Author: IKI Alliance

More than 500 people representing various organizations from the power sector, lime, cement, mining, oil and gas sectors, among others, who participate in the Emissions Trading System (ETS) of Mexico were part of the second edition of the Training on the ETS for regulated sectors.

Between September and November 2022, 5 thematic modules were developed throughout 25 work sessions, totaling 50 hours of training.

This training was implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German Cooperation for Sustainable Development), the Ministry of Environment and Natural Resources (SEMARNAT) and in collaboration with the international team of Carbon Limits. It had the participation of national and international experts involved in the design and implementation of the ETS in various jurisdictions, who shared their knowledge and experience in operational, financial and management areas to consolidate their knowledge on the operation of this market instrument oriented to the effective reduction of Greenhouse Gas (GHG) emissions.

The distribution of topics throughout the five modules was established as follows:

  • The first module provided the international and national context on general concepts around the ETS, as a carbon pricing instrument, characteristics and differences with other mechanisms.
  • Module two consisted of the context under which the System has been developed in Mexico, its particularities and operation, such as the regulated sectors, emission threshold, compliance cycles and obligations of the participants.
  • Module three was dedicated to the analysis of key aspects during the Monitoring, Reporting and Verification (MRV) process, good practices, and the main challenges and experiences to contribute to the fulfillment of your company’s obligations.
  • In module four, the main considerations on trade and finances of an ETS, basic concepts of trading, transactions and negotiations and investments in mitigation projects were addressed.
  • Finally, the last module included topics on organizational structure, carbon management, challenges and opportunities for compliance.

By facilitating these types of spaces, the GIZ SiCEM project continues to provide technical support to SEMARNAT in the creation and strengthening of institutional and technical conditions for the implementation of the ETS in Mexico, aligned with national climate goals.

Mangroves, salt marshes, and seagrasses make up blue carbon ecosystems, named for their ability to capture and store carbon. They are extremely important because they reduce the risks and negative impacts of climate change, protect coastal areas from storms and hurricanes, in addition to contributing to the well-being of communities. Mexico is the fourth country in the world with the largest extension of mangroves (CONANP, 2017) so it is crucial to protect these ecosystems and reduce the rates of degradation and loss.

In this sense, the Secretariat of Well-being and Sustainable Development of Sinaloa (SEBIDES) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German Cooperation for Sustainable Development), through the Mexican-German Climate Change Alliance, together with The College of Environmental Engineers of Mexico (CINAM), organized the virtual presentation of the results of the project “Carbon reservoir and vulnerability of the mangrove swamp of the Santa María Lagoon System – La Reforma, in the municipality of Angostura, Sinaloa“. The purpose of the event was to share the lessons learned that could be of interest for the development of future projects in the other coastal states of the country.

 

The session began with the words of Ms. Yamel Rubio Rocha, Undersecretary of SEBIDES, and Mr. Álvaro Luna, Principal Advisor of the Mexican-German Climate Change Alliance of GIZ Mexico, who highlighted the importance of promoting multi-sector work around blue carbon for the conservation of biodiversity, as well as mitigation and adaptation to change climate.

Subsequently, Engineer Adolfo Lara from CINAM, presented the particularities of the project, which was carried out through a participatory process with federal, state and municipal government institutions, state higher education institutions, civil and fishermen associations, as well as the citizens of the municipality of La Angostura. It was composed of four axes:

  • The evaluation of the mangrove carbon reservoir of the lagoon system.
  • The determination of the vulnerability of the carbon reservoir against hydrometeorological phenomena and environmental deterioration due to human activities.
  • The proposal of actions for the conservation of the carbon reservoir and sustainable use of natural resources.
  • The transfer of the knowledge obtained from the project to the inhabitants of the region and the federal entities of the country with similar characteristics.

Among the main results, he highlighted the great capacity of the mangrove to store carbon and the need to protect this ecosystem due to its importance in reducing marine erosion and flooding caused by storm surges.

The information repository on the project available to the general public was presented, which stores all the documents and information relevant to the study. Check it here.

To close the session, Dr. Jorge Siller from SEBIDES, Mtra. Yuriana González from GIZ Mexico and Eng. Alberto Cruzado from CINAM, emphasized the importance of determining the dimensions of the carbon reservoir and its vulnerability as a first step for the design of strategies for its conservation, the reduction of carbon emissions and adaptation to the climate change.

This initiative showed the relevance of promoting projects aimed at the protection and conservation of mangroves in the country’s states, as well as establishing multi-stakeholder and multi-sector alliances to strengthen local climate action.

To learn more about the work process, we invite you to read the article “The mangroves of Angostura, Sinaloa and their role in climate action” and download the final report of this study.

 

Mangrove swamp of the Laguna Santa María System – La Reforma, Angostura, Sinaloa © CINAM / GIZ Mexico, 2022

Climate change is one of the biggest challenges we face today, and addressing it requires the collaboration of all actors and sectors. Therefore, fostering policy dialogue, effective communication and knowledge management are key to generating synergies and sharing the best ways to address this global challenge.

 

In order to strengthen cooperative dialogue, foster the exchange of experiences between Mexico and Germany and promote knowledge management, the Mexican-German Climate Change Alliance, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, works hand in hand with the Government of Mexico to communicate and raise awareness on the issue and to promote informed and inclusive climate action. In addition, its Interface role for IKI projects in Mexico helps share best practices for climate change and biodiversity projects in the country.

We invite you to learn more about the efforts to strengthen the cooperative dialogue driven by the Mexican-German Climate Change Alliance. Click on the image below:

 

 

Ante la gravedad de los problemas ambientales como el cambio climático, la pérdida de biodiversidad y la limitada disponibilidad de recursos que se requieren para mantener el nivel de actividad económica, es fundamental comenzar a sentar las bases para la transición hacia un sistema económico que además de ofrecer opciones de crecimiento y desarrollo a corto y mediano plazo, también permita la protección de los sistemas naturales de los que depende el bienestar de la población a largo plazo.

Mientras que en los últimos 50 años la población mundial se ha duplicado, la extracción de recursos se ha triplicado, alcanzando 12.2 toneladas anuales per cápita en 2017. Con los patrones actuales de producción y consumo se estima que para el 2050 se duplicará la extracción de recursos, lo que representará una enorme presión para el balance de los ecosistemas.

Hoja de Ruta para una economía circular

Como parte de los esfuerzos por impulsar un uso más eficiente de recursos, y la circularidad en los sistemas productivos del estado, la Deutsche Gesell­schaft für Internationale Zusammenarbeit (GIZ) GmbH (Cooperación Alemana al Desarrollo Sustentable) a través del proyecto Iniciativa Eficiencia de Recursos y Acción Climática (IREK II) cooperó junto con el Gobierno de Guanajuato a través de la Secretaría de Desarrollo Económico Sustentable (SDES) y la Secretaría de Medio Ambiente y Ordenamiento Territorial (SMAOT) para preparar la hoja de ruta – “Guanajuato Circular 2050: Eficiencia de Recursos y Economía Circular”.  Este documento presenta la visión del gobierno Estatal para lograr sistemas productivos que permitan mantener y recuperar el valor de los recursos a lo largo todo su ciclo de vida de los productos, y cuidar el equilibrio de los ciclos biológicos.

Relevance

In addition to being one of the first states to lay the foundations for moving towards more efficient and circular production models, an innovative aspect of the Guanajuato Circular 2050 document is that it seeks to do so in a sectoral manner, identifying the main subsectors based on their contribution to the local Gross Domestic Product (GDP), which allows specific strategies to be established for each one.

The objective is to foster communication based on trust between the public and private sectors regarding the specific conditions of each productive subsector, and to develop action plans, indicators and sectoral regulations that encourage the efficient use of resources, sustainable production and consumption. This limits the degradation of ecosystems and ensures the availability of vital resources for future generations.

Consult the document “Guanajuato Circular 2050: Resource Efficiency and Circular Economy” by clicking on the image below.

The document can also be downloaded from the virtual library of the Ministry of Environment and Territorial Planning: https://smaot.guanajuato.gob.mx/sitio/biblioteca-en-linea

Due to the global challenges posed by climate change, most water and wastewater utilities have confirmed that planning is key to preparing for the future. Therefore, climate risk plans represent a fundamental tool for supporting utilities in preparing for the risks to which their infrastructure is exposed, to reducing their vulnerability and to contributing to the economic, social and environmental sustainability of water supply and wastewater services.

For this reason, the “Support Guide for the Development of Climate Risk Management Plans for Water and Wastewater Operating Organisations (O.O.) in Mexico” is designed to provide O.O.’s with the necessary information to start the process of developing a Climate Change Management Plan.

The Public Infrastructure Engineering Infrastructure Vulnerability Committee Protocol (PIEVC), a useful tool for assessing infrastructure vulnerability and adaptation to a changing climate, was used in the development of this guide. The PIEVC Protocol is internationally recognised as a practical and reliable approach for assessing the vulnerability of infrastructure to the potential impacts of climate change. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in partnership with the Climate Risk Institute (CRI), leads the international component of the PIEVC Programme (see PIEVC International).

Due to the increasing effects of climate change, the development of a Climate Risk Management Plan is essential for the sustainable operations of O.O.s. This guide provides the procedural knowledge necessary for O.Os to assess their circumstances, seek assistance and plan through the development of a Climate Change Risk Management Plan.

Global challenges need joint responses. The climate crisis is one of the greatest threats to people, ecosystems and the planet. In its sixth assessment, the Intergovernmental Panel on Climate Change (IPCC) confirmed that global warming events have increased in exposure and intensity, causing major adverse impacts, especially on the most vulnerable communities. In this context, it highlights the importance of promoting resilient climate development, which addresses these impacts in a cross-cutting manner to move towards a sustainable, dignified and inclusive future.

Through the Mexican-German Climate Change Alliance, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has collaborated to drive ambitious climate action. Specifically, it has worked with the Government of Mexico through the Ministry of Environment and Natural Resources (SEMARNAT), especially with the General Directorate of Climate Action Policies (DGPAC), the National Institute of Ecology and Climate Change (INECC), the Ministry of Finance and Public Credit (SHCP), the Ministry of Agriculture and Rural Development (SADER), subnational governments and other partners, including civil society.

In this third phase, the Mexican-German Climate Change Alliance has collaborated on four objectives together with SEMARNAT and partners to implement concrete measures at federal and subnational levels to achieve Mexico’s NDC targets.

Ejes de la Alianza Mexicana-Alemana de Cambio Climático

In the framework of the presentation of the results for the third phase, we share this document on the scopes and pathways for future cooperation.

This document aims to be a compendium of the impacts, best practices, lessons learned and products developed during the third phase of the Mexican-German Climate Change Partnership on behalf of the German Federal Ministry of Economics and Climate Protection (BMWK) through the International Climate Protection Initiative (IKI).

Each section is divided into the four axes mentioned above and include a summary with key messages, climate actions taken and product highlights, including studies, infographics, videos, articles, communication strategies, among others.

We hope you enjoy this tour and that you find it useful to learn about what has been developed during the four parts of this third phase, and that it helps promote sustainability and replicability of climate action. The Mexican-German Climate Change Alliance will continue to work together with SEMARNAT and its national partners to promote a sustainable, dignified and inclusive Mexico focused on wellbeing.

The protection of natural capital is key to the development of the tourism sector in the present and future; for this reason, cross-sectoral partnerships are extremely important for promoting climate action and reducing vulnerabilities to the effects of climate change.

The National Association of Environmental Authorities (ANAAE) and the Association of Secretaries of Tourism of Mexico (ASETUR) formed an alliance in February this year. Technical support was provided from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) through the project “Ecosystem-based adaptation to climate change with the tourism sector” (ADAPTUR). This agreement has enabled the tourism-environment binomial to work on ecosystem-based climate change adaptation (EbA) and biodiversity protection at the subnational level in tourism destinations.

As a result of the alliance, the World Tourism Organization (UNWTO) invited government of Guanajuato representatives María Isabel Ortiz Mantilla, head of the Ministry of Environment and Land Management (SMAOT), and Juan José Álvarez Brunel, head of the Ministry of Tourism (SECTUR GTO), to present the ASETUR-ANAAE alliance and the Emblem Project at the most important conference on climate change, COP 27.

Secretary of Tourism of Guanajuato, Juan José Álvarez Brunel, and Secretary of Environment and Territorial Planning of Guanajuato, María Isabel Ortiz Mantilla, participating in the alternative event of the World Tourism Organization “Scaling-Up Climate Action in Tourism – The Glasgow Declaration ” / © SMAOT

The Emblema Project’s goal is for the tourism, environmental and private sectors to work together to implement ecosystem-based adaptation measures in the Natural Protected Areas (NPAs) of Guanajuato with technical advice from ADAPTUR and Reforestamos México A.C. It aims to restore the soil for its ecosystem services, including the provision of water, basic for the development of tourism activities.

This alliance has become a national and international reference, a new paradigm that promotes climate action alongside activities that support a green and inclusive economic recovery, where the wellbeing of ecosystems and people is at the centre, as they are completely dependent on each other.

Secretary of Tourism of Guanajuato, Juan José Álvarez Brunel, and Secretary of Environment and Territorial Planning of Guanajuato, María Isabel Ortiz Mantilla, participating in the alternative event of the World Tourism Organization “Scaling-Up Climate Action in Tourism – The Glasgow Declaration ” / © SMAOT

The book “Towards an Emissions Trading System in Mexico: Rationale, Design and Connections with the Global Climate Agenda” is the result of a multi-stakeholder dialogue between the public, private and academic sectors about Mexico’s Emissions Trading System, the first in Latin America and the Caribbean.

The presentation of this work took place last Thursday, 20 October, during the 12th National Congress on Climate Change Research, an event hosted by the Climate Change Research Programme (PINCC) of the National Autonomous University of Mexico (UNAM). This year’s event focused on decision-making and public policy making, with the aim of reducing climate change risk and vulnerability.

Stakeholders involved in the production and design of the book, as well as the project “Preparation of an Emissions Trading System in Mexico” (SiCEM) of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, participated in the event, which was moderated by Dr. Simone Lucatello, book coordinator.

On behalf of the SiCEM project, María Fernanda Suárez presented the contextual framework under which this initiative was coordinated and formalised. Subsequently, Juan Carlos Mendoza highlighted the importance of international cooperation to strengthening dialogue and informed discussion through the development of mechanisms and tools that promote Mexico’s climate agenda.

From academia, Ms. Neydi Cruz from the Mora Institute highlighted Mexico’s participation in different international climate initiatives, as well as the benefits of international collaboration in climate change mitigation efforts. Finally, Dr. Alicia Gutiérrez from the Universidad Anáhuac reflected on the adoption of the system in the context of Mexico’s climate policy and legal framework.

The publication includes contributions from more than 20 authors who, through an interdisciplinary approach, combine theory and practice to provide a comprehensive perspective on the development of Emissions Trading in Mexico. The work was published by Springer in an Open Access format, thus seeking to promote open and plural access to the report for society and the public. So far, the digital version has been downloaded more than 32,000 times and can be consulted and downloaded free of charge through this link.

The SiCEM project seeks to create more spaces for informed and science-based discussion on the Emissions Trading System in Mexico. The participation of academia and civil society contributes to an open, plural and participatory debate on the design and operation of market instruments that seek to contribute to the fulfilment of Mexico’s climate goals.

 

Local action is key to moving towards sustainable and low-carbon models. This requires strengthening state capacities to respond to climate challenges and identifying local causes of emissions and vulnerabilities. This is achieved through collaborative work across sectors that promotes innovation and knowledge sharing.

As a result, the Mexican-German Climate Change Alliance, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), works with Mexico’s national and state governments to support local actions that increase the ambition of climate change adaptation and mitigation goals in Mexico.

We invite you to learn more about the local actions carried out by the Mexican-German Climate Change Alliance:

 

To achieve global goals, the mobilisation of public and private resources is key. The participation of financial institutions, banks, institutional investors, corporations and capital markets play a crucial role in aligning financial flows with sustainable and green finance.

For this reason, it is essential to provide investors with information on activities that contribute to meeting climate change and natural resource conservation objectives. Green or sustainable taxonomies are designed as classification systems with criteria and indicators to classify different economic activities according to their contribution to climate change mitigation and adaptation, or to the sustainability of the country. In other words, it classifies funds according to their objectives, thus giving certainty to the market, avoiding green and social washing. Thus, the creation of green, sustainable or climate finance taxonomies helps in this process and becomes the foundation of a green financial system. The financial sector must consider environmental issues – in particular climate change – as inherent to its business and continuously conduct risk and opportunity analyses related to the environment and climate.

This guide seeks to draw on the experiences of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, through the Mexican-German Climate Change Alliance, in developing two processes for the creation of taxonomic classification systems for finance; one with the banking sector through the Association of Banks of Mexico (ABM), focused on green assets; and the other with the Government of Mexico, in the identification of economic activities and a methodology for defining metrics and thresholds for the country’s sustainable financing taxonomy. The objective is to share with other countries the lessons learned and best practices for implementing and operating a classification system for economic activities that contribute to sustainability and/or climate change within their country.

Consult the Guide for Creating a Green and Sustainable Finance Taxonomy: Lessons Learned from Mexico’s Government and Banking Sector, click on the following image:

 

The LACADI project opened the questionnaire for institutional investors to help determine how much progress insurance companies and pension funds in Mexico and Peru have made in incorporating climate change variables into investment decisions.

The platform, which will be open from 17 October to 13 December, is essential to advancing climate disclosure in the region. Its application will help identify the extent to which recommendations have been implemented from the Task Force on Climate related Financial Disclosure (TCFD) and the International Financial Reporting Standards (IFRS).

To participate, interested Mexican and Peruvian insurers and pension funds must nominate a delegate or responsible person, who must then register by clicking here. With this information, LACADI will share information and detailed instructions to enter the platform and participate in the process.

What are the benefits of participating in the Questionnaire?

Taking part in this process will allow participating institutional investors to report back to their companies on progress made in mainstreaming climate change opportunities and risks. Those participating will also receive a set of recommendations based on the responses to the questionnaire.

Participating organisations will also have access to support services from LACADI and can participate in capacity building and capacity strengthening activities, among other benefits.

Details about the questionnaire

The LACADI 2022 Questionnaire is composed of five sections and 63 multiple choice questions designed to identify the levels of knowledge and appropriation of the climate disclosure recommendations.

The online platform responsible for hosting the questionnaire, as well as data and response management, scoring and monitoring is carried out by a third party independent from LACADI: the National Consulting Centre (NCC), a research and consultancy centre based in Colombia, with presence in Mexico and Peru.

More details at:

https://lacadi.transforma.global/abierto-cuestionario-lacadi-2022/

*The Latin American Climate Asset Disclosure Initiative (LACADI) is funded by the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMUV) supports this project on the basis of a decision adopted by the German Federal Parliament.

According to the Organisation for Economic Co-operation and Development (OECD), the transition to low-carbon and climate-resilient economies will need to include the private sector to help mobilise resources, knowledge and innovation. The private and financial sector have recognised the importance of their role in mitigating and adapting to climate change, as well as the importance of considering climate issues when managing investment risks.

However, companies still lack knowledge about the risks and benefits of addressing climate change for their business. Therefore, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, through the project Financing for Climate Action in Mexico (FINACC) and the Mexican-German Climate Change Alliance, participated in the first Training Workshop on Corporate Climate Action Initiatives and Instruments. The training was promoted by UK-PACT together with WRI Mexico, South Pole, WWF, the United Nations Global Compact and CDP.

The objective was to raise awareness and provide key information to companies in Mexico on the science of climate change and its implications for the private sector, as well as the opportunities to undertake decarbonisation plans for green growth and their business models.

On behalf of GIZ, Gabriela Niño, Climate Finance Advisor and FINACC project preparation officer, gave a training on the basics of physical and transition risks for a resilient and low-carbon economy in the country. During her presentation, she explained to Mexican business leaders the importance of considering physical and transition risks to climate change, which require a strategic response to address them.

Physical risks refer to damages and alterations caused by climate variability, such as heat waves, droughts, floods, storms, sea level rise, among others, which have negative impacts on companies’ supply chains and in turn affect the financial sector. On the other hand, transition risks refer to changes in policy, technological innovation and market paradigms, where, by prioritising sustainable activities that help decarbonise and build resilience in economies, activities causing climate change become stranded assets.

In Mexico, a country highly vulnerable to climate change (INECC, 2022), it is a high priority to address the risks and impacts that will produce losses for businesses, the financial sector and communities. Therefore, the work of the Task Force on Climate-related Financial Disclosures (TCFD), which seeks to provide a framework for the transparency of climate-related financial risks so that companies can provide information to investors, lenders, insurers, etc., stands out. The TCFD provides recommendations to properly assess climate-related risks and opportunities and thus green the financial system.

During the presentation, two reports were shared with the companies:

Digital tools and databases such as GIZ’s Environmental Scenario Analysis (ESA) are key elements for promoting business sustainability, managing and mitigating risks, and supporting financial decision making. These fundamental tools help financial and non-financial companies with business decisions about physical and transition risks for a resilient and low-carbon Mexico, while at the same time allowing them to move towards appropriate information management processes linked to these risks, as well as financial disclosures under ASG criteria.