IE University x RAIA Research Program 2025

Mexico City Public Transport Reform

To begin inspecting the environmental policies Sheinbaum had enacted to tackle climate change, it is useful to look into one that has had ample time to be implemented and developed in order to evaluate the effectiveness of the policy. For this reason, Sheinbaum’s mayoral policies for Mexico City between 2018 and 2024 act as a good start. Although it is uniquely densely populated and located in the central valley of the country, environmental policies implemented in Mexico City and their effects can provide insights about their possible applicability nationwide. The most prominent environmental problem in the city is arguably air pollution, worsened by the title of “the most congested city in the world” Mexico City received in 2017, beating out cities like Río de Janeiro and Cairo. 

In order to tackle Mexico City’s congestion issue and the associated climate problems, Sheinbaum implemented a large revision of the public transportation system beginning soon after winning the mayoral elections in 2018. By the end of her term she introduced the largest fleet of electric buses in Latin America at the time to the city’s bus (Metrobús) system; a total of 115 vehicles were distributed. The development of these buses was aided by domestic and international firms under the Zero-Emissions Bus Rapid Deployment Accelerator (ZEBRA) Alliance with technical assistance, maximizing technological efficiency, and ensuring cost-effectiveness. Studies conducted on other cities’ electric bus fleets have found significant reductions in various pollutants, with each bus emitting 181 metric tonnes of CO2 less than a diesel bus, and preventing up to 3,700 premature deaths in the span of 5 years. Improved air conditions by electric buses become even clearer in the long-term, as TUMI (a sustainable transportation development organized and funded by the German government) calculated that cities like Mumbai and São Paolo can save up to 35,000 kt of CO2 and 400,000 kg of black carbon emissions by 2050 by continuously replacing their bus vehicles with electric alternatives. 

Beyond electric buses, Sheinbaum also introduced the Cablebús system, three lines of cable cars that span 25 kilometres around the city, and are focused on connecting more rural, geographically difficult areas of the city with the centre. Other Mexican and Latin American cities with similar terrain that have implemented cable car systems, including Zacetecas, Chihuahua, and La Paz (Bolivia), have found success in integrating said lines into their larger public transportation system, allowing up to 570 million passengers in 10 years to travel by them, in the case of La Paz. When analyzing the sustainability of cable cars, they have been found to be to be the single most effective public transportation method in terms of lowering city emissions, with the life cycle (including construction, operation, and the end-of-life phase) of a cable car having a 75% smaller carbon footprint than that of a medium-sized bus, and the fully-electric variants emitting zero CO2 emissions. The revitalization of the city’s transportation system is effectively incorporated into other environmental programs introduced by Sheinbaum, like the solar panels implemented above Central de Abasto, which are responsible for effectively powering the fleet of new electric Metrobús vehicles.

Considering the significant share of transportation in Mexico City’s total emissions, Sheimbaum administered additional solutions beyond buses and cablecars, including investments in cycling infrastructure as part of a broader push for low-carbon, accessible urban mobility. As a way to promote sustainable urban transport, the “Muévete en Bici” cycling program was initially supported and then integrated with public transit. “Muévete en Bici” is a weekly Mexico City program that closes major streets to cars, turning them into safe, car-free spaces for cyclists and pedestrians to promote sustainable mobility, healthy living, and public engagement with urban space. In addition, cycling infrastructure was expanded by building over 200 km of new bike lanes, doubling the total to 380.72 km, and adding 2,500 Ecobici bikes, surpassing the previous 14-year total and significantly augmenting cycling culture. Ecobici is Mexico City’s public bike-sharing system that offers a transportation alternative through a network of docking stations and bicycles available for short-term use.

These moves were inspired by Bogotá’s ciclovía and Guadalajara’s “Paseo de Todos,” as well as successful models in European cities like Barcelona and Paris; the initiative marked a “turning point for Mexico City’s public bicycle program.” As a whole, biking is often regarded as a practical mode of transportation that transcends social classes, and reduces emissions while encouraging healthy lifestyles.

Sheinbaum’s public transport reform additionally ensures these various modes of sustainable transportation are accessible to the entire population of Mexico City. The strategy includes a promotion of low emission transport by providing subsidies for Ecobici and Dezba memberships, supporting access to public transportation, and creating shared corporate transportation routes and a car sharing platform. It also encourages bicycle use through educational initiatives such as bike schools. This makes sustainable transport accessible and equitable by reducing cost barriers, expanding the mobility options for low-income users, and providing inclusive infrastructure and education that enable a broader participation. 

Another way this was carried out is through the integrated mobility initiative.  Previously, the payment across public transportation was fragmented, requiring separate methods. With the Tarjeta de Movilidad Integrada (Integrated Mobility Card), these modes were combined under a single card that aimed to improve user convenience and system efficiency. This created an integrated payment system across the Metro, Metrobús, Cablebús, trolleybuses, and bikes. 

Mexico City’s reform of public transport serves as an example of how Sheinbaum’s values associated with climate policy have been present since the beginning of her political career. These values include the achievement of a “democratic and equitable city.” At first, seemingly unassociated to environmentalism, this angle can be understood through Mexico’s particular stakes which affect both the environmental and social aspects of emissions and inequality. 

National Water Plan 2024-2030

On the 21st of November, 2024, Sheinbaum announced the implementation of the National Water Plan 2024-2030, a collection of policy proposals and institutional changes to tackle water scarcity in Mexico. The plan would be built on four principal pillars: water sovereignty, justice and access to water, environmental impact mitigation, and transparent management. Within it is the General Water Law—which declares  access to water as a human right nationally—would be written to co-exist with the National Water Law, passed  by the Salinas de Gortari administration in 1992. The National Water Law was often criticized for poor adaptation to issues such as droughts, overextending heavy amounts of concessions to private companies under the “neoliberal” agenda of Salinas de Gortari, and a lackluster framework for tackling water-access complaints. The General Water Law was published in the Federal Office Gazette (DOF) on the 19th of December, 2024, and became legally binding the day after, cancelling any water-related agreements (including concessions) that went contrary to its contents.

The National Water Plan, introduced months after Sheinbaum’s inauguration, flows well into the general vision that Morena proposed as part of their Proyecto de Nación 2024-2030, with a significant portion of their environmental goals being designated to clean water projects and tackling water scarcity. The National Water Plan also directly addresses several of the points Sheinbaum promised to implement by continuing the Fourth Transformation, including the goals of cleaning up the three most contaminated rivers in Mexico (the Lerma Santiago, the Atoyac, and the Tula), and building 17 new water infrastructure projects around the country. Sheinbaum’s scientific passion for technological development and energy efficiency is likewise present within the National Water Plan, with the proposed renovation of the National Water Commission’s (CONAGUA) water tracking and management system, including a newly developed unified digital database.

Notably, a large emphasis is being placed on collaboration with the private sector on enforcing aspects of the National Water Plan, depicted in the first announcement by the head of Group Lala, who promised ‘willing’ collaboration in reviewing water concessions with the federal government, and ensuring equitable access between the private and public sectors, while tackling waste and overexploitation. The implementation of water concessions, standardized under the aforementioned 1992 National Water Law, were heavily influenced by (at the time) the government’s interest in economic liberalization. At the time, there was also a global belief that such policies would allow the farming industry and their communities, large and small, to increase output and allow opportunity for growth and development. 

These concessions, however,  allowed for the modern overuse of water resources by the agricultural industry, as well as disproportionate rates of water wasted by it. The increased federalization of water resources in the National Water Plan goes in line with a recent international trend of de-privatizing access to water and redistributing access more equally to citizens. Considering the dire lack of water access in the country, disproportionately so in rural, native, and poorer communities, implementing some level of water plan marks a significant beginning to Sheinbaum’s environmental policy as president.

Energy Policy 2024-2030

Mexico’s energy landscape is undergoing significant transformation through a legal reform designed to streamline regulation and improve sector coordination. President Sheinbaum introduced a comprehensive package to consolidate and update the country’s energy framework. On March 18, 2025, a decree enacted eight new secondary laws covering all major energy sectors, dissolving specialized regulatory bodies and transferring their responsibilities to a restructured National Energy Commission under the Ministry of Energy. The goal is to ensure solar, geothermal, biofuels, and fossil fuels are all governed within a unified regulatory and planning structure. 

Starting with solar energy, several initiatives exemplify how Sheinbaum’s energy reform enables coordinated, large-scale clean energy development by aligning infrastructure, manufacturing, and regional planning under a unified regulatory framework. To do this, Mexico’s northwestern region will be transformed into a clean energy and high-tech manufacturing hub through a coordinated federal and local strategy. Plan Sonora plays a central role in this effort by combining solar infrastructure development with investments in lithium mining and natural gas. The plan aligns with national energy transition goals while responding to the growing electricity demand driven by industrial expansion. 

Currently, despite the high solar potential, the northwestern region’s domestic solar panel manufacturing is limited, with 10 local producers collectively generating less than 2 GW annually. However, nine solar projects are expected to come out of the plan with an expected investment of 4.9 billion USD and a generation of 4.673 MW from 2030 to 2050. The flagship project, Puerto Peñasco in the Sonoran Desert, will be the largest photovoltaic plant in the Americas, generating 1,000 MW with 278,000 solar panels. As a result, electricity will be supplied to northern industries and potentially exported to the United States.

Complementing this, the Solar Home Panels Initiative (“Sol del Norte”) targets residential users in hot, high-demand areas like Mexicali. This provides rooftop solar panels to low- and medium-consumption homes, aiming to reduce household energy costs and ease grid strain during summer heatwaves. In its first phase, the program will install systems in 5,000 homes, with plans to expand in 2026. This allows for participants to save up to 70% on their monthly electricity bills, overall aligning the program with Sheinbaum’s climate and social equity priorities. 

Beyond solar infrastructure, in March 2025, Sheinbaum introduced the Electric Sector Reform Law that, building on the 2008 Renewable Energy and Transition Financing Law, redefined how distributed solar energy is integrated into Mexico’s national energy framework. Now, residential and commercial solar systems producing up to 0.7 MW are officially classified as distributed generation and do not require permits, provided they meet technical standards. The no-permit cap was raised from 0.5 MW to 0.7 MW, allowing larger rooftop systems to connect to the grid without a complex approval process. 

These reforms maintain user access to rooftop solar while ensuring state control over surplus energy flows. Surplus energy from distributed systems must be sold exclusively to the CFE, not to third parties. Conversely, the National Energy Commission (CNE) is responsible for defining the compensation terms and interconnection rules under which the CFE purchases this energy. While users retain the ability to lower energy costs through self-generation, they must comply with technical regulations and CFE purchase agreements for any surplus sold to the grid. This framework balances individual and business access to solar generation with state oversight and grid reliability. 

Apart from the expansion on solar regulation, new laws and amended laws presented to the Joint Committee on Energy and Legislative Studies of the Senate and the Chamber of Deputies seek to strengthen the country’s energy and electricity sector through resources like geothermal energy. Mexico sits on a rich geothermal resource base of around 1,400 MW spread across areas like Cerro Prieto and Los Humeros. But until now, permits were bogged down in bureaucracy, and geothermal development stalled, especially for non-electric uses. As part of Sheinbaum’s general energy reform, the process has now been simplified. This was achieved by creating one-law permitting for exploring, exploiting, or doing smaller-scale “exempt” projects. This “Aprovechamiento Geotérmico Exento,” (Exempt Geothermal Use) category was  introduced so low-scale users don’t need a full permit. Likewise, the “Usos Diversos” (Diverse Usage) category was expanded to include a range of non-electric applications and streamlines those too, all under one unified framework. As a whole, while not the main focus of Sheinbaum’s energy reform, the evolved frameworks behind renewable energy sources like solar and geothermal not only takes advantage of available resources, but also creates more accessible paths to a sustainable transition. 

Notwithstanding, these renewable energy aspects of her larger energy reform cannot be mentioned without analyzing the biggest emphasis of her policy relating to Petróleos Mexicanos (PEMEX) and the CFE. PEMEX is Mexico’s state-owned oil and gas company, responsible for the exploration, production, refining, and distribution of petroleum and related products. Through constitutional reforms, Sheinbaum is responsible for reclassifying PEMEX and the CFE as public institutions, reinforcing state control over the energy sector. As part of this framework, the CFE is mandated to retain 54 percent of national electricity generation, limiting the role of private actors in transmission and dispatch. The administration’s energy strategy focuses on energy sovereignty, aiming to reduce Mexico’s dependence on imported fuels and electricity. 

Concretely, the plan includes rehabilitating six existing refineries like the Dos Bocas (Olmeca) refinery, with an output target of 340,000 barrels per day to strengthen domestic fuel production. The objective is to to address supply gaps despite Pemex’s ongoing financial losses in refining operations. Despite Pemex being the world’s most indebted oil company, with liabilities of 101.5 billion USD in 2024, the government is relying on it to meet national fuel demand and stabilize prices. To enhance generation capacity, the administration launched three cogeneration projects with Pemex totaling 2,422 MW and 2.1 billion USD in investment. In electricity transmission, Sheinbaum’s plan includes 145 CFE-led projects, with 65 projects expanding the national grid 2.7 billion USD and 80 projects modernizing existing infrastructure.Historically, state-owned monopolies like Pemex and the CFE shaped Mexico’s national identity by asserting state control over strategic sectors such as energy and framing it as a symbol of sovereignty and social justice. These monopolies were justified through official discourse as tools for redistributing wealth, with revenues funding education, infrastructure, and public services, reinforcing a sense of equity and trust in the state. However, at face value, this component of the energy reform garners Objectives 63 and 66 of Sheinbaum’s “National Transformation Plan 2024-2030” as contradictory. Objective 63 strengthens PEMEX (fossil fuels) and Objective 66, the transition towards clean energies. This contradiction is clearly exposed in the recent studies of Kühne et al. The conflicting elements of Sheinbaum’s energy reform illustrate the complexities behind Mexico’s interest in achieving energy sovereignty while balancing economic viability, environmental goals, and equity.

IExRAIA Summer Research Program:

This article is an excerpt from a report on Claudia Sheinbaum produced as part of an RAIA research program on climate leaders. For a full picture of Ruto’s climate leadership, including the sources, read the full report. This project was fully financed by IE University’s IE School of Politics, Economics and Global Affairs.

Authors: Josip Biondić & Manuela Altés Alcaraz

Editor: Francia Morales

Project Lead: Roxane de Bergevin & Stefani Obradovic