mexico, support for the development and uptake of - Unido

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Legal Framework: Environment The main legal instrument related to environment is the General Law of Ecological Balance and Environmental Protection 73 (LGEEPA). In this law are established, as a matter of Federal jurisdiction all issues: • affecting the ecological equilibrium within the National Territory, and • originated within National Territory affecting the ecological equilibrium of other national states or beyond de jurisdiction of any national state. All 31 Mexican States have enacted local environmental legislations. Also, the States have established local entities charged with environmental administration. The Municipal environmental authorities have jurisdiction over specific environmental issues, provided they are not reserved to the States or the Federation. Some National Policies incorporate regulations and policy instruments in different sectors, which have indirect effects on greenhouse-gas emissions and other climate-change related activities. All emissions to the atmosphere shall be accordance to LGEEPA, the corresponding regulations and the official standards. The LGEEPA regulation on atmospheric pollution rules the emissions by means of the following instruments: • Imposing technical and administrative obligations (like Environmental Impact Assessments) • Mexican Official Standards (NOM’s) • Economic instruments. The Mexican Pollutant Release and Transfer Registry 74 (RETC) has not incorporated, to this date, the emissions of GHG. The 1996 reform of LGEEPA, gives SEMARNAT the capacity to promote transferable emissions rights, giving the basis for emission markets. The mechanisms and definitions for the operation of these emission markets within the Country are still pending. Fiscal incentives The Income Tax Law establishes a preferential treatment for investments in anti-polluting equipment. Also promotes the use of renewable energy, by means of a 100% deduction of investments for generation using renewable sources. Foreign Investment The Foreign Investment Law 75 (LIE) contains general rules for the sectoral opening to foreign investment. Exceptions and limitations require favorable resolutions from the National Commission on Foreign Investment 76 (CNIE). The CNIE is an Inter-Secretariat Organ that has the authority to establish the policy guidelines on foreign investment and the design of mechanisms to promote investment in Mexico, and also to establish the terms and conditions for foreign investment participation in activities and acquisitions. Current restrictions to foreign investment relevant to CDM projects include: 73 Ley General del Equilibrio Ecológico y la Protección al Ambiente 74 Registro de Emisiones y Transferencia de Contaminantes 75 Ley de Inversión Extranjera 76 Comisión Nacional de Inversiones Extranjeras Chapter I, UNIDO-AUSTRIA 48
• Exploration, exploitation, refining and processing of crude oil and natural gas; production of artificial gas, basic petrochemicals, their feedstock and pipelines; up to and including first hand sales, and • Electricity supply for public service. Only if they do not affect the Constitutional reservations, Mexico allows private investment to participate in the restricted activities through service contracts, concessions, lending and other contractual arrangements. Other applicable Laws and Regulations For some specific CDM projects, depending of the nature of them, other laws and regulations could apply, for instance: land use, mining, agriculture and forestry laws; as well as securities and financial regulations, and tax regulations. International agreements An important fact for potential investors participating in CDM projects is that Mexico participates in several international agreements providing transparency, dispute-settlement mechanisms and legal certainty dispositions, enabling long-term planning for investments. Related to Austria, the Free Trade Agreement with the European Union entered into force the 1 st of July 2000. Mexico is Party to other Free Trade Agreements with several countries and regions, which incorporate environmental cooperation instruments and also Mexico forms part of WTO and OECD. Some of the relevant environmental multilateral agreements signed and ratified by Mexico are: • United Nations Framework Convention on Climate Change and his Kyoto Protocol • Convention on Biological Diversity • Convention on Wetlands of International Importance • United Nations Convention to Combat Desertification • Vienna Convention on the Protection of the Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer. Mexico has signed MOUs on CDM with: Austria 77 , Canada, Denmark, France, Italy, Japan (CA with JBIC), Netherlands and Spain. There is an agreement creating the Mesoamerican Biological Corridor to diminish deforestation at the Mayan area of Mexico and Central America. I.2.2.- ENERGY, INDUSTRIAL DEVELOPMENT AND ENVIRONMENT POLICIES AND ADMINISTRATIVE FRAMEWORKS National Development Plan During the first year of each presidential term (6 years) is enacted a National Development Plan to be followed during the term. The present National Development Plan (PND) 2000-2006 looks to the incorporation of environmental management instruments in all economic sectors and development strategies. Also, the PND incorporates the Mexican commitments under the UNFCCC and the Kyoto Protocol. 77 See Annex I-G for the MOU with Austria Chapter I, UNIDO-AUSTRIA 49
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 and 46: Austrian Organizations 66 Kommunalk
Page 47: cannot contradict the Federal Laws.
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
Page 131 and 132:
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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