Greenpeace challenged the constitutionality of the amendments to the Electric Industry Act and the National Electricity Sector Development Program 2020-2034 (PRODESEN). In its suit, Greenpeace also asked for a stay of the implementation of both regulations. Plaintiff argued that the regulations displace the use of renewable energy sources in electricity generation in favor of polluting, fossil fuel sources. This transgresses Mexico’s international commitments on climate change.
The First District Court in Administrative Matters Specialized in Antitrust, Broadcasting and Telecommunications granted a stay of the implementation of both the Act and PRODESEN. The court agreed with the plaintiffs in considering that the regulation could potentially transgress the right to a healthy environment by stalling the energy transition.
The stay was appealed by the authorities. On September 1, 2022, the First Circuit Court in Administrative Matters Specialized in Antitrust, Broadcasting and Telecommunications overturned the district court’s decision, denying the stay. The court argued that the potential harms that could derive from the challenged regulations were conditioned by the need to modify and amend other regulations. In this sense, the harm was not sufficiently immediate to grant the stay.
On January 9, 2023, the District Court ruled on the merits in favor of Greenpeace. The District Court decided that the 2021 amendments to the Electric Industry Law, as well as the Energy Sector Program 2020, violate the right to a healthy environment by prioritizing the energy generated through fossil fuels. On February 9, 2023, the Mexican government appealed the District Court decision to uphold the plaintiff’s claims. The appeal is pending resolution by the appellate Collegiate Court.