Mexico to Benefit from US Infrastructure BillBy Alejandro Enríquez | Thu, 08/12/2021 - 16:31
The recently approved US infrastructure bill bodes well for Mexico’s economy, with the potential of primarily boosting industries such as the automotive and electronics industry. In addition, CFE is making an effort towards renewable energy projects.
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The new scientific report of the UN Intergovernmental Panel on Climate Change (IPCC) warns that unless urgent actions are taken to fight climate change the opportunity to limit the increase in global temperature to 1.5°C will quickly close. The report also addresses the role of humanity in climate change and the permanent damage done so far.
Canadian Pacific Railway Limited has announced they have submitted a superior proposal to acquire Kansas City Southern (KCS) in a stock and cash transaction valued at approximately US$31 billion, offering KCS stockholders an alternative that recognized the premium value of KCS while providing more regulatory certainty. The proposed transaction, which has the support of the Canadian Pacific (CP) Board of Directors, values KCS at US$300 per share, representing a 34 percent premium, based on the CP closing price on August 9th, 2021, and KCS unaffected closing price from March 19, 2021, according to the press release based on a letter to the KCS Board of Directors outlining the proposal.
The International Renewable Energy Agency (IRENA) reports that renewable energy technologies added 162 GW, or 62 percent of power generation capacity in 2020, effectively displacing the cheapest fossil fuel option, coal.
The Federal Electricity Commission’s (CFE) renewed gravitation towards renewable energy projects indicates that the company has begun to understand that all the world´s electrical systems are making the transition. For Mexico in particular that points towards strengthening the National Electric System (SEN) said Cesar Hernandez Ochoa, founding partner of Publius Consulting and former commissioner of National Commission for Regulatory Improvement (CONAMER) at the International Symposium of Energy (SEIC).
President Joe Biden’s recently approved infrastructure bill bodes well for Mexico’s economy. The bill which was passed this Tuesday represents a huge victory for the president´s administration. It is the largest infrastructure bill in decades and it aims to spur investment in roads, bridges and improved internet access. The US$1 trillion investment includes US$550 billion in new spending, while the rest of the US$1 trillion is comprised of previously approved funding. Its effect would also benefit the Mexican Economy providing opportunities in the medium term.