Mexico Evalúa Launches Energy Transition Bulletin
México Evalúa launched a bulletin to report developments regarding the energy transition in Mexico.
Named after the navigational instrument used to measure the angle between two objects, The Sextant project aims to observe the energy transition in Mexico. “We have set out to observe and analyze the process of Mexico's energy transition toward the decarbonization of the economy, just as navigators have used the sextant to observe the position of the stars and measure distances through angles,” announced the organization.
México Evalúa aims to track public policy processes from legal, regulatory, judicial, economic and social angles, as well as continuously monitor the performance of state-owned and private companies participating in energy markets. The NGO said it is essential to ensure the energy sector includes communities, creates new jobs and protects consumers as it strives to become more sustainable.
In its first edition, the bulletin covered the state of today’s energy policies compared with Mexico’s energy transition targets. In 2022, 26.8% of energy was generated through clean sources. The current goal is to raise this number to 35% by 2024. In 2022, 1.1 million people did not have access to electricity, while the government’s goal is to reduce this number to zero but it has set no deadline to make this happen. For 2040, the goal in electromobility is for car sales to be 100% zero-emissions vehicles, yet up to November 20222, these types of vehicles represented 0.92% of cars sold.
México Evalúa highlights that market mechanisms play a significant role in shaping energy transition processes, so organizations such as the Federal Economic Competition Commission (COFECE) are key for regulation, especially in the context of the USMCA consultations regarding unfair competition by the state. The government has privileged CFE and PEMEX over private players, but México Evalúa points out that these companies are at risk regarding their ESG compliance.
The Sextant’s first edition covered the risks of negative developments in the USMCA energy consultations, which might lead to severe consequences regarding the treaty’s viability as well as set back Mexico’s energy transition.
México Evalúa committed to track the energy transition such as the deployment of the Sonora Plan, Raquel Buenrostro’s energy commitments to Mexico’s trade partners and the Supreme Court’s revision of amparos regarding the Electricity Law (LIE).