Energy Advisor Quotes Eduardo Canales on Mexico’s ‘Sonora Plan’
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Latin America Energy Advisor, in its November 11 edition, posed, in its Featured Q&A, the question “Can The Sonora Plan Address Mexico’s Climate Goals?.” Akin Gump corporate counsel Eduardo Canales was among those asked to answer the question.
The periodical notes that Mexican President Andrés Manual López Obrador recently announced plans to transform the state of Sonora into a green energy hub.
Canales, whose practice focuses on advising clients on domestic and international oil, gas, mining and renewable energy transactions, said that the global auto industry’s move from combustion to electric engines means Mexico must take a number of steps, including modernizing and retooling its manufacturing plants and investing in the development and improvement of its power grid.
He notes that Mexico’s government is addressing some of the steps he notes via the Sonora Plan. However, Canales believes the plan’s success, along with its impact on Mexico’s climate goals, rests on three key points: the reaffirmation of a stable legal framework in Mexico that provides long-term certainty to investors, significant investment in the development and modernization of Mexico’s power grid, and implementation of efficient regulatory and administrative best practices at every level of government.
He closes by noting, “The Sonora Plan is a step in the right direction and can hopefully be replicated in other regions across the country, but its effectiveness might be diminished if the Mexican government is unable to create the right environment for its implementation.”
To read his full reply, click here.
