Carbon capture penetration in Mexico's 2050 horizon: A sustainability assessment of Mexican CCS policy

Abstract

Mexico is expected to become the 6th largest economy in 2050. According to EDGAR database, in 2019 it was the largest polluting country in Latin America and the 13th in the world, regarding Greenhouse Gas (GHG) emissions. Lately, the new Administration has shifted its energy strategy from a renewable path into the reinforcement of conventional energy sources. In this context, new policies have to be deployed to meet the Paris Agreement goals. In such scenario, carbon capture and storage (CCS) technology may contribute reducing CO2 emissions as a way to transform Mexico into a low-carbon economy in the long term. However, the construction and operation and maintenance phases will embody environmental impacts that should be considered. This paper assesses the carbon capture investments required for the expected increasing capacity of natural gas power plants up to 2050 and their impact on production, value added, employment, climate change, acidification, water consumption and human health effects. An environmentally extended multi-regional the input-output analysis (EMRIO) is used to address Mexican policies for the period 2020–2050. Results show that the investment in capture technologies in Mexico allows a net reduction of the carbon emissions in Mexico that is pursued at a low cost (33 EUR/tCO2). This mitigation policy has important additional co-benefits in terms of domestic value added and employment creation of medium and high qualification. As for the environmental impacts, most of them are produced in the power plant due to the burning of the natural gas consumed.