The World Is Not Ready to Forsake Fossil Fuels: UAE

The upcoming COP28 climate summit has sparked controversy following the announcement of its advisory board members. Meanwhile, Huimilpan’s wind farm in Queretaro is expected to begin operations in June 2023.

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COP28 Advisory Board: UAE Rejects Fossil Fuel Switch-Off

The upcoming COP28 climate summit, set to take place in Dubai in November, has sparked controversy following the announcement of its advisory board members, which include former oil company executives. The focus of the COP28 is expected to be on carbon capture technology as a means to reduce GHG emissions. The UAE pointed out that countries should focus on phasing out fuel emissions rather than completely halting the production of oil, gas and coal since, according to the UAE Minister for Climate Change and Environment, “the world is not yet ready to switch off fossil fuels.”

Queretaro Wind Farm Will Begin Operations in June 2023

Huimilpan’s wind farm in Queretaro will soon begin operations, after a series of technical tests and the approval of permits by CRE. Mauricio Kuri, Governor, Queretaro, highlighted that Eolica Huimilpan, the company that will operate the farm, has the necessary permits and the support of the state government. According to the governor, about MX$1 million (US$55,870.8) were invested in the construction of the complex, which will have a generation capacity of 30MW and provide electricity to around 30,000 households. 

Small, Medium Installations Drive Growth in Photovoltaic Industry

Despite auction cancellations, the Mexican photovoltaic sector highlights continuous growth in the photovoltaic industry, especially driven by small and medium installations. Solar power player Ginlong Solis reported that energy storage covers between 10 and 15% of the DG capacity systems for homes and businesses in Mexico. “The adoption of solar energy in Mexico for the residential sector and small businesses is thriving,” stressed Sergio Rodríguez, Service Manager for Mexico and Latin America, Ginlong Solis.

Bloomberg Philanthropies, IRENA Unite Foster Renewable Revolution

Ahead of the 2023 UN climate conference COP28, Bloomberg Philanthropies and the International Renewable Energy Agency (IRENA) have joined forces to accelerate clean energy development and global climate action. The collaboration has outlined three strategies: building capacities in Southeast Asia, Africa and Latin America, strengthening project finance and preparation and encouraging private capital mobilization. In Mexico, the INECC pointed out that an investment of US$126 billion is required to meet the country's energy transition goals and reduce carbon emissions.

Mirova, Robeco to Tackle Scope 4 Emissions

Mirova, Robeco, and 11 other asset management firms have initiated a call for expressions of interest (CEI) to establish a comprehensive global emissions database. According to Business Wire, the journey toward achieving global net-zero emissions by 2050 demands a substantial investment ranging from US$109 to US$275 trillion. The bulk of this investment will be channeled into "climate solutions" such as renewable energy generation, electrified transportation and sustainable buildings.

CFE Reveals Technology Strategy to Face the 2023 Hurricane Season

CFE presented its strategy to address the 2023 hurricane season with technological innovation. According to the state company, with a national electric coverage surpassing 99%, the utility operates and maintains infrastructure across the country to respond to emergencies. CFE pointed out that it is a priority to maintain supply at hospitals, water systems and households during emergencies.

How New CSRD Reporting Rules Could Impact Companies in Mexico

Ruth Guevara, EY Latin America North Partner, Leader for Climate Change and Sustainability Services pointed out that companies should review the European Commission’s draft disclosure standards to plan for the CSRD. Given the close commercial relationship between Mexico and the EU, the directive is a significant piece of emerging international regulation. Trade between Mexico and the EU in 2022 amounted to US$85.8 billion with Germany, Spain, and Belgium as the main export markets. 

Opportunities, Challenges in Market for Solar Energy, Storage

According to Daniel Rosende, Director General, SMA Solar, opportunities for solar energy are growing in Latin America, which brings both opportunities and challenges. Rosende highlighted Mexico’s potential in terms of photovoltaic energy and pointed out that SMA Solar wants to bring clean energy solutions for residential and industrial projects in a variety of sectors, including food, chemicals and mining. 

What Megatrends Will Impact Copper Demand?

Saulo Guzman, General Manager, Wieland Metal Services talks about global copper demand and supply regarding three main trends: electric cars, energy industry and construction. According to Guzman, current global copper demand accounts for 25 million mt, growing to 50 million mt in 2035 and 53 million mt by 2050. “This will have an effect, of course, not only on price but also on availability … Scarcity will occur, and winners will be those companies that have the metal available and are able to pay the price for it,” said Guzman. 

Energy Supply Is the Real Challenge for Nearshoring

Ricardo Zuñiga, Country Manager, Capwatt stressed the importance of energy supply in the face of nearshoring. According to the manager, It is not just a matter of power generation, but a lack of infrastructure for delivering this power. “Being in close proximity to a market is not enough when other key pieces of the business are not there. The real challenge will be supplying the energy needed for all these businesses coming into the country,” writes Zuñiga.