Mexico

Index rank 41

Balance Score

BBC

Energy Trilemma Index Rankings and Balance Score

 2012  2013  2014  Trend Score
Energy Performance  49  38  37   
Energy Security  35  29  30  B
Energy Equity  52  47  43  B
Environmental Sustainability  73  75  74  C
         
Contextual Performance  58  61  52   
Political Strength  68  65  63   
Societal Strength  68  68  68   
Economic Strength  40  40  42   
         
Overall Rank  46  41  38  BBC
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Fossil Fuel Reserves

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Key Metrics

Industrial sector (% of GDP) 34.2
TPEP / TPEC  (net energy exporter) 1.21
Emission intensity (kg CO2 per USD) 0.29
Energy affordability (USD per kWh) 0.09
GDP / capita (PPP, USD); GDP Group 14,616 (II)
Energy intensity (million BTU per USD) 0.13
CO2 emissions (metric tons CO2 per capita) 3.64
Population Access to Electricity (%) 99.2
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Index Commentary

Mexico continues the positive trend of previous years and moves up three places in the Index rankings. Like the other ‘Highly-industrialised‘ countries, Mexico shows a strong performance in energy security, decent levels of energy equity, and an environmental sustainability ranking that lags behind. The net energy exporter’s energy security remains stable with no noteworthy changes. Energy equity improves this year as prices for electricity and gasoline are mostly stable, compared to sharp increases in other countries, and the perceived quality of electricity supply goes up. Mexico, which has a highly-industrialised economy and still generates 81% of its electricity by burning fossil fuels, struggles the most with mitigating its impact on the environment. Mexico’s biggest challenges in this dimension remain air and water pollution. Contextually, Mexico’s performance is overall stable, with moderate levels of political and societal strength and a comparatively stronger economy.

Trends and Outlook

The most recent policy development is the reform of the energy sector: the government approved: The Government approved the constitutional changes and respective legislation allowing the full participation of the private sector through competitive markets in most of the activities involved. Thus, the Mexican energy sector will have the challenge to manage two transitions simultaneously: the transition from a monopolistic structure to a competitive market scheme and from a high carbon to a low carbon economy.

One of the new laws establishes a cap-and-trade scheme for the energy sector bringing it in line with the 2012 General Law on Climate Change. Mexico is the second country, after the UK, which has enacted a law that frames the actions to be taken as far as climate change is concerned, both from an emission mitigation point of view as well as measures of adaptation. The three explicit goals are: 1) by 2020, there should be a 30% reduction in GHG emissions with respect to a business as usual (BAU) projection; 2) by 2024, 35% of the electricity generation has to come from clean energies (non- GHG emitting technologies); and 3) by 2050, an aspirational goal of a 50% reduction in GHG emissions with respect to a BAU projection.

The greatest challenges policymakers need to focus on to meet the above mentioned targets are: 1) the continuation of a renewable energy program and the re-initiation of a nuclear programme; 2) continued increase of production of both oil and natural gas on and off-shore as well as the development of shale gas resources; and 3) improved energy efficiency and energy conservation including decreasing energy intensity.