Fossil fuels currently account for 85% of Mexico’s energy supply. Oil is the largest source of primary energy at almost 50% largely due to high oil consumption in the transport sector. The role of oil in the power sector, however, has decreased over the last two decades due to a major shift to natural gas.
In 2015, Mexico passed the Energy Transition Law which set targets to achieve “clean” power generation of 25% by 2018, 30% by 2021 and 35% by 2024. Additional targets were set under the National Climate Change Strategy to reach 40% clean power by 2034 and 50% by 2050. However, Mexico’s definition of “clean energy” includes nuclear, CCS and efficient co-generation.,
Mexico did not meet its 2018 clean energy target and is not on track to meet its 2021 and 2024 targets either. In 2020 the government rolled back new renewable projects, citing energy security concerns due to COVID-19. The government has also prioritised the modernisation of existing fossil fuel plants and refineries, while cancelling the fourth clean energy auction. Mexico has not updated its energy sector mitigation targets along with its updated NDC and BAU published in 2020, so the most recent sectoral emissions reduction targets are from 2016.