Mexico stands to benefit from U.S. transition toward electric vehicles

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Mexico stands to benefit from U.S. transition toward electric vehicles

On Monday, Oct. 18 Reuters: Mexico's manufacturing sector stands to benefit from a U.S. transition toward fossil fuels including by the creation of jobs for building electric vehicles, John Kerry, climate adviser to United States President Joe Biden, said on Thursday.

Mexico's industrial base, already deeply integrated with the rest of North America, absolutely stands to benefit from the energy transition, Kerry said alongside Mexican President Andres Manuel Lopez Obrador in Mexico's Chiapas state close the southern border to Guatemala.

Lopez Obrador traveled to Glasgow, Scotland to meet his counterparts ahead of the upcoming United Nations Climate Conference COP 26 in Mexico, which neither Kerry nor his foreign minister is expected to attend.

When I change from gasoline to electric vehicles, there are going to be a lot of good-paying jobs here in Mexico due to the connection between the automobile industry and our two countries, said Kerry, who visited a flagship reforestation project promoted by Mexico.

The production of automobiles in North America is highly integrated by the USMCA-Mexico trade agreement between Canada and Mexico. Under Biden and Kerry, the United States has stressed the need for more aggressive action to address global warming. Lopez Obrador on the other hand has cut the Environment Ministry's budget as part of an austerity drive and demobilized policies that promote private investment in renewable energy.

Research Coalition Climate Action Tracker rate Mexico's global climate plan as Highly insufficient saying its policies and actions will lead to rising emissions and are not at all consistent with the 1.5 C temperature limit of Paris Agreement. Lopez Obrador says he will manage carbon emissions by revitalizing dilapidated hydropower projects under state control and through the tree planting program, Sembrando Vida, which aims to plant 700,000 trees.

However, he also focused on reviving state-run oil and power generation companies, and his government prioritized renewable fuels over fossil fuels for Mexico's national grid.

Mexico, the second largest emitter of greenhouse gases in Latin America, is seen as vulnerable to climate change and extreme weather patterns, with tropical cyclones and flooding every year in the country.

By 2030, Mexico plans to reduce greenhouse gas emissions by 22% over a business-as-usual scenario. Brazil, the region's largest polluter, aims to reduce its emissions by 43% by 2030 compared to 2005 levels.