By Daina Beth Solomon and Dave Graham/Reuters

MEXICO CITY

EnergiesNet.com 02 10 2022

U.S. climate envoy John Kerry on Wednesday said the United States wants to work with Mexico to promote renewable energy, following up on Washington’s concerns that planned changes to Mexico’s power sector will hamper investment in clean technologies.

President Andres Manuel Lopez Obrador has pitched a bill that would prioritize the state electricity utility over private players, sparking widespread criticism that it would undermine wind and solar power investment at a critical time for companies striving to use more clean energy.

Visiting Mexico, Kerry said the U.S. government is ready to be “as helpful as we can be” to push Mexico to ramp up its use of electric vehicles and renewable energy, as companies around the globe step up efforts to meet climate goals.

“Mexico can play a vital, extraordinary role in our efforts to combat the climate crisis,” he said.

His remarks came two weeks after U.S. Energy Secretary Jennifer Granholm came to Mexico to underline U.S. concerns that Mexico’s power bill “would not create a level playing field” for U.S. companies wanting to invest in renewable energy there.

Mexico’s state utility, the Comision Federal de Electricidad (CFE), uses fossil fuels to generate much of its power.

Kerry said the U.S. government was willing to offer financing and technological help to speed up Mexico’s efforts, and would provide more details on Wednesday as he meets with Lopez Obrador and Mexican Foreign Minister Marcelo Ebrard.

A day earlier, U.S. Ambassador Ken Salazar visited renewable energy and battery storage projects in the northern state of Baja California Sur, and stressed U.S. concern over the bill.

“The U.S. government has repeatedly expressed concern about Mexico’s current energy sector proposal,” the U.S. Embassy said in a statement following Salazar’s visit.

“Promoting the use of dirtier, outdated and more expensive technologies over efficient renewable alternatives would disadvantage both consumers and the economy in general.”

The top U.S. business lobby in Mexico this week raised concerns about the legislation, saying it would make it tougher for American companies to meet climate pledges.

Meanwhile, a study by think tank the Mexican Institute for Competitiveness (IMCO) said Lopez Obrador’s initiative would violate aspects of the United States-Mexico-Canada Agreement (USMCA), and “makes the country less attractive as an investment alternative to China.”

Lopez Obrador, who argues that past, corrupt governments rigged the energy market in favor of private capital to the public’s detriment, defended his proposal on Wednesday when asked about the U.S. embassy’s comments.

“What we are doing,” he said, “is seeking to repair damage that was caused to the nation, to the people of Mexico.”

Reporting by Daina Beth Solomon; additional reporting by Stefanie Eschenbacher; Editing by David Gregorio from Reuters.

reuters.com 02 09 2022