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Licensed Unlicensed Requires Authentication Published by De Gruyter 2023

Mexico: Energy Transition in an Uncertain Legal and Institutional Setting

From the book Handbook of Energy Law in the Low-Carbon Transition

  • Marisol Anglés Hernández and Jose Maria Valenzuela Robles Linares


Mexico’s legal framework for the energy transition faces major challenges to promote investment while protecting the environment and human rights, in the middle of contestation over the formal roles of state control and private markets. The conflict between multiple public objectives, within an uncertain institutional setting, has hindered the development of an appropriate legal system to decarbonize the economy, manage physical risks of climate change, and direct the country toward the goals of the Sustainable Development Agenda 2030. Within this context, the chapter reviews the implication of the oil and gas industry deeply entrenched in the neoliberal economies of North America. It describes the specific Mexican legislation on climate change and energy transition and its institutions, and how it is still failing to provide adequate policy tools or governance systems to guide public spending and industrial regulation for decarbonization. We critically consider the constraints and opportunities imposed by a model of state-owned companies’ dominance, on the one hand, and by the model of liberalization and state de-risking of private investment on the other. Finally, we discuss how principles on human rights and sustainable development could serve as leverage to guide the energy transition.

© 2023 Walter de Gruyter GmbH, Berlin/Boston
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