Challenge to the constitutionality of amendments to the rules governing Clean Energy Certificates

Summary:

On March 9, 2021, Mexico published amendments to Mexico’s Electric Industry Act. One of the amendments established that the allocation of Clean Energy Certificates will no longer be conditioned on ownership or utilities’ start date of commercial operations. On April 8, 2021, members of the Senate’s minority filed a constitutionality action challenging the constitutionality of several amendments to the Electric Industry Act, including those that change the rules of operation for Clean Energy Certificates. A constitutionality action is a special procedure in Mexican law that entitles certain state actors, like a 33% congressional minority from either the House of Representatives or the Senate, to petition the Supreme Court for abstract judicial review of laws.

On April 7, 2022, seven out of the eleven Supreme Court Justices decided that the amendments to the Electric Industry Law are unconstitutional. Among other reasonings, the Justices considered that the amendments do not comply with the principle of sustainability in the Mexican electric system, and violate the right to a healthy environment. However, eight votes were required for the law to be declared invalid. Since only seven Justices voted for the unconstitutionality of the law, the Electric Industry Law was declared valid.

At Issue: Whether the amendments to the Electric Industry Act are unconstitutional.