At a time when oil production is at historic lows, lenders who want Mexican oil giant Pemex to adapt to climate change are struggling to be heard.
Big oil companies such as BP, Royal Dutch Shell and Repsol have begun to build strategies to cut the carbon they emit. But state-owned Petroleos Mexicanos , one of the biggest borrowers in emerging markets, is determined to push in the opposite direction, three people in the company and in the government told Reuters.
"It will become increasingly challenging for international institutional investors to invest in their bond issuances if they don't address their sustainability concerns - whether climate, oil spills due to oil theft and health and safety," Connan said. Pemex, the Mexican finance ministry and the president's office did not respond to requests for comment. Lopez Obrador, who has pointed to Mexico's state-run hydroelectric plants to show he backs renewable energy, has blamed his predecessors for Pemex's problems. Financial debt surged by 75per cent under the last government, a Reuters analysis of accounts from the past decade shows.On paper, Pemex is barely solvent.
If international investors become reluctant to lend, Mexico's own access to credit could also be at stake. Ratings agencies have repeatedly cited the company's unsustainable debt level as a risk factor for the sovereign rating. Mexico's sovereign bonds are skirting the edge of a downgrade. "It's not about Pemex, it's about geopolitics," Sanchez said."The United States won't be happy if the main investors in Pemex, Mexico's largest company, were Chinese or Russian."Pemex was the ninth biggest energy producer of carbon and methane emissions globally between 1965 and 2018, according to data from the Climate Accountability Institute, an NGO, with emissions of some 23 billion tonnes of CO2 equivalent.
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