Mexico has shown with energy sector reforms in 2013 that it is possible to undertake liberalization of the energy sector and include policies for a transition to a low-carbon economy. Energy sector reforms culminated after 20 years of debate sparked by serious economic crises. Reforms were only possible after the fall of the political party which had maintained power for 70 years. In the course of developing energy reforms, an innovative set of climate policies were enacted. As a result, Mexico became a leader among developing countries and made serious unconditional commitments under the Paris Agreement. However, both energy reform and climate policy may now be reversed due to the lack of public acceptance and legitimacy of such efforts. Mexico’s experience illustrates the necessity of both in achieving successful policy outcomes.