Four US senators have sent a letter to the president’s administration Joe Biden to demand to stop the Mexican energy reform and promote greater cooperation between Mexico and the United States in clean energy to compete with China.
“Cooperation with Mexico in the development of clean energy, including the cultivation of critical minerals (sic), is essential to foster competition with China,” said lawmakers including Robert Menendez, president of the United States Senate Committee on Foreign Relations.
The letter was signed on January 18, addressed to Antony Blinken, Secretary of State, and Jennifer Granholm, Minister of Energy, and was also signed by Senators Brian Schatz, Jeff Merkley, and Tim Kaine.
“We write with concern about the actions of the Mexican president Andres Manuel Lopez Obrador to undermine the development efforts of renewable energy of the private sector in Mexico in favor of state-owned fossil fuel industries and we call on the Biden administration to speak out in support of renewable energy production that will benefit both countries, ”they began by saying in the letter.
The senators argued that in December, in line with AMLO’s efforts to grow in the Mexico’s renewable energy sector, Mexico has a revised National Determined Contribution (NDC) to the Paris Agreementlamentably underperforming, committing to reducing emissions by only 22% and black carbon emissions by 51% by 2030.
Furthermore, according to them, it is likely that the Chamber of Deputies of Mexico votes in mid-April on a bill that would restore the 2014 energy reform law that would allow private and foreign investment in Mexico’s energy sector and state dominance Federal Electricity Commission (CFE) on the energy sector.
If instituted, they described that the Mexican government would cancel permits, contracts and certificates for renewable energy; would eliminate federal energy regulatory agencies that provide checks and balances to state energy companies; there will be a guarantee that CFE controls at least 54% of the market; a reorganization of private and state energy production quotas to benefit the production of fossil fuels; and establishes the State as the sole executor of the transition from clean energy from mexico.
“Perhaps more detrimental to the priorities of the Biden administration, this legislation would prohibit concessions to extract strategic minerals such as lithium and copper,” they added.
From its perspective, this policy would contradict the ban on new investment restrictions of the Treaty between Mexico, the United States and Canada (T-LUR) and will exacerbate concerns about national security associated with critical mineral deficiencies.
“It will also threaten at least $ 44 billion in private investment in Mexico’s energy sector, negatively impact US private sector investment in Mexico, and be the antithesis of the historically strong US-Mexico economic relationship.” they said.
roberto.morales@eleconomista.
Reference-www.eleconomista.com.mx