The full scope of circulation economy is rapidly emerging in Mexico, hence presenting significant business possibilities for Finnish companies.
Mexico is a federal republic in the southern half of North America with an estimated population of over 120 million. It is the eleventh most populous country in the world. It is estimated that Mexico would be the eight largest economy by 2050.
Mexico is ranked first in Doing Business Index (World Bank) and third most competitive country (World Economic Forum) in Latin America. Mexico has an attractive location for productive investment such as aerospace, automotive, electronics, medical and food processing among others. It has a great infrastructure, skilled labor force and a growing population.
Mexico is committed to free trade
Mexico is the leading exporter in Latin America. Mexico has signed free trade agreements with 46 countries. Mexico is a member of Nafta and Pacific Alliance. The Trans-Pacific Partnership (TPP) increases its presence in Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam. Mexico and the EU have started negotiations to update the free trade agreement. EU is Mexico’s second biggest trading partner.
Increasing the use of renewable energies
Mexico is strongly investing in circular economy, renewable energy, water management and waste management technologies. The predominant needs and challenges of the Mexican authorities, businesses and consumers are improved water conservation technologies, adequate supply of electricity and both organic and nonorganic waste management.
Mexico has set a goal to produce 35 % of its energy from renewable energy sources by 2024, 40 % by 2035 and reach a minimum level of 50 % by 2050. Mexico’s Climate Change Law sets obligations for industry and municipalities to report and mitigate their greenhouse gas emissions and sets penalties beginning in 2018 for municipal landfills, wastewater treatment plants, and industries known to generate emissions that do not develop mission mitigation efforts.
Many project opportunities in bioenergy and forestry biomass and other sectors
Water purification, decentralized energy production, waste management and recycling, as well as intelligent lighting and building solutions, e-health services, hospitals and education are examples of sectors in which Finnish enterprises would have business opportunities in Mexico.
In addition to this there are project opportunities in bioenergy such as:
- Biogas projects at municipal and industrial wastewater treatment plants operated by private companies under concessions.
- Biogas projects at landfills concessioned to private companies for their construction/operation.
- Biomass projects using agricultural waste for power production, especially within the sugar cane, corn, sorghum and wheat producers.
- Bio digesters to produce bio-gas from livestock manure and residues.
- Waste-to energy projects within energy intensive industries such as cement, steel, petrochemical among others.
- Other waste-to-energy projects within publicly operated infrastructure (list by Finpro 2017).
Emerging Mexican Circular Economy Market – Possibilities for Finnish Companies seminar was co-organized by Finnish-Latin American Trade Association, ProMéxico, Osuuspankki, Tekes, Advion Group and Finnpartnership in Helsinki on the 7th March 2017.