CFE produces 17% of the country's carbon dioxide emissions, says Mexico Evalua report

EFE - The Federal Electricity Commission (CFE) generates almost a fifth, 17%, of the country's total carbon dioxide(CO2) emissions, according to a report by the organization México Evalúa.

The CFE is also responsible for 29% of the national electricity sector's total emissions, added the report, based on an analysis of the state-owned company's "Business Plan 2022-2026".

The organization's research warned that the current Mexican government 's energy policy "goes in the opposite direction" to the trend of decreasing emissions because, by 2024, a 45% increase in the generation of coal-fired plants is foreseen.

It also projected a 120% growth in the production of combined cycle generators, 559% in internal combustion plants and 248% in turbogas.

Likewise, the document pointed out an annual increase of 8% in 2021 in the use of fuel oil, a "highly polluting" hydrocarbon refining residue, which was the company's third largest source of energy last year.

"The CFE 's impact is significant enough that this company does not have a consolidated and implemented strategy to operate sustainably and reduce its environmental impacts," said Ana Lilia Moreno, coordinator of Regulation and Economic Competition at México Evalúa.

The report is released in the midst of the energy policy of President Andrés Manuel López Obrador, who has sought to prioritize the CFE 's fossil energy plants over those of private, particularly foreign, renewable energy companies.

The evaluation considered aspects such as greenhouse gas emissions, air quality and water management of the CFE in general, based on environmental, social and governance (ESG) standards.

The study concluded that "non-compliance with ESG standards implies that CFE will have trouble securing competitive financing in the coming years."

"Profitability or equity are no longer sufficient to estimate the value of companies. Today, ESG standards have gained relevance because the responsible behavior of companies is increasingly considered by investors," warned researcher Viviana Patiño Alcalá.

México Evalúa recommended CFE to adopt a sustainability policy and strategy, issue public reports on sustainability, and generate alliances with government agencies, international organizations and civil society.