North American Energy Infrastructure Resilience: A Cross-Border Investment Opportunity

The North American energy landscape is undergoing a transformation driven by cross-border political and economic alignment, positioning the continent as a model for resilient infrastructure development. With the United States, Canada, and Mexico deepening collaboration on energy policy, regulatory reforms, and joint projects, investors are increasingly turning their attention to the region's potential to balance security, sustainability, and economic growth.

Legislative Foundations for Resilience

A cornerstone of this alignment is H.R. 3062, the Promoting Cross-Border Energy Infrastructure Act, introduced in the 119th Congress (H.R. 3062). This legislation replaces the discretionary Presidential permit process with a streamlined Certificate of Crossing issued by the Federal Energy Regulatory Commission (FERC) for oil and gas pipelines and the Department of Energy (DOE) for electricity transmission. By reducing bureaucratic delays and insulating projects from political reversals, the act aims to accelerate infrastructure development while ensuring regulatory certainty for developers, according to the Congressional Budget Office. Rep. Julie Fedorchak has emphasized that this shift is critical for maintaining North American energy security amid global volatility.

Complementing this effort, the United States-Mexico-Canada Agreement (USMCA) has reshaped cross-border energy trade (USMCA). While the agreement preserves investor-state dispute settlement (ISDS) mechanisms to protect U.S. and Canadian investments in Mexico's energy sector, it also reinforces Mexico's energy sovereignty, allowing constitutional reforms to prioritize state-owned entities like CFE. However, challenges persist: opaque regulatory processes and CFE's dominance in electricity generation create an uneven playing field for private investors, Mexico Business News reports (Mexico Business News article). The USMCA's 2026 sunset clause further complicates long-term planning, as renegotiation could alter market access and tariff structures, the Peterson Institute for International Economics (PIIE) warns (PIIE).

Strategic Collaborations and Projects

Beyond legislation, trilateral partnerships are materializing through targeted initiatives. The Canada–Mexico 2025–2028 Action Plan exemplifies this trend, focusing on hydrogen production, carbon capture and storage (CCUS), and smart grids to decarbonize energy systems (Canada–Mexico 2025–2028 Action Plan). A flagship project under this plan is the MX$230 million solar initiative in Mexico's Caribbean region, developed by Grupo Lomas, Kiin Energy, and Energía Real to power hotels and reduce CO₂ emissions, according to the Atlantic Council (Atlantic Council). Meanwhile, the Port Arthur LNG expansion in Texas, supported by Canadian capital, is set to boost U.S. liquefied natural gas (LNG) exports by 2030–2031, underscoring the continent's role in global energy markets, according to Global Affairs Canada (Global Affairs Canada).

The U.S. Department of Energy's North American Energy Resilience Model (NAERM) further strengthens this alignment. By modeling threats to infrastructure and enabling cross-border coordination, NAERM enhances grid stability and black-start capabilities, critical for integrating renewable energy sources. Such tools are particularly vital as AI-driven energy demand and climate risks amplify the need for adaptive systems, as shown in research on integrated North American energy markets (integrated North American energy markets).

Challenges and Opportunities

Despite progress, hurdles remain. Mexico's reliance on CFE for electricity generation limits private investment, while the USMCA's renewal in 2026 could introduce regulatory uncertainty, the Carnegie Endowment warns (Carnegie Endowment). Additionally, cross-border electricity trade faces technical challenges, including storage and transmission capacity gaps, the Baker Institute notes (Baker Institute). However, these obstacles also present opportunities: investors who navigate Mexico's regulatory landscape or support grid modernization projects stand to benefit from long-term gains as the continent transitions to cleaner energy.

The Investment Case

North America's energy infrastructure resilience is increasingly tied to its ability to harmonize policy and markets. For investors, the region offers a unique combination of regulatory innovation, strategic projects, and geopolitical stability. The integration of clean energy value chains, LNG export capacity, and cross-border grid interconnections positions the continent to compete in a multipolar global energy market, as the Atlantic Council notes. As that integrated markets research also highlights, expanding pipelines and modernizing infrastructure will be essential to meet rising demand and decarbonization goals.

In this context, investments in cross-border transmission lines, hydrogen hubs, and CCUS technologies are poised for growth. The Baker Institute highlights that streamlining permitting and fostering international partnerships will enhance U.S. and North American competitiveness. For those willing to navigate the regulatory nuances, the continent's energy transition is not just a regional imperative-it's a compelling investment thesis.