“Some companies that are going to say ‘yes, well, if I cannot meet these objectives, which are corporate global objectives, then I have to leave Mexico,'” Mignot told reporters during an event at the official representation of the EU in Ciudad from Mexico.
The government of Mexican President Andrés Manuel López Obrador argues that the reform is vital because corrupt administrations in the past manipulated the market in favor of private interests, to the detriment of consumers, the CFE and the state oil company Pemex.
But the initiative has fueled considerable concern among the Latin American country’s allies.
Mignot stressed the need for energy contracts with Mexico to be respected, while saying “some adjustments” could be made to the rules if negotiated jointly with investors.
Both European companies, which have invested some 13,000 million dollars in renewable energy in Mexico, and governments, were concerned about the impact of the reform on the market, according to the ambassador.
“New investments are currently very slowed down because there is a context of uncertainty that makes it very difficult to invest in the current context,” he said. “Not all (the companies) are going to withdraw from Mexico, but there are some that are going to greatly reduce their activities, companies in this sector and (…) in other sectors,” he added.
The diplomat explained that this is because the European headquarters of the companies were instructing their operations abroad to achieve net zero emission targets in the next “two, five, 10 years.”
