Mexico has the potential to establish itself as a global leader in maritime decarbonisation by engaging in green fuel production and bunkering with swift and strategic action, according to a new report by P4G Getting to Zero Coalition.

Being placed between well-established shipping routes and trade relations to multiple continents in the Pacific and Atlantic Oceans, the report found Mexico could tap into new markets and by investing it itself, the country could create new revenue streams from scalable zero emission fuels (SZEF) exports and bunkering, establish green hubs and ports, as well as open possibilities for green corridors along key shipping routes.

“The massive demand for zero emission fuels that will arise constitutes a major growth opportunity for Mexico, having the chance to become a future powerhouse for international shipping in Latin America,” said Ingrid Sidenvall Jegou, project director at the Global Maritime Forum.

According to the report, the development of green fuel infrastructure to serve Mexico’s shipping sector could attract investments ranging from $1.9bn to $2.7bn in onshore infrastructure by 2030. It discovered three key opportunities for Mexico, including the port of Manzanillo, DH2 Energy activities in Central Mexico, and Baja California, all of which are said to benefit from SZEF production, offtake, and distribution.

A facilitative policy and financial framework capable of effectively motivating and convening key actors across sectors and value chains is critical to unlocking these opportunities. The 111-page analysis stressed that the country currently lacks a favorable ecosystem, both politically and economically, to leverage benefits from SZEF production and use, particularly given the current administration’s preference to continue exploiting the country’s fossil fuel resources.

The report suggested that with appropriate incentives and targeted action towards encouraging investments into renewable energy and fuel production, Mexico could gain a competitive advantage in the bunkering and export of fuels in Latin America as other countries in the region take steps to prepare their own bunker supply chains.