Strategic rationale for the cooperation
Mexico is the world’s 12th largest economy and the 13th largest greenhouse gas emitter . Its industrial based economy has been growing rapidly, and in 2023 Mexico overtook China as the United States’ largest trading partner, driven by geopolitical trends toward regionalization of supply chains . Several major Danish industrial companies have production facilities in Mexico, from which they export to the whole North‑American market, making Mexico an important trading partner for Denmark.
Demand for green energy is substantial and rising sharply. With its new government, inaugurated in 2024 and led by a female climate researcher, Mexico is expected to play an active and constructive role in international issues of peace and security, climate and human rights. In a world experiencing significant geopolitical shifts, Mexico is a large, like minded democracy with important ties both to the south and the north.
Danish solutions help Mexico accelerate its green transition
Denmark and Mexico have maintained close cooperation on energy and climate since 2014, based on a shared understanding of the need for accelerated climate action.
Denmark has assisted Mexico in developing its Nationally Determined Contribution (NDC) and supports a more ambitious climate neutrality target. However, Mexico’s economy remains heavily dependent on fossil fuels found underground. The state oil company PEMEX is one of the world’s largest CO₂ emitting oil producers outside OPEC , and Mexico’s electricity generation is still primarily based on fossil fuels.
The new government aims to speed up the country’s green transition, focusing on the energy sector, which is supported by the energy cooperation. The partnership with Mexico covers long term energy planning, energy efficiency, and the expansion and integration of renewable energy, especially on shore and offshore wind.
The Danish Energy Agency collaborates with Mexican key actors, including the Ministry of Energy and the Ministry of Environment and Climate, as well as Mexican state owned energy companies on essential aspects of an effective green transition. In addition, the agency has deployed a long term advisor who supports energy and climate modelling in the two ministries.