Mexico Evalua’s Report on the Need to Reform the State-Owned Electricity Commission

According to a 2020 México Evalúa report, the state-owned Comisión Federal de Electricidad (CFE) is responsible for 17% of Mexico’s carbon dioxide emissions. The CFE is an electric power company operating as a Productive State Company (Empresa Productiva del Estado), wholly owned by the Mexican Government.

The report, based on an analysis of CFE’s Business Plan 2022-2026, notes that the CFE is responsible for nearly one-fifth (17%) of the country’s total carbon dioxide (CO2 ) emissions and 29% of the national electricity sector’s total emissions.

According to the report, one of the most concerning aspects of the company’s operations is the increased use of fuel oil as its third most significant energy source in 2021. In this sense, it warns that the current Federal Administration’s energy policy is going in the opposite direction of the trend of reducing emissions. By 2024, an increase of 45% is expected in the generation of coal-fired plants. It also projected a 120% growth in the production of combined cycle generators, 559% in internal combustion plants, and 248% in turbo gas.

The report states that in the CFE’s annual report, its fuel oil use increased by 8% compared to the 2020 generation. However, despite this concern, there is no historical report on fuel oil use published by the company, much less related to the activity of the Tula plant, warns the study.

Among the recommendations made by México Evalúa are that the CFE adopt a sustainability policy and strategy and that it publishes public reports on sustainability with frequent and timely updates.  Furthermore, the organization recommends that the CFE form alliances with government agencies, international organizations, and civil society to implement extraordinary strategies to rehabilitate areas in an environmental emergency, such as Tula. In addition to suggesting that the CFE develop a sustainability policy and strategy, publish public sustainability reports, and form alliances with government agencies, international organizations, and civil society.

Mexico accounts for 1.2% of global CO2 emissions. The country must accept its share of responsibility, which comes with being one of the world’s top 20 GHG emitters. In addition, the government must make mitigation and adaptation pledges consistent with the global goal of preventing catastrophic effects of global warming. Mexico’s geographical, topographic, and hydrological location make it vulnerable to extreme meteorological occurrences and other natural disasters. As a result, ecosystems, and humans are particularly exposed to the effects of climate change. In addition, Mexico’s current fossil-fuel-based approach is incompatible with the country’s mitigation targets and commitments to renewable energy.

There is still much to be done for Mexico to reach its climate commitments, and tools like the one presented in this post can foster its achievement. In tracking Mexico’s climate action performance, it is crucial to evaluate and generate strategies to mitigate the impact of Climate Change. Mexico is extremely sensitive to climate change’s effects.

Therefore, it is imperative to prioritize clean energy and encourage the spread of renewable energy technology to meet Mexico’s environmental obligations and objectives. In addition, it is necessary to ensure that Mexico’s energy policies are consistent with national climate goals and pledges, not just for the earth and future generations but also for public health and the well-being of at-risk populations.

This Post was submitted by Climate Scorecard Mexico Country Manager Pablo David Necoechea Porras 


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