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Mexico Implementing Clean Energy Reform

Author:Ms Teresa Souza
Profession:Jones Day
 
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In the framework of implementing its Energy Reform and National Climate Change Strategy, Mexico has established clean energy and emission reduction goals as well as requirements to acquire clean energy certificates starting in 2018.

Through the enactment of the General Law of Climate Change on June 6, 2012, Mexico set out a roadmap to: (i) adopt renewable energy resources; (ii) become more sustainable; and (iii) reduce carbon emissions. Mexico committed to reduce greenhouse emissions 30 percent by 2020 and 50 percent by 2050 from 2000 levels. Additionally, by 2024, 35 percent of energy generation must be from clean energy sources. (See Jones Day Commentary, " Mexico Pursues Comprehensive Legal Framework to Address Climate Change.")

In 2013, Mexico reformed the energy sector through a constitutional amendment and the enactment of the Electric Industry Law, its corresponding regulations, and the enactment of the Law on Energy Transition and the Wholesale Electricity Guidelines in 2014 and 2015 (collectively, "Energy Reform"). (See Jones Day Commentaries, " Mexico's New Electricity Market Guidelines," " New Electricity Legal Framework in Mexico," and " Mexican Congress Approves Bill to Open Mexico's Electricity Industry to Private Investors.")

The Energy Reform overhauled the existing legal framework, allowing the private sector participation in the generation and sale of electric power, creating a wholesale electricity market, and promoting the transition to clean energy. In particular, the Law on Energy Transition provides that by 2018, at least 25 percent of energy generation will be clean energy; by 2021, at least 30 percent will be clean energy; and by 2024, at least 35 percent will be clean energy.

Further, under the new legal provisions, electricity suppliers and users must consume or purchase...

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