As governments around the globe aim for a green transition, there has been a recent upsurge in investment in the geothermal energy sector, which we expect to encourage greater funding into Mexico’s geothermal potential.

For large commercial entities, the demands of energy consumption have a significant impact not only on the bottom line but also on the broader ecological footprint. An energy audit, a systematic review of energy use and its organizational management is becoming indispensable. 

Adopting rooftop solar can lead to substantial savings on electricity bills. Depending on various factors, such as the system's size and local electricity rates, one can expect cost reductions in the range of 20% to 40%.

The Central de Abasto wholesale market, in the east of Mexico City, is where hundreds of thousands of vendors purchase their food to take back and sell at local markets. Over 30,000 tons of produce are sold at the market every day, fulfilling around 80% of consumption needs in the city’s metropolitan area.

Mexico’s so far undeveloped lithium industry has huge potential, with the country’s reserves estimated at 1.7 million tons of lithium. Several private companies want to start developing projects in Mexico as the demand for lithium for batteries is rising rapidly, as well as in support of a green transition.

Mexico pledged to double its renewable energy capacity by 2030, with plans to develop another 30 GW of green energy. Mexico’s Foreign Minister Marcelo Ebrard stated at COP27 that the government plans to invest $48 billion in its renewable energy industry.

The advantages of adopting rooftop solar are significant. It offers the potential to significantly lower costs by roughly 20% to 40%. With no installation costs and no permits required, corporations can also expect to see a reduction in their greenhouse gas emissions.

At the beginning of March, Tesla announced plans to construct a new Gigafactory in Mexico, its first outside of the U.S., Germany, and China. The plant will be built in Monterrey, Nuevo León, around a three-hour drive from Texas, providing efficiencies for its supply chain. 

We expect Jalisco to become a regional leader in green energy and environmental action, having already introduced schemes such as the Low Carbon State Program, which encourages reduced fossil fuel consumption and the development of renewable energy operations.

State-owned Pemex already produces hydrogen as a by-product of its fossil fuel output, using it mainly for refining and ammonia production processes. Air Liquide, Linde, and Cryo-Infra/Air Products also have hydrogen operations in Mexico. As the country develops its green energy market, it could rapidly expand its hydrogen production to meet the needs of a growing global market.

We expect the implementation of Guadalajara’s Climate Action Plan to help the city to reduce pollution and improve the quality of life for its residents, while ultimately supporting the combat of climate change. If successful, we believe the strategy could be replicated in Mexico’s other urban areas, as well as elsewhere in Latin America.

With a burgeoning renewable energy industry and well-established shipping routes, Mexico could quickly become a major international hub for low-carbon freight and transport. This would not only boost the country’s long-term energy security but would ensure its position in the global energy market in the transition to green.