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The document analyzes Mexico's fiscal dependence on fossil fuels amidst declining reserves and production. It highlights a shift where revenues from fuel consumption (IEPS and IVA) are becoming more significant than extraction revenues. The report warns against 'stranded assets' resulting from continued investment in fossil fuel infrastructure and recommends redirecting regressive subsidies toward clean energy and vulnerable populations to support a just energy transition.

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  • Revenues from the extraction of oil and gas decreased by more than 55% between 2012 and 2017, falling from 900 billion pesos to approximately 400 billion pesos.
  • Fiscal revenues from the consumption of fossil fuels have grown in importance, surpassing extraction revenues in 2016 and reaching approximately 400 billion pesos in 2018.
  • Fossil fuel subsidies in Mexico have historically been regressive; in 2012, they peaked at 244 billion pesos, with the wealthiest half of the population receiving approximately 80% of the support.
  • Mexico faces a high risk of 'stranded assets' in its electricity sector, with potential impacts on up to 50% of current infrastructure if climate policies limit temperature increases to 2C.
  • The Mexican Petroleum Fund (FMP) primarily redistributes resources to the federal budget, with very little allocated to long-term savings; as of March 2019, the reserve held 19.349 billion pesos, representing only 1% of total FMP revenues since its inception.

Cite the original document

APA
Kühne, K., Sanchez, L., Roth, J., Tornel, C., & Gerasimchuk, I. (2019). Más allá de los combustibles fósiles. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/combustibles-fosiles-transicion-fiscal-en-mexico.pdf
Chicago
Kühne, Kjell, Lourdes Sanchez, Joachim Roth, Carlos Tornel, and Ivetta Gerasimchuk. Más allá de los combustibles fósiles. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/combustibles-fosiles-transicion-fiscal-en-mexico.pdf.
Wikipedia
{{cite report |last1=Kühne |first1=Kjell |last2=Sanchez |first2=Lourdes |last3=Roth |first3=Joachim |last4=Tornel |first4=Carlos |last5=Gerasimchuk |first5=Ivetta |title=Más allá de los combustibles fósiles |publisher=International Institute for Sustainable Development |date=June 2019 |url=https://www.iisd.org/system/files/publications/combustibles-fosiles-transicion-fiscal-en-mexico.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{khne2019all, author = {Kühne, Kjell and Sanchez, Lourdes and Roth, Joachim and Tornel, Carlos and Gerasimchuk, Ivetta}, title = {{Más allá de los combustibles fósiles}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = jun, url = {https://www.iisd.org/system/files/publications/combustibles-fosiles-transicion-fiscal-en-mexico.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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