SEMARNAT. Towards a Climate Market in Mexico

Transcription

1 SECRETARIAT SECRETARÍA DE OF MEDIO ENVIRONMENT AMBIENTE AND Y RECURSOS NATURAL NATURALES RESOURCES Towards a Climate Market in Mexico

2 WHERE IS MEXICO STANDING? GENERAL CLIMATE CHANGE LAW (2012) Low-carbon emissions economy Resilient Mexico Inclusive policy NATIONAL CLIMATE CHANGE STRATEGY (2013) years vision Mitigation and Adaptation actions and policies SPECIAL CLIMATE CHANGE PROGRAM * PECC (2014) Actions to be carried out by federal public entities in both mitigation and adaptation throughout the current administration

3 ASPIRATIONAL REDUCTION GOALS GENERAL CLIMATE CHANGE LAW By 2020: 30% GHG emissions reduction with respect to baseline By 2024: 35% of electricity generation from clean energy sources By 2050: 50% GHG emissions reduction with respect to 2000 emissions

4 MMtCO2e SEMARNAT PECC s contribution to national mitigation efforts National baseline GWP100 1, * MtCO 2 e/yr PECC s contribution *The amount of 106 MtCO 2 e/year comprises: 75.1 MtCO 2 e/year from PECC mitigation action lines, and 31 MtCO 2 e/year, from continuous methane reduction actions by PEMEX since 2012 (Preliminary data, under review for old and new PECCs) 4

5 Sectorial contribution to mitigation in PECC goals (MtCO 2 e) 0.64% 3% 13% ENERGY AGRICULTURE 6.74 ENVIRONMENT % 9% 55% TRANSPORT 0.48 SOCIAL DEVELOPMENT 2.05 NAMA 9.42 TOTAL = 75.1 MtCO 2 e* *preliminary data 13

6 WHAT IS NEEDED TO GET READY FOR A CLIMATE MARKET? NATIONAL EMISSIONS REGISTRY CARBON TAX INVESTMENT: INNOVATION AND TECHNOLOGY ECONOMIC INCENTIVES TRANSACTIONS PLATFORM MRV CAP-AND-TRADE MECHANISM

7 HOW IS MEXICO GETTING READY? NATIONAL EMISSIONS REGISTRY Starting in 2015 CARBON TAX Started in 2014 INVESTMENT: INNOVATION AND TECHNOLOGY Energy Reform 2014 ECONOMIC INCENTIVES Energy Reform 2014 VOLUNTARY CARBON MARKET PLATFORM Started Nov MRV Development in process EMISSIONS REQUIREMENTS FOR POWER GENERATION Energy Reform 2014

8 INDICATIVE STRUCTURE VOLUNTARY MARKET -VCS -PLAN VIVO -GOLD STANDARD -CAR -Carbon capture in forestry Norm (in development) CDM OF KYOTO PROTOCOL CLIMATE MARKET GHG and Compounds accounting and reporting >25,000 ton CO 2 e -Energy, Industry, Waste, Agriculture and Services -Direct and Indirect emissions -Mobile and Stationary sources -CO 2, CH 4, N 2 O, SF 6, HFCs, PFCs, HCFCs, NF 3 and Black Carbon CER proceeds NATIONAL EMISSIONS REGISTRY CERs, VCU, VER, PVC* portfolio CER sold Private sector manages the monetization of CERs in the UNFCCC Registry MEXICO 2 Voluntary carbon market platform in Mexico CARBON TAX Secretariat of Finance allows the use of carbon offsets to reduce carbon tax liability * After 2015

9 Example A TO COMPLY WITH CARBON TAX CARBON OFFSETS Carbon Tax REDUCE GHG EMISSIONS BUYER PEMEX SELLERS CDM Project A CDM Project B CDM Project C CDM Project D

10 Example B VOLUNTARY MARKET CARBON OFFSETS CSR REDUCE GHG EMISSIONS BUYER COMPANY A, INSTITUTION X, INDIVIDUALS TRANSACTION MEXICO 2 PLATFORM SELLERS VCS Project B

11 DETERMINANTS OF SUCCESS EXTERNAL ISSUES: Market terms: price, coupon, yield Demand: buyer interest Supply: availability of technology Carbon market issues: regulations, prices Competition: for buyers; for projects OTHER ISSUES: Acceptable risk Tenure, currency, etc. Domestic policies Capacity building 11

12 General Climate Change Direction San Jeronimo 458, third floor Col. Jardines del Pedregal