Green Investment Matches Fossil Fuel Funding for the First Time
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Green Investment Matches Fossil Fuel Funding for the First Time

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Perla Velasco By Perla Velasco | Journalist and Industry Analyst - Fri, 01/27/2023 - 08:55

For the first time, the global green energy industry hit the US$1 trillion investment mark. What is more, green investment matched the same amount as fossil fuels investments in 2022.

According to Bloomberg News, the money that went into the oil industry and fossil fuel-fired power generation reached US$1.1 trillion. At the same time, renewable energy and energy storage, among various other green energy technologies, also reported an investment of US$1.1 trillion

In contrast, Mexico’s energy industry of 2022 was characterized by legal uncertainty. However, it was also defined by the efforts of the private industry to support Mexico’s state-owned companies CFE and PEMEX in building better infrastructure to enhance energy independence. Industry experts have repeatedly underlined the need for collaboration between the private and public sectors to enhance the country’s struggling grid system. Many hope that the government will reevaluate its position and open participation opportunities to the private sector in 2023. 

Mexico promised to reduce its emissions by 35 percent by 2030 and develop a further 30GW in renewable energy over the next seven years at COP27. Nevertheless, Mexico’s energy policy is skewed toward the strengthening of fossil fuel-based power production.

Since the world started measuring carbon footprints in the Paris Agreements framework, it has moved steadily toward implementing the energy transition as a top priority.

Experts often mention Mexico’s outstanding potential to harvest renewable energy. However, energy policy has hampered private participation in further develop cleaner energy solutions and add them to the energy mix. Furthermore, according to experts, Mexico is one of the countries with the most complex bureaucracies in the world, making it difficult to comply with regulations. Still, many companies and entrepreneurs can see the potential Mexico has to develop the energy industry.

Industry leaders will meet at the Mexico Solar Summit 2023 and Mexico Energy Forum 2023 to discuss and forge the foundations of the strategies to be taken to move the industry forward in 2023.

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