Madison Realty Capital Originates $315.6 Million Loan for The Four Seasons Hotel and Residences in New Orleans

NEW YORK, Sept. 19, 2022 (GLOBE NEWSWIRE) — Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, today announced that it has provided a $315.6 million loan to Carpenter & Company, Inc. and Woodward Interests, LLC for the completion of the renovation at the Four Seasons Hotel and Residences New Orleans located at 2 Canal Street in New Orleans, Louisiana.

Josh Zegen, Managing Principal and Co–Founder of Madison Realty Capital, said, "The Four Seasons New Orleans is well positioned along the Mississippi River, between the French Quarter and Central Business Districts, to capitalize on the demand from New Orleans' robust tourism market and expanding business district. We are pleased to leverage our familiarity with the Four Seasons brand to deliver a timely and customized financing solution to an experienced borrower group for a well–recognized New Orleans landmark with exciting cultural attractions."

The 341–key Four Seasons hotel opened in July 2021 and is part of a mixed–use tower that includes 92 residential condominiums on the top floors. Operated by the Four Seasons, the residences have a private entrance from the hotel and offer one– to three–bedroom units and four–bedroom penthouses. To date, the property has sold 50% of the condominiums.

The 33–story hotel and residence offers event space and amenities including two restaurants, a lobby and bar, full–service spa, fitness center, outdoor pool, and private gardens. The highly awarded hotel was named a "Best Hotel in New Orleans" and one of the "Best New Hotels in the World" by Travel + Leisure; a "Best of the Best" New Hotels in the World by Robb Report; and a "Best New Hotel in the Country" by USA TODAY 10Best. Additionally, the building is home to Vue Orleans, a unique indoor and outdoor observatory with panoramic views of the city and historic and cultural exhibits.

Richard Friedman, President and Chief Executive Officer of Carpenter & Company Inc., said, "Madison Realty Capital has significant expertise investing in Four Seasons projects and we are pleased with their team's ability to work quickly and provide certainty of execution. We look forward to moving to the next stage of this exciting project as we raise the hotel quality bar in New Orleans with the customized and flexible financing Madison delivered."

Madison Realty Capital has significant experience investing in Four Seasons Hotels. Notable transactions include a $210 million loan to Fort Partners for the construction of the Four Seasons Hotel and Private Residences Fort Lauderdale and $105 million loan to Fort Partners for the acquisition and modernization of the Four Seasons Hotel Miami.

Riaz Cassum and Henry Schaffer from JLL Capital Markets arranged the financing.

About Madison Realty Capital

Madison Realty Capital is a vertically integrated real estate private equity firm that, as of August 31, 2022, manages approximately $9.5 billion in total assets on behalf of a global institutional investor base. Since 2004, Madison Realty Capital has completed approximately $21 billion in transactions providing borrowers with flexible and highly customized financing solutions, strong underwriting capabilities, and certainty of execution. Headquartered in New York City, with an office in Los Angeles, the firm has approximately 70 employees across all real estate investment, development, and property management disciplines. Madison Realty Capital has been frequently named to the Commercial Observer's prestigious "Power 100" list of New York City real estate players and is consistently cited as a top construction lender, among other industry recognitions. To learn more, follow us on LinkedIn and visit www.madisonrealtycapital.com.


Climate Change Crisis Nonacceptance

The nonacceptance of the climate change crisis persists despite its increasingly visible worldwide consequences. Credit: Manipadma Jena/IPS

By Joseph Chamie
PORTLAND, USA, Sep 19 2022 – Many people around the world, especially those among the political far-right, do not accept the climate change crisis. Over the years their thinking, behavior, and policies dismissing climate change have largely continued and impaired global efforts to address global warming and environmental degradation.

The unequivocal findings of numerous reports on the consequences of climate change by international and national scientific committees have not been sufficient to counter climate change skepticism. On the contrary, the reactions of skeptics to the climate change reports can be summed up in the phrase “Don’t confuse me with the facts”.

The rise of right-wing populism in many countries also constitutes a potential obstacle to addressing climate change. Right-wing parties and politicians frequently voice climate change skepticism, denials, and opposition to climate change policies, such as carbon taxes.

The nonacceptance of the climate change crisis persists despite its increasingly visible worldwide consequences. It’s indeed difficult to avoid news reports of climate change events, including extreme heat, flooding, droughts, destroyed crops, wildfires, melting glaciers, rising sea levels, biodiversity loss, environmental degradation, smog, pollution, and increasing rates of human morbidity and mortality.

Even the signed petitions to government leaders from thousands of scientists from around the world warning of a climate emergency and the concerns, demonstrations, and protests of younger generations calling for urgent action have not been enough to convince skeptics of the climate change threat, especially among the political right.

In general, the majorities of most populations are concerned about the climate change crisis. A global survey by the United Nations Development Programme (UNDP) of public opinion in 2021 covering 50 countries and over half of the world’s population found that nearly two-thirds of those surveyed believed climate change is a global emergency.

The proportion of the population believing climate change is an emergency ranged from a low of 61 percent in sub-Saharan Africa to a high of 71 percent in Western Europe and North America. The proportions of the remaining four regions varied from 63 to 65 percent (Figure 1).

 

Source: United Nations Development Programme.

 

In addition to the UNDP study, a 2022 PEW survey of nineteen countries across North America, Europe, and the Asia-Pacific region found a median of 75 percent viewing global climate change as a major threat to their country.

However, views concerning the climate change threat differed considerably across political groups. By and large, surveys find that those of the political right are less likely than those of the left to believe in the reality and anthropogenic nature of the climate change crisis.

In the 2022 PEW survey, for example, those on the political right in fourteen countries were found to be consistently less likely to consider climate change a major threat to their country than those on the political left (Figure 2).

 

Source: Pew Research Center.

 

The largest difference among those fourteen countries was in the United States where 22 percent of the political right considered climate change a major threat to their country versus 85 percent on the political left. Other countries with a large difference between those on the political right and left were Australia with 47 and 91 percent, Canada with 46 and 80 percent, and Germany with 59 and 83 percent, respectively.

Moreover, the differences in the views of political groups concerning climate change in some major countries have widened over the recent past. In the United States, for example, the difference between Republicans and Democrats has increased substantially over the past quarter century.

Near the start of the 21st century 20 percent of Republicans and 36 percent of Democrats believed that global warming will pose a serious threat in their lifetime. By 2021, the difference between Republicans and Democrats had widened substantially to 11 percent versus 67 percent, respectively (Figure 3).

 

Source: Gallup Survey.

 

Also, differing views about climate change are reflected in the statements and policies of political parties and their leaders. For example, the Vox party in Spain dismissed climate change as “a hoax”, the National Front in France promoted climate skepticism, and Sweden’s Democrats described the climate debate as “weird” in budget discussions, arguing that the seriousness of climate change is exaggerated, and scientific evidence is being distorted.

The unequivocal findings of numerous reports on the consequences of climate change by international and national scientific committees have not been sufficient to counter climate change skepticism. On the contrary, the reactions of skeptics to the climate change reports can be summed up in the phrase “Don’t confuse me with the facts”

In Germany the far-right Alternative für Deutschland (AfD) challenged the global scientific consensus on climate change, describing it as “hysteria”. In addition, the AfD abandoned the previous cross-party consensus on the findings of the Intergovernmental Panel on Climate Change (IPCC)

In the United States, the world’s second largest emitter of CO2 producing about 14 percent of the world’s CO2 emissions, the former Republican president said that he was not a believer in man-made global warming, called climate change “a hoax” invented by China, and said scientists were “misleading us” on climate change. Moreover, he dismissed federal scientific reports on climate change and sought to roll back climate regulations, including increasing U.S. coal mining and reconsidering fuel efficiency standards for vehicles.

In China, the world’s top emitter of CO2 producing about 30 percent of the world’s CO2 emissions, some report that the Communist Party’s climate change skeptics are mostly shunned and may chatter in the shadows. After decades of rejecting climate change and its visible consequences, such as choking smog hanging over most of the country, no higher-up Chinese officials are saying that climate change is a hoax and while some may have that view, they won’t say it.

In India, which the IPCC highlights as a vulnerable hotspot, some find politicians denying or ignoring climate change. They note that in the election manifestos of the two leading national parties, the Indian National Congress and the BJP, neither of them mentioned the Paris Climate Change Agreement. Also at the COP26 climate summit in Glasgow, India reportedly found the IPCC’s recent report too gloomy and requested a section on mitigation be removed.

A preliminary draft of the Glasgow pact called on countries to “accelerate the phasing out of coal and subsidies for fossil fuels”. In the final negotiations, however, India and China, whose coal-fired power stations provide approximately 70 and 60 percent of their electricity, respectively, said they would agree only to “phase-down unabated coal” and the phase-out of inefficient fossil fuel subsidies.

In addition, when heading to COP26, Australia, Japan, and Saudi Arabia were among those countries lobbying the United Nations “to play down the need to move rapidly away from fossil fuels”. Some wealthy nations also questioned paying more to poorer states to move to greener technologies.

In preparatory meetings for the November COP27 climate summit in Sharm El-Sheikh, Egypt, African nations pushed back against abrupt moves away from fossil fuels. They stressed the need to avoid approaches that encourage abrupt disinvestments from fossil fuels, which would threaten Africa’s development. For example, Nigeria, Africa’s largest population, indicated that gas was a matter of survival for the country.

The latest report of the International Panel on Climate Change (IPCC) shows greenhouse gas emissions are continuing to rise. The IPCC report also states that current plans to address climate change are not ambitious enough to limit warming to 1.5 degrees Celsius above pre-industrial levels, which is a threshold necessary to avoid even more catastrophic impacts.

A number of social and psychological explanations have been offered for climate change crisis nonacceptance and skepticism, especially among the right-wing conservatives. In the past, the lack of knowledge about the causes of climate change was believed to play a major role. More recently, political ideology and party identification are believed to strongly influence how people selectively seek and interpret information about climate change.

Political beliefs and motivations have also been found to guide people’s attention, perceptions, and understanding of climate change evidence and mitigation efforts. In addition, some are not willing to accept the climate change crisis and proposed mitigation measures because they challenge their need to protect existing socioeconomic structures and traditional lifestyles, raise their anxieties about declines in living standards, and threaten development efforts, particularly in less developed countries.

In sum, it is certainly the case that the majority of most populations worldwide, especially the younger generations, are concerned about the climate change crisis. However, it is also the case that despite the overwhelming unequivocal evidence, many people, especially far-right conservatives, continue their nonacceptance of the climate change crisis.

Such a political divide with vocal opposition from the political far-right with the continuing support, political lobbying, and extensive efforts of various extractive industries is worrisome and consequential. It undermines global plans to address climate change and thwarts more ambitious efforts to limit global warming to 1.5 degrees Celsius above pre-industrial levels, the goal set in the Paris Agreement to avert the worst effects of global warming

Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division and author of numerous publications on population issues, including his recent book, “Births, Deaths, Migrations and Other Important Population Matters.”

 

Reflections on High-Level Meetings of the UN General Assembly

UN General Assembly Hall. This year’s meeting of world leaders is scheduled to take place September 20-26. Credit: UN Photo/Manuel Elías

By James Paul
NEW YORK, Sep 19 2022 – The high-level segment of the UN General Assembly (UNGA) is famous for its fiery speeches and the colorful personalities assembled in the GA Hall. But much more goes on beyond the hall itself –the frenzy of the press in the broadcast trucks, security personnel on every sidewalk, military aides in dress uniforms, and an endless round of receptions and parties of every kind.

One of the best-known events in this vast theater is the showy motorcade that brings the President of the United States to the UN. Motorcycles from the New York police department, fifty or more in all, roar along in advance of the main presidential limousines. Police barricades line the streets. The sirens and roar of the engines reverberate wherever they go.

The motorcade makes a great impression as it approaches UN Headquarters. No other leader comes even close to such a mighty entry scene. The UN itself faces temporary paralysis as the Presidential security system takes over.

Once, I was standing on the corner of First Avenue and 45th Street when I saw a high-level UN official hurrying up. A policeman stopped him as he tried to get past the barricade and cross the avenue.

“No one crosses the street now,” said the cop. “But I’m Under Secretary General Peter Hansen,” the man replied, “and I have a meeting in ten minutes with the Secretary General.”

“Sorry, buddy,” said the cop, “I have my orders and no one, not even God Himself, goes across this avenue until I say so.” Hansen had to wait for at least twenty minutes until the US President arrived and disappeared inside. Then the Under Secretary-General was finally allowed to go across and carry on with his business.

The impression made by a grand entry like this is well-known in the world of politics. During the colonial era in India, the British Viceroy famously entered the city of Delhi on grand occasions seated with his wife on an enormous, elaborately-bedecked elephant, accompanied by a whole cavalcade of other elephants, carrying maharajas and senior British officials.

The grandest of these events were reserved for the investiture of the British sovereign and were known as darbars. Today, motorcycles create the awe and the President gets a smooth ride in an armored limousine.

Hundreds of lunches, dinners and grand receptions take place during the high-level period. The most unusual event I ever attended was a reception held in the Central Park Zoo, in honor of Denis Sassou Nguesso, the President of the Republic of Congo.

The Wildlife Conservation Society, operator of the zoo, put on the event to “thank” the Congolese strongman for accepting a large sum of money to “protect” a part of the Congolese rainforest. The reception took place outdoors, around the famous sea lion pool. There were African drums, costumed dancers, musicians playing flutes, bright-colored spotlights and a very restricted guest list.

As I strolled around the pool, chatting with a few of the ambassadors present, I noticed a man standing at some distance from the others, apparently by himself. I walked over to speak to him when suddenly four heavily-armed security guards jumped out of the shadows and confronted me, their automatic weapons pointed menacingly.

I soon realized I was heading towards President Sassou Nguesso himself, in his military dress uniform. His scowl turned to a smile and he waved away the guards, who disappeared again into the trees as I stepped forward. After some pleasantries about protecting rainforests, I took my leave. From Fifth Avenue, as I headed home, I could still hear the drums and see the orange spotlights.

What were the sea lions thinking, I wondered?

Jim Paul was longtime Executive Director of Global Policy Forum, based across the avenue from UN Headquarters. He was founder of the NGO Working Group on the Security Council and the Working Group on Food and Hunger. He was an editor of the Oxford Companion to Politics of the World and his most recent book titled Of Foxes and Chickens: oligarchy and global power in the UN Security Council.

IPS UN Bureau

 


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The Day the UN General Assembly Abandoned its New York City Home…

The leader of the Palestine Liberation Organization (PLO), Yasser Arafat, arrived at UN Headquarters by helicopter. A view of the helicopter as it approached the North Lawn of the UN campus on 13 November 1974. But Arafat was denied a US visa for a second visit to the UN in 1988. Credit: UN Photo/Michos Tzovaras

By Thalif Deen
UNITED NATIONS, Sep 19 2022 – When the United Nations decided to locate its 39-storeyed Secretariat in New York city, the United States, as host nation, signed a “headquarters agreement” in 1947 not only ensuring diplomatic immunity to foreign diplomats but also pledging to facilitate the day-to-day activities of member states without any hindrance, including the issuance of US visas to enter the country.

But there were several instances of open violation of this agreement by successive US administrations.

Stephen Zunes, Professor of Politics and International Studies at the University of San Francisco, who has written extensively on the politics of the United Nations, told IPS the U.S. broke its commitment to the UN by refusing to allow Yasser Arafat, leader of the Palestine Liberation Organization (PLO), to come to New York to speak, forcing the entire General Assembly to convene in Geneva back in 1988.

““And there is the periodic US media obsession with visits by foreign leaders Americans love to hate, such as (Iranian President) Ahmadinejad (while ignoring more moderate Iranian leaders before and since speaking of peace and reconciliation),” said Zunes.

And, of course, there are the bizarre and misleading addresses by various U.S. presidents over the years, he added

The move to Geneva was a first in UN history– but it provided a less-hostile political environment for the PLO leader— as the General Assembly, the UN’s highest policy-making body, stood defiant and delivered a resounding slap to the US, momentarily abandoning its New York city home.

Palestine is one of two permanent, non-member observer states, the other being the Holy See (Vatican).

Arafat, who first addressed the UN in 1974, took a swipe at Washington when he prefaced his statement by saying “it never occurred to me that my second meeting with this honorable Assembly, would take place in the hospitable city of Geneva”.

Meanwhile, there were reports last week that visas for Russian diplomats, including Foreign Minister Sergey Lavrov, were either denied or delayed in the run-up to the high-level meeting of the General Assembly September 20-26.

Asked about the complaints by the Russians, UN Spokesperson Stephane Dujarric told reporters last week: “This is an issue that we have repeatedly brought up with the Host Country”.

“This is an issue that was raised to us by the Russian Federation. I think the Secretary General feels very much that visas should be delivered to the Russian delegation and to delegations who have business to be done at the United Nations, especially during the General Assembly.”

Asked at what level this was being discussed, he said: “It’s one that we have been repeatedly raising because, as you say, it’s been going on for quite some time. The Legal Counsel is the point person on this”.

“It’s done through our legal office because they support the Host Country committee, but I know this is an issue the Secretary General, I think, has raised in a number of phone conversations with senior US officials, as well, and one that has been raised with him by Russian Foreign Minister Lavrov, as well as the Russian Permanent Representative Nebenzia.”

During his first visit in 1974, the PLO leader avoided hundreds of pro and anti-Arafat demonstrators outside the UN building by arriving in a helicopter which landed on the North Lawn of the UN campus adjoining the East River.

Arafat was escorted by security men into the UN building and to the Secretary-General’s 38th floor where he spent the night in a make-shift bedroom.

But that bedroom had not been used for years, and the color of water was brown when the bathroom’s faucet was opened. Mercifully, it was not an attempt by Israeli intelligence to poison the PLO leader.

There was also a legendary story of how Arafat, who was on an Israeli hit-list, never slept on the same bed on two consecutive nights – in order to outwit assassins trying to kill him in Israeli-occupied Palestinian territory.

But whatever the reason, Arafat spent only a single night in the UN building.

Since Arafat, several political leaders—mostly antagonistic towards the US or heading regimes under American sanctions– have either been denied visas or implicitly declared persona non grata (PNG).

As a result, heads of state from “rogue nations,” including North Korea’s Kim Il Sung, Iraq’s Saddam Hussein and Syria’s Hafez al Assad, never addressed the UN – and perhaps never tried for a US visa either, which may have been refused.

When former Sudanese President Omar Hassan al-Bashir, accused of war crimes, was refused a US visa to attend the high-level segment of the General Assembly sessions in September 2013, Hassan Ali, a senior Sudanese diplomat, registered a strong protest with the UN’s Legal Committee.

“The democratically-elected president of Sudan had been deprived of the opportunity to participate in the General Assembly because the host country, the United States, had denied him a visa, in violation of the U.N.-U.S. Headquarters Agreement.”

“It was a great and deliberate violation of the Headquarters Agreement,” he said.

The refusal of a visa to the Sudanese president was also a political landmine because al-Bashir had been indicted for war crimes by the International Criminal Court (ICC).

But the question that remained answered was: Does the United States have a right to implicitly act on an ICC ruling when Washington is not a party to the Rome Statute that created the ICC?

Meanwhile, some of the military or autocratic leaders who addressed the UN in a bygone era included Fidel Castro of Cuba, Col Muammar el-Qaddafi of Libya, Amadou Toure of Mali (who assumed power following a coup in 1991 but later served as a democratically elected President), and Jerry Rawlings of Ghana (who seized power in 1979, executed former political leaders but later served as a civilian president voted into power in democratic elections).

Libyan leader Qaddafi, made a dramatic appearance at the UN in September 2009.

In its report, the London Guardian said he “grabbed his 15 minutes of fame at the UN building in New York and ran with it. He ran with it so hard he stretched it to an hour and 40 minutes, six times longer than his allotted slot, to the dismay of UN organizers”.

Qaddafi lived up to his reputation for eccentricity, bloody-mindedness and extreme verbiage, said the Guardian, as he tore up a copy of the UN charter in front of startled delegates, accused the Security Council of being an al-Qaida like terrorist body, called for George Bush and Tony Blair to be put on trial for the Iraq war, demanded $7.7 trillion in compensation for the ravages of colonialism on Africa, and wondered whether swine flu was a biological weapon created in a military laboratory.

Incidentally, according to one news report, there were 112 different spellings of the Libyan leader’s name, both in English and Arabic, including Muammar el-Qaddafi, Muammar Gaddafi, Muammar al-Gathafi, Muammar El Kadhafi, Moammar el Kazzafi, Moamer, El Qathafi, Mu’Ammar, Gadafi, and Moamar Gaddafi, amongst others.

The Wall Street Journal ran a cartoon making fun of the multiple spellings, with a visiting reporter, on a one-on-one interview in Tripoli, told the Libyan leader: ”My editor sent me to find out whether you are Qaddafi, Khaddafi, Gadafi, Qathafi or Kadhafi?”

This article contains excerpts from a book on the UN—a motley collection of hilarious anecdotes– titled “No Comment – and Don’t Quote Me on That,” available on Amazon. The link to Amazon via the author’s website follows: https://www.rodericgrigson.com/no-comment-by-thalif-deen/

IPS UN Bureau Report

 


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Mexico’s Electric Mobility, Stuck in Fossil Fuel Traffic

The Mexico City government is increasing the number of electric buses in its fleet, such as the trolleybuses pictured here on a street in the south of the capital. But their energy source is still fossil fuels and the deployment of electric cars remains slow in the country. CREDIT: Emilio Godoy/IPS - The Mexico City government began testing an elevated route for electric buses with great fanfare on Sept. 11, in a bid to promote more sustainable transport. The initiative is part of an incipient promotion of electric mobility in the country, amidst pro-fossil fuel energy policies

The Mexico City government is increasing the number of electric buses in its fleet, such as the trolleybuses pictured here on a street in the south of the capital. But their energy source is still fossil fuels and the deployment of electric cars remains slow in the country. CREDIT: Emilio Godoy/IPS

By Emilio Godoy
MEXICO CITY, Sep 19 2022 – The Mexico City government began testing an elevated route for electric buses with great fanfare on Sept. 11, in a bid to promote more sustainable transport. The initiative is part of an incipient promotion of electromobility in the country, amidst pro-fossil fuel energy policies.

Mexico, a country of some 129 million people, lacks a national road transport strategy, considered vital for reducing polluting emissions and for the path to a low-carbon economy, which restricts the adoption of policies.

Experts consulted by IPS highlighted the limitations of the measures introduced regarding road transportation.

“There is a lack of a coherent enabling framework and a national program to promote electric vehicles.” — Gustavo Jiménez

“Electric mobility is still not very developed, both in terms of facilities for acquiring vehicles and infrastructure. We are not advancing as fast as other Latin American cities. There is a lack of cutting-edge projects,” Bernardo Baranda, director for Latin America of the non-governmental Institute for Transportation and Development Policy, based in Mexico City, told IPS.

Mexico City, home to more than 20 million people when its suburbs are included, seeks to promote electric public transport with the new route for an elevated track exclusively for buses. It is also pushing other initiatives, such as the conversion of buses from diesel to electric, announced in July.

Only two other major cities in the country, the western city of Guadalajara and the northern city of Monterrey, have electric public transportation buses.

In the Latin American region, capitals such as Bogota, Montevideo and Santiago de Chile have large electric public transport fleets and countries such as Chile, Costa Rica, Panama and Uruguay already have sectoral plans in the region.

The Mexican vehicle fleet exceeds 53 million units and has been constantly growing since 2000, according to figures from the National Institute of Geography and Statistics.

Sales of electric and hybrid cars are on the rise: in 2016, dealerships sold 254 electric units, compared to 1,703 in the first half of this year alone.

Self-charging hybrids that do not need to be plugged in (they use their gasoline engines to charge the batteries) have been the most popular, with the number purchased climbing from 7,490 in 2016 to 19,060 in the first half of 2022. Sales of plug-in vehicles grew from 521 to 2,263 in that same period.

Since 2018, the government’s Federal Electricity Commission (CFE) has held at least two tenders for the installation of so-called electrolineras, charging stations, in the country, where more than 2,000 points are already operating. But not all of them are working, as IPS found in a tour of several areas of the Mexican capital.

Be that as it may, the government’s plan to deploy this infrastructure has not sufficed to boost the purchase of electric vehicles.

An electric charging point in a neighborhood in south-central Mexico City. The state-owned Federal Electricity Commission has installed more than 2,000 electric vehicle charging centers in Mexico, but this and other measures have not encouraged their spread in the country. CREDIT: Emilio Godoy/IPS - The Mexico City government began testing an elevated route for electric buses with great fanfare on Sept. 11, in a bid to promote more sustainable transport. The initiative is part of an incipient promotion of electric mobility in the country, amidst pro-fossil fuel energy policies

An electric charging point in a neighborhood in south-central Mexico City. The state-owned Federal Electricity Commission has installed more than 2,000 electric vehicle charging centers in Mexico, but this and other measures have not encouraged their spread in the country. CREDIT: Emilio Godoy/IPS

Gustavo Jiménez, director of the consulting firm Grupo E-mobilitas, acknowledged “slow progress” in the deployment of public transportation, cab fleets and delivery companies, as well as vehicle assembly projects.

“For the last two years there have been no export and import tariffs for electric vehicles, which reduces the cost by 20 percent. There is also a reduction in value added tax. But progress has not been as fast as we would like. It is complicated to charge your vehicle as you drive around the country,” he told IPS.

The National Electric Mobility Strategy, which the government of President Andrés Manuel López Obrador froze when he took office in December 2018, created a comprehensive framework and incentive schemes for electric vehicles.

In addition, the current government, described as “pro-fossil fuels” by environmentalists critical of its defense of hydrocarbons, maintains record levels of gasoline subsidies, which will exceed 15 billion dollars in 2022, according to official estimates.

“Electric mobility is still not very developed, both in terms of facilities for acquiring vehicles and infrastructure. We are not advancing as fast as other Latin American cities. There is a lack of cutting-edge projects.” — Bernardo Baranda

Latin America’s second-largest economy is the world’s 12th biggest oil producer and 17th biggest gas producer. In terms of proven crude oil reserves, it ranks 20th and 41st, according to data from the state-owned oil giant Petróleos Mexicanos (Pemex), in an industry protected by López Obrador despite the country’s climate commitments.

Among the measures of the stalled Strategy were the installation of charging infrastructure in streets and homes, the introduction of green license plates and the exemption of import and export taxes for electric vehicles.

During the 2nd Annual Meeting of the U.S.-Mexico High Level Economic Dialogue, held in Mexico City on Sept. 12, the United States invited its neighbor and trading partner to participate in an integrated electric vehicle supply chain – an essential link in the economic-environmental program implemented by the U.S. government.

White smoke

The Economic Commission for Latin America and the Caribbean (ECLAC) lists 10 electromobility projects in the region, one of which involves the manufacture and sale of electric three-wheeled vehicles in Mexico.

Mexico City, Guadalajara and Monterrey, together with three Colombian cities and five Brazilian cities, are also participating in the TUMI E-Bus Mission project, aimed at supporting 500 cities by 2025 in their transition to the deployment of 100,000 electric buses in total.

Funded by German economic cooperation and six international organizations, the project is part of the Transformative Urban Mobility Initiative (TUMI).

The decarbonization of transportation is fundamental to the fight against the global climate crisis. In Mexico, CO2 emissions from that segment totaled 148 million tons in 2019, equivalent to 20 percent of the total, according to the government’s National Institute of Ecology and Climate Change (Inecc).

Mexico and the United States are seeking to integrate the electric vehicle manufacturing value chain. In the image, Mexico’s foreign minister, Marcelo Ebrard, shows an electric unit manufactured in Mexico in February 2022. CREDIT: Secretariat of Foreign Affairs

Mexico and the United States are seeking to integrate the electric vehicle manufacturing value chain. In the image, Mexico’s foreign minister, Marcelo Ebrard, shows an electric unit manufactured in Mexico in February 2022. CREDIT: Secretariat of Foreign Affairs

Estimates by the Ministry of the Environment and Natural Resources put life-cycle emissions (from fuel extraction to combustion in the engine) at 358 grams of CO2 per kilometer for gasoline-burning vehicles, 166 for hybrid cars (using fuel and electricity) and 77 for solar energy users.

The study “Estimation of costs and benefits associated with the implementation of mitigation actions to meet the emission reduction targets assumed under the Paris Agreement”, presented on Sept. 13 by Inecc, indicates that six sectoral policies would contribute a mitigation of 36.5 million tons by 2030.

It also outlines 35 emission reduction actions with which the country would obtain total benefits of 295 billion dollars.

In the case of electromobility, the average cost of pollution abatement amounts to 500 dollars per ton, with an investment of nearly 5.9 billion dollars, gross benefits of 3.1 billion dollars and a reduction of 600,000 tons of CO2.

By replacing diesel buses with electric buses, the average cost would add up to 152.90 dollars per ton of CO2. The benefits of fuel savings would amount to 3.2 billion dollars.

By 2030, emissions cuts would contribute one million tons, but this potential would increase as domestic power generation incorporates more clean energy.

The CFE estimates that by 2041 some 700,000 electric vehicles will be in circulation in the country and will require 40,000 charging stations, which also means strengthening the domestic electric power grid.

Last November, during the Glasgow climate summit, Mexico adopted a voluntary goal to sell only non-polluting cars by 2035.

However, at the same time, the Mexican government has provided for the legalization of used cars coming from abroad in 2021, which experts see as a negative step in the fight against pollution.

Baranda the transportation expert said gasoline subsidies, the promotion of fossil fuels and the lack of energy transition are barriers to electromobility.

“You need public policies, at the federal and state level, such as incentives and infrastructure. Many countries are doing this. Mexico is not on the way to making good on international commitments. It’s a good opportunity to invest in electric transportation,” he said.

For his part, Jiménez questioned the current energy policy, which has an impact on sustainable mobility.

“There are no clear incentives for public transportation, significant subsidies are required. There is not so much infrastructure, there are no regulations for chargers, there are no measures for the circulation of electric cars. There is a lack of a coherent enabling framework and a national program to promote electric vehicles. Mexico has no coordination at the national level,” he complained.