Mexico

Mexico ranks 38th in this year´s CCPI, down seven places and among the low-performing countries.

Mexico receives a medium in the GHG Emissions category, very low in Renewable Energy, high in Energy Use, and low in Climate Policy.

Fossil fuels continue to be Mexico’s main energy source for electricity generation. The CCPI country experts report that today´s measures to decarbonize the sector are insufficient. Existing policies include targets for one-third of total electricity to come from renewable sources by 2024, yet the expansion of renewable energy has slowed. Our experts identified the federal government’s failing to continue holding renewable energy auctions, a key tool in accelerating renewable energy, as the main shortcoming.

No plan to phase-out fossil fuels

Mexico has not set a target or a plan to phase-out fossil fuels. In fact, subsidies for fossil fuels, mainly oil, increased in 2021 and 2022. The government has strengthened the state-owned company, which prioritizes fossil fuels. The government also bought a refinery in Texas and is building another one in Mexico domestically, which clearly contradicts the need to phase out fossil fuels. Our experts, however, welcome that the Mexican government has placed a moratorium on new oil and gas leasing rounds.

The experts do highlight positive developments in energy efficiency. Policies are in place to promote mandatory energy efficiency requirements in the industrial and building sectors.

The experts point out several shortcomings concerning illegal deforestation. While the General Law for Sustainable Forest Development (LGDFS) promotes reforestation projects, it is criticised for lacking a long-term sustainable strategy. And despite a target of zero deforestation by 2030, the experts report that livestock production activities, urban sprawl and unauthorized changes in land use are driving deforestation and affect local communities.

Current policies favour fossil fuels

Mexico updated its Nationally Determined Contribution (NDC) in 2022, increasing its ambition to reduce emissions by 35% in 2030 compared with the baseline, and announcing its commitment to achieve net-zero emissions by 2050. However, some CCPI experts note that implementation is not happening at the required pace because current policies favour fossil fuels. They report there is no NDC implementation roadmap nor sufficient accountability mechanisms in place to assess the development of the policies contained in the various instruments established.

Our experts suggest several improvements for Mexico. First, the government should develop a stronger policy framework for progressively reducing oil and gas, and it should implement a just energy transition plan towards renewable energies (like solar and wind) with gender equality, social inclusion, and local participation at the centre. It should also accelerate the successful expansion of electrified public transport and passenger trains. And it should implement policies to halt deforestation and ensure that implementing agencies are sufficiently financed.

It is important to note that the improved performance of Mexico is influenced by new and updated data on the LULUCF sector.

Key Outcomes

CCPI experts

The following national experts agreed to be mentioned as contributors for this year’s CCPI:

• Mariana Gutiérrez Grados, Analuz Presbítero & Jorge Villarreal (Iniciativa Climática de México)
• Jose Maria Valenzuela (InSIS & University of Oxford)