BBA Spotlight Series - Guillermo Zu?iga, Energy, ESG and Climate Change Lawyer
Guillermo Zu?iga is a widely respected and influential legal professional within his area of expertise. With over two decades of experience, he has held leadership roles in prominent entities and agencies in Mexico and has worked tirelessly in the energy sector in Mexico and Latin America, pioneering efforts to design energy markets.
Q1. At what point in your career did you decide to focus on clean energy law and regulatory policy and why?
I was fortunate in that the energy sector found me rather than the other way around.??I had just finished my internship at the Office of the General Counsel of the President of Mexico when I received the invitation to join the office of what is now the Legal Department of the Federal Electricity Commission, (CFE). Here I had the opportunity to collaborate in the area of international affairs and investment projects.
As a lawyer with a very clear focus towards public interest, I was impressed by the magnitude of projects the CFE developed in the early 2000s, in conjunction with the private sector.?My profound interest in the energy sector's social relevance and its potential to attract knowledge, creativity, and talent, as well as fostering prosperity for my country, motivated me to specialize in this field.
Q2.?You have vast experience in the Mexican energy sector, what are the typical legal challenges faced by investors within this sector?
Mexico is a large growing economy, with a young population and a privileged position for commercial purposes, so its energy needs will be intensive and growing for the foreseeable future.?For organizations seeking to engage in the development of a sector that is relatively new to liberalization, the energy sector presents a valuable opportunity. Particularly now, with the intersection of energy supply needs and climate concerns, there is a pressing need for collaboration among the public, private, and social sectors.
Comprehending Mexico's energy landscape can pose a distinct challenge for investors, given its complexity and dynamic nature, compounded by significant institutional inertia. As a result, effective interactions with governmental entities are critical in navigating this environment.?It is necessary to have local allies to help navigate this sophisticated arena, again, in a context where environmental and climate priorities are conditioning the aspects of the development of energy solutions. Moreover, due to the China and Ukraine geo-political aspects, Mexico is becoming a magnet for relocation of manufacturing facilities from Europe and Asia, (nearshoring).
Q3. What has been the most challenging country and/or environment you’ve worked in?
It is a great experience to be able to work in an International Program, providing advice in clean energy law and public policy in different regions of the world.?Engaging in interactions and offering legal services to allies from diverse regions can be an exceedingly demanding task, requiring significant resource allocation and meticulous attention to comprehending their contexts and requirements to deliver effective outcomes as a professional.?Spending time to learn the basics of the legal framework, political and cultural organization of these regions is a beautiful challenge that requires humility and an open mind.
Q4. How will future changes in the Mexican energy policy impact the landscape for new clean energy infrastructure in Mexico?
We are seeing that the new influences shaping energy policies in Mexico have, at the very least, two main aspects: one internal and the other external.?Firstly, at the national level, the current political discourse promotes a nationalist agenda where state intervention has a more significant role than during the sector's liberalization in previous years, mainly through government-owned companies and central authorities. This is not an unfamiliar situation in Mexico but can be seen as a return to the centralist policies that were prevalent in the 70s and 80s. The effectiveness of these policies was severely constrained by budgetary pressures, which are likely to reoccur, leading to the possibility of new alliances with private national and international companies in the future. These partnerships will be even more critical given the need to adopt new clean technologies to comply with the Paris Accord.
On the external side, we have the need to seek energy security, which is causing a profound revision of trade and finance relations. Since there is an increasing need to find a reliable supply of raw materials, technologies, investment flows, and other inputs necessary to meet the economic and social needs of an energy system, phenomena such as?nearshoring?can boost the development of modern and clean energy infrastructure in Mexico through the deepening of its regional integration with the US and Canada.
I believe that these processes of public-private cooperation and regional integration will continue to advance in the years to come, albeit at a slower pace if Mexico fails to comply with the climate and trade commitments it has made at the national and international levels.
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Q5. You have specialized in these sectors for over 23 years now, can you tell me a highlight of your career?
If I had to choose only one of the most important points in my career, it would be having the satisfaction of being part of a team of public servants that adapted the regulatory environment. This adaptation enabled renewable energies to compete on an equal footing with fossil fuel technologies and emerge victorious, thus benefiting the electricity system and the environment. Today, worldwide, renewable energy employs more people than the oil and gas sector.
Q6. What would be your career advice to young lawyers who want to specialize in these areas of law?
Having an interdisciplinary approach is increasingly relevant as legal practice becomes more sophisticated, and the need for legal security and certainty becomes increasingly pressing in the face of scenarios of high volatility and constant change and adaptation. The practice of law is enriched when it is practiced hand in hand with other disciplines. Therefore, my career advice would be to become proficient in other disciplines besides law, such as, finance and digital transformation.
Q7. Why did you decide to become a member of BBA Deals & Disputes?
I have found that being part of a community where the flow of ideas and exchange of experiences is encouraged can be an excellent way to grow both as a person and as a professional.