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News Article

Reaching Zero Emissions in Mexico is a Challenge

By Sofía Hanna | Mon, 09/13/2021 - 11:39

Global industries continue to seek to meet their challenges as the increasing global urgency around climate change has accelerated the actions of governments, businesses and stakeholders. The ultimate goal is to reduce greenhouse gas emissions by 50 percent by 2030 and net zero emissions by 2050. 

 

According to a recent Bain & Company research, 60 percent of business leaders in the energy and natural resources sector globally stated that the energy transition is critical to the future of their industry. Additionally, 35 percent of business leaders surveyed indicated that they are beginning to change their priorities and create decarbonization opportunities. Given all this situation and itchanges, it is important to consider ways to the following questions to define, implement and promote decarbonization actions in the business sector, according to Bain & Company

  • What level of ambition and speed should the decarbonization plan have?
  •  What are the resources are available? 
  • How to adjust the organization to the plan? 
  • How to involve other actors in decarbonization plans?

 

In Mexico, for its part, the reform of the General Law on Climate Change establishes an emissions trading system to promote emission reductions. Considering Given Mexico´s Mexican goals, an emissions trading system offers the possibility of promoting the reduction of emissions with the lowest possible cost, in a measurable, reportable and verifiable manner way, without jeopardizing the competitiveness of the participating sectors vis-à-vis international markets. In addition, an SCE has the following advantages: It is an effective policy decision, invites regulated sectors to seek the most cost-effective way to reduce their emissions, encourage technological innovation, provides flexibility in compliance, responds to economic fluctuations, given an eventual linkage of SCE, and it allows several countries to jointly meet their mitigation objectives, as reported by the Mexican government. 

 

Despite having this project it is imperative for Mexico, according to information from Greenpeace, to change the course of organizations and make recommendations within the framework of the 2021 Economic Package, since only 1.1 percent of the government resources go towards addressing climate changeOf these, most of them are transport natural gas, an activity that generates emissions that cause global warming. The organization proposes that it should have taxed carbon, sulfur dioxide, and mobile sources. The major contributors to climate change are in Mexico are Pemex, given the exploitation of unconventional oil and gas and the use of fracking, and the CFE, which only has a 0.3 percent n investment of 0.3 percent in renewable energy.

 

Having Putting a sustainable and emission-free future also brings benefits to organizations in terms of cost reduction and growth while protecting themselves from business risks. An advantage is that the same customers in the country and in the world are becoming aware and those who do not begin to change are left out of the companies considered to consume. 

The data used in this article was sourced from:  
Bain & Company, GreenPeace, GOBMEX
Sofía Hanna Sofía Hanna Junior Journalist and Industry Analyst