In Mexico, the Light Manufacturing Industry (LMI) plays a strategic role in the economy, accounting for 13.9 per cent of GDP. The sector also accounts for 80 per cent of total manufacturing production, 65 per cent of total exports, 91 per cent of total manufacturing jobs, and attracts 39 per cent of total foreign direct investment into the country. In terms of greenhouse gas (GHG) emissions, the LMI contributes to 7 per cent of national emissions, and if no mitigation actions are taken, WRI estimate 3 per cent growth annually from now until 2050.

Electrification of LMI is a means to decarbonize the sector, as long as power is provided by clean sources. From 1990 to 2018, power increased in share in energy provision for the sector from 30 to 65 per cent.

Against this backdrop, the report ‘Challenges and opportunities of Decarbonization for the Light Manufacturing Industry in Mexico’, builds knowledge and highlights transition opportunities towards a low-carbon path in the sector, by looking at:

  1. Internal operations through energy efficiency, electrification processes and introduction of renewable energies;
  2. Optimization of the value chain;
  3. Operation with circular economy and minimum GHG emissions

These measures, if implemented, can contribute to a reduction of around 48 per cent of LMI emissions, and prevent up to four thousand deaths associated with a lower exposure of pollutants from the burning of fossil fuels, in addition to supplying investment returns and an incentive of sustainable recovery for this industry. The approaches taken now to stimulate a sustainable economic growth on the most relevant industries to the economy, such as LMI for Mexico, will have important and lasting positive effects on businesses, environment and societies.

Read the full report in PDF format

 

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