According to Foreign Relations Secretary Marcel Ebrard, Mexico will request up to $48 billion in finance for solar projects from US President Joe Biden, reported first by AP.
Ebrard said that Biden will receive the proposal at the forthcoming summit of US, Canadian, and Mexican leaders slated for January 9-10 in Mexico City.
Solar Energy Parks
Mexico plans to install solar energy parks and power cables in the border state of Sonora in the north. The country intends to get part of the money from the North American Development Bank (NADBank).
The bank supports green development initiatives, but it has never offered finance on the level that Mexico is asking for, according to AP. But by selling debt bonds, Mexico might also obtain some of the cash between 2022 and 2030.
The state-owned utility in Mexico, which has been embroiled in a trade war with the United States, will manage the solar farms.
The US and Canada claim that President Andrés Manuel López Obrador tried to give Mexico's state-owned utility preference over power plants by international and private investors, which breaches the US-Mexico-Canada free trade agreement.
Additionally, López Obrador put an end to rumors that a Chinese corporation could be able to extract the lithium resources in Sonora.
The Chinese company had already been granted authorization for a mine when López Obrador asserted earlier this year that lithium was a vital mineral that could only be extracted by the Mexican government.
Although López Obrador had pledged to uphold any current permits, he said on Tuesday that none were still viable.
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Mexico's 2030 Renewable Goals
Mexico, the third-largest producer of greenhouse gases in America, recently promised to deploy an additional 30 gigawatts of renewable energy capacity by 2030.
Mexico and the United States are collaborating to fulfill these new climate objectives.
Reuters reported that Mexican Foreign Minister Marcelo Ebrard highlighted Mexico's proposals to invest almost $48 billion in the development of renewable energy at the COP27 climate meeting in Egypt.
The additional solar, geothermal, wind, and hydropower capacity would increase solar and wind capacities to 40 GW and double Mexico's installed renewable capacity, which was expected to be approximately 30 GW at the end of 2021.
The new objectives also call for Mexico, a significant center for automobile production, to sell 50% zero-emission automobiles by 2030.
The United States declared that it embraced the proposal and will collaborate with Mexico to encourage investment and back initiatives to reduce methane emissions.
Mexico has also set aside $2 billion to stop frequent flaring at Pemex, the nation's state-owned oil company.
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