Mexico Plans Faster Energy Transition, Officials Say

Following Mexico’s participation in Climate Week 2025 in New York, Minister of Environment and Natural Resources Alicia Bárcena and President Claudia Sheinbaum outlined measures to accelerate the country’s energy transition and expand sustainable infrastructure. The announcements were made at Sheinbaum’s daily press conference on Sept. 29.

At the briefing, both leaders highlighted the role of Plan México, a US$277 billion national development strategy, in advancing sustainability goals. Bárcena noted that renewable energy currently represents about 22% of Mexico’s electricity mix, and the government aims to double or triple this share by 2035. She added that around 70% of the country’s thermal power plants have already converted from fuel oil to natural gas to reduce carbon emissions. Long-distance electrified passenger rail projects, including the Queretaro-Irapuato and Saltillo-Nuevo Laredo lines, being tendered this fall, were also presented in New York as part of the administration’s low-carbon infrastructure strategy.

The press conference also highlighted industrial policies forming part of Mexico’s climate agenda. Bárcena stated that Plan México will increase domestic vehicle production by 10% through the design and assembly of a low-cost electric car manufactured entirely in Mexico. The plan also aims for a 15% increase in local content by replacing imported electronic components, expanding aluminum parts production, and developing domestic battery cell manufacturing. Additional initiatives include train and component production, the expansion of dual education programs, and 10 public transport electrification projects across Nuevo Leon, CDMX, Jalisco, Guanajuato, Michoacan, Tamaulipas, Aguascalientes, Guerrero, and Oaxaca.

Bárcena highlighted complementary initiatives such as the Biocultural Corridor of the Great Mayan Forest (CBGSM), launched on Aug. 16 by Mexico, Guatemala, and Belize. The corridor protects 5.7 million hectares of forest, supporting 7,000 species, including 200 at-risk and 250 endemic species. Mexico will seek to include the CBGSM in the Tropical Forests Forever Facility (TFF), a blended-finance mechanism launched by Brazil to incentivize rainforest conservation. 

President Sheinbaum emphasized the Sembrando Vida program, which provides financial and in-kind support to older adults in rural communities managing at least 2.5 hectares of land suitable for agroforestry projects. She noted the program received MX$39 billion (US$2.13 billion) in 2025, surpassing the combined contributions of all countries to international green funds.

Despite these claims, environmental groups argue that such programs have limited impact on the climate crisis. A study by Engenera, CEMDA, Greenpeace, Oceana México, and Fundar found no evidence that Sembrando Vida has reduced greenhouse gas emissions since its 2023 launch.

Critics also note that the MX$39 billion allocation pales compared with fossil fuel and energy spending. According to the proposed Federal Expenditure Budget Project (PPEF 2026), PEMEX will receive US$28.2 billion, and the Ministry of Energy (SENER) will see its budget rise 86.8% to US$14.5 billion, of which only 1.4% (US$94.3 million) is allocated to clean energy, while 98.6% (US$14.3 billion) goes to hydrocarbons.

By contrast, SEMARNAT will receive just over US$103 million in federal funds in 2026. The National Commission of Natural Protected Areas (CONANP), which manages nearly 11% of Mexico’s territory, will receive roughly US$52 million—its lowest in 21 years. Meanwhile, the Federal Attorney for Environmental Protection (PROFEPA), responsible for enforcing compliance in protected areas, is allocated only US$1.5 million for 2026 operations.