Emissions Trading Worldwide

Mexico
under consideration
The General Climate Change Law of April 2012 provides the basic
framework for the establishment of a voluntary ETS in Mexico.
Subsequently, in June 2013, the government released its National
Strategy on Climate Change, outlining the country’s transition to
a low-carbon economy. In April 2014, the Special Climate Change
Program (2014–2018) was released.
In 2014, the Mexican Secretary of Energy introduced a carbon
tax on fossil fuel sales and imports (natural gas exempted). The tax
is set at approximately USD 3.50 per tCO 2 e (EUR 3.19), though firms
are allowed to use offset credits (from domestic CDM offset projects
only) to fulfill their tax liability. In parallel several legislative
attempts to introduce an ETS for the electricity sector have been
made. At the time of writing, Mexico is considering the implementation
of an ETS.
Mexico has also taken steps to liberalize the energy sector. In
December 2013, the Mexican Constitution was modified, and by
July 2014, a legal framework was in place, opening the energy sector
to both domestic and foreign private investment. A market for
Clean Energy Certificates will be developed in order to promote
the use of renewables and other clean energy sources. It remains
to be determined how the different policy instruments will work
together.
In October 2014, a mandatory reporting system (the National
Emissions Register) for both direct and indirect GHG emissions
for facilities with annual emissions above 25,000 tCO 2 e was established.
Emitters in the energy, industrial, transport, agricultural,
waste, commercial and services sectors are required to report the
six GHGs identified by the UNFCCC and black carbon. The National
Emissions Register also includes the voluntary registration of mitigation
or reduction certificates obtained from projects and activities
carried out in Mexico.
background information
Overall Ghg Emissions (excl. LULUCF) 633 MtCO 2 e (2013)
OVERALL GHG EMISSIONS BY SECTOR
MtCO 2 e
18.2 % 4.1 % 7.9 % 4.9 % 20.1 %
7.9 %
27.5 %
Industrial processes (115)
Residential and Commercial (26)
Agriculture (80)
waste (31)
Electricity generation (127)
Gas and Petroleum (80)
Transport (174)
GHG Reduction Targets By 2030: 22% reduction compared to BAU scenario
and 36% conditional reduction, subject to a global mitigation agreement
(INDC Submission). By 2050: 50% reduction from 2020 GHG levels (Climate
Change Law aspirational goal).
other information
Institutions involved Ministry of Environment and Natural Resources
international carbon action partnership
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