ADDRESSING NORTHERN MEXICO'S WATER-ENERGY NEXUS AMID AN INDUSTRIAL BOOM

By Duncan Wood, CEO, Hurst International Consulting, World Economic Forum

• Northern Mexico’s economic expansion in manufacturing and energy is jeopardized by chronic water scarcity.
• The region highlights the urgent need to align water, energy and climate policies in the energy transition.
• Projects such as shale gas, breweries and data centres show how water constraints shape sustainable development.

Northern Mexico has long been geographically and economically critical to Mexico’s national development. Proximity to the US border, a business-friendly environment and an entrepreneurial culture make the region prime for foreign direct investment, particularly amid the current wave of nearshoring.

It is also central to Mexico’s energy system: it hosts oil and gas fields, wind and solar resources, critical minerals, industrial energy users and potentially, next-generation technologies such as hydrogen and advanced battery production.

Yet the entire region is highly water-stressed. According to Mexico’s National Water Commission, over 45% of its aquifers are overexploited and rainfall averages are among the lowest in the country. Water governance is fragmented, infrastructure is ageing and climate change is intensifying drought frequency and severity.

As Mexico pursues emissions cuts, energy security and clean tech growth, the north faces a key question: can it sustain the energy transition with shrinking water resources?

Read full article here.