Since the beginning of the COVID19 pandemic in early 2020, Mexico has committed at least USD 3.02 billion to supporting different energy types through new or amended policies, according to official government sources and other publicly available information. These public money commitments include:
- At least USD 3.02 billion for unconditional fossil fuels through 5 policies (1 quantified and 4 unquantified)
- No public money commitments identified for conditional fossil fuels
- Some public money committed for unconditional clean energy (1 policy with the value of public money unquantified)
- No public money commitments identified for conditional clean energy
- No public money commitments identified for other energy
Supporting fossil fuel energy
Supporting clean energy
By energy type, Mexico committed at least USD 3.02 billion to oil and gas (at least USD 3.02 billion to unconditional oil and gas).
In addition, no public money commitments identified for coal.
Further, no public money commitments identified for hydrogen based on fossil fuels.
Finally, no public money commitments identified for multiple fossil fuels.
A considerably larger amount of public money committed to supporting the economy and people of Mexico through monetary and fiscal policies in response to the crisis may also benefit different elements of the energy sector. However, these values are not available from official legislation and statements and therefore are not included in the database. Meanwhile, in addition to monetary and fiscal measures, the database lists other policies and regulations that can also provide benefits to producers and consumers of different energy types.
These public money commitments are additional to many other government policies that had existed to support different energy types before the COVID19 pandemic.
Public money commitments to fossil fuels, clean and other energy in recovery packages, USD billion, as of 12 August 2020
|Read more||Jurisdiction||Category||Policy name||Policy type||Sector||Energy type||Stage||Mechanism||Legislation and endorsing agency||Arm of Government||Primary and secondary stated objective of the policy||Date of entry into force||Implemented repeal date, if any||Value as stated (specify currency)||Value committed, national currency||Value committed, USD||Value disbursed, national currency||Date of announcement||Value disbursed, USD||Policy background||Links to official sources||Links to additional sources|
|national||fossil unconditional||National Austerity Law excludes key fossil fuel and other carbon-intensive projects||Fiscal||Multiple sectors||Non-applicable (non-energy measure)||Non-applicable (non-energy measure)||Regulatory rollback or non-govt fee break or waiver (IT)||Presidential Decree||Government||The Austerity Law seeks to reduce government expenditure in the context of the COVID crisis and oil price crash. However, certain projects and activities were excluded (meaning they will continue to move forward during the emergency period).||23/04/2020||MXN||Unquantified||0||Unquantified||23/04/2020||Unquantified||Actions and expenditures of the government are postponed, with the exception of certain priority programs and projects, including the new airport "Aeropuerto General Felipe Ángeles" and new Mexico City airport system, oil production, rehabilitation of the six refineries, construction of the new refinery at Dos Bocas, among others.||
|national||fossil unconditional||Policy on Reliability, Security, Continuity and Quality in the National Electricity System||Fiscal||Power generation||Multiple energy types||Exploration or production or processing or storage or transportation||New or extended regulation (IT)||Secretaría de Energía (Sener)||Government||This policy is justified as an "indispensable element for strengthening the energy security of the country." It is also expected to contribute to the reliability, continuity and quality of the national energy system, and to help increase the generation of clean energy (connected and not connected to the national energy system).||MXN||Unquantified||0||Unquantified||15/05/2020||Unquantified||
|national||fossil unconditional||Stimulus of public, private and social investment for the energy sector||Fiscal||Multiple sectors||Multiple energy types||Several energy stages||Government procurement (DT)||National government - Presidential speech||Government||Economic growth and job creation, especially in poorer regions of the country.||MXN||Unquantified||0||Unquantified||05/04/2020||Unquantified||President Andrés Manuel López Obrador, in his April presidential address, committed to a program of "public, private and social investment in the energy sector for approximately 339,000,000,000 Mexican pesos" without specifying the percentage from private versus public investment (AMLO speech). The plan was anticipated to launch earlier in the year but has been delayed. News reports suggest that the private sector has lost interest following other changes in the regulation of the power sector by the National Electricity Commission, in combination with the low oil prices, leaving these investments in limbo.||
|national||fossil unconditional||Increased Transmission Tariffs for Private Electricity Providers||Fiscal||Power generation||Multiple energy types||Electricity storage or transmission or distribution||New or extended regulation (IT)||Federal Energy Commission||Government||To create an efficient, secure, clean electricity system with competitive prices.||MXN||Unquantified||0||Unquantified||28/05/2020||Unquantified||The Federal Electricity Commission (Comisión Federal de Electricidad - CFE) increased the rates paid by private electricity providers (generators) for using the public transmission network (the "tarifa de porteo"). These new rates were published after the Energy Regulatory Commission (Comisión Reguladora de Energía -CRE) approved a petition by the national electricity company to increase the costs to private electricity generators. The high and medium-transmission rates changed from 0.049 pesos to 0.2785 and 0.2586 pesos per KW/hr, an increase of 469 and 428%, respectively. The low-tension transmission rate was increased from 0.09799 pesos to 0.8928 pesos per KW/hr, an increase of 811%. The new transmission tariff, know as the "porteo estampilla y porteo térmico" will be applied to thermal plants as well as plantas de autoabastecimiento and renewables considered "legacy plants", meaning their licenses were given by the regulating commission before the Law for Electricity Industry ("Ley de la Industria Eléctrica - LIE). These new transmission tariffs follow assertions by the national government and others that the national electricity company is losing money from the low fees paid by private energy providers.||
|national||fossil unconditional||Fiscal Stimulus to Pemex||Fiscal||Resources||Oil and oil products||Exploration or production or processing or storage or transportation||Tax or royalty or govt fee break (GRF)||Secretaría de Hacienda y Crédito Público||Government||To release resources to increase investments in oil exploration and extraction.||MXN||65.00 billion||3015961396||Unquantified||21/04/2020||Unquantified||Due to the international oil price crash, the Mexican government will reduce the tax on oil extraction, thereby providing a stimulus of up to 65 billion Mexican pesos to foster Pemex investments on exploration and extraction. The tax called the "Derecho de Utilidad Compartida (DUC)" is the tax paid by the company for the amount of crude oil extracted.||
|Mexico City (CDMX)||clean unconditional||Expansion of Cycling Lanes in Mexico City||Other||Mobility||Active transport||Active transport (cycling or walking)||New or extended regulation (IT)||City government, Mexico City Secretary of Transport (Secretaría de Movilidad de la Ciudad de México - SEMOVI)||Government||To reduce congestion in public transport, and to offer an alternative to motorized vehicle use.||01/06/2020||MXN||Unquantified||0||Unquantified||04/06/2020||Unquantified||This policy aims to offer an alternative sustainable transport option, especially oriented toward people who work in essential services.||