Mexico’s new president faces fiscal crunch

While greater focus on decarbonisation is likely, economic pressures and huge debt burden could squeeze energy policy ambitions

Newly elected Mexican president Claudia Sheinbaum will take the reins of power at the start of October, and she already faces several fiscal challenges to her energy policy—including the highest public deficit since 1990 and sharply falling labour productivity. Last year, Mexico’s Secretariat of Energy (SENER) reported an overspend of 263% as the government prioritised domestic energy expenditure. Over the next five years, the Sheinbaum regime faces having to pay off almost $36b in debt maturities owed by state oil and gas firm Pemex. Containing the NOC’s huge debt pile has been a government priority since former president Enrique Pena Nieto exited the scene in 2018. Six years on, and while