| Project Detail |
The energy transition is both a challenge and a necessity for Mexicos economic transformation. What role can socially owned energy and renewable energy cooperatives play in improving the livelihoods of the most vulnerable and reducing inequality? The energy transition is both a challenge and a necessity for Mexicos economic transformation. The country spends 7.6% of its GDP on fossil fuel subsidies, and the economic impact of the climate disaster is estimated to have increased by 202% in 2020. Indeed, to achieve a successful energy transition and ensure a sustainable growth path, Mexico needs to modernize its energy sector, reduce dependence on fossil fuels, and ensure sustainability. However, it is necessary to start from the ground up, engaging communities in co-building resilience and strengthening local production chains. Community and cooperative models play an essential role in promoting the creation of collective enterprises managed in a democratic and supportive manner. An example of fair transition opportunities is energy cooperatives. They are a clear and promising model that involves local communities in the production, distribution, and consumption of renewable energy, promoting the decentralization and democratization of energy, especially in areas that have been historically and systematically excluded. However, research conducted in Mexico during the first phase of the Inequalities Research Facility showed poor wealth distribution and limited social mobility in the country. In this context, the just energy transition must be approached from an intergenerational social mobility perspective and a societal perspective to ensure benefits for all of society. This project is being carried out within the framework of the Inequalities Research Facility Extension . Coordinated by AFD and funded by the European Commission , the IDF Extension will contribute to the development of public policies focused on reducing inequalities in four countries: South Africa, Mexico, Colombia, and Indonesia, during the period 2021–2025. This work is also part of AFDs dialogue with Mexican authorities on options for diversifying the economy and reducing inequalities. GOALS In collaboration with the Espinosa Yglesias Study Center ( CEEY ) and the National Institute of Social Economy ( INAES ), this research project aims to develop a conceptual and analytical contribution to research in order to better understand the role that renewable energy cooperatives can play in reducing inequality and increasing social mobility, as well as how they can be financed. |
