No Change in Energy Policy Because of US: López ObradorBy Cas Biekmann | Thu, 01/21/2021 - 14:54
After US officials objected to Mexico’s recent energy policies, President López Obrador said that Mexico will not change its energy policy despite Joe Biden entering the Oval Office. In other news, CRE suspends its activities and PepsiCo aims to reach 100 percent renewable energy in Mexico in 2021. Ready for more? The weekly roundup has arrived!
US Officials Object to Mexico’s Energy Investment Barriers
Three officials from Donald Trump’s administration issued a formal letter to the Mexican government regarding blocked investments in the private energy sector. Impediments have damaged Mexico’s “investment climate” and have breached the USMCA agreement, claimed Secretary of State Mike Pompeo, Secretary of Energy Dan Brouillette and Secretary of Commerce Wilbur Ross, reported Reuters.
The letter dating Jan. 11 was addressed to Rocío Nahle, Minister of Energy; Marcelo Ebrard, Minister of Foreign Affairs and Minister of Economy Tatiana Clouthier. It warns that several actions and policies taken by the Mexican government could jeopardize millions of dollars in investments. The officials have paid close attention to López Obrador’s alleged instructions for regulators to block permits for private producers in favor of state-owned PEMEX and CFE. “If true, this would be deeply troubling and raise concerns regarding Mexico’s commitments under USMCA,” reads the letter.
López Obrador Says Energy Policy to Remain Unchanged Under New US Government
President López Obrador said he would not change his energy policy, which focuses on strengthening PEMEX and CFE. This could bring detrimental effects for private energy players. Reuters reported that the president’s statement was brief: “There is not going to be a change,” he said.
CRE Suspends Activities, Cites COVID-19 Concerns
Energy regulator CRE has indefinitely suspended its activities, citing concerns about the rapid infection rate of COVID-19 in the country, BNAmericas reports. In the Federation’s Official Gazette, an agreement states that the regulator will not resume activities until COVID-19 cases in Mexico City fall sharply. Last week, president López Obrador stated his intention to have independent regulators such as CRE absorbed into ministries, in this case SENER.
Natural Gas Companies in Mexico Want More Connectivity and Independent Price Indexes
Natural Gas Intelligence reports that despite Mexico’s progress in natural gas, important players within the sector signal that there is still much room for improvement. Further connectivity, especially in the so-called last mile, and independent price indexes are among the main topics addressed.
US Re-Joins Paris Agreement as Biden Enters White House
Immediately after being sworn in as the US' 46th President, Joe Biden announced he would re-join the Paris Agreement, which Trump’s administration had shoved aside. In addition, Biden rolled out several executive orders to tackle climate issues and reversed Trump’s orders that were “harmful to public health, damaging to the environment, unsupported by the best available science or otherwise not in the national interest,” his team said.
PepsiCo Aims for 100 Percent Renewable Energy in Mexico, Australia for 2021
PepsiCo, a giant in the energy-intensive food and beverages industry, has announced it expects to reach 100 percent renewable energy for its operations in Mexico and Australia. The company has far-reaching climate goals in general, aiming to reach net-zero emissions globally by 2040.