Mexico’s next president faces challenges in moving away from oil dependence

Claudia Sheinbaum, Mexico's next leader and a climate scientist, faces obstacles in shifting the country's energy policy toward clean energy due to her predecessor's heavy investment in fossil fuels.

Simon Romero reports for The New York Times.

In short:

• Mexico's outgoing president, López Obrador, invested heavily in fossil fuels, including a $16 billion oil refinery, complicating a shift to clean energy.
• Pemex, Mexico’s state oil company, is burdened with nearly $100 billion in debt, requiring taxpayer bailouts and adding financial strain.
• Sheinbaum plans to cap oil production and promote renewable energy, but her ability to pivot is limited by economic and political pressures.

Key quote:

“The growth in demand must be absorbed by renewable energy sources.”

— Claudia Sheinbaum, Mexico’s President-elect

Why this matters:

Mexico's entrenched oil dependency poses risks to its economy and climate goals. The country’s transition to clean energy is essential but faces significant political and financial hurdles.