Report on Mexico’s Energy Transition and Alignment with Sustainable Development Goals

Executive Summary

This report analyzes the complexities of Mexico’s energy transition, focusing on the role of natural gas and the imperative to align with the United Nations Sustainable Development Goals (SDGs). It examines the nation’s increasing reliance on imported natural gas, the economic and environmental consequences, and the strategic pathways required to foster a sustainable energy future. The analysis emphasizes the interconnectedness of SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).

Global Energy Transition and SDG 7

Disparities in Achieving Affordable and Clean Energy

A significant tension exists between developed and emerging economies regarding the pace of the energy transition. While developed nations advocate for accelerated adoption of renewables, developing regions in Asia, Latin America, and Africa face economic growth lags that impede large-scale investment in wind and solar infrastructure. This divergence poses a challenge to the universal achievement of SDG 7.

Natural Gas as a Transitional Fuel

In the context of this global debate, natural gas is proposed as a transitional fuel to bridge the gap between high-polluting fossil fuels and renewable energy sources. Its advantages in this role include:

• Lower carbon dioxide (CO2) emissions compared to other fossil fuels like coal.
• Greater accessibility and established infrastructure.
• Serving as an initial step toward diversifying the energy matrix, supporting SDG 7 and SDG 13.

Analysis of Mexico’s Energy Sector and SDG Alignment

Energy Vulnerability and Dependence on Imports

Mexico’s current energy scenario is characterized by high vulnerability, directly impacting its progress towards SDG 7. Key indicators include:

• A fivefold increase in demand for natural gas for electricity generation since 2020.
• A concurrent decline in domestic production, leading to a surge in imports from the United States.
• International gas purchases have increased more than 22-fold.
• An estimated 48% of electricity consumed in 2024 will be generated from imported gas.

Economic and Climate Implications

A study by the clean energy think tank Ember highlights a significant opportunity for Mexico. By increasing its share of renewable electricity generation to 45% by 2030, the country could reduce its import costs by $1.6 billion annually. This transition would directly support:

1. SDG 8 (Decent Work and Economic Growth): By reducing economic outflows and fostering a domestic renewable energy industry.
2. SDG 13 (Climate Action): By substantially lowering the carbon footprint of its energy sector.

Strategic Pathways for a Sustainable Energy Future

Policy, Innovation, and Infrastructure (SDG 9)

Achieving a sustainable energy transition requires a multi-faceted strategy focused on strengthening national capacity and infrastructure, in line with SDG 9. Essential actions include:

1. Developing new public policies that incentivize renewable energy and domestic production.
2. Promoting innovation in clean energy technologies.
3. Strengthening domestic production, storage, and distribution networks for both natural gas and renewables.

The Role of Biogas in a Circular Economy (SDG 12)

Biogas, which is chemically similar to natural gas, presents a significant opportunity for greening the energy matrix. Its adoption supports multiple SDGs:

• SDG 7 (Affordable and Clean Energy): It can be used in the same thermal processes as natural gas.
• SDG 12 (Responsible Consumption and Production): It is produced from the decomposition of organic matter, such as urban solid waste and agricultural refuse, turning waste into a resource.
• SDG 11 (Sustainable Cities and Communities): By managing urban waste more effectively, it contributes to cleaner cities.

Balancing Economic Growth (SDG 8) with Climate Action (SDG 13)

National Renewable Energy Targets and Current Standing

The Mexican government has set an ambitious goal to double the electricity generated from renewable sources. However, the country faces a significant gap in achieving global and regional benchmarks for SDG 7. In 2024, Mexico’s renewable electricity generation stood at 22%, which is:

• Below the world average of 32%.
• Significantly below the Latin American average of 62%.

Challenges to Meeting Paris Agreement Commitments

Mexico is a signatory to the Paris Agreement, with a commitment to reduce greenhouse gas emissions by up to 45%. However, achieving this goal, a key component of SDG 13, is hindered by bottlenecks in unmet electricity demand. While Mexico has achieved grid parity, making renewable energy cheaper than conventional sources, few companies can afford the capital investment for self-generation and storage projects. This reflects the core challenge of balancing the social and environmental mandates of SDG 11 and SDG 13 with the economic development imperatives of SDG 8.

Conclusion: A Mitigated Approach to Sustainability

Contextualizing Emissions for Effective Climate Action

A paradigm shift is occurring globally, moving from the utopian goal of complete carbon footprint elimination to a more pragmatic focus on reduction, mitigation, and offsetting environmental impacts. In Mexico, while fugitive methane emissions from the natural gas sector are a concern, they must be contextualized. Methane emissions from the oil and gas sector account for 10% of all fugitive emissions, whereas the agricultural sector contributes approximately 60% and solid waste accounts for 30%. This data underscores the critical importance of integrated strategies, such as promoting biogas, which simultaneously addresses waste management (SDG 11, SDG 12) and provides cleaner energy (SDG 7), thereby advancing a holistic approach to achieving the Sustainable Development Goals.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy
   • The entire article revolves around the energy transition, discussing the roles of natural gas, wind, solar, and biogas in the energy mix. It highlights the challenge of providing clean energy while ensuring economic growth, particularly in emerging economies like Mexico.
2. SDG 8: Decent Work and Economic Growth
   • The article points out the “lags in economic growth” in Asia, Latin America, and Africa, which hinder the transition to renewable energy. It discusses the tension between developing the economy and environmental conservation, framing the energy transition within the need to maintain quality of life.
3. SDG 9: Industry, Innovation, and Infrastructure
   • The text emphasizes that achieving energy goals requires “innovation, new public policies, as well as the strengthening of domestic production, storage and distribution.” This directly relates to upgrading infrastructure and adopting new technologies for a sustainable energy sector.
4. SDG 11: Sustainable Cities and Communities
   • The article mentions that using natural gas in vehicles helps reduce “suspended particles that deteriorate air quality and cause respiratory illnesses in highly polluted jurisdictions, such as Mexico City.” This connects to making cities more sustainable by improving air quality.
5. SDG 12: Responsible Consumption and Production
   • The discussion on biogas, which is “obtained from the decomposition of organic matter — urban solid waste, agricultural waste, or animal excrement,” points to sustainable waste management and creating energy from waste, aligning with responsible production patterns.
6. SDG 13: Climate Action
   • The core theme is mitigating climate change by transitioning away from more polluting fossil fuels. The article explicitly mentions Mexico’s commitment under the Paris Agreement to reduce greenhouse gas emissions and discusses the comparative CO2 emissions of natural gas versus coal and gasoline.
7. SDG 17: Partnerships for the Goals
   • The article highlights the global nature of the energy transition, mentioning the “clear tension between developed and emerging economies.” It also refers to Mexico’s international commitments, such as the Paris Agreement, and its energy trade relationship with the United States, which are forms of international partnership and cooperation.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • The article directly discusses Mexico’s potential to “generate up to 45% of its electricity from renewable energy by 2030” and the new administration’s goal to “double the amount of electricity generated from renewable sources.”
2. Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation.
   • This target is reflected in the central debate of the article: how emerging economies can pursue economic development (“How do we develop our economy?”) without forgoing environmental responsibility, using transitional fuels like natural gas to balance these needs.
3. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
   • The article states that achieving the energy transition “will require a series of decisions that include innovation, new public policies, as well as the strengthening of domestic production, storage and distribution.” This points to the need for upgrading energy infrastructure.
4. Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
   • The article links the use of natural gas to improved urban air quality by stating it “contributes to reducing suspended particles.” It also connects to waste management through the promotion of biogas derived from “urban solid waste.”
5. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • The article mentions that Mexico “has committed to reducing its greenhouse gas emissions by up to 45% through international treaties, such as the Paris Agreement,” which is a clear example of integrating climate action into national strategy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for Target 7.2 (Renewable energy share):
   • The article provides specific percentages that can be used as indicators:
     • Mexico’s current renewable electricity generation: 22% in 2024.
     • Mexico’s proposed target: 45% by 2030.
     • Comparative benchmarks: World average (32%) and Latin American average (62%).
2. Indicator for Target 13.2 (Greenhouse gas emissions):
   • The article provides several metrics related to emissions:
     • National reduction commitment: Mexico’s goal to reduce greenhouse gas emissions by up to 45%.
     • Comparative emissions data: Natural gas generates “approximately half the carbon dioxide (CO2) produced by the same amount of coal” and reduces CO2 emissions in vehicles by up to 35% compared to gasoline or diesel.
     • Source-specific emissions: Methane emissions from the oil and gas sector account for 10% of all fugitive emissions in Mexico.
3. Indicator for Energy Dependency/Vulnerability:
   • The article implies indicators of energy independence and economic impact:
     • Share of imported energy: “almost half of the electricity consumed in 2024 will come from Mexico’s northern neighbor’s gas pipelines.”
     • Import cost savings: Achieving the 45% renewable goal could reduce import costs by $1.6 billion annually.

4. Summary Table of SDGs, Targets, and Indicators

Source: english.elpais.com