Greenpeace vs. government over reforms to the Electricity Industry Law in Mexico

Location

CDMX Mexico

Status
Resolved at the final stage
Details
The defendant authorities filed an appeal against the initial ruling, which is currently pending resolution.
Start date
March 10, 2021
Date of judgment or latest existing decision
March 31, 2023. The Court of Second Instance decided to postpone the resolution of the appeal against the judgment of the Court of First Instance.
Summary

The organization Greenpeace Mexico promoted an injunction against (i) various provisions of the Electricity Industry Law (LIE), reformed and added by decree published on March 9, 2021 in the Official Gazette of the Federation; (ii) the National Electricity System Development Program 2020-2034 (also known as PRODESEN) of the Ministry of Energy; (iii) the Business Plan 2021-2025 of the Federal Electricity Commission (CFE); and (iv) the CFE's Electricity Industry Strengthening Plan.

The petitioner argued that these actions displace wind and solar photovoltaic sources of electricity generation, replacing them with more polluting sources, including fossil fuels. Therefore, the organization asserted that these actions violate the rights to a healthy environment, to health protection, and to access electricity from renewable sources, as well as various commitments made by the State regarding climate change and a just energy transition.

The First District Court specializing in administrative matters related to economic competition, broadcasting, and telecommunications admitted the lawsuit only with respect to PRODESEN and the amendments and additions to the LIE. In a subsequent session, the judge granted a definitive suspension of the effects and consequences of the LIE published on March 9, 2021, as well as section 7.8 of PRODESEN 2020-2034, meaning that the regulations in force prior to the issuance of both acts would remain in effect.

However, the responsible authorities filed an appeal against the ruling that granted the permanent injunction to the plaintiff. The court of first instance decided to revoke the permanent injunction granted to the plaintiff.

On the other hand, the constitutional hearing of the main amparo was held and the sentence was issued that granted the amparo to the complaining party in part, in relation to articles 3 sections V, XII, XII BIS and XIV; 4, section VI; 26; 53; 101; 108 section VI and 126 section II, of the Electric Industry Law.

Against the first instance resolution, the defendant authorities filed an appeal for review which is pending resolution.

Climate element

In ruling on the permanent injunction, the judge noted that the reforms to the Electricity Industry Law (LIE) alter the rules of the national electricity system. Among other effects, it was pointed out that the reforms (i) establish a priority order for dispatching energy; (ii) restrict open access to transmission and distribution networks; (iii) modify the rules under which CFE Basic Services Supplier must acquire electricity; (iv) modify the clean energy certificate market; and (vi) disrupt the market in the energy sector.

In this regard, the judge noted that society is interested "in achieving the sustainable development of the electricity sector, thus enabling the Mexican State to fulfill its international commitments regarding climate change and the promotion of renewable energy." In the judge's opinion, compliance with these commitments could be jeopardized "due to the issuance and implementation of the challenged actions, because these actions, apparently, limit the generation of clean energy." It was also stated that PRODESEN could undermine these objectives by marginalizing private-sector clean energy generating companies.

In this regard, the judge granted the suspension of the challenged provisions, incorporating the principle of progressivity and international instruments on climate change. On the one hand, he emphasized that, through the Paris Agreement, "Mexico committed, among other things, to reducing greenhouse gas emissions by 22% and black carbon emissions by 51%, as well as generating 35% of its energy from clean sources by 2024 and 43% by 2030." On the other hand, he concluded that the challenged actions could imply "a setback in the progress that the Mexican State must pursue regarding the transition to renewable energy, since their objective appears to be inconsistent with the goals of that transition process." The judge considered that such a setback would be inadmissible because, given the content and scope of the collective right to a healthy environment, "the State is obligated not to issue provisions that contradict the progress achieved in environmental protection, taking into account the State's capabilities and resources."

Claimants
  • Greenpeace Mexico.
Defendants
  • Congress of the Union.
  • President of the Republic.
  • Ministry of Energy.
  • CFE.
Territorial context

The challenged regulations, programs, and plans apply throughout the national territory. In this regard, it should be considered that Mexico is one of the countries most vulnerable to the effects of climate change. According to the Vulnerability Atlas published by the National Institute of Ecology and Climate Change (INECC), as well as the 2014-2018 Special Climate Change Program, this vulnerability stems from the country's geographical conditions, particularly its location, latitude, and topography. The INECC has also specified that the impacts of climate change can intensify other environmental and social problems, affecting the form and structure of human settlements, production processes, and the state of ecosystems. These impacts are even more severe for individuals and groups already in vulnerable situations, including women, indigenous peoples and communities, migrants, people with disabilities, and low-income communities.

In addition to the above, it should be considered that more than 30% of households in the country suffer from some form of energy poverty. Energy generation through fossil fuels has not been effective in creating conditions for access to energy. Renewable energies can contribute to combating energy poverty, generating jobs, and promoting energy savings and efficiency. However, according to the Ministry of Energy, in 2020, only 20.67% of net energy generation came from renewable sources.

Finally, it is important to highlight that the energy transition contributes to achieving the greenhouse gas (GHG) emissions reduction targets that the Mexican government has committed to. Many of these commitments have focused on the energy sector, given its significant contribution to GHG emissions. According to the National Inventory of Greenhouse Gas and Compound Emissions 1990-2015, 71.11% of emissions were attributed to the energy sector.

Rules and principles invoked

Standards

  • Paris Agreement.
  • Rio Declaration on Environment and Development.
  • Political Constitution of the United Mexican States.
  • Electricity Industry Law.
  • Energy Transition Law.
  • 2030 Agenda for Sustainable Development.

Beginning

  • Sustainability.
  • Progressivity and non-regression.
  • Congruence.
  • Caution.
  • Prevention.
  • Citizen participation and public initiative.
Instance
Judicial
Actor type
Civil society organization
Topic
Acuerdo de París y compromisos climáticos
Obligations of States
Violation of human rights
Defendant type
State
Interim measures
Granted
Grounds for claim
Paris Agreement and climate commitments
Right to a healthy environment
National legislation
Other human rights