As Latin America’s second-largest emitter of greenhouse gases (GHG), Mexico is at a critical moment to bridge the gap between commitments and implementation in the just energy transition. With 74,9% of primary energy supply coming from fossil fuels as well as 37% of households experiencing energy poverty, prompt action to align energy policies with climate objectives in Mexico is essential.
In this paper, Iniciativa Climática de México (ICM) analyses two key policy instruments supporting the energy transition by applying the Climate Policy Implementation Check’s methodology: The Fund for Energy Transition and Sustainable Energy Use (Fondo para la Transición Energética y el Aprovechamiento Sustentable de la Energía, FOTEASE) and the Trust Fund for Electrical Energy Savings (Fideicomiso para el Ahorro de la Energía Eléctrica, FIDE).
ICM recommends updating both instruments to enhance transparency through e.g. clearer goals, increased integration with broader climate strategies as well as strengthened accountability. Ultimately, this would support progress towards Mexico’s just energy transition by not only enhancing governance structures of these instruments but further supporting their alignment with the country’s updated NDCs.
This assessment is a part of a series of national papers, which analyse the status of climate finance regulations and explore existing gaps in implementation in Indonesia, Argentina, Mexico, and Brazil with the support of the Climate Emergency Collaboration Group.