Greenpeace v. Ministry of Energy and Others (on the Energy Sector Program 2020 and Electric Industry Law)

Greenpeace challenged the constitutionality of the amendments to the Electric Industry Act and the National Electricity Sector Development Program 2020-2034 (PRODESEN). In its suit, Greenpeace also asked for a stay of the implementation of both regulations. Plaintiff argued that the regulations displace the use of renewable energy sources in electricity generation in favor of polluting, fossil fuel sources. This transgresses Mexico’s international commitments on climate change. The First District Court in Administrative Matters Specialized in Antitrust, Broadcasting and Telecommunications granted a stay of the implementation of both the Act and PRODESEN. The court agreed with the plaintiffs in considering that the regulation could potentially transgress the right to a healthy environment by stalling the energy transition. The stay was appealed by the authorities. On September 1, 2022, the First Circuit Court in Administrative Matters Specialized in Antitrust, Broadcasting and Telecommunications overturned the district court’s decision, denying the stay. The court argued that the potential harms that could derive from the challenged regulations were conditioned by the need to modify and amend other regulations. In this sense, the harm was not sufficiently immediate to grant the stay. On January 9, 2023, the District Court ruled on the merits in favor of Greenpeace. The District Court decided that the 2021 amendments to the Electric Industry Law, as well as the Energy Sector Program 2020, violate the right to a healthy environment by prioritizing the energy generated through fossil fuels. On February 9, 2023, the Mexican government appealed the District Court decision to uphold the plaintiff’s claims. On January 24, 2024, the Third District Court in Administrative Matters Specialized in Antitrust, Broadcasting, and Telecommunications decided that Greenpeace did not have legal standing to file the lawsuit, because the Energy Sector Program did not cause the plaintiff a direct, real and current damage. The Court made this decision because it interpreted that the Energy Sector Program is a planning instrument that integrates objectives and strategies with specific actions to be conducted by the Ministry of Energy based on an analysis of the energy sector and sets a series of guidelines, objectives and specific strategies related. These objectives and strategies are indicative, and it is a merely declarative document that does not generate any type of legal obligation, and therefore, it is not an act that affects the plaintiff’s rights. Then, the case was dismissed. On February 9, 2024, Greenpeace appealed the Court’s decision. On October 2024, the Mexican Constitution was amended to prioritize the electricity generated by CFE, because it is a state-owned company. As a result of this amendment, on June 2, 2025 the Collegiate Court decided to dismiss the case, based on a decision by the Supreme Court, where it was decided that the challenged norm will no longer have any legal effect.