STX Group to reinforce its presence in Latin America as FDI and corporate climate action boom
- STX Group strengthens its presence in Latin America by opening a new office in Mexico, with a focus on environmental commodities in Mexico, Brazil, Colombia and Chile
- With five years of experience in Mexican climate solutions, pioneering in global environmental markets, and trading of CELs and I-RECs, STX strengthens its unique position in Mexico
- STX Group globally traded and promoted the generation of 450 TWh of renewable energy in 2022 via Energy Attribute Certificates
MEXICO CITY (November 8, 2023) – STX Group, a leading global firm in environmental markets and climate finance, today announces the reinforcement of its operations in Latin America with the opening of a new office in Mexico City. The move is to promote the energy transition in the region and strengthen the services provided to companies with important decarbonization plans or regulatory challenges in all sectors. STX Group provides market instruments and liquidity for companies to embrace sustainability and advocates ambitious environmental legislation.
With more than 7,000 active customers and counterparties globally and over 15 years of experience in environmental commodity markets, the launch of operations in Mexico allows STX to become a strategic partner for corporations throughout Latin America. The focus of operations will be on Mexico, Brazil, Colombia and Chile.
STX’s objective is to fortify its activities in Mexico and is a result of a historical growth of Foreign Direct Investments (FDI) in Mexico, demonstrated by the rapid increase of nearshoring, a popular trend of transferring business operations to Mexico to improve companies’ operational efficiencies and be closer to the end markets in the US.
Foreign and domestic private sector, key driver of the energy transition in Mexico
Approximately 60% of the Mexican annual electricity generation, 282 TWh, still comes from fossil fuels and renewable energy accounts for just 16% of the energy mix. As energy sector companies’ trend towards asset divestment, STX Group champions a forward-looking strategy, attaining explosive growth in its renewable energy certificates business in just five years. This is thanks to the company’s portfolio of environmental commodity products, which is the largest in the environmental commodities sector. The company is familiar with the Mexican commodities landscape, thanks to its five-year track record of managing environmental opportunities and regulatory risks in Mexico. STX is the only firm in the sector to offer environmental products in all regions of the world.
In Mexico, the International Renewable Energy Certificates (I-RECs) coexist with the nationally created Clean Energy Certificates (CELs). STX is one of the few firms authorized to trade these certificates, the weight of which is expected to grow rapidly in the coming years: qualified consumers subject to the CELs system must comply at least 13.9% of their annual energy consumption with these instruments, with an increase expected in coming years.
“We at STX have over the years witnessed a rapid growth of traded volumes on the Mexican market. This indicates a growing interest in the environmental commodities and as one of the only companies allowed to trade the CELs in Mexico, we are market makers and well positioned to elevate the role of environmental energy certificates in Mexico,” says Julio Santiago, Head of STX Latin America.
STX Group brings a differentiated experience and vision for the Latin American markets
STX plays a central role in the global energy transition and offers tailored solutions for companies to decarbonize their operations through environmental products, including renewable natural gas (RNG), biofuels, carbon strategy and energy efficiency, among others. The company globally traded and promoted the annual generation of 450 TWh of renewable energy in 2022. STRIVE by STX, the corporate climate action division of STX Group, believes that the believes that to successfully achieve carbon neutrality requires a holistic decarbonization approach that encompasses energy efficiency, alternative fuels, renewable energy and emissions offsetting. STRIVE by STX provides an integrated approach to companies around the world and champions continued investment towards a more sustainable world.
“The rise of climate action in Mexico is driven by the private sector, which advocates for public policies in defense of the environment, seeks to reduce regulatory uncertainty, and contributes to an increasing amount of capital being directed towards modernizing energy-intensive industries,” says Marc Falguera, Co-Head of STRIVE by STX.