Energy transition goals: Energy access and reliability. Industrial competitiveness. Energy productivity/efficiency. Problem description: Mexico confronted rising energy demand, affordability challenges and fiscal pressure from subsidies. With no regulatory framework for appliance or equipment efficiency, energy waste threatened household budgets, strained public finances and risked undermining competitiveness in an increasingly integrated North American market. Solution description: In 1994, Mexico introduced Minimum Energy Performance Standards (MEPS), led by the National Commission on Energy Savings (now CONUEE). Targeting appliances and industrial equipment, MEPS improved efficiency while aligning with trade rules. Regulatory enforcement and collaboration with manufacturers spurred market transformation. Consumers saved on energy bills, while producers enhanced competitiveness and exports. MEPS became central to Mexico’s sustainable energy strategy. Enablers used: Regulation and political commitment: Institutional leadership from the National Commission on Energy Savings; trade integration with North America. Financial Investment: Integration with North American trade rules; improved FDI and business conditions incentivizing US/Canadian manufacturing participation. Stakeholders involved: –National Commission for the Efficient Use of Energy (CONUEE). –Ministry of energy. –Manufacturers and appliance retailers. Outcomes achieved: –Energy access and reliability through reduced household electricity demand and refrigerator use (-26%), easing fiscal burdens from subsidies. –Domestic manufacturing competitiveness through 9x increase in refrigerator exports to the US between 2000 and 2014. Exportable lessons: –Efficiency standards reduce fiscal pressure: Targeted appliance standards lower consumer bills and ease subsidy burdens. –Trade alignment expands impact: Integrating standards with trade partners strengthens supply chains and boosts exports. –Institutional leadership ensures durability: A central coordinating agency sustains momentum and credibility for long-term efficiency goals.CASE STUDY 5 Minimum energy performance standards in Mexico (1994-ongoing)54 Energy Transition Readiness: Latin America and the Caribbean 26

Latin America&Caribbean Energy Transition 2025