This week in Mexico...Market Watch
The Chamber of Deputies began to discuss the 2022 electricity reform initiative proposed by President Andrés Manuel López Obrador in September 2021. This reform was one of the president's biggest bets. It proposed limiting private participation in the energy sector and giving more power to the Federal Electricity Commission (CFE). The tension was palpable in the Chamber of Deputies on Saturday, hours before the beginning of the discussion. Finally, the Chamber of Deputies decided to vote against the constitutional reform. On another note, Nestlé Mexico has launched RE, an initiative that aims to boost the recycling culture. The Secretary of Sustainable Economic Development (SDES) has highlighted Procter & Gamble Guanajuato as an example of commitment to the environment. Forbes Mexico stresses the importance of creating an innovation ecosystem as an essential element for a clean energy transition. Ponciano Arriaga International Airport, the second Mexican airport to receive LEED Sustainable certification. And, if you enjoy sustainable fashion, you can't miss the exclusive interview with designer Marisol Centeno from InStyle Mexico.
This Sunday, April 16, the discussion of the 2022 electricity reform initiative, proposed by President Andrés Manuel López Obrador, began in the Chamber of Deputies. This reform seeks to modify Articles 25, 27 and 28 of the Constitution, in addition to adding a series of transitory articles. Its objective: to repeal the 2013 energy reform, proposed by former President Enrique Peña Nieto.
According to Wilson Center analysts, since the 2013 reform, Mexico has experienced a profound and rapid opening of its oil, gas and electricity sectors, as well as attempts to reform the national oil company, Pemex, and the national electricity company, the Federal Electricity Commission or CFE. However, according to President López Obrador, the nine-year-old law does not benefit the country or Mexicans, as it grants greater benefits to private and foreign companies.
For this reason, the Fourth Transformation (4T) government proposed, in September 2021, the electricity reform initiative, with the intention of favouring state-owned electricity generation plants to be self-sufficient and, at the same time, cut energy sales from private projects coming from abroad.
According to BBC News, the president's reform had as its main objective to return to the CFE the dominance (54%) in the generation and sale of electricity in the country that today is controlled by the private initiative in more than 60%. The government argued that the CFE was wasting its generating capacity by being underutilized due to limitations in the law, which translates into losses for the treasury and profits for private generators. However, opposition legislators argued that this was an attempt to create a state monopoly in the sector, that the CFE operates with obsolete and polluting plants, and that all this translates into damage to the environment and to investments in clean energy.
The proposal has been criticized by environmental associations, companies and foreign governments. The tension was palpable in the Chamber of Deputies on Saturday, hours before the beginning of the discussion.
Morena, the president's formation, has not obtained enough support to achieve the qualified majority of two thirds of the seats, in the face of the refusal of a united opposition. There were 223 votes against and 275 votes in favour, compared to the 334 needed.
The reform proposal has been a central issue on the Mexican public agenda since the president sent the proposal to Congress at the end of September last year, which had even strained bilateral relations with the US government.
Nestlé Mexico launches RE, an initiative focused on promoting the culture of recycling in the country, encouraging easy and immediate actions, as well as the adoption of new habits and behaviours on post-consumer waste management, based on three fundamental premises: Reduction, Reuse and Recycling, as part of its commitment to achieve a more sustainable future.
As part of this initiative, the world leader in Nutrition, Health and Wellness created an online platform where it offers educational content focused on the correct way to dispose of waste at the end of its useful life at home or office, allowing them to integrate them into a recycling chain.
Mauricio Usabiaga Díaz Barriga, Guanajuato’s Secretary of Sustainable Economic Development (SDES) gave a talk in honour of the "Earth Week" celebrations held by Procter & Gamble Guanajuato. In his speech he highlighted P&G Guanajuato as an example of commitment to the environment.
The P&G Guanajuato plant's goal is to ensure that all the energy it uses can be reused. To date, they have managed to reduce water consumption by 25%, natural gas consumption by 80% and electricity consumption by 30%.
The creation of an innovation-driven ecosystem is essential for a true clean energy transition that goes beyond the development of renewable energies per se. Forbes Mexico highlights four key points to achieve this: the importance of investing in energy storage systems, the need for the electricity used by industry to replace hydrocarbons to come from renewable sources, promoting the transition to electric mobility and encouraging the growth of clean energies in the Mexican electricity matrix.
Ponciano Arriaga International Airport becomes the second airport in Mexico to receive this rating, and the first in the OMA Group to obtain it.
LEED (Leadership in Energy and Environmental Design) Certification is an internationally recognized certification system for sustainable buildings created by the U.S. Green Building Council (U.S. Green Building Council).
Renowned Mexican designer Marisol Centeno provides an exclusive interview to InStyle Mexico. In the interview, the designer talks about her brand BiYuu, which always seeks social responsibility and is a clear example of collaborative work and sustainability, the challenges she faced for its creation, her collaborations and work with artisans from Teotitlán del Valle, Oaxaca and Uttar Pradesh, India, and her opinion on the sustainable production market in Mexico.
Translated with www.DeepL.com/Translator (free version). Proofread and edited by LCBA in Mexico team.