Prime Minister Justin Trudeau’s government is concerned that Mexico’s recently amended Electricity Law will hurt Canadian investments in the country’s clean energy sector.
The Mexican legislature recently approved a bill proposed by national president Andres Manuel Lopez Obrador to boost the state energy company Comisión Federal de Electricidad, or CFE, at the expense of the private sector. Although the legislation has been suspended by a Mexican court, its implementation could put up to $ 4.1 billion in Canadian assets at risk in the Latin American country, according to a Canadian government official who was not authorized to speak publicly on the issue.
“Canada is concerned that the recently passed law amending the electricity sector law will undermine Canadian investment in renewable energy,” Yumi Hahn, spokeswoman for Canadian Trade Minister Mary Ng, said in an email.
Lopez Obrador’s pressure for more state control and a clear disregard for a cleaner energy axis puts him at odds with US President Joe Biden and Canadian Trudeau. Under the proposed law, private solar and wind farms could only supply the grid after state stations.
“All Canadian companies participating in the sector have expressed concern about these measures affecting their energy investments in Mexico, which Canada shares,” said Hahn.
Canadian Ng and Mexican Economy Minister Tatiana Clausher Carrillo discussed the legislation, according to reading of the conversation from NJ’s office this week. The two employees also spoke of the need to preserve the confidence of Canadian investors, and to maintain a “stable and predictable business environment for Canadian companies operating in Mexico”.
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