Author: IKI Alliance

The Congress of the State of Nayarit through the commissions of Industry, Commerce and Tourism; Ecology and Environmental Protection and Economic and Social Development; in coordination with the project “Ecosystem-based Adaptation to Climate Change in Cooperation with the Private Sector in Mexico” (ADAPTUR) of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, held the webinar “Blue Carbon, an opportunity for a climate resilient economy”. The congressmen and congresswomen and their respective legislative teams from the other states in the Gulf of California region were invited to attend. Part of the capacity- building activities for legislative teams of local congresses, more than 45 people from Nayarit and Sonora participated.

This initiative was led by deputies Juanita González, Georgina López and Nadia Bernal, who serve as chairpersons of the commissions. They are working together to position tourism as an axis that encourages the inclusion of transcendental issues for the region in their commissions and within the State Congress. Their work aims to create a sustainable and inclusive economic recovery for everyone, focusing on the environment; natural resources; climate change and Ecosystem Based Adaptation (EbA) measures.

The event aimed to increase the knowledge of participants on coastal-marine ecosystems; their vulnerability to climate change; their importance for the region’s biodiversity and the creation of solutions for climate action; and their relationship to economic activity within the Gulf of California region, which is essential for the tourism sector. This was done through a panel discussion between subject-matter experts that included Dr. Nélida Barajas from the Intercultural Centre for the Study of Deserts and Oceans; Mr. Luis Fueyo, a consultant specialising in oceans, biodiversity and environmental law; and the moderator, Mr. Alejandro Callejas, an international consultant specialising in biodiversity and climate change.

The meeting created linkages and multi-stakeholder dialogue between states, congresses, commissions, and legislators of the Gulf of California region, which supports work towards the enrichment of the subnational legal framework in the region. They succeeded in positioning blue carbon as an opportunity to implement EbA measures to strengthen climate action, protect the natural capital of the Gulf of California and strengthen the region’s economy by protecting the natural capital of one of the country’s major tourist attractions.

For more information, please contact Andrés Martínez, Technical Advisor of the ADAPTUR project for the Riviera Nayarit-Jalisco region.

 


Blue carbon webinar an opportunity for a climate resilient economy © Karla Ramos, GIZ ADAPTUR

The third edition of the Climate Change Action Groups (CCAGs) was a space for dialogue and exchange of experiences between public servants at the subnational level that allowed them to hear first-hand about experiences, successes and areas of opportunity in the implementation of projects on green infrastructure, circular economies, society and climate. This initiative has been created by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in collaboration with the Mexican Association of Municipal Planning Institutes (AMIMP), the Mexican Climate Community (CCM) and Local Governments for Sustainability (ICLEI).

 

Held from 4 to 7 July, the GACCs focused on a specific theme each day. In total, 596 people participated, and 25 sessions were held to share experiences about case studies and the implementation of best practices at the local level. For example, three keynote speeches by representatives from Germany discussed examples of important projects that address the impacts of climate change – from the experiences of various cities such as Freiburg in the circular economy; the Berlin Climate Change Action Plan 2022-2026; and the Hamburg Green Network.

Grupos de Acción de Cambio Climático 2022 © GIZ México, 2022

Below, find a summary of the four days of the GACC.

Green Infrastructure

The focus of the first day was on green infrastructure. Green infrastructure can be used, for example, to reduce runoff in times of rainfall by harnessing the retention and absorption capacities of vegetation and soil. In these cases, green infrastructure, in addition to meeting the needs of human societies, can increase carbon sequestration, improve air quality, mitigate the urban heat island effect and increase resilience in vulnerable populations, such as coastal cities.

One of the experiences highlighted was that of Tuxtla Gutiérrez, Chiapas, in particular the process of developing its municipal green infrastructure standard and how coordination between different areas of the municipal government supports such initiatives. The Green Infrastructure Network promoted by GIZ Mexico through the CiClim and BIOCITIS projects was presented.

Keynote address “The Hamburg Green Network and citizen participation processes” given by Dr. Cornelia Peters from the Behörde für Umwelt, Klima, Energie und Agrarwirtschaft (BUKEA)

Circular Economy

On the second day, experiences were exchanged on circular economy instruments, sustainable consumption of electronic devices and inter-municipal solutions to reduce plastic pollution. They also discussed the implementation of energy efficiency and how it can reduce pressure on the environment, improving efficiency in the supply chain of raw materials and promoting economic growth and increased employment.

During the parallel sessions, state authorities expressed strong interest in generating a shared network of knowledge and information on recycling centres and events through the RAECO mobile application implemented by GIZ. Representatives from Chiapas, Chihuahua and the State of Mexico showed interest in including their own events in the application.

Presentación de RAECO en la sesión “Consumo sustentable de aparatos electrónicos” de los GACC

Society and Climate Change

The cornerstone of the third day was the role of society in climate change. They discussed how different sectors of society play a key role in climate governance because the willingness of business, government, academia and civil society can have a positive or negative impact on the fight against global temperature rise.

Ponencia Magistral “Plan de Cambio Climático en Berlin 2022 – 2026” impartida por Alejandro Fanegas, Berliner Energieagentur GmbH.

Digitalisation tools

Finally, the last day addressed the importance of digital tools in accelerating the transition towards a circular economy and the fulfilment of the Sustainable Development Goals (SDGs), especially as related to the ultimate goal of improving the quality of life in urban populations.

Keynote address “How does digitization help the sustainable development of cities?” Taught by Ileana Cerón from FabCity Yucatán

The creation of this type of space for the exchange of ideas and experiences allows for the construction of synergies between public and private sector actors at the local, national and international level to learn about progress, challenges and opportunities, as well as to create alliances in the fight against climate change.

Thus, for the third consecutive year, the GACCs have collaborated to strengthen and improve communication and the implementation of local projects that contribute significantly to the achievement of the Sustainable Development Goals and climate change mitigation and adaptation.

Check the summary of the event here

Press:

Presentations:

Day 1

10:00 – 11:00 Ponencia magistral Friburgo y la economía circular

11:00 – 12:30 Sesiones paralelas

Day 2

10:00 – 11:00 Ponencia magistral La Red Verde de Hamburgo y los procesos de participación ciudadana

11:00 – 12:30:

Day 3

10:00 – 11:00 Ponencia magistral Plan de Cambio Climático de Berlín 2022-2026

11:00 – 12:30:

Day 4

10:00-10:40 ¿Cómo la digitalización ayuda al desarrollo sustentable de las ciudades?

10:50-11:40 

10:50-12:40

  • Mi Mercado
  • Blaucorp: recolección y revalorización de residuos para ciudades

12:40-13:20

13:20-13:45 Presentación del Centro de Transformación Digital (DTC México)

On 1 July 2022, the first capacity-building workshop of the Latin American Climate Assets Disclosure Initiative (LACADI) took place, in which climate disclosure was presented as a tool to identify and manage climate change opportunities and risks.

One of the most important observations of Mark Lewis, founding member of the Task Force on Climate-related Financial Disclosures (TCFD), was that transition risks are crucial for companies and should be considered in all investment decisions. He concluded that companies that do not show their strategic vision for the future, based on TCFD recommendations, should be a red flag for investors.

Taller de capacitación © Andrea Carolina Gutiérrez Henao

The panel discussion on the barriers faced by institutional investors in Mexico to include climate risks and opportunities in their investment decisions included participation from Marité Chavira from Citibanamex, Alejandro Bujanos from Afore Sura, Juan Carlos Belasteguigoitia from Consorcio TCFD Mexico and Eric Osio Cerón from the National Commission of the Retirement Savings System (CONSAR). They highlighted the importance of including climate disclosure and sustainability strategy in all areas of the organisation; the objective of the Afores is not only to guarantee the best return but also the best pension, guaranteeing a better planet; and the importance of investments producing change within the companies receiving capital to reduce their Greenhouse Gas (GHG) emissions. Participants also stressed the need for regulation to establish a guideline or baseline for compliance.

Celine Tapia, from CDP, explained that for financial companies the most important emissions to consider are the emissions they finance with their investments.

One of the main conclusions of the workshop was the importance of starting to share the advances in the processes and mechanisms currently in place within the institutions, as climate disclosure is a process of continuous improvement. To this end, LACADI will work with Afore and insurance companies to identify the status of their disclosure practices and generate recommendations and roadmaps for them to advance in the implementation of the TCFD recommendations.

Asistentes durante el coffee break © Andrea Carolina Gutiérrez Henao

Moving towards low-carbon and resilient economies requires building partnerships to mobilise green finance, achieve the goals set out in the Paris Agreement and limit the increase in global average temperature to below 1.5°C above pre-industrial levels.

Since 2019, the Mexican-German Climate Change Alliance, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and part of the International Climate Protection Initiative (IKI), has been working hand in hand with the Government of Mexico and actors from the private, financial and social sectors to mobilise resources for concrete actions in the territory and identify the challenges and opportunities of climate finance. This long-term vision aims to allow Mexico to meet its national and international climate commitments.

In the framework of the third edition of the Green and Inclusive Finance Festival, the Mexican-German Climate Change Alliance presented the fruitful technical cooperation with the Government of Mexico to green the financial system and mobilise climate finance towards actions to address the climate crisis in the territory. The five axes of climate action were shared, in which they collaborate with various institutions from the public, financial, private and social sectors to promote green finance.

We invite you to learn more about the results of the Mexican-German Climate Change Alliance on green finance:

 

Promoting green finance mobilisation is key to meeting the Sustainable Development Goals (SDGs) of the 2030 Agenda and the Paris Agreement. In this context, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Tecnológico de Monterrey organised the third edition of the Green and Inclusive Finance Festival 2022 with the aim of creating a space for multi-stakeholder dialogue to share best practices at the national, regional and international level about the allocation, access, governance, management and mobilisation of green finance.

On 13, 14 and 15 June, 24 sessions were held in a hybrid manner, with the participation of around 100 panellists and more than 2,000 online attendees from Mexico, Latin America, the Caribbean, Spain and Germany. The festival was attended by representatives of GIZ Mexico, the IKI projects in Mexico, the Tecnológico de Monterrey, the Ministry of Finance and Public Credit (SHCP), the Ministry of Environment and Natural Resources (SEMARNAT), the Bank of Mexico (Banxico), Nacional Financiera (NAFIN), the National Banking and Securities Commission (CNBV), the National Bank of Public Works and Services (BANOBRAS), the Economic Commission for Latin America and the Caribbean (ECLAC), the National Institute of Social Economy (INAES), CIBanco, among others.

The inauguration was chaired by Gabriel Yorio González, Undersecretary of Finance and Public Credit; Simone Franke, Political Counsellor of the German Embassy in Mexico; Philipp Schukat, Climate Team Coordinator of GIZ Mexico; Cynthia María Villarreal, Director of Sustainable Development and Linkages at the Tecnológico de Monterrey and Ambassador Miguel Ruíz Cabañas Izquierdo, Director of the Sustainable Development Goals (SDG) Initiative at the Tecnológico de Monterrey. To open the Festival, the speakers addressed the efforts and achievements of the bilateral Mexico-Germany cooperation for sustainable financing, the importance of multi-stakeholder cooperation in the mobilisation of financial resources and the role of universities in the greening of the financial system.

The first day of the Financing Festival addressed the social economy and impact investments, the history of change generated by the Global FELICITY Programme, decentralised financing and the efforts of GIZ Mexico, financial mechanisms for climate change and sustainable development from the public sector, the 2030 Solutions for local development, the financial inclusion of people with disabilities and the post-COVID recovery strategy of the Development Bank.

The second day’s sessions dealt with instruments to boost financing with women entrepreneurs, feminist financial policy, solar thermal energy financing, Payment by Results mechanisms, socio-economic assessments of resilient and low-carbon infrastructure projects, crowdfunding for green investment in Mexico, digital tools for project preparation and the green supply of commercial banks.

On the final day, sessions focused on the economic and financial impacts of climate change, the development of green and sustainable taxonomies in Latin America, youth in action for green finance, challenges and opportunities for energy efficiency finance, climate finance engagement at the COP, green and sustainable finance mechanisms at the subnational level, and partnerships to drive ambition in climate action.

Recognising the role of youth in climate action, the Festival also featured innovative projects selected from the open call promoted by GIZ Mexico, “Youth in Action for Green Finance“. The young people who presented their projects were Daisy Álvarez for the project Construyendo espacios verdes y sustentables para todes, Graciela Rivera with the project EnerYou, Daniela Carreón with the project ETF Verde and Iván Mendoza for the project in Mazahua communities SMAR JÑatjo’o.

To conclude the Festival, participants discussed alliances to increase climate action ambition, including the results of the cooperation between GIZ Mexico and the Government of Mexico to green the financial system. In addition, the Mexican-German Climate Change Alliance presented on the progress of the cooperation and its work with key actors to promote green and inclusive finance in the country, from the territory to the creation of sustainable taxonomies. Moreover, the SHCP and Banxico highlighted the need to move towards low-carbon and resilient economies, as well as the key role of the technical cooperation provided by GIZ Mexico in addressing climate change.

In the closing session, Philipp Schukat, Coordinator of the GIZ Mexico Climate Team, presented two key conclusions on green finance. First, that “in the face of the climate crisis we already have the technological innovation, now we have to create the financial mechanisms to implement it and reduce social gaps”. Second, he stressed the importance of multi-stakeholder cooperation between governments, civil society and businesses to achieve global goals.

The NAMA SME project began the launch of the initiative that supports the strengthening of the energy efficiency market in SMEs in Yucatan through technical and financial solutions.

The NAMA SME project is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, together with the Yucatan Institute for Entrepreneurs (IYEM) and the Energy Sub-Secretariat of the Ministry of Economic Development and Labour (SEFOET) of the Government of the State of Yucatan. On May 11, it launched an initiative to strengthen small and medium-sized enterprises (SMEs) in the state of Yucatan through energy efficiency (EE). Through an open call, companies in the state were invited to register to receive an energy diagnosis (DE) at no cost and be able to implement EE measures.

Inicio del lanzamiento con MicroYuc © Mary Angélica Pérez López IYEM en conjunto con el proyecto NAMA PyME de GIZ México
ILaunch of MicroYuc © Mary Angélica Pérez López IYEM together with NAMA PyME, GIZ México

With the aim of providing technical and financial support to incorporate EE measures in companies, capacity building sessions were held for SMEs on 19 and 26 May and 2 June 2022. More than 60 people participated and learned what EE is, the importance of DE in their companies and how to manage a loan and pay it back through energy savings. In addition, companies learned about the MicroYuc Verde financing initiative promoted by IYEM, as well as the requirements to participate in the call for proposals.

Webinar carried out in conjunction with our allies from the State of Yucatán © Brenda Montanez

The success of these events was reflected in the 36 SMEs that registered for the initiative, with participation from the industrial, service and trade sectors. Those selected were those with the greatest potential to implement EE projects and that were priority sectors for the economy of the state of Yucatan.

Of the SMEs that registered, 16 were selected and will be able to identify and implement improvements in their energy consumption, generating economic savings, increasing their competitiveness, and reducing greenhouse gas (GHG) emissions. Importantly, seven are led by women, contributing to GIZ Mexico’s commitment to promote access to finance for women entrepreneurs in the state.

Start with the 16 SMEs selected to carry out an Energy Diagnosis with a view to implementing an executive savings project © Brenda Montanez

In September, each SME will begin to implement the projects they selected based on their needs, as well as their technical and economic viability. These projects will be regularly monitored to document the energy saving measures and the economic, environmental and social benefits to each company.

International cooperation is key to achieving the climate goals of the Paris Agreement and the 2030 Agenda. With the aim of strengthening dialogue and the exchange of good experiences between projects of the International Climate Initiative in Mexico (IKI), the sixth IKI project exchange workshop in Mexico was held on May 19, 2022. Eighty six people participated in the event, from public and social sectors.

The high-level event had the outstanding presence of the Ministry of Environment and Natural Resources (SEMARNAT), the Ministry of Agrarian, Territorial and Urban Development (SEDATU), the Ministry of Agriculture and Rural Development (AGRICULTURA), the Ministry of Treasury and Public Credit (SHCP), the Secretary of the Environment and Territorial Planning of Guanajuato (SMAOT), as well as representatives from the Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the German Federal Ministry for Economic Affairs and Climate Action (BMWK) and the German Embassy.

https://twitter.com/GIZMexico/status/1527324256996327424?s=20&t=9AEXAM4NMnXuAi8HCV4S8A

During the opening remarks, SEMARNAT and the German Embassy reiterated their common interest in cooperating within the IKI framework for the protection of the environment, the fight against climate change and the protection of biological diversity. On behalf of the BMWK and BMUV of the German Government, they reaffirmed the priority that climate change represents for the government and the importance of IKI cooperation in Mexico since 2008, in addition to mentioning the priorities of the biodiversity agenda within the Global Biodiversity Framework.

Mexican climate policy

Subsequently, representatives of the Mexican government presented the strategies and priorities of Mexico’s climate and biodiversity policy. On behalf of SEMARNAT, the General Directorate of Policies for Climate Change announced the climatic risks that are already being experienced in Mexico. In addition, he shared various actions that the Mexican government is carrying out to adapt to climate change. He agreed with the German government in putting climate justice at the forefront.

Additionally, various priorities of the climate change agenda were shared by SEDATU and AGRICULTURA, including the cross-cutting link between climate change, territorial planning and the agricultural sector.

Implementation of climate action in the transport sector

The first part of the event concluded with a panel on sustainable transport, the actions that are being developed, the challenges and opportunities to build cities and a prosperous, green and inclusive transport sector.

The panel was integrated by Francisco Ramírez, General Coordinator of Strategic Projects and Alternatives against Climate Change of the National Institute of Ecology and Climate Change (INECC); David Camacho, Director of the Railway Transport Regulatory Agency (ARTF); Roxana Montealegre, Director of Mobility of SEDATU; María Isabel Ortiz Mantilla, head of the SMAOT and President of the General Assembly of the National Association of State Environmental Authorities (ANAAE); and Verena Ommer from the International Climate Initiative Division of the BMWK.

In general, the panel agreed on focusing on sustainable transport, prioritising public transport, electromobility, urban efficiency and thinking about sustainable cities. The importance of working on decarbonisation routes in the transport sector and linking it to planning, public policy and land use planning instruments was emphasised. Additionally, the potential of the railway sector to achieve these purposes was commented, based on the fact that we have a network of more than 23 thousand kilometres that unite the cities of the country.

Exchange between IKI projects

There are 32 IKI projects operating in Mexico, with 21 implementing organisations and 31 implementing counterparts; bilateral projects have a budget of more than 29 million euros. In addition, new IKI projects starting in 2022 were presented, such as the Latin American Climate Asset Disclosure Initiative (LACADI); Transformative Urban Coalitions, Territorial Planning and Financial Innovation to increase Mexico’s resilience to climate change (SAbERES); CitiesAdapt – strengthening adaptation to climate change in cities; and the expansion of climate finance through the financial sector – “30 by 30 Zero”.

The participants carried out an exchange in thematic groups with the aim of identifying future synergies and the need for successful knowledge management within the IKI. They were divided into five thematic groups: cities, biodiversity, energy efficiency, climate commitments and green financing.

As a result of the working groups, there were several convergences in each area. Regarding best practices, the projects highlighted the integration of climate change and biodiversity criteria in cost-benefit analysis and projects from various sectors, as well as intersectoral cooperation and cooperation with various government orders. Regarding the potential, they pointed out the strengthening of monitoring, reporting and verification (MRV) systems to have updated and systematised information. Regarding the challenges, they alluded to the articulation, coherence and continuity of the measures implemented by the projects over time and the strengthening of financing models. In terms of knowledge management, they pointed to the documentation and dissemination of lessons learned from implemented projects and the creation of a Community of Practice for the exchange of experiences at the local, national, regional and global levels, transversally.

The International Climate Initiative (IKI) is an important part of the German Government’s international commitments to support the implementation of international climate agreements and the protection of biodiversity. The Federal Ministry for Economic Affairs and Climate Action (BMWK) has been the lead agency of the IKI since 2022. The IKI collaborates with its founding department, the BMUV, and the German Federal Foreign Office.

Check out the sessions’ videos:

6th IKI Workshop: Cooperation within the IKI framework- YouTube

6th IKI Workshop: Mexican Climate Agenda – SEMARNAT – YouTube

6th IKI Workshop: Strategy and priorities of Mexico’s 2022 climate and biodiversity policy – SEDATU – YouTube

6th IKI Workshop: Strategy and priorities of Mexico’s 2022 climate and biodiversity policy – AGRICULTURA – YouTube

Past IKI Workshops in Mexico:

The General Hospital Dr. Enrique Cabrera, in Mexico City (CDMX), now has a solar water heater system benefiting patients, medical staff and hospital staff in general. The use of the solar thermal system also helps reduce greenhouse gases (GHG) and thus mitigate climate change, in addition to providing social and economic co-benefits to the hospital and promoting a green and inclusive recovery.

The inauguration took place on May 23, 2022, the head of the Secretary of the Environment of Mexico City (SEDEMA), Marina Robles García; the head of the Ministry of Health of Mexico City (SEDESA), Oliva López Arellano; the Political Counsellor of the German Embassy in Mexico, Simone Franke; and the Coordinator of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Climate Team, Philipp Schukat; among other personalities.

SEDEMA, SEDESA, Modulo Solar, German Embassy in Mexico, GIZ Mexico at Hospital Gral. Dr. Enrique Cabrera

The Sustainable Hot Water in Public Hospitals project emerged in 2020 as part of the efforts of the German Federal Ministry for Economic Cooperation and Development’s (BMZ) develoPPP programme to mitigate the effects of the crisis caused by the global pandemic. This was possible through the collaboration between develoPPP and the Mexican company Módulo Solar, with the FELICITY program, part of the International Climate Initiative (IKI).

This Solar Water Heating system helps mitigate local polluting emissions and reduce operating costs. The SWHS provides hot water at low cost in the hospital; it is estimated that with this project there will be a reduction in greenhouse gas (GHG) emissions of 52 tonnes of CO2 eq/year: the equivalent of the emissions of charging the full battery of 6.2 million cell phones. This project joins the efforts to reduce energy consumption and promote energy efficiency, as well as generate cleaner and renewable energy in hospitals that focused their attention on treating patients with COVID-19 during the pandemic

Hospital Gral. Dr. Enrique Cabrera’s Solar Water Heating System Inaguration Event / © GIZ, 2022

Likewise, with existing technical information and methodologies, a Roadmap is expected to be generated, allowing the project to be replicated in more public buildings.

“DeveloPPP and FELICITY are making technological advances a reality, to move towards a more sustainable city,” Environment Minister Marina Robles García recognised at the inauguration.

This sum of efforts allows us to continue promoting the construction of sustainable buildings and cities with a low carbon footprint to benefit us all.

Read the press release from the Ministry of the Environment of Mexico City on the official page: https://bit.ly/3yVZ4Vr

Hospital Gral. Dr. Enrique Cabrera’s Solar Water Heating System Inaguration Event / © GIZ, 2022

Humanity faces three global crises that threaten our survival, development and the conditions of our habitat. These are: the health crisis derived from the SARS-CoV-2 virus pandemic; the economic crisis caused by the slowdown in productive activities and in lifestyles in general, linked to the pandemic and deepening processes of poverty and inequality; and, of course, the climate crisis, expressed by the continuous increase in extreme climatic and meteorological phenomena, and the rises in sea levels, among other manifestations.

The deployment of sustainable energy–energy efficiency and renewable energy–is vital to achieving global efforts to reduce global warming. However, these actions have the potential to generate positive impacts beyond those related to greenhouse gas (GHG) mitigation. These additional impacts have been termed ‘co-benefits’. The quantification of social, environmental and economic co-benefits of sustainable energy makes it possible to visualise and identify those dimensions of development impacted and thereby promote agendas to which it contributes to additional purposes, such as social welfare, the reduction of ecological degradation, and green economic growth.

The technical cooperation between Mexico and Germany, through the project Enhancing the Coherence of Climate and Energy Policies in Mexico (CONECC) of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in coordination with the Ministry of Environment and Natural Resources (SEMARNAT), implemented phase II of the Mexico Co-benefits initiative, called “Co-benefits of sustainable energy: an opportunity to promote well-being and sustainable development in Mexico”, aimed at providing governmental subnational organisations and key actors in Mexico with the capacity to incorporate the concept of co-benefits into their decision-making processes and strategies to promote sustainable energy, through the quantification of co-benefits and the development of narratives that highlight the opportunities and positive impacts derived from each unit of energy saved by energy efficiency measures, or generated through renewable sources, respectively.

Thus, a pilot programme to quantify co-benefits was implemented, with six projects selected for the development of an analysis of their co-benefits. These projects cover a wide spectrum of sustainable energy since they take advantage of different technologies and are applied at different scales and in different sectors. The actions related to the field of renewable energy include the generation of clean energy at the community level without connection to the supply network; distributed generation for government use; and large-scale generation. The actions corresponding to the field of energy efficiency include saving measures implemented in government and private buildings, as well as the component of energy efficiency in wastewater treatment processes. The projects that participated in the pilot are located in five states of the Mexican Republic: Coahuila, Guanajuato, Hidalgo, Tamaulipas and Yucatán. Based on the lessons learned and good practices from this quantification exercise, the initial development of the CO-B MX tool was achieved: Towards a Sustainable Energy Quantification Tool.

It is with great pleasure that we share the results of the pilot programme and the co-benefit quantification tool. The general study outlines the main results, good practices and methodologies for the quantification of co-benefits. Additionally, you can find seven disclosure sheets with the specific results of each project. Finally, you will find the link to be able to use the CO-B MX tool.

Click on the logo to access the tool

We hope to inspire readers to continue the legacy of quantifying co-benefits and thus contribute to the deployment of sustainable energy to face the effects of climate change, creating a green future and triggering well-being opportunities for society at the same time.

On March 8th, the study “Analysis of Competitiveness and Allocation Mix for the Emissions Trading System (ETS)” was launched. This event aimed to trigger exchange and discussion between the sectors regulated by the Mexican ETS and the Ministry of Environment and Natural Resources (SEMARNAT), with the support of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH,  through the project Preparation of an Emissions Trading System in Mexico (SiCEM).  From the launch event, five technical events emerged, seeking to generate discussion spaces in order to integrate the sectors regulated by the ETS in the development process of the aforementioned study.

The study objective is to identify the level of risk to the competitiveness of the companies regulated by the ETS, also known as the risk of carbon leakage. A carbon leak is generated when the production of a company is transferred from a jurisdiction in which a carbon price has been established to another where there are no such regulations. This effect results in actual emissions not decreasing but moving to another geographic point.

Likewise, the study intends to determine the feasibility of implementing the benchmarking method as a method of assigning emission rights for the ETS. This method consists of determining an optimal carbon intensity value that serves as a reference within a regulated sector for the allocation of its emission rights. To achieve the objectives of this study, and within the framework of this series of workshops, an invitation was extended to four industrial sectors regulated by the ETS to actively participate in the development of the study. The sectors included are: iron and steel; cement; electricity; and oil and gas.

Collaboration with a regulated sector makes it possible to generate a broader perspective of the national context, allowing the results of the study to be useful for SEMARNAT’s decision-making process regarding allocation methodologies for the future phases of the ETS. As long as the chosen measures are suitable for the national sectors, they will contribute more precisely to the efficient operation of the Mexican ETS and therefore to the achievement of the Greenhouse Gas mitigation goals that Mexico has set for itself.

The workshops were held from March 30th to April 6th, 2022 with the collaboration of a consulting team from Ricardo Energy & Environment, Carbon Trust and Öko-Institut.

The development of capacities and the continuous exchange of experiences are part of the necessary actions for the creation of technical and institutional capacities for the implementation of an Emissions Trading System (ETS). For this reason, the Emissions Trading System Academy was held for the third time in 2022, under the slogan “Towards the operation of the Mexican ETS”. The ETS Academy seeks that the actors involved in its development and its potential allies have a broad level of technical knowledge regarding the elements that make up an ETS, through a highly specialised exchange format with experts in carbon price mechanisms and emissions trading systems around the world.

The ETS 2022 Academy brought together more than 70 actors from the Mexican public and academic sector; they all gained knowledge and approached the debates and current issues on the ETS in Mexico and around the world.

Dr. Jürgen Landgrebe, director of the DEHSt, addressed the participants of the Academy and recognized the importance of these spaces to achieve climate objectives / © Inauguration of the SCE 2022 Academy. SiCEM, GIZ México

Each session focused on a theme related to ETS design and operation: central elements of an ETS; engagement with stakeholders; carbon leaks; financial regulation; flexibility mechanisms; MRV, and the relationship of the ETS with Article 6 of the Paris Agreement, among others. In 13 face-to-face and asynchronous sessions, the participants covered the experiences of other jurisdictions in the implementation of their ETS, as well as the main challenges encountered in the process, and listened to the assessments and lessons learned.

The Academy participants also carried out a simulation dynamic that allowed them to discuss and reflect on the elements that make up an ETS and the decision-making processes involved in its implementation. Finally, the closing presented the steps to follow in the development of the Mexican ETS, in order to provide an overview of its future developments.

Schedule of sessions and topics to be addressed throughout the training / ©Academia SCE 2022. SiCEM, GIZ Mexico

The institutions and speakers at the Academy included representatives of the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the Director of the German Authority for Emissions Trading (DEHSt), Mr. Jürgen Landgrebe, Michael Mehling from MIT, Rajinder Sahota from the California Air Resources Board (CARB), Juan Pedro Searle from the Chilean Ministry of Energy, and Professor Jos Delbeke from the European University Institute (EUI), among many others.

The ETS Academy was held from March 7th to 28th, 2022. This forum, convened by the Ministry of Environment and Natural Resources (SEMARNAT), in coordination with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH through the SiCEM project, and in collaboration with ICAP and adelphi, it has become a fundamental space for dialogue and exchange between different key actors for the operation of the Mexican ETS.

Throughout the sessions, he stressed the importance of the full participation of all actors involved in the SCE as they play a fundamental role in ensuring its optimal performance / © Session 12 “Transition from pilot to operational phase in an SCE” of the SCE 2022 Academy. SiCEM, GIZ Mexico

Socio-environmental undertakings are an example of how to face climate change and carry out actions that help conserve and restore biodiversity, value biocultural wealth, increase resilience, promote the empowerment of women and close inequality gaps. Therefore, the Mexican-German Climate Change Alliance, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, supports a portfolio of local projects through technical and communication strengthening, encouraging the mobiliszation of climate finance to continue their climate change adaptation efforts, while creating jobs, protecting ecosystems and creating well-being in the communities.

The Alliance supported five enterprises located in Oaxaca, Michoacan, Chiapas and Guerrero in presenting their projects at the Latin American Impact Investment Forum (FLII) 2022, which took place in Merida, Yucatan from March 15-17. At the event, the enterprises were able to connect with investors interested in green financing.

Presentation of the five projects at FLII 2022

Additionally, within the framework of the FLII, the communication campaign “ConoceApoyaDifunde” was launched, which was presented in a workshop with the Yucatan media. The workshop sought to publicize the impacts of investments and green financing to achieve Mexican climate objectives, as well as emphasizing the importance of local projects in the promotion of sustainable and ecological community development.

Media workshop to present the communication campaign

During the workshop, Gabriela Niño, Finance Advisor at GIZ Mexico, highlighted the importance of “mobilising public and private capital to meet national climate goals, with a territorial and community vision. Today, impact investments and micro and small businesses (socio-environmental undertakings) are being strengthened to scale the impact of their actions to adapt to or mitigate the effects of climate change.” Additionally, Itzel Alcérreca, Finance Advisor at GIZ Mexico, shared with the media the importance of climate financing, as well as impact investments and the role of socio-environmental undertaking to mitigate and adapt to climate change.

Rodrigo Fernández, Communication Advisor at GIZ Mexico, presented the dissemination and awareness campaign, which aims to promote actions and good practices for conservation and adaptation to climate change, direct from the voice and testimony of Mexican communities in different social and natural contexts.