Kia Motors México faced legal challenges in 2022 when the Procuraduría Federal de Protección al Ambiente (PROFEPA), Mexico’s environmental protection agency, imposed fines for non-compliance with NOM-163-SEMARNAT-ENER-SCFI-2013. This Mexican Official Standard mandates that certain car models obtain environmental compliance certification and meet specific carbon dioxide emission standards, aiming to reduce air pollution and combat climate change.
PROFEPA levied two sets of fines against Kia Motors. The first was for lacking the required NOM Certificate of Environmental Compliance. The second was for failing to prove adherence to carbon dioxide emission criteria for its 2016 vehicle models. Crucially, for both infractions, PROFEPA issued seven fines – one for each car model that was non-compliant.
However, on August 11, 2022, the Federal Tribunal of Administrative Justice ruled on Kia’s challenge to the first sanction. The Tribunal decided that the fine related to the Certificate of Environmental compliance was unlawful. Furthermore, it determined that Kia could not be penalized seven times for what was considered a single violation; only one fine was deemed appropriate.
PROFEPA appealed this decision on November 17, 2022. They argued that fining Kia for each of the seven car models was justified because each model line has unique specifications and must independently meet carbon dioxide reduction targets. PROFEPA contended that non-compliance by any model meant all seven models failed to meet emission limits. To illustrate their point, PROFEPA likened applying a single fine to a mass murderer receiving only one penalty, despite taking multiple lives.
The Collegiate Court reviewed the appeal and, on September 22, 2023, overturned the previous decision. The court upheld the legality of both original sanctions and asserted that, based on Article 4 of the Mexican Constitution (protecting the right to a healthy environment), the “polluter pays” principle, the principle of prevention, and the principle of in dubio pro natura (when in doubt, favor nature), fining Kia for each car model was indeed appropriate.
The Collegiate Court reasoned that environmental administrative law must effectively deter environmental damage and discourage potential offenders. They concluded that interpreting NOM-163 to allow fines per model best protects the right to a healthy environment and supports the fight against climate change in Mexico.
Following this Collegiate Court decision, the Federal Tribunal of Administrative Justice is now required to issue a new ruling that aligns with the Collegiate Court’s considerations. This revised decision is currently pending, marking the next stage in the legal proceedings for Kia Mexico and its environmental compliance in the country.
