Mexico - J. Environmental Technologies Mexico Environmental Technologies
Overview
The environmental technologies and water markets in Mexico are poised for growth over the next few years because of Mexico’s commitment to addressing climate change, political will to fund projects in the sector, and a strong need for infrastructure modernization. Public and private-sector stakeholders are keen to address many of Mexico’s greatest challenges in these sectors with the latest products, technology, and expertise. As a result, these sectors provide excellent immediate business opportunities for U.S. companies.
Water
The market for water and wastewater sub-sectors in Mexico is estimated to grow by 1.2 percent from 2018–2019, while exports from the United States to Mexico are expected to increase by 1.5 percent. The National Water Commission (Comisión Nacional de Agua or CONAGUA) reports that 77 percent of available water is used in the agricultural sector, nine percent in the industrial and services sector, and 14 percent in urban areas.CONAGUA’s budget for 2019 is approximately USD 4.4 billion, which will be used to fund improvements to the existing potable water and municipal wastewater infrastructure, and to increase infrastructure for water irrigation projects in Mexico’s agriculture areas. The Government also plans on investing in nine public-private investment projects in municipal wastewater treatment plants projects as well as potable water treatment plants valued at USD 1.0 billion.
The main water challenges in Mexico are over-exploitation, inadequate infrastructure, and contamination of water resources. Nine million people do not have access to potable water, and eleven million are not connected to sewage lines. To address these issues, as part of the National Water Plan (Plan Nacional Hydric or PNH) for 2019 that runs through 2024, the Government seeks to modernize the country’s infrastructure through public policies and other new initiatives, such as systems to measure consumption and improve water management in urban and agriculture areas of the country.
Mexico Water Technology Market Size
(Figures in USD billions)
| 2016 | 2017 | 2018 | 2019 (Estimated) | |
| Total Local Production | 1.06 | 1.07 | 1.40 | 1.42 |
| Total Exports | 0.91 | 0.95 | 1.70 | 1.75 |
| Total Imports | 4.16 | 4.24 | 4.30 | 4.38 |
| Imports from the US | 2.40 | 2.46 | 2.58 | 2.62 |
| Total Market Size* | 4.31 | 4.36 | 4.00 | 4.05 |
| Exchange Rates | 18.68 | 18.91 | 19.22 | 19.15 |
Source: Central Bank of Mexico (Banco de Mexico), National Bank for International Trade (BANCOMEXT), Secretariat of Economy, Global Trade Atlas, Border Environment Cooperation Commission (BECC), National Water Commission (CONAGUA), National Council of Industrial Ecologists (CONIECO), & interviews with importers, distributors, and end-users of water and wastewater equipment and services.
Environmental Technologies
The market for environmental technologies in Mexico is estimated to grow by 2.0 percent from 2018 to 2019, while exports from the United States to Mexico are expected to increase by 1.7 percent over the same period.The Secretariat of Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales or SEMARNAT) continues to actively promote green development in Mexico. Its objective is to advance economic growth and development in Mexico by promoting a more competitive, sustainable, and low-carbon-emissions economy. SEMARNAT implements the General Climate Change Law (Ley General de Cambio Climático), which is the national guide for climate change policy for the medium- to long-term with 10-, 20-, and 40-year goals. The objectives of the General Climate Change Law are to generate at least 35 percent of electricity from clean energy sources by 2024, reduce greenhouse gas (GHG) emissions by 50 percent (compared to GHG emissions in 2000) by 2050, and derive at least 50 percent of electricity from clean sources by 2050.
In addition to the General Climate Change Law, SEMARNAT continues to actively promote the General Law for Prevention and Integrated Waste Management (Ley General para la Prevención y Gestión Integral de los Residuos or LGPGIR) and the General Law for Equilibrium and Environmental Protection (Ley General del Equilibrio Ecológico y la Protección al Ambiente or LGEEPA). The LGPGIR was originally enacted in 2003 and has undergone several revisions and reforms; the latest took place on January 19, 2018. One reform states that the Mexican Federal Government, states, and municipalities will promote ecological awareness and implement LGPGIR through joint actions with the community focusing on integrated waste management and the use of materials that meet the criteria for environmental efficiency. To accomplish this, the three levels of government may initiate cooperative agreements with urban and rural communities, as well as various social organizations.
Mexico Environmental Technologies: Air, Waste Management, Recycling
(Figure in USD billions)
| 2016 | 2017 | 2018 | 2019 (Estimated) | |
| Total Local Production | 1.93 | 1.95 | 2.10 | 2.14 |
| Total Exports | 0.71 | 0.73 | 1.0 | 1.03 |
| Total Imports | 1.71 | 1.74 | 2.80 | 2.85 |
| Imports from the US | 1.23 | 1.25 | 1.90 | 1.96 |
| Total Market Size* | 2.93 | 2.96 | 3.90 | 3.96 |
| Exchange Rates | 18.68 | 18.91 | 19.22 | 19.15 |
Source: Central Bank of Mexico (Banco de Mexico), National Bank for International Trade (BANCOMEXT), Mexican Secretariat of Economy (SE), Mexican Secretariat of Environment and Natural Resources (SEMARNAT), Mexican Congress (Cámara de Diputados), Mexican Tax Authority (SAT), Mexican Geography and Statics Institute (INEGI), U.S. International Trade Administration, World Bank, International Monetary Fund, Organization for Economic Cooperation and Development, United Nations, Business Monitor, World Trade Atlas, bank reports and interviews with importers, distributors, and end-users of air, waste management and recycling equipment and services.
Leading Sub-Sectors
The leading sub-sectors for U.S. companies are in water resources equipment and services and environmental technologies, such as solid waste management, soil remediation, recycling, and air monitoring. U.S. products and services are considered competitive in the Mexican market due to quality, post-sale services, and guarantees offered by U.S. companies. Cross-market interaction is further prompted by the constant collaboration of government entities, such as SEMARNAT and CONAGUA with the U.S. Environmental Protection Agency (EPA) and the Border Environment Cooperation Commission (BECC). This collaborative environment allows Mexican and U.S. companies to share best practices, knowledge, and technologies in complying with environmental regulations.
Opportunities
The U.S. Commercial Service Mexico is happy to assist you in exploring market opportunities for environmental technologies. Here are some highlights.
Upgrading of Municipal Wastewater Treatment Plants
CONAGUA and the Agriculture and Rural Development Secretariat (Secretaría de Agricultura y Desarrollo Rural or SADER) will continue with upgrades to existing municipal wastewater treatment plants that are in over 1,400 municipalities in the states of Guerrero, Oaxaca, Veracruz, Tabasco, Coahuila, Sonora, Sinaloa, Chiapas, and Michoacán. The estimated budget for the project is USD 300 million.
Upgrading of Potable Water Treatment Plants
In 2019, CONAGUA will launch a program to upgrade existing potable water treatment plants located in the states of Oaxaca, Veracruz, Chiapas, Puebla, Coahuila, Sonora, Sinaloa, and Guerrero. The estimated budget for the project is USD 400 million.
Air Pollution Control
The LGEEPA states that the authorities must implement programs to reduce air pollutant emissions from sources under federal jurisdiction. With this objective, management programs to improve air quality, collectively known as ProAire, were developed by the Federal Government in major Mexican cities. ProAire programs incorporate specific measures for the reduction and control of pollutant emissions. The programs are based on the relationship between emission pollutants, their sources, their impact on the air quality, and health of communities. Additionally, in coordination with other federal agencies, SEMARNAT is responsible for implementing programs that reduce emissions from industries under federal jurisdiction and programs for verifying vehicle emissions. U.S. companies can access detailed information on ProAire programs by visiting SEMARNAT’s webpage. There, companies can find a map of current programs, descriptions, locations, contact information, and future projects.On June 3, 2019, the Mexico City Government presented the Emissions Reduction Plan for the Mobility Sector, which is the framework for implementing more sustainable transport systems and improving existing technology to reduce emissions. Mexico City’s mayor, Claudia Sheinbaum, commented during the presentation that the estimated investment for the mobility plan is 55 billion pesos (approximately 2.8 billion USD) and it will require the support of several private financing schemes. The objective is to improve operability and mobility in Mexico City and the metropolitan area and to reduce 30 percent of contaminant emissions by 2024.
Waste Management and Recycling
On February 1, 2019, SEMARNAT published a program called “Zero Waste Vision.” The document includes six guiding principles and a roadmap to transform the traditional waste management model into a circular economy, in order to rationalize the use of natural resources and promote more sustainable development in the country.As part of the “Zero Waste Vision” program, the government expects to create efficient infrastructure for urban cleaning services. They will identify the installed capacity of the infrastructure and strengthen whatever else is needed, such as personnel, trucks, sweepers, containers, front loaders, compactors, transfer stations, separation plants, treatment or recovery and recycling facilities, and sanitary landfills. However, there are still not specific guidelines to determine how the infrastructure will be acquired. We recommend U.S. companies to continue monitoring SEMARNAT´s implementation.
Web Resources
| Secretariat of Environment and Natural Resources (SEMARNAT) | www.semarnat.gob.mx |
| National Water Commission (CNA) | www.cna.gob.mx |
| National Institute of Ecology and Environmental Change (INECC) | www.inecc.gob.mx |
| Attorney General for Environmental Protection (PROFEPA) | www.profepa.gob.mx |
| Mexican Institute of Water Technology (IMTA) | www.imta.gob.mx |
| National Bank for Public Works (BANOBRAS) | www.banobras.gob.mx |
| Border Environment Cooperation Commission (BECC) | www.becc.org |
| National Council of Industrial Ecologists of Mexico (CONIECO) | www.conieco.com.mx |
| National Association of Water and Sanitation Companies of Mexico (ANEAS) | www.aneas.com.mx |
| Mexico City Secretariat of Environment (SEDEMA) | www.sedema.cdmx.gob.mx |
Events
- The Green Expo, September 3–5, 2019, Mexico City
- Aquatech Mexico, September 3–5, 2019, Mexico City
- WasteExpo, May 4–7, 2020, New Orleans, Louisiana
- American Water Works Association (AWWA) Conference & Exposition, June 14–17, 2020, Orlando, Florida
Contacts
For more information on the environmental technologies and water sectors in Mexico, please contact:
Francisco Cerón
Commercial Specialist, Water
U.S. Commercial Service—Mexico City
Tel: +52 (55) 5080-2000 ext. 5211
Francisco.Ceron@trade.gov
Claudia Salgado
Commercial Specialist, Environmental Technologies
U.S. Commercial Service—Mexico City
Tel: +52 (55) 5080-2000 ext. 5224
Claudia.Salgado@trade.gov