Mexico

Index rank 41

Balance Score

BBC

Energy Trilemma Index Rankings and Balance Score

 2012  2013  2014  Trend Score
Energy Performance  49  38  38   
Energy Security  35  29  29  B
Energy Equity  52  47  47  B
Environmental Sustainability  73  75  75  C
         
Contextual Performance  58  61  61   
Political Strength  68  65  65   
Societal Strength  68  68  68   
Economic Strength  40  40  40   
         
Overall Rank  46  41  41  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 moves up five places in the Index rankings as energy security and energy equity improve. 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 improvement is driven by increasing energy production, large oil stocks, and an energy consumption growth rate that is well-managed. Energy equity improves this year as the price of electricity goes down while its perceived quality goes up. Mexico, which has a highly-industrialised economy and still generates 79% of its electricity by burning fossil fuels, continues to struggle the most with mitigating its impact on the environment. Mexico’s biggest challenges in the environmental sustainability dimension remain air and water pollution. Contextually, Mexico’s performance is overall stable, with average levels of political and societal strength and a comparatively stronger economy.

Trends and Outlook

The most important policy development is the enactment of the General Law on Climate Change in June 2012. Mexico is the second country, after the UK, that 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 emissions with respect to a business as usual (BAU) projection; 2) by 2024, 35% of the electricity generation has to be from clean energies (non- GHG emitting technologies); 3) by 2050, an aspirational goal of a 50% reduction in emissions with respect to a BAU projection.

Furthermore, the first issue of the National Energy Strategy (NEA) was submitted and approved by Mexico’s congress in 2009, with the provision it should be revisited on an annual basis. Among other provisions, NEA establishes the production from ‘clean energy sources’ in line with the General Law on Climate Change, and although no concrete projects have been decided, nuclear power is being considered as part of the 35% goal for clean energy technologies.

The greatest challenges policymakers ought to focus on in order 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; 3) improved energy efficiency and energy conservation including decreasing energy intensity.