Relevant Environmental Legal Aspects of the Energy Reform in Mexico

01/9/2015

On December 20, 2013 it was published in the Official Daily of the Federation the Executive Order that amends and adds various provisions of the Political Constitution of the United Mexican States, in the Area of Energy. The order became effective on the day after its publication in the above-mentioned Official Daily, amending articles 25, 27 and 28 regarding:

a) The planning and control of the national electric power system, as well as the public service of transmission and distribution of electric power; and

b) The exploration and extraction of oil and other hydrocarbons.

During 2014 relevant laws and regulations were enacted as well as amendments regarding the environmental legal regime for the energy sector en Mexico.

With respect to the activities referred in paragraph a) above, in accordance with the Executive Order of reference, no concessions shall be granted to private companies or individuals, however the Mexican State is authorized to execute agreements with private companies in the terms to be established in the laws, to participate in other activities of the electric power industry.

With respect to the activities referred in paragraph b) above, in accordance with the Executive Order of reference, no concessions shall be granted to private companies or individuals. The Mexican State shall carry out those oil activities by means of the granting of allotments to productive companies of the State or through agreements with the latter or with private companies in terms of the Regulatory Law.

In the Executive Order of reference, in our opinion, there are three relevant environmental legal issues: (i) sustainability of economic activities; (ii) use of cleaner technologies and fuels; and, (iii) the creation of the National Agency for Industrial Safety and Environmental Protection of the Hydrocarbons Sector. 

Read the full alert on the Environmental Legal Aspects of Energy Reform in Mexico

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