Mexico has major climate targets as part of the Paris Agreement. These include generating electricity through clean energy: 25% by 2018, 30% by 2021 and 35% by 2024. Likewise, greenhouse gases (GHGs) are expected to be reduced by 30% by 2021 and 50% by 2050. To achieve these targets, several measures have to be taken, including reducing the use of carbon-intensive energy sources, increasing clean energy sources and decreasing energy consumption in various sectors, such as housing.
Leonardo Beltrán Rodríguez from the Ministry of Energy (SENER) commented on the importance of strengthening national climate change policy. To achieve this, he discussed the promotion of the General Law on Climate Change, which seeks to increase the generation of clean energy until it reaches 50% of energy production. In addition, the intensity of final energy consumption will be reduced at an average annual rate of 2.9% between 2016 and 2050. In other words, energy consumption should be more efficient and its production should be cleaner.
This production could be achieved by replacing coal with natural gas or by generating energy through solar energy. Regarding solar energy, although it requires an initial investment higher than that of natural gas, it is a safe source of energy. Mexico is one of the countries that receives the most sunlight each year, which provides energy security and helps shield it against volatility and changes in the price of inputs such as gasoline and natural gas. According to the Bloomberg website, given that Mexico is an attractive country for solar energy, it should be able to attract foreign investment.
Olivia Flores Parra of SENER spoke about the implications of the energy transition in the electricity sector. Energy diversification is necessary for preventing risks due to price volatility, energy security and reducing polluting emissions; clean energies are the best tool for mitigating climate change. Given the growing opportunities for sustainable investments in Mexico, one of the most attractive emerging markets, the energy reform promotes the reduction of GHG emissions. Therefore, it is expected that, by incorporating more clean energies, electricity generation will be less intensive in fossil fuels.
Silva de Anzorena, the former director of the National Housing Commission (CONAVI), discussed how one of the most effective ways to achieve more efficient energy consumption is through the development of sustainable housing. Two of the programs that promote sustainable housing are EcoCasa and Hipoteca Verde. Mexico is the first country to develop a sustainability policy with a focus on social housing. Currently there are more than 60,000 houses of this type, with a potential for reducing carbon dioxide by 37,200 tons per year. This is due to the use of sustainable materials and energy savings of up to 40 percent in electricity and gas in cool and warm climates.
The seminar took the positions of the electricity, housing, transport and financial sectors into account. In conclusion, if Mexico wants to achieve its targets set out in the Paris Agreement, it will need to have a more efficient and cleaner energy network. The examples mentioned are just some of the many policy and investment options that Mexico will have to carry out if it wants a clean and safe energy future.