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I.2.- NATIONAL REGULATORY AND ADMINISTRATIVE FRAMEWORK FOR CDM This section describes the legal and institutional framework relevant to CDM project development. Special attention is given to the energy sector, in view of its importance to CDM in the Country. Some considerations are added in relation to industry, environment, fiscal incentives, foreign investment and international agreements. I.2.1.- APPLICABLE CONSTITUTIONAL AND OTHER REGULATIONS The system of regulations for energy, industry, environment and natural resources in Mexico is a complex one. Several articles of the Constitution, Federal Laws, regulations and decrees direct and regulate the national activities related to those matters. All of those instruments are oriented by three main constitutional guidelines: • Preservation of natural resources susceptible to appropriation; • Prevention and control of pollution affecting human health, and • Stewardship of the environment in front of its productive use by the governmental, social and private sectors. The Constitution The Mexican Constitution is the Supreme Law of the Nation. The International treaties ratified by the Senate are also Supreme Law, if they do not contradict the Constitution. The Constitutional articles relevant to the purpose of this report are: • Article 4, contains the principles of “right to health protection” and “right to a healthy environment”. • Article 25, rules the strategic activities reserved exclusively to the Nation and the basis for sustainable development. • Article 26, establishes the National Development Plan, mandatory for the six-year presidential term with its derived Sectoral Plans. • Article 27, prescribes the “Direct Domain of the Nation over natural resources” and the authority to regulate the exploitation and use of the natural wealth for the benefit of society. Also, establishes the State’s domain over national water and natural resources, allowing the exploitation through “concessions” provided by the State. • Article 28, legislate the strategic activities reserved exclusively for the Nation in relation to electricity, hydrocarbons and nuclear energy. • Article 73, gives power to the legislative to enact laws for the protection of the environment, and the concurrency of the Federal, the State and Municipal Governments for environmental protection, preservation and restoration of the ecological balance. • Article 90, defines the functions and powers of the Ministries (Secretariats) of the Federal Government, • Article 115, legislates the powers of Municipal authorities on environmental matters. At a lower hierarchy, Federal Laws 68 (approved by the legislative) regulate and define the scope of the Constitutional prescriptions. The Government provides rules for the application of the Federal Laws (mandatory Regulations), and more detailed Executive Decrees. Regulations or Decrees 67 67 Constitución Política de los Estados Unidos Mexicanos 68 “Leyes Federales vigentes”, Junio 2005. Contains updated texts of all Federal Laws: http://www.cddhcu.gob.mx/leyinfo/ Chapter I, UNIDO-AUSTRIA 46
cannot contradict the Federal Laws. All Governmental entities must comply exactly with written law (what laws do not expressly permit, is prohibited). The Federal Organic Law of the Public Administration 69 regulates the functions and powers of the Secretariats (Ministries) of the Federal Government, in accordance to the Constitutional Article 90. This law includes the regulation of the Energy Secretariat (SENER) and the Secretariat for Environment and Natural Resources (SEMARNAT), stipulating that SEMARNAT is the entity responsible for conducting national policies on climate change and on the protection of the ozone layer. No Law has yet been emitted that involves climate change or is specific to regulate renewable energy. Some related Law initiatives are under consideration by the Legislature. Additionally, an Official Mexican Standard (NOM) dealing with CDM is under discussion. The Federal Law on Parastatal Entities 70 defines the roles of the Federal Government operative entities. This law includes the regulation of the Mexican Petroleum Company (PEMEX) and the National Utility (Federal Electricity Commission – CFE). The Federal States are able to enact local legislation under its sovereign powers, but without contradictions with the Federal Laws. Legal Framework: Electric Energy At 1992 laws on electricity were amended, allowing private investment in electricity under the following modalities: • self-generation and consumption; • cogeneration; • independent power producers (IPP); Also rules small production and the approval of exportation and importation of electricity. The Federal Law for Electric Public Service 71 created the Federal Energy Regulatory Commission (CRE), an autonomous and independent agency, to • grant power generation permits; • enact tariff and transmission directives; • regulate private participation in the transportation and distribution of natural gas; and • regulate private producers of energy. CFE has to use the most economical power available 72 . Private power producers sell their electricity to CFE, under a fixed price formula. Self-producers and cogenerators are able to sell surplus to CFE for public distribution. Federal Laws and Regulations on energy do not differentiate the source of generation. SENER is working with the legislators a project for a Law to Promote Renewable Energy in the Country. The law will encourage independent and small producers of renewable energy and will give them formal and additional certainty to their investments. This Law is within the Legislative Agenda for the next session period of the Chambers (beginning this September 2005) 69 Ley Orgánica de la Administración Pública Federal 70 Ley Federal de Entidades Paraestatales 71 Ley Federal del Servicio Público de Energía Eléctrica 72 In accordance with the Federal Law on Electric Dispatch Chapter I, UNIDO-AUSTRIA 47
Page 1 and 2: MEXICO, SUPPORT FOR THE DEVELOPMENT
Page 3 and 4: IV.1.2 PROJECT RECEPTION AND CDM DE
Page 5 and 6: LIST OF ACRONYMS Acronym AEAEE Asso
Page 7 and 8: IEA International Energy Agency IET
Page 9 and 10: BOXES, TABLES AND FIGURES Boxes: Bo
Page 11 and 12: Mexico is one of the selected devel
Page 13 and 14: Figure 1. Percentage emissions CO 2
Page 15 and 16: Carbon CFE 2,600 5.6 Geothermal CFE
Page 17 and 18: In addition to the increase in effi
Page 19 and 20: On other hand, the international me
Page 21 and 22: I.1.- REVIEW AND LISTING OF CDM STA
Page 23 and 24: National Commission on Foreign Inve
Page 25 and 26: Private sector enterprises Multiple
Page 27 and 28: Ecosecurities Empresas ESM SA DE CV
Page 29 and 30: North American Commission for Envir
Page 31 and 32: Energy saving and Cogeneration Is o
Page 33 and 34: Fuel-switching Is a priority area i
Page 35 and 36: • Biomass and biofuels Is a prior
Page 37 and 38: Scudder Latin American Power Fund (
Page 39 and 40: • Construction Is a priority area
Page 41 and 42: Industry Is a priority area in the
Page 43 and 44: I.1.3.- COOPERATION WITH AUSTRIA Au
Page 45: Austrian Organizations 66 Kommunalk
Page 49 and 50: • Exploration, exploitation, refi
Page 51 and 52: The following diagram describes the
Page 53 and 54: A proposal has been recently presen
Page 55 and 56: Policy barriers The energy transiti
Page 57 and 58: Development within the Federal Gove
Page 59 and 60: SEMARNAT counts with several depend
Page 61 and 62: I.3.- INTERMINISTERIAL COMMISSION O
Page 63 and 64: Appointed by the President of the C
Page 65 and 66: The project design document (PDD),
Page 67 and 68: Mexican procedural sequence for pro
Page 69 and 70: • Production of a Project Idea No
Page 71 and 72: Is to be noted that the certificati
Page 73 and 74: Of the 22 projects at present in th
Page 75 and 76: 13 AWMS GHG Mitigation Project MX05
Page 77 and 78: Mexican CDM projects at the interna
Page 79 and 80: National Institute of Ecology, INE
Page 81 and 82: • Approved Environmental Impact A
Page 83 and 84: views on opportunities of collabora
Page 85 and 86: City and the Center also has been s
Page 87 and 88: • preparation of PINs or PDDs;
Page 89 and 90: Eng. Gisela Tristán Project Engine
Page 91 and 92: Construction Forestry Industry gene
Page 93 and 94: activities will be at the beginning
Page 95 and 96: projects These developments provide
Page 97 and 98:
Authorities (DNAs), both prerequisi
Page 99 and 100:
Millennium Development Goal 8 as we
Page 101 and 102:
dialogue and cooperation. Therefore
Page 103 and 104:
Draft 1, UNIDO-AUSTRIA 103
Page 105 and 106:
Capacity-building workshops on deve
Page 107 and 108:
Business Council for Sustainable De
Page 109 and 110:
Electric Power Development Energy I
Page 111 and 112:
Impulsora Nacional de Electricidad,
Page 113 and 114:
Ministry of Environment and Natural
Page 115 and 116:
SEMPRA Energy (USA) Exploring CDM o
Page 117 and 118:
World Bank, Protocol Carbon Support
Page 119 and 120:
National Campaign for Saving and In
Page 121 and 122:
ANNEX I-D ENERGY SERVICE COMPANIES
Page 123 and 124:
North-South Trade & Investment, S.A
Page 125 and 126:
Quimycal Techint, S.A. de C.V. quim
Page 127 and 128:
ANNEX I-E ACADEMIC SECTOR DIRECTORY
Page 129 and 130:
# INDEPENDENT POWER PRODUCER PERMIT
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Page 133 and 134:
Page 135 and 136:
Sub-step 3 b. Show that the identif
Page 137 and 138:
Page 139 and 140:
(SARH), 1991-1992. “Leyes Federal
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