The generation of power and energy policies in Mexico is based on fossil fuels; consequently, in the medium term, the country will face a shortage of resources. The energy sector, apart from a few exceptions, is organized at the national level; electricity rates are determined by the government and subsidized from the government budget. The country’s high potential for increasing energy efficiency (EE) and the use of renewable energy (RE) are impeded by unfavorable framework conditions, both in the energy and the building sector. The main reasons for this are a deficit of clear political objectives and strategies, of favorable legal framework conditions and regulations, of support mechanisms and dissemination programs with greater involvement of the private sector, and the lack of awareness, practical experience and training opportunities for stakeholders. Mexico has already taken first steps towards a sustainable housing sector through programs such as the "Hipoteca Verde "and "Ésta es tu casa". Both programs provide additional loans to cover the additional cost of energy efficiency measures in new buildings.
In 2011, CONAVI with support from GIZ, through the financial support of the BMU, developed the technical design of the "Nationally Appropriate Mitigation Actions (NAMAs)" for new housing. With NAMA, the "whole building approach" to assess the energy efficiency of residential buildings was introduced in Mexico for the first time. In December 2012, Mexico presented during the COP 18 the concept paper of NAMA for existing housing.