Energy Reform Package Mexico 2013

Name of policy Energy Reform Package
Jurisdiction Country
Supranational region
Country Mexico
Region North America


Subnational region or state
City or local
Policy objective
  • Mitigation
  • Energy security
Type of policy instrument
  • Regulatory Instruments
    • Codes and standards
      • Sectoral standards
  • Policy support
    • Institutional creation
    • Barrier removal
      • Removal of fossil fuel subsidies
      Sector name
      • Electricity and heat
        • General
          • Industry
            Policy description The Energy Reform in Mexico represents a constitutional reform on energy (Energy Reform Decree and related 9 newly created laws and 12 modified laws).

            "The new laws adopted within the Reform package include: • Law on Hydrocarbons (seeks to attract foreign investment to Mexico’s hydrocarbon sector, but also eliminates gasoline subsidies and promotes substitution of oil energy sources by natural gas by establishing lower tax rates for shale gas exploitation; in addition it provides for creation of ‘safeguarded areas’ where hydrocarbon extraction is prohibited) • Law on the Electricity industry (increase share of renewable electricity, clean energy certification, planning for a smart grid) • Law on Coordinated Regulatory Organs for the energy matters • Law on Petróleos Mexicanos (reforms the structure and obligations of the state oil company PEMEX) • Law on the Federal Electricity Commission • Law on the Agency for National Industry Security and Environment Protection in the Hydrocarbon Sector (industry operations security and control of hazardous emissions) • Law on Geothermal Energy (regulates the exploration and exploitation of geothermal energy production for electricity generation and other uses) • Law on Revenues from Hydrocarbons • Law on the Mexican Petrol Fund for Stability and Development (revenues from petrol extraction in Mexico, of which at least 40% annually are reserved for long-term savings “for the future generations”, while the rest can be used for investment projects not limited to clean technologies – e.g. oil development projects included)" (Source: http://www.lse.ac.uk/GranthamInstitute/law/energy-reform-package/)

            This reform focuses strongly on energy security and the reduction in imports of fossil fuels. It aims to produce 3 million barrels of oil in 2018 and 3.5 million in 2025 as compared to a current production value of 2.5 million. Similarly, the aim is to increase the production of natural gas from the current value of 5700 million cubic feet to 8000 million cubic feet in 2018 and 1400 millions in 2025. Furthermore, the most polluting power plants will be replaced by clean energy sources and natural gas.

            Policy type
            • Renewables
            • Nuclear or CCS or fuel switch2
            Policy stringency
            Implementation state Implemented
            Date of decision 2013
            Start date of implementation
            End date of implementation
            High impact GHG reduction
            Impact indicator


            Source or references http://www.diputados.gob.mx/LeyesBiblio/ref/dof/CPEUM_ref_212_20dic13.pdf

            http://www.pwc.com/mx/es/industrias/archivo/2014-01-mexican-energy-reform-implications.pdf http://reformas.gob.mx/wp-content/uploads/2014/04/Explicacion_ampliada_de_la_Reforma_Energetica1.pdf

            Supports policies
            Is supported by policies
            Comments (background and assessment)
            Status Final

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