premium gasoline (up to 10% from 5.8%). This modification was intended to be implemented nationwide, with certain exemptions applied to Mexico's three major urban centers, where air pollution concerns loomed large. The Supreme Court invalidated the measure, citing the potential for higher pollution levels with a greater maximum ethanol content, including the potential for increased GHG emissions. 

Acknowledging the potential economic benefits, including reduced fuel costs, the Court conscientiously weighed these economic considerations against Mexico's unwavering commitment to curtailing GHG emissions, in line with its obligations as a signatory to the Paris Agreement. In its definitive stance, the Court asserted that any measure bearing substantial environmental hazards must undergo scrutiny grounded in the most robust scientific knowledge available and must not be enacted without due public participation. In arriving at this determination, the Court invoked the right to public consultation on environmental matters and steadfastly adhered to the precautionary principle. 

Considering the risk to the environment posed by the amended rule, a decision necessarily needed to involve the input of specialized professionals, scientific or technological research institutions, as well as professional associations, which are integral to the so-called "National Consultative Committees for Standardization." Furthermore, citizen participation must be allowed before amending or rescinding such a standard. This inclusion of academic citizens, non-governmental organizations, and the general public affords them the opportunity to express their opinions and have them duly considered when making such decisions. This is because regulatory modifications can impact their human right to a healthy environment. State-level discussions should also be guaranteed within the broader context of the international commitments outlined in the Paris Agreement. This is because climate change can jeopardize the enjoyment of a wide array of human rights, particularly the rights to life, health, food, and water. Therefore, it is considered that any purely economic benefits that may result from increasing the ethanol percentage in gasoline as an oxygenate (presumably lowering the price of such fuels) must be carefully weighed against the potential environmental risks and the state's obligations to reduce GHG emissions (polluting gases) and, consequently, combat the phenomenon of climate change.

Ruling on Modification to Ethanol Fuel Rule

The Climate Litigation Database

Find climate change litigation data and indicators for {text}.

{text} litigation

Sabin Center for Climate Change Law provides Climate Litigation Database, a comprehensive database of US and Global climate change caselaw

Quickly and easily search through the complete text of thousands of climate change law and policy documents from every country.

Search the Climate Litigation Database

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

This sector involves the wholesale and retail selling of goods.

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

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

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.

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

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

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.

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

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.

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

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Climate change can have a range of impacts on technological system. Extreme weather events can cause infrastructure failures like power outages or damage to roads and bridges, as well as the impacts from waste following natural disasters. Human activities also cause technological impacts, such as the risks posed by oil spillage and leaks.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

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

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

Jobs that contribute to preserving or restoring the environment. We include jobs which require a high amount of green skills or which spend much of their time on green activities, as well as jobs transforming polluting industries.

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.

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.

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

Ruling on Modification to Ethanol Fuel Rule - opinion

Target

Policy instrument

Risk

Impacted group

Just transition

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance