Energy Policy

The energy sector in Mexico has great potential to foster economic growth and job creation. The extent to which this will be realised depends on the reforms that the new Mexican government decides to implement in the years to come. In this sense, the commitments included in the Pact for Mexico of pursuing an energy reform, oriented to increase the exploration and production capacity of PEMEX and facilitating competition in refinery, petrochemical sector and transportation of hydrocarbons, as well as supporting development of renewable energy and energy efficiency, are welcome. Emphasis should be placed on increasing investment in the energy sector, in order to enable development of new resources and the deployment of cutting-edge technologies. It is equally important to reform the system of energy subsidies, which the new administration has also shown commitment to revise and reduce. Without such reform efforts, Mexico will find it difficult to reap the huge benefits that energy efficiency can provide.