Participants at the AfDB pavilion at the Second Africa Climate Summit in Addis Ababa, Ethiopia. Credit: Farai Shawn Matiashe/IPS
By Farai Shawn Matiashe
ADDIS ABABA, Sep 16 2025 (IPS)
As increasingly frequent droughts and devastating floods are affecting agricultural productivity, leaving millions of people food insecure in Africa amid a lack of climate finance, the African Development Bank (AfDB) has committed USD 11 billion to support various climate-resilient and infrastructure projects in rural areas.
Climate change-induced humanitarian emergencies are materializing in every corner of the world. Often, more frequently than predicted. Over the past few years, many countries have been experiencing extreme weather events almost every month. Poor countries like those in Africa emerged as the worst affected, bearing the brunt of climate change.
Africa warmed faster than the rest of the world, according to a report released last year by the World Meteorological Organization (WMO). The Horn of Africa, as well as Southern and Northwest Africa, suffered from exceptional multi-year droughts recently, while other African countries reported significant casualties due to extreme precipitation leading to floods in 2023.
Targeting Climate Action Projects
James Kinyangi, coordinator of the Climate and Development Special Fund and the Climate Action Window at AfDB, said they are providing funding for various climate adaptation and mitigation projects across Africa.
“AfDB has several ways in which they are tackling climate challenges and integrating finance for climate action in its portfolio. Last year, we had total approvals for projects in African countries for about USD 11 billion,” he told IPS in an interview at the AfDB Pavilion during the Second Africa Climate Summit (ACS2) held in Addis Ababa, Ethiopia, from 8 to 10 September. The summit took place in anticipation of the United Nations Climate Conference (COP30), in Belém, Brazil, scheduled for November 2025.
“Out of that, close to half was mainstream climate finance. Of the nearly USD 5 billion that went to climate finance, nearly 65 percent was adaptation finance. The remaining was mitigation.”
Kinyangi said they have a mainstream of climate finance for climate action in their main portfolio, making sure that all of the lending of the bank responds to climate action.
“We also screen our projects. Now, nearly 100 percent of all new approvals of the bank are mainstream with climate action. They are climate-informed designs of projects,” he said.
Kinyangi, an AfDB early warning expert, says they also have various special funds and trust funds that respond to climate change.
“One that is visible is through our major constitutional lending window, the African Development Fund. We have created the Climate Action Window, which has mobilized a total of USD 500 million as climate finance,” he said. “That has now been programmed for 37 low-income African countries that benefit from the resources of the African Development Fund. We have about 41 projects that are adaptation and we have another 18 projects that are mitigation.”
The cost of climate adaptation in sub-Saharan Africa would be between USD 30 and 50 billion annually over the next decade, according to the WMO. This is a huge blow to a continent where 118 million extremely poor people have a daily income of less than USD 1.90 per day. If adequate climate funding is not secured in time, farmers in the rural areas will be poorer by 2030 as national budgets continue to be diverted.
AfDB’s investments in Africa cut across energy, agriculture, water resources and sanitation, forestry, climate information systems, and green projects seeking finance to help transform mitigation pathways. Kinyangi said several of these projects are designed to support rural communities, including early warning systems, climate-smart agriculture and clean cooking solutions.
In the Sahel region, AfDB is supporting a project called Farmer Managed Natural Regeneration (FMNR), a low-cost, sustainable approach where farmers protect and manage the natural growth of trees and shrubs on their agricultural lands, rather than planting new ones. The practice restores degraded soil and increases agricultural yields, improving food security.
As part of their climate-smart agricultural projects, AfDB is supporting 20 million farmers across Africa. Kinyangi said AfDB is supporting technologies like drought insurance for the management of risks associated with losses of livestock and crops due to drought. He said the result is a whole host of technologies they are financing in rural communities across Africa, supporting farmers with water harvesting and renewable energy.
In Zimbabwe, for instance, AfDB is working with the International Fund for Agricultural Development, a United Nations agency working to eliminate poverty and hunger in rural areas and the United Nations Children’s Fund (UNICEF) to support school feeding programs for children.
“This includes improving cooking equipment in schools and improving the delivery of vaccines and other medications through rural dispensaries by use of cold chains powered by solar, ” said Kinyangi. Across Africa, AfDB is revamping irrigation projects, changing from diesel-powered to solar-powered systems to reduce emissions.
Bridging the Financing Gap for Countries in Debt Distress
Several African countries that are exposed to extreme weather events like droughts and floods divert their national budgets to respond to these disasters. These are funds meant for the health and education sectors, which are diverted to support affected communities and rebuild destroyed infrastructure. To fill the financing gap, they turn to multinational lenders like the International Monetary Fund (IMF) and the World Bank, which leaves them in debt.
Efforts have been made in the past to restructure debt through the G20 Common Framework, which was created during the COVID-19 crisis in 2020 as a debt relief effort. But African leaders say it is slow and creditor-driven. Five years after it was established, only Ghana and Zambia have managed to restructure their debt under the G20 Common Framework.
Between 2010 and 2020, Africa’s external debt increased more than fivefold and accounted for almost 65% of Gross Domestic Product in 2023. Even though Africa’s average debt-to-GDP ratio is expected to decrease to 60% in 2025, the continent faces an escalating debt crisis, according to the African Union. Statistics from the IMF and World Bank’s Debt Sustainability Framework show that African countries in distress, or at high risk of debt distress, have risen from 9 in 2012 to 25 in 2024.
Kinyangi said the AfDB Climate Action Window was established to help countries in debt distress.
“For example, countries like Mozambique, Malawi and Zimbabwe are exposed to tropical cyclones in the Indian Ocean. So, they divert national resources to combat the negative impacts of tropical cyclones. That leaves them in a budget hole. Sometimes they have to borrow to leave that budget hole.”
Kinyangi said AfDB’s aspirations are to ensure that it channels more climate finance to vulnerable countries to cushion those countries against having to divert important national budgets to combat the impacts of climate change. He said climate finance is supposed to go directly to building resilience against the negative impacts of extreme weather events while preserving the national budget that is meant to create education systems and promote health and infrastructure.
The AfDB was among the African banks that have committed to mobilizing USD 100 billion to fund green industrial projects at the ACS2. While a copy of the final declaration from the three-day Addis Ababa Summit is yet to be released, African leaders set a new goal to raise USD 50 billion annually for climate solutions. In 2023, about USD 26 billion was mobilized at the ACS1 in Nairobi, Kenya, but it is not clear how much funding has been disbursed. The continent needs USD 1.3 trillion per year to finance its climate adaptation plans, according to the AU.
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La violence continue en Serbie contre les manifestants opposés au régime, alors que de son côté Vučić fait parader ses soutiens. Plongée dans l'une de ces marches, organisées par et pour les « vrais patriotes serbes ».
- Articles / Une - Diaporama, Courrier des Balkans, Vucic, PolitiqueUn véhicule a été entièrement consumé dans un incendie dans la soirée de ce lundi 15 septembre 2025, sur l'avenue Steinmetz à Cotonou.
Incendie à Cotonou ce lundi 15 septembre 2025. Un véhicule de marque Ford a été entièrement consumé. Le drame s'est produit aux environs de 20 heures sur l'avenue Steinmetz, au niveau de la pharmacie Vog. Le temps que les sapeurs-pompiers se déploient sur les lieux pour maîtriser les flammes, le véhicule était déjà consumé. Aucun blessé, ni perte en vie humaine n'est à déplorer.
F. A. A.
UN Photo/Loey Felipe
The UN General Assembly voted on the “New York Declaration,” a resolution endorsing the two-state solution between Israel and the Palestinians. 12 September 2025. Of the 193 UN Member States, 142 countries voted in favour of a resolution backing the document. Israel voted against it, alongside nine other countries – Argentina, Hungary, Micronesia, Nauru, Palau, Papua New Guinea, Paraguay, Tonga and the United States – while 12 nations abstained. https://news.un.org/en/story/2025/09/1165835
By James E. Jennings
ATLANTA, USA, Sep 16 2025 (IPS)
In a long past due move, the UN General Assembly voted 142-10 to approve a plan called “The New York Declaration” that hopes to revive the long dead Two State Solution for Palestinian Independence.
Many observers may see it as a welcome initiative to curtail Israel’s century-long colonial project in Palestine. The declaration was proposed by France, Saudi Arabia, the UK, Canada and a gaggle of other countries as way to establish a Palestinian state on the West Bank of the Jordan River.
But it is a cruel deception.
Just last year the UN General Assembly demanded that Israel end its so-called “security operations” in Gaza before the end of this month of September, 2025. Israel has ignored the deadline and has no intention of complying.
Nothing approaching peace for Palestine is likely to happen, no matter the overwhelming vote at the UN General Assembly. Why? Because creating a virtual state in Palestine is not a real state and therefore does not solve the problem.
The clever leaders from this group of countries, most of them apparently sincere, have figured out a way—in the absence of a realistic plan to restrain Israel—to merely kick the can of peace down the road. But it doesn’t mean it will happen.
It may be designed to attenuate Palestinian suffering and limit Israel’s endless denial of human and political rights, but it cannot succeed by prolonging the already decades-long and miserably failed “Peace Process.” The Oslo process took thirty years, and peace is farther away than ever.
You either have peace, or you don’t. It cannot be a process. Although post-war peace negotiations are sometimes long and tedious, if intentions are sincere the shape of an agreement takes only minutes to define and outline. Any meaningful agreement, whether between individuals or nations, requires a straightforward statement of goals and adherence to the principles of equality, and justice.
Yet despite UN Secretary-General Antonio Guterres’ frequent statements that Israel’s occupation of Gaza and the West Bank Is illegal under international law and must stop, and bombing civilians is illegal and must stop, those standards are not being faced honestly by the coalition of nations operating now as “The New York Declaration.”
None of the great nations involved in this latest initiative are calling for Israel to withdraw from Gaza and the West Bank, much less to stop the genocide immediately. Why not?
The intent of this diplomatic maneuver led by France, the UK, Canada, and other countries is to avoid these pressing demands, not implement them. Rather, if the UN vote does succeed in getting Israel to temporarily stop bombing the hapless civilians in Gaza, the world can expect a great follow-up hubbub about a “Peace Process” for Palestine that may last years but will in fact sideline the principled demands of the General Assembly’s September 12 Resolution.
That in fact may be the point of this initiative, as sincere as President Macron and the others may be. The threat of UK Prime Minister Starmer to recognize a Palestinian state in September is hollow and just the same: to distract from the UN General Assembly’s demands by signing on to a “process” that will never end. It’s a good guess that, like Lucy in the Peanuts Cartoon, he will pull the football away in the nick of time, leaving Palestine like Charley Brown flat on the ground.
Creating a virtual state, not a real one, is just playing into Netanyahu’s hands. The key nations leading the agreement have not labeled Israel’s actions in Gaza genocide as they should or called for an immediate halt to the killing and starvation.
Neither have the three leading military suppliers, Germany, the UK, and France, stopped sending weapons and technical military support components to Israel.
And for what? Not for advancing justice or even humanity, much less Palestinian political rights, but to smoothly guide the international community to an endorsement of Israel’s genocide in Gaza and its military control of the entire Middle East.
They imagine that the countries of the Middle East, led by Saudia Arabia’s murderous crown prince Muhammad bin Salman, aka MBS, will eventually allow the Western powers to confirm Israel’s military hegemony in Gaza and the West Bank.
The vision endorsed by these leading countries fails to call Israel to account for its genocide in Gaza or its de facto takeover of the West Bank. If implemented, the people of Palestine will become merely “hewers of wood and drawers of water,” in the Biblical phrase, for Israel’s triumphant military umbrella over the Middle East region.
Saudi Arabia and the Gulf States will be free to make money, and the US will pay for Gaza’s reconstruction. The world can expect a great hubbub about the “Peace Process” in the coming months that will sideline the principled demands of the General Assembly’s Resolutions.
What will happen to the people in Gaza is left out of the calculation. Be warned. Pay attention. It is a cruel deception.
James E. Jennings is President of Conscience International, a former aid worker in Gaza, and a longtime advocate for Palestinian human and political rights.
IPS UN Bureau
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Windmills are at the backdrop of a highway in Ninh Thuận, Vietnam. Governments should invest in renewable energy and infrastructure as part of financing for development to close SDG gaps in Asia and the Pacific. Credit: Unsplash/Moc Diep
By Heather Lynne Taylor-Strauss and Eiichiro Takinami
BANGKOK, Thailand, Sep 16 2025 (IPS)
Over the past two decades, foreign direct investment (FDI) has been the single largest and most stable source of external development capital in Asia and the Pacific (see Figure).
In 2022 alone, FDI flows into the region exceeded US$300 billion, outpacing official development aid (ODA), remittances and portfolio investment flows. Even in 2023, when global investment slowed under higher interest rates and geopolitical uncertainty, FDI into the region remained close to $290 billion.
Figure: External capital inflows to developing countries in Asia and the Pacific
Source: Created by ESCAP based on World Development Indicators, UNCTAD, and IMF data.
For a region facing a $1.5 trillion annual financing gap to achieve the Sustainable Development Goals (SDGs), this is more than a statistic. It is a reminder that the future of development finance and achievement of the 2030 Agenda for Sustainable Development depends on whether countries can effectively attract and channel FDI.
From the Addis Ababa Action Agenda (AAAA) in 2015 to the most recent Sevilla Commitment agreed at the International Conference on Financing for Development (FFD4), the global community is aligned to leveraging FDI for sustainable development. In fact, the Sevilla Commitment elevated the role of FDI.
While the AAAA positioned FDI as complementary to public finances for sustainable development, the Sevilla Commitment identified FDI as a key source of development capital, devoting an entire subsection to scaling up FDI.
ODA, portfolio investments and remittances all play important roles. But none match the stability, scale or transformative power of FDI. While ODA is vital for humanitarian and social priorities, donor budgets are increasingly squeezed by competing demands such as defence spending and climate adaptation.
Portfolio investments represent a large volume but are more susceptible to global economic events and often seek short-term returns. Personal remittances are stable and sustain household welfare. However, remittances are primarily consumption-oriented and often are not channelled to building productive capacity. FDI is different. It can build renewable energy plants, expand digital infrastructure, and create jobs. It is not just money flowing in; it is productive capital tied to long-term development.
Nonetheless, not all FDI is equal. Its impact depends on whether investments are effectively channelled towards SDG priorities. To accomplish this, investment promotion agencies (IPAs), with their mandates to promote, attract, and facilitate FDI, play a crucial role. With the right strategies and tools, IPAs can ensure that the FDI contributes to sustainable development needs.
The following three areas are particularly important for action by the IPAs.
1. Aligning and implementing IPA’s investment attraction strategies with SDGs.
IPAs need to create medium-term investment promotion and attraction strategies that are aligned with their SDG priorities. This involves IPAs finding their country’s “niche” target sectors to attract investments.
Aligning strategies with the SDGs is essential because many corporate investors now value alignment as part of their ESG investment criteria. Over the past several years, ESCAP has supported its member States in developing and implementing practical, targeted investment promotion and attraction strategies. These projects have enabled IPAs to narrow their focus, identify niche opportunities, and connect with high-potential investors.
2. Leveraging regional cooperation on investment promotion.
While IPAs often compete for investors, regional cooperation can be even more powerful—especially in attracting cross-border investments that require scale. By pooling markets and aligning promotion efforts, countries can present themselves not as fragmented destinations but as part of a larger, integrated investment destination. This approach not only makes the region more attractive to global investors but also enables each country to highlight its comparative strengths within wider value chains.
ESCAP has been at the forefront of advancing such cooperation. In South East Asia, the ASEAN Regional Investment Promotion Action Plan (RIPAP) 2025–2030 was endorsed by all ASEAN member States as the first region-wide initiative to jointly promote investment opportunities.
In Central Asia, ESCAP and the International Islamic Trade Finance Corporation launched the Boosting Exports through FDI programme, which helps countries attract investment that strengthens regional value chains and to become more competitive. Regional collaboration of this kind demonstrates that cooperation—not just competition—can unlock larger, more sustainable flows of FDI.
3. Developing impact measurement tools.
Developing and utilizing impact measurement tools can help IPAs demonstrate how their work is contributing to advancing the SDGs. With database systems and tools, IPAs can track growth in sectors like green industries or progress on digital transformation, making their impact more visible. For example, Investment Fiji has tailored its Customer Relationship Management system to more effectively monitor how the investment they have helped facilitate contributes to the SDGs.
As traditional development aid budgets plateau, FDI remains the most stable and transformative capital for building productive capacity. FDI has already been instrumental in driving SDGs in areas such as transitioning to clean energy, accelerating digital connectivity, and generating decent jobs needed for inclusive growth. But to fully realize this potential, governments and IPAs must be strategic, collaborative and impact-driven.
ESCAP stands ready to support its member States and their IPAs in developing and implementing FDI promotion and attraction strategies aligned with SDGs.
Heather Lynne Taylor-Strauss is Economic Affairs Officer, ESCAP; Eiichiro Takinami is Junior Economic Affairs Officer, ESCAP.
IPS UN Bureau
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Opinion polls show that the majority of the U.S. population holds positive views on immigration. Credit: Shutterstock.
By Joseph Chamie
PORTLAND, USA, Sep 15 2025 (IPS)
Most of the population in this country wants immigrants, but the current government does not share the same sentiment. The country in question is the United States, often referred to as “a nation of immigrants”, home to more immigrants than any other country worldwide, having received over 100 million immigrants since its founding in 1776.
Opinion polls show that the majority of the U.S. population holds positive views on immigration. A national survey conducted in June revealed a record high of 79% of U.S. adults considering immigration beneficial for the country, with 17% viewing it negatively (Figure 1).
Source: Gallup Poll.
The poll also found that 62% of U.S. adults disapprove of the president’s hardline immigration enforcement measures. Specifically, a majority of the U.S. public opposes immigration arrests in protected areas such as places of worship, schools, hospitals, and clinics.
Opinion polls show that the majority of the U.S. population holds positive views on immigration. A national survey conducted in June revealed a record high of 79% of U.S. adults considering immigration beneficial for the country, with 17% viewing it negatively
It is estimated that the current government authorities have deported at least 180,000 people so far. By the start of August, the number of deportations is reported to have reached close to 1,500 people per day.
Analyses of recent census data show that in the first seven months of 2025, the U.S. foreign-born population declined significantly, estimated to be between 1.5 million and 2.2 million.
The foreign-born population decreased from 53.3 million immigrants, a record high representing 15.8% of the U.S. population, to 51.9 million immigrants or 15.4% of the country’s population, with other estimates of the decline even lower at 51.1 million. The drop in the foreign-born population marked the first decline in the country’s immigrant population since the 1960s.
Many in the U.S., estimated to be about a third of the population, have expressed agreement with the general principle of deporting undocumented migrants, especially those who have committed violent crimes.
However, a national opinion poll conducted in late June found that the majority of the U.S. population, 54%, believe the government’s immigrant enforcement program has “gone too far” with their methods and tactics being extreme, aggressive, and heavy-handed.
Additionally, 78% of the U.S. population favor providing pathways to citizenship for undocumented immigrants already living in the country, with the proportion rising to 85% for immigrant children.
The proportion of U.S. adults who want immigration to remain at its current level is 38%, while 26% would like to see it increased. In contrast, 30% prefer a reduction in immigration (Figure 2).
Source: Gallup Poll.
Another survey found that 60% of the U.S. population disapprove of the suspension of most asylum applications and the termination of Temporary Protected Status. Many have objected to the administration’s steps to block access to the asylum process, which is in violation of U.S. law.
Additionally, on his first day in office, the U.S. president issued an executive order aimed at ending birthright citizenship for babies of undocumented immigrants and individuals with temporary status in the country.
If birthright citizenship were to end in the U.S., it would impact an estimated 6% of the country’s annual births, or about 225,000 babies born in the country each year.
However, a national survey conducted in June revealed that 68% of registered U.S. voters actually support birthright citizenship, which was established by the 14th Amendment to the U.S. Constitution in 1868.
Section 1 of the amendment states: “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside”. The president’s executive order ending birthright citizenship has become a significant legal battle for the country and will likely be decided by the Supreme Court.
The current administration considers all undocumented immigrants living in the country as criminals and has falsely claimed that undocumented migrants are responsible for the rise in crime, despite data showing crime rates have been decreasing.
It is important to note that being in the United States illegally is a civil violation, not a criminal one. Many undocumented immigrants who have been arrested have not been convicted of a crime.
In June, the Supreme Court ruled that the administration could resume expedited deportations of migrants to countries that are not their places of origin, referred to as third-country deportations. The administration has reached agreements with countries like Honduras, Rwanda, and Uganda to accept deported migrants who are not their own citizens.
These agreements allow for redirecting asylum-seekers to countries that are not their own if the U.S. government believes these nations can fairly assess their claims for humanitarian protection.
Confusingly, the U.S. president recently ordered a “new” population census that excludes undocumented immigrants.
This is a historic demand, considering the U.S. has counted every person in its census for over 230 years, dating back to 1790. During his first term, the president tried to alter the country’s decennial population census by adding a citizenship question to the 2020 census, but the Supreme Court blocked it.
The U.S. Census Bureau projects that approximately one million immigrants per year will drive the country’s population growth throughout the rest of the 21st century. The nation’s fertility rate, at 1.63 births per woman in 2024, is expected to remain well below the replacement level in the coming decades.
By mid-century, immigration is expected to contribute twice as many people to the U.S. population as natural increase. According to the main series population projection, by 2080, the current U.S. population of 342 million is projected to reach nearly 370 million (Figure 3).
Source: U.S. Census Bureau.
However, without future immigrants and fertility remaining below replacement, the U.S. population is projected to decline as deaths soon begin to outnumber births. The Congressional Budget Office expects deaths to exceed births by 2031.
By the end of the 21st century, the Census Bureau estimates that without immigration the country will experience nearly 2 million more deaths than births. The U.S. population in the zero immigration scenario is expected to decline to about 226 million, or approximately 116 million fewer people in 2100 than today.
The United States is currently experiencing a significant need for workers across various sectors of the economy, including agriculture, construction, healthcare, hospitality and manufacturing.
Immigrant workers are seen as crucial in filling these labor shortages, especially for jobs such as farmworkers that the native-born U.S. population typically does not want to do.
Many economists have emphasized that immigration is a vital component of a healthy U.S. economy. The president’s deportation and tariff policies are believed to be contributing to an inflationary shock to the economy.
Immigration can help reduce inflation, strengthen manufacturing and increase employment rates. The chair of the Federal Reserve has indicated that the president’s stricter immigration policies are one of the reasons U.S. economic growth has slowed.
In addition to filling job vacancies, immigrant workers also contribute to the growth of the country’s economy and boost tax revenue. The Congressional Budget Office estimates that immigration growth will add $1.2 trillion in federal revenue over the period from 2024 to 2034.
The U.S. population is expected to undergo significant demographic ageing in the coming decades. By 2035, the number of people in the U.S. aged 65 years or older is projected to exceed the number of children under the age of 18.
As the U.S. population ages, the number of working-age individuals per retired person is decreasing. In 1975, the potential dependency ratio of those aged 20 to 64 years old per person aged 65 years or older was slightly over five. Currently, the dependency ratio is about three and is expected to decline to two by 2075. Without future immigration, the U.S. dependency ratio is projected to be approximately 1.5 by 2075.
In summary, it is clear that the majority of the population in the United States supports immigration, while the government does not. Despite the widespread backing for immigration and the substantial demographic, economic, and social impacts of immigration, the new administration is concentrating on significantly decreasing immigration. They have put in place policies, initiated programs, and issued executive actions to achieve this objective.
Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division, and author of various publications on population issues, including his recent book, “Population Levels, Trends, and Differentials”.
A wind farm in the state of Baja California, in Northwestern Mexico. This territory depends on fossil fuels for electricity generation, while the contribution of renewables is still low, but it is gradually moving towards residential solar generation. Credit: Sempra
By Emilio Godoy
MEXICO, Sep 15 2025 (IPS)
Over the past four months, Mexican researcher Nicolás Velázquez has paid around US$23 for electricity, thanks to the photovoltaic system installed in his home in the northern city of Mexicali.
“You can see the direct benefit. My neighbor received a bill over US$400. The problem is the high temperatures, which double demand” from March to August, said Velázquez, coordinator of the Center for Renewable Energy Studies at the Engineering Institute of the public Autonomous University of Baja California.
Due to the high temperatures in cities such as Mexicali, capital of the northwestern state of Baja California, people need air conditioning systems during the summer, which increases electricity consumption in a state with 3.77 million inhabitants, affected by a shortage of infrastructure and generation.“Distributed generation is better for us. It is done by Mexican companies. We import the technology, but there is a chain of Mexican participation. We participate from engineering onwards, activating the economy to a certain level, helping the residential sector”–Nicolás Velázquez.
In late August, residents of several neighborhoods in Mexicali blocked the highway between that city and neighboring Tijuana due to a lack of electricity.
In an attempt to alleviate the situation, the Mexican government launched the Techos Solares del Bienestar (Solar Roofs for Welfare) program in March, aimed at low-income homeowners who pay high rates and consume between 400 and 1,000 kilowatt hours between July and August, so they receive solar panels for their homes in Mexicali and the neighboring municipality of San Felipe.
It is one of the steps to relaunch the energy transition to less polluting sources that the previous government halted in 2018.
The initial plan is to install solar panels in 5,500 homes in Mexicali with an investment of around US$10 million. The ultimate goal is to cover 150,000 homes by 2030. The scheme promises to reduce electricity bills from 49% to 89%.
For Velázquez, the central question revolves around the advisability of resorting to centralized or distributed generation, which consists of electricity production by systems of many small generation sources close to the end consumer.
“Distributed generation is better for us. It is done by Mexican companies. We import the technology, but there is a chain of Mexican participation. We participate from engineering onwards, activating the economy to a certain level, helping the residential sector,” he said from Mexicali.
In his opinion, “there has to be a balance between centralized and distributed generation, because there will not be a single solution. More energy justice is achieved through distributed generation.”
In Mexico, home to some 129 million people, there are at least 12,000 communities without electricity and some 9,000 homes without connection to the national grid, a quarter of which are located in Mexicali, which had 1.05 million inhabitants according to the 2020 census.
Small-scale or distributed generation is on the rise in the country.
Since 2007, the government’s Energy Regulatory Commission has authorized 518,019 licenses for a distributed energy generation capacity of 4,497 megawatts (MW). In 2024, it approved 106,934 interconnections for 1,086 MW.
The western state of Jalisco and the northern states of Nuevo León and Chihuahua top the list, while Baja California ranks 14th among the 32 Mexican states.
In July, the government’s National Energy Commission updated the regulations for interconnected self-consumption for installations between 0.7 and 20 MW, which expands the margin for distributed generation, also known as citizen generation.
Solar panels in a community in the municipality of Ensenada, in the northwestern state of Baja California. The existing microgrid in that town provides electricity to the small community. Credit: Secihti
More promises
The energy policy of president Claudia Sheinbaum, in office since October 1, has so far been marked more by proposals than by concrete actions, and Baja California is no exception to this dynamic.
Her government will allocate US$12.3 billion for electricity generation, US$7.5 billion for transmission infrastructure, and US$3.6 billion for decentralized photovoltaic production in homes.
The plan would add 21,893 MW to the national energy matrix, reaching 37.8% clean energy from the current 22.5%, so that the state-owned Federal Electricity Commission (CFE) would hold 54% of the market, with the rest going to private and individual entities.
On August 26, the president announced the construction of two solar thermal plants in the state of Baja California Sur, which shares a peninsula with Baja California, with a public investment of US$800 million to generate more than 100 MW. The territory is also isolated from the national grid and suffers from a chronic energy deficit.
Solar thermal energy converts solar radiation into electricity using mirrors to generate steam and drive turbines, as well as enabling energy storage.
The CFE plans to tender phase II of the Puerto Peñasco photovoltaic plant, in the town of the same name in the northern state of Sonora, with a capacity of 300 MW and 10.3 MW of battery backup. The first 120 MW phase of this facility has been operating since 2023. Completed in 2026, it will contribute 1,000 MW at a cost of US$1.6 billion.
However, the Mexican government continues to promote fossil fuels, despite the urgency of phasing them out, as it seeks to strengthen the CFE and the state-owned Petróleos Mexicanos.
All of this impacts places such as Baja California, where 16 public and private power plants operate, with an installed capacity of 3,461 MW, including three wind farms with more than 300 MW of capacity and three solar farms with 50 MW.
The private company Sempra Infraestructura, a subsidiary of the US company Sempra, is building a wind farm with a capacity of 300 MW, which is expected to be operational in 2026. In addition, CFE operates a 340 MW geothermal plant.
Despite its shortcomings, the state exports around 1,100 MW to the neighboring US state of California and imports around 400 MW. Baja California could produce 6,550 MW of solar power, 3,495 MW of wind power, and 2,000 MW of geothermal power.
In addition, CFE is building two combined-cycle power plants in Baja California that burn gas and generate steam to drive turbines, which would reduce blackouts.
The country faces insufficient production to meet annual demand growth of about 4% and an obsolete power grid.
In the first half of 2025, the country generated 310.49 terawatt-hours, virtually the same as during the same period last year. Some sources, such as gas, hydroelectric, wind, and photovoltaic, increased, but others, such as thermoelectric and nuclear, decreased.
In Mexico, electricity generation depends mainly on fossil gas, followed by hydroelectricity and nuclear energy. Renewable sources have a capacity of 33,517 MW, but only contribute one-fifth of the electricity produced.
Energy map of the northern Mexican state of Baja California. Electricity generation is not enough to meet growing demand, causing frequent blackouts. Credit: Government of Baja California
New schemes
Baja California’s 2022-2027 Energy Program consists of four strategies, including providing access to electricity to remote communities and unregulated housing, as well as promoting the rapid transition to decarbonization and the use of clean energies.
In addition, it envisions eight outcomes, including the promotion of two annual microgrid power generation projects for isolated communities and a 3% increase in alternative electricity generation. However, there is no evidence of progress toward these goals.
If it so desired, the Mexican government could transform its national electricity subsidy of more than US$5 billion annually into distributed generation.
The Universal Electricity Service Fund is a case in point. Intended to cover marginalized communities, available data indicate that it has covered more than 1,000 municipalities out of a total of 2,469, including two in Baja California, since 2019.
Velázquez proposed that these funds could finance solar panels and microgrids.
“Year after year, they give a subsidy, but if these families were provided with a photovoltaic system, it would solve the problem at its root. We need to look for more far-reaching measures; the actions have to be different,” he said.
In December 2023, during the climate summit in Dubai, United Arab Emirates, Mexico joined the Global Renewables and Energy Efficiency Pledge, which consists of tripling alternative installed capacity and doubling the energy efficiency rate by 2030. In comparison, Sheinbaum’s plans fall short.