Author: Kenia Cardoza

The temporary exhibition Echoes of the Earth – Economy and Ecosystems is inaugurated at the Interactive Museum of Economics (MIDE). The exhibition shows the wealth of Mexico’s natural capital and its importance for the wellbeing and economic development of the country in simple terms.

 

Inauguration of the temporary exhibition Echoes of the Earth – Economy and Ecosystems in the Interactive Museum of Economics (MIDE); photo © MIDE

 

The National Commission for the Knowledge and Use of Biodiversity (CONABIO) and the MIDE, in collaboration with the United Nations Development Programme (UNDP), through the BIOFIN-Mexico initiative and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, inaugurated the temporary exhibition Echoes of the Earth – Economy and Ecosystems on January 24, 2019. The exhibition shows the richness of Mexico’s natural capital and its importance for the welfare and economic development of the country in simple terms. Representatives from the public, private, academic and civil society sectors attended the inaugural event.

 

Representatives of the aforementioned institutions participated in the inaugural ceremony. The event began with the screening of the video “Echoes of Life.” MIDE Director Silvia Singer said that the exhibition includes three sections, one on the meaning of biodiversity, a second on natural capital and the role of ecosystems in promoting development and a final section on the value of biodiversity. Katyna Argueta, country director of UNDP Mexico, highlighted that biodiversity is the basis for the development of different sectors and contributes to economic processes and to the wellbeing of the planet’s inhabitants. Harald Lossack, director of the biodiversity cluster for GIZ Mexico and director of the Mainstreaming of Biodiversity within the Mexican Agricultural Sector project, described Mexico’s significant advances in the area of sustainability and affirmed that Mexico is a strategic actor in the fulfillment of the Sustainable Development Goals. He added that together with Germany, a strategic ally, GIZ has supported both countries in achieving their climate goals. “Exhibitions like this one are fundamental to achieving the goals that Mexico has proposed,” he said.

 

Representatives from the National Commission for the Knowledge and Use of Biodiversity (CONABIO), the Interactive Museum of Economics (MIDE), the United Nations Development Programme (UNDP) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH participated in the inaugural ceremony; photo © MIDE

 

Dolores Barrientos, a UN Environment representative in Mexico, commented on the initiative Biodiversity and Agriculture in Mexico (TEEBAgriFood Mexico Initiative), in which UN Environment, GIZ and the Food and Agriculture Organization (FAO) of the United Nations collaborate. She highlighted the correlation between the poorest areas and the best-preserved areas. Related to this issue, José Sarukhan, the national coordinator of CONABIO, affirmed that the key to sustainable agricultural production is recognizing biological and cultural richness and their close relationship. He highlighted the importance of the cultivated varieties of which Mexico is the center of origin and domestication, as well as the traditional systems of diversified crops such as the milpa and the key role that these play in culture, conservation and food. He explained how the exhibition transmits these key messages to visitors, as well as the relationship between biodiversity and the economy.

 

The Echoes of the Earth Exhibition will be open to the public for one year starting January 25 at the Interactive Museum of Economics (MIDE), located on Tacuba 17 in the Historic Center of Mexico City. More information is available at http://mide.org.mx

The first meeting was held with the Tuna Producers Group of San Pablo Xúchitl to promote its value chain.

 

The Tuna Producers Group of San Pablo Xúchitl. The region has traditionally produced nopal and tuna; photo © GIZ

 

Last Saturday on January 26, 2019, the first meeting was held with the Tuna Producers Group of San Pablo Xúchitl. Tuna (prickly pear) producers from the region participated, as well as representatives from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Ministry of Agriculture and Rural Development (SADER). The dates were set for the next meetings where the GIZ ValueLinks methodology will be used to promote the tuna value chain. The group was selected to receive technical support as part of the call published by GIZ and SADER in August of last year: Integration of the Value of Biodiversity and Ecosystem Services in Value Chains of Agrifood Products.

 

Through the call, the Mainstreaming of Biodiversity within the Mexican Agricultural Sector (IKI-IBA) project of GIZ and SADER seeks to promote the tuna value chain in this area so that production becomes a sustainable activity, generating jobs and strengthening the economic conditions for young people and women of the municipality; in the long term, it also aims to promote the conservation of biodiversity and the production of safe food. Its objective is to adopt agroecological practices for the control of pests and diseases to reduce and mitigate the chemical effects on the fruit as well as on the health of producers. It looks to create added value for tuna-nopal products through habitat conservation, reverse the deterioration of the ecosystem and to value ecosystem services.

 

Tuna is very significant to the development of Mexico. Native to Mexico, it appears on the country’s national seal. Due to its various nutritional, chemical, industrial, ecological, medicinal and symbolic properties, it remains one of the most important plant resources for the inhabitants of Mexico’s arid and semi-arid areas.

 

Tuna is very significant to the development of Mexico. Native to Mexico, it appears on the country’s national seal; photo © Producers Group of San Pablo Xúchitl

 

Mexico has approximately 20,000 tuna producers. The states with the highest production are the State of Mexico, Zacatecas, Puebla and Hidalgo. Mexico has a wealth of cactus species, including red, green, white and yellow, with acidic or sweet flavors that result in different tuna varieties.

 

Each nopal field contains a great variety of vegetal and animal species under particular conditions. Natural factors, as well how the wild nopal fields are used, determine the number of nopal species and their abundance. There are nopal fields composed of only one species and others with as many as 10.

 

 

For its various nutritional, chemical, industrial, ecological, medicinal and symbolic properties, the tuna is one of Mexico’s most important plant resources; photo © GIZ

 

In the area, the use of fertilizers and agrochemicals is increasing and affecting biodiversity and the health of farmers. The San Pablo Xúchitl region has traditionally produced nopal and tuna, which is why the members of the Tuna Producers Group have developed knowledge and abilities related to the production, harvest and commercialization of these crops.

Representatives of the nine projects that will be financed by EUROCLIMA+ through the Forest, Biodiversity and Ecosystems component meet in Mexico.

January 15, 2019, Valle de Bravo, Mexico. “Without the participation of all, achieving the objectives of the Paris Agreement and implementing the climate commitments (NDC) will be an even more difficult challenge to overcome”, said Imma Roca Cortés, Deputy Head of the European Union Delegation in Mexico, during the opening speech of the Regional Workshop on Forests, Biodiversity and Ecosystems (FBE) component of the EUROCLIMA+ programme, which takes place in Mexico from January 15 to 18.

With the aim of promoting innovative projects and initiatives to improve the resilience of local communities in Latin America, EUROCLIMA+, a programme funded by the European Union, announced today in Mexico the nine projects that will be implemented under this component, which will contribute to the implementation of the Paris Agreement and the NDCs.

The projects, which will be executed in binational and sub-regional areas, involve small agricultural groups, producers and indigenous communities. They also aim to generate new knowledge, capacities and local as well as national competencies to manage forests sustainably.

Marie Pausader, Sustainable Development Advisor of the Embassy of France in Mexico, recalled that the issues of forests, biodiversity and climate change are the same challenge. “Forests provide us with ecological services of great importance for the world because they store carbon, harbour biodiversity and mitigate the impacts of extreme weather events,” she stressed.

“We believe that with these kinds of initiatives we can share valuable experiences at a regional level”, emphasised Fernando Camacho Rico, Director General of Institutional Development and Promotion of the National Commission of Natural Protected Areas (CONANP) who, on behalf of the Mexican government, celebrated the existence of cooperation with the EUROCLIMA+ programme.

Finally, Master Hilda González, Manager of Forest Environmental Services of the National Forestry Commission (CONAFOR) pointed out that Mexico faces many challenges and has great complexity for implementing policies in favour of biodiversity. “These challenges are completely aligned with the strategic guidelines proposed in the Technical Assistance Strategy for the Forests, Biodiversity and Ecosystems component to deal with them”, she concluded.

About the project of the Forests, Biodiversity and Ecosystems (FBE) component

The FBE projects in EUROCLIMA+ aim to enhance the opportunity to share South-South experiences, exchanging and systematizing regional and national knowledge at horizontal and vertical levels, which promotes mutual learning among peers. The countries where the nine projects will be implemented include Brazil, Colombia, Argentina, Bolivia, Paraguay, Peru, Guatemala, Costa Rica, Honduras, Mexico, El Salvador and Panama, encompassing topics such as ecosystem services, goods and functions; local carbon in adaptation and mitigation; carbon stocks; forest management and restoration; among others.

 

FBE is an implemented component by Expertise France and GIZ.

 

To learn more about the nine projects, visit here.

 

See photographs

 

EUROCLIMA+ is a program financed by the European Union, which offers a wide range of specialized services aimed at supporting the implementation of the commitments of the Paris Agreement in the field of climate governance, financing and technical assistance for the execution of projects with the Latin American countries in:

The White Certificates International Forum: An Instrument to Recognize the Efforts in the Saving and Efficient Use of Energy in Mexico? was held in Mexico City on October 23, 2018 to present the results of a study that explores the feasibility of implementing White Certificates (WCs), a market instrument that promotes energy efficiency. The event opened a space for key stakeholders to exchange their ideas and provide feedback on the potential implementation of WCs in Mexico. WCs are an instrument already used in various countries, including France, Italy and Australia.

 

The international forum was organized by the Ministry of Energy (SENER), the Ministry of the Environment and Natural Resources (SEMARNAT) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH through the Energy and Climate Change Policy Convergence (CONECC) project. The event helped push forward the analysis and exploration of CBs as an instrument with high potential for improving Mexico’s energy productivity, as well as contributing to climate protection and the right to a healthy environment.

 

CBs are a market instrument in which energy saving obligations are established or subscribed to voluntarily. These obligations are met through the certification of energy savings that are achieved through the implementation of energy efficiency (EE) measures. These certificates can be commercialized, permitting obligated subjects to purchase certificates and fulfill their obligations at the lowest possible cost.

 

Results

The participants also learned about an initial proposal for a critical path to explore the feasibility of CB implementation in Mexico. They offered feedback on the proposal and suggested including additional elements related to the proposed operation scheme, the relevant actors or institutions, and the necessary actions to promote its launch.

 

Working groups with key stakeholders analyzing the feasibility of implementing White Certificates in Mexico

The results of the exploratory analysis study of WCs found that this instrument could help achieve up to 50% of the energy savings potential foreseen for Mexico in its Transition Strategy to Promote the Use of Cleaner Technologies and Fuels (2016), and contribute to reducing carbon dioxide by up to 19 million tons by 2030.

 

Presentation of the results of the working groups with key actors

 

International Experience

International experts also participated in the forum, presenting on their experiences and the results of implementing WCs in Italy, France and California. Due to WC policy in Italy, for example, it has been possible to improve the final energy consumption of principal sectors, strengthen the market of energy service companies and promote the culture around the measurement and verification of energy consumption.

 

International experience in the implementation of White Certificates, the case of France

 

About 100 representatives from different sectors attended the forum, including actors from the government, industry chambers and associations, civil society organizations, universities and research institutes, among other relevant stakeholders.

 

To learn more about this topic, we invite you to download the presentations used during the workshop:

Increasingly, Blockchain has become a buzzword in the sustainable development community. Yet, the usability and potentials of the technology behind Bitcoin are still unclear for many potential use cases. As part of a regional collaboration (GADeR-ALC), GIZ Brazil, GIZ Costa Rica and GIZ Mexico took an initial step to explore and evaluate the possibilities of using Blockchain technology in climate policies in the three countries. Their conclusions were recently presented in a joint webinar.

.

 

 

Brazil and Costa Rica are exploring opportunities to use Blockchain for enhancing the transparency of national livestock and coffee value chains, while Mexico is analyzing the feasibility of integrating Blockchain into several climate policy instruments, such as the Emissions Trading System (ETS), and the monitoring, reporting and verification (MRV) systems for greenhouse gas (GHG) emissions and climate finance.

 

In Brazil, land-use change, deforestation and farming account for 52% of national GHG emissions. Although new legislation has been passed to protect Brazilian forests in recent years, the laws remain only partially enforced due to a lack of transparency. During the webinar, Vasco Varanda Picchi, a consultant for Safe Trace, discussed how Blockchain could potentially help unify the different existing tracing systems along the livestock value chain and avoid data tampering.

 

Costa Rica faces similar challenges within its coffee sector, which is responsible for 9% of national GHG emissions. During the webinar, Oruka.lat Consultant David Cortés Poza explained that the usage of Blockchain could enhance value chain traceability from farm production to export sales, which, in turn, could reduce CO2 emissions by up to 250,000 tons and increase the market price of coffee.

 

Mexico is among the top 15 global emitters of GHGs. During the webinar, Sven Braden, co-founder of the Climate Ledger Initiative, provided insights into different design options for Blockchain technology and how these can be applied to the Emissions Trading System. He also presented criteria for determining whether Blockchain can be a useful technology for specific climate issues, including: Is a database involved? Does the climate issue at hand require several entities to provide information? Is there a lack of trust among stakeholders? Is there a need for disintermediation and interaction of transactions?

 

These criteria were also used in a final analysis that compared Blockchain’s potential in the three cases from Brazil, Costa Rica and Mexico. Based on this analysis, Cortés Poza provided specific recommendations for the three use cases. Blockchain has clear potential for the traceability of value chains and climate finance as well as for the exchange of assets in the Mexican ETS. However, compared to traditional systematized databases, Blockchain does not offer an added value for the MRV of GHG emissions.

 

An important decision regarding Blockchain technology includes its design options: A completely public Blockchain is seldom needed if participants on the Blockchain are known; public Blockchains come with the disadvantage of high inefficiency and energy consumption. Cortés Poza suggested that in the value chain examples, a private (permissioned) Blockchain be used, while in the ETS case, a hybrid (private but centralized) version would be preferable. For climate finance, a public Blockchain would significantly enhance transparency.

 

More than 40 individuals participated in the webinar, which was held on November 30, 2018 and allowed participants to ask the presenters questions via live chat.

Below, you can download the final presentation of the comparative analysis of the three case studies as well as re-watch the webinar.

The seminar was organized as part of a regional collaboration (GADeR-ALC) by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the GIZ offices in Brazil, Costa Rica and Mexico.

 

 

 

It is important to further develop the capacities of actors that play a fundamental role in productive systems and in actions to reduce vulnerability, mitigate emissions and increase the adaptation capacity of agrifood production to climate change.

 

The workshop “Raising Awareness about the Valuation and Sustainable Use of Biodiversity and Climate Change in the Agrifood Sector” was offered at five regional headquarters from October to November 2018. It was organized by the Inter-American Institute for Cooperation on Agriculture (IICA-Mexico) and the Mexican-German Climate Change Alliance, a project implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

 

The objective of the workshop was to provide participants with knowledge and basic tools about approaches to the conservation and sustainable use of biodiversity, Ecosystem-based Adaptation (EbA), the mitigation of greenhouse gases and compound emissions (CyGEI), value chains and the valuation of ecosystem services in the agrifood sector.

 

Among the topics addressed in presentations and analysis exercises were the current situation of climate change, biodiversity and ecosystem services as they relate to agrifood production; dependence on ecosystem services for food production; the vulnerability of food production subsectors to climate change effects and its impact on food security; the implications of food production on the generation of greenhouse gases and compound emissions; and adaptation and mitigation measures in agrifood production subsectors.

 

The workshop also included a presentation on the Climate Change and Agrifood Production Agenda (2018-2030) and the Integration Strategy for the Conservation and Sustainable Use of Biodiversity in the Agricultural Sector (2016-2022). Both are useful programmatic tools for managing this problem, both in terms of public policy and the collective action of relevant stakeholders.

 

The first workshop was held in coordination with the Rural Development Support Center (CADER) of Ocotlán, Jalisco, on October 4 and 5, in the auditorium of Ocotlán’s Casa de Cultura on the bank of Lake Chapala. It included 42 participants, including rural producers, representatives from the Ocotlán municipal government and technical personnel from CADER Ocotlán, the Jalisco Delegation of the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), the Ministry of Rural Development (SEDER) of Jalisco, the National Forestry Commission (CONAFOR), the National Institute for the Development of Rural Capacities, A.C. (INCA Rural), the Agri-Food and Fisheries Information Service (SIAP), the Intermunicipal Association for the Protection of the Environment and Sustainable Development of Lake Chapala (AIPROMADES Lago de Chapala), the Jalisco Produce Foundation, the Trust Funds for Rural Development (FIRA), the Agency for Services toward the Commercialization and Development of Agricultural Markets (ASERCA), as well as consultants, and students studying agrobiotechnology at the University of Guadalajara.

 

The second workshop was held at the Yucatán Scientific and Technological Park near Mérida, Yucatán, on October 29 and 30. It had 70 participants, including rural producers, students, extensionists and private consultants; technical staff from the National Commission of Natural Protected Areas (CONANP), FIRA-Southeast and the Consulting Technical Commission of Rangeland Coefficients (COTECOCA); researchers and academics from the Center for Research and Assistance in Technology and Design of the State of Jalisco, A.C. (CIATEJ-Southeast), the National Institute for Forestry, Agriculture and Livestock Research (INIFAP), and the Yucatán Center for Scientific Research, A.C.; and civil society organization members from the Yucatán Peninsula Climate Fund, A.C. and Heritage, Development and Sustainability, A.C.

 

The third workshop was held in Pátzcuaro, Michoacán, on November 19 and 20. It included 60 participants, among them rural producers, extension agents, mayors and councilors from different city councils in the state, and private consultants; personnel from the Ministry of Rural Development and Agrifood (SEDRUA), the National Institute of Social Economy (INAES) and the Lake Pátzcuaro Basin Commission; and representatives from the organizations Centro Agua and CeCIM.

 

The fourth workshop was held in Saltillo, Coahuila, on November 26 and 27 at the Infoteca of the Autonomous University of Coahuila. In attendance were 55 participants, including rural producers, students and private consultants; academics from the Universidad Autónoma Agraria Antonio Narro (UAAAN) and the Autonomous University of Coahuila; technical staff from CONANP, SAGARPA and the Environmental and Rural Development Ministries of the Government of Coahuila; and researchers from the International Maize and Wheat Improvement Center (CIMMYT) and INIFAP.

 

The fifth workshop was held in coordination with the GIZ Integrated Landscape Management project team on November 29 and 30 in Cholula, Puebla. The 36 attendees included SAGARPA technical staff assigned to the state delegation in Puebla and the Rural Development Districts (DDR) in Huauchinango, Zacatlán, Teziutlán, Libres, Cholula, Izúcar de Matamoros, Tecamachalco and Tehuacán.

 

Photo gallery

 

Mérida 

 

 

Ocotlán 

Presentationes

The transport sector is the main source of emissions in Mexico, responsible for 18% of indoor greenhouse gas (GHG) emissions and 22% of black carbon, according to the National Greenhouse Gas Emissions Inventory (INEGEI); it is therefore a sector with great mitigation potential. Against this background, one of the clean energy alternatives has been the use of electric or hybrid motors.

 

Electromobility contributes to greater energy efficiency and supports the reduction of polluting emissions through the use of alternative sources to fossil fuels. To ensure it plays a relevant role, the private, governmental and academic sectors, as well as civil society, should work together to generate public policies that promote this technology.

 

In this regard, the seminar “Electromobility: A Path to Follow for Improving Air Quality” began by emphasizing the benefits of replacing transport powered by fossil fuels with electric vehicles. These include the reduction of volatile organic compounds, direct effects on health and decreases in the consumption of gasoline and natural gas.

 

 

Eduardo Olivares from the Ministry of the Environment and Natural Resources (SEMARNAT) discussed the relationship between Nationally Determined Contributions (NDCs) and the transport sector, highlighting the importance of public policies to strengthen electromobility in private automobiles, since these represent 87% of the sector’s emissions.

 

In this context, Alejandro Villegas from SEMARNAT shared some data about the negative externalities of the transport sector. In the Metropolitan Zone of the Valley of Mexico, six out of 10 days of the year there is poor air quality caused by ozone, and five out of 10 days due to particulate material, both of which have severe public health impacts: 21,000 premature deaths each year and economic costs of up to 3.2% of GDP.

 

That is why the National Electromobility Strategy is being promoted. Soon to be published, the strategy is associated with the Sustainable Development Goals (SDGs) of the 2030 Agenda insofar as it seeks intermodality between the electromobility of motorized and non-motorized vehicles (scooters, bicycles, etc.).

 

It is very important for the transport sector to meet the goals of the NDC. Juana Itzchel Nieto of the National Institute of Ecology and Climate Change (INECC) explained the challenges of implementing electromobility in the country. These include the acquisition costs for vehicles, auto parts and batteries; direct and indirect non-fiscal benefits; financing; associated infrastructure and recharge rates; increases in the price of fossil fuels; and tax incentives.

 

The second part of the seminar covered the technical aspects of electromobility implementation and included participation from the International Energy Agency (IEA), the Carbon Trust and the Mexican Association of the Automotive Industry (AMIA). During the meeting, participants discussed the feasibility of using electric vehicles, taking into account available infrastructure, financing and incentive schemes, and access to technology for the use and charging of batteries.

The Climate Finance Group of Latin America and the Caribbean’s (GFLAC) analysis of public resources used to comply with the Nationally Determined Contribution (NDC) of Mexico demonstrates asymmetries between the allocation and prioritization of public budgets in the Transversal Annex of Climate Change (AT-CC) and in how much each sector spent on climate change from 2014 to 2018.

 

To determine how national financing is aligned with climate change mitigation and adaptation goals, the public budget for climate change was analyzed in strategic sectors (energy, transport, residential and commercial, industrial, agriculture, forestry, and disaster management and prevention). For each sector, the resources assigned in the AT-CC were identified. A public expenditure analysis by function was then carried out—that is, spending directed to areas within the federal dependencies whose actions are directly or indirectly linked to positive impacts on climate change, independent of whether they are labeled as such.

 

Evolution of the functional budget assigned to climate change actions by sector; photo © GFLAC, 2018

 

During the period of analysis (2015-2018), the resources assigned to “Annex 16 Resources for Adaptation and Mitigation” did not vary significantly. On average, the amount has been 47,089,416,554 pesos annually.

 

Evolution of the budget assigned to strategic sectors in Annex 16; photo © GFLAC, 2018

 

The year with the fewest assigned resources was 2017, with 36,878,401,378 pesos; 2018, however, saw an increase of about 20 million pesos. For the sectors analyzed, those receiving the most resources were the agricultural and forestry/environmental sectors. It is worth mentioning that the budget of the forestry/environmental sector was cut by 50%, an alarming finding given that it is precisely the sector in charge of establishing and implementing measures to combat climate change. Meanwhile, the energy, transport and industrial sectors (identified as the largest emitters of greenhouse gases in Mexico) were among the sectors with the lowest budgets in Annex 16, as compared to other sectors.

 

To conduct the functional analysis of the federal budget, the departments focused on implementing climate change actions in the energy, forestry/environmental and agricultural sectors were identified. Meanwhile, in the transport sector, departmental budgets that focus on promoting mass and multimodal transport were analyzed; in the residential sector, actions to improve housing were examined; and, finally, for the disaster management sector, the budget for civil protection and disaster relief was analyzed. The results show that the sector that benefited most was the transport sector, followed by the residential sector. However, as in the analysis of Annex 16, the energy sector’s budget is insufficient to promote the transition to cleaner fuels and meet national climate change goals.

 

This analysis highlights the need to align the public budget for climate change with the country’s objectives and goals, as well as to have a transparent methodology that allows for tracking and monitoring the use of resources. Additionally, public servants’ knowledge about the resources to implement climate actions must be improved.

 

The study was prepared by the Climate Finance Group of Latin America and the Caribbean (GFLAC) and the Mexican-German Climate Change Alliance implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, which forms part of the International Climate Initiative (IKI) of Germany’s Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).

In Mexico, a study was carried out to identify the financing flows directed to projects related to emission mitigation and climate change adaptation. It examined financing flows from international sources, specifically from multilateral and bilateral organizations, and how this contributes to the fulfillment of national mitigation and adaptation goals.

 

The study showed that Mexico has become a major recipient of international financing for the implementation of projects that benefit the climate and the environment. During the period analyzed, 2014-2018, Mexico received 61,165,646,524 pesos to finance 75 projects. About 46% of these resources are aimed at mitigating climate change effects, 47% focus on transversal activities (that is, projects that reduce polluting emissions and vulnerability to climate change) and, finally, just 7% are directed towards adaptation projects.

 

 

The resources analyzed come from 14 institutions that were identified as the main sources of financing. The institution that provides the most resources to Mexico is the Inter-American Development Bank (IDB) with 53% of the total financing, followed by the German Development Bank (KfW) with 31% and the World Bank with 5%. The French Development Agency, in association with the KfW, also contributes 7%.

 

Main sources of international climate change financing in Mexico; photo © GFLAC / GIZ, 2018

 

Since the objective of the analysis was to examine the relationship of the financing flows with the national emission reduction goals established in the Nationally Determined Contribution (NDC), the sectors that receive the most support were identified. The results revealed that, up to this point, the sectors that have benefited the most and that have resources aligned are the energy sector (45%), as well as the housing and environmental sectors. This is relevant given that the energy sector is the second largest emitter of greenhouse gases (GHGs). However, it is also necessary to expand efforts in other sectors with significant emissions, such as transportation and industry, which place first and third in emissions.

 

Public international financing by sector (2014-2018); photo © GFLAC / GIZ, 2018

Importantly, 86% of the projects were financed through government loans—that is, the country took on debt. In addition, tracking the extent to which resources are used to meet objectives is complicated because the resources are channeled through the Ministry of Finance and Public Credit (SHCP).

 

The analysis helped identify existing barriers and offered several recommendations for improving international climate change financing, including increasing knowledge about available financing mechanisms and instruments, and strengthening the technical capacity of project developers to elaborate proposals that comply with the requirements of multilateral and bilateral organizations.

 

The study was prepared by the Climate Finance Group of Latin America and the Caribbean (GFLAC) and based on a mapping of international resources received by Mexico during 2017 and 2018, as well as information from Transparencia Mexicana for the period 2010-2018—with the latter adjusted to the GFLAC methodology. In addition, the study was supported by the Mexican-German Climate Change Alliance of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, which forms part of the International Climate Initiative (IKI) of Germany’s Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).

The objective of the workshop was to bring together representatives from different sectors to present and discuss the typical tasks and responsibilities that a company assumes under an Emissions Trading System (ETS).

 

The process of designing the ETS for Mexico has brought several opportunities for capacity development. The subjects taught during the trainings in 2018 have evolved as the design process has progressed. The training sessions have focused on the same target group: industry sectors whose historical emissions of greenhouse gases (GHGs) make them relevant for the design and implementation of the ETS in Mexico.

 

The preliminary bases constituting the legal framework of Mexico’s ETS were developed by the Working Group of the Ministry of the Environment and Natural Resources (SEMARNAT) in close collaboration with the private sector. The bases are now ready and additional information sessions will be held to better publicize their content and objectives, as well as those of the ETS pilot program established by Article 94 of the General Law on Climate Change.

 

 

In this context, it is a priority to strengthen the capacities of relevant sector representatives regarding their knowledge of the ETS compliance cycle. Accordingly, the workshop covered topics related to the monitoring, reporting and verification (MRV) of emissions, as well as the delivery of emission allowances corresponding to the previous compliance period. Along these lines, the workshop also addressed issues concerning decisions about reducing emissions within companies or buying emission allowances in the market to ensure compliance. Finally, the workshop covered other topics of special interest to the participants, including aspects of competitiveness and allowance allocation.

 

Using interactive elements, the workshops covered the themes above by providing examples and best practices so that participants could answer the following questions: How should compliance be managed? What internal processes should be established? What aspects needs to be considered at the time of decision making?

 

Energy Sector Project

During the workshop, a representative from the Federal Electricity Commission presented the “Feasibility Study of the Biomass Conversion in the Petacalco Coal Power Plant.” The presentation discussed options for reducing electricity in the energy sector. Among the issues that arose during the presentation were those related to the use of alternative fuels and clean energy certificates.

 

 

The workshop was held on December 6 at the SEMARNAT facilities. This training was carried out within the framework of the Preparation of an Emissions Trading System in Mexico (SiCEM) project developed by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Government in support of SEMARNAT.

 

For more information on this topic, please contact us at:

comercio.emisiones-MX[at]giz.de

The objective of this seminar was to identify Blockchain’s potential for fighting climate change and to explore public policies and alternatives for the private sector. Blockchain is a digital technology that, in the context of climate change, serves to improve the transparency of public policies and financing by allowing the exchange of user information, the financing of adaptation measures and greater use of renewable energies. Technology has been incorporated as a mechanism for the monitoring, reporting and verification of information to help solve climate change problems.

 

Representatives from IBM Blockchain explained that although Blockchain offers decentralization and anti-fraud mechanisms, it also has a negative impact on energy use due to the number of blocks in the chain. On the other hand, currently there are carbon credit initiatives that offer lower costs, less development time and less energy impact. Representatives from Global Grid said that by incorporating Blockchain into the energy ecosystem in Latin America, as is already done in Europe through a digital platform, it will be possible to increase capital and financing for renewable energy projects.

 

One of the potential benefits of Blockchain is the creation of public policies and the discovery of new solutions to climate change, since digitalization has changed the way in which information interacts with and gives value to things. Blockchain can be seen as a tool for optimizing the new generation of mobility. Approximately 20% of CO2 emissions come from transportation caused by fuel combustion. Reducing the need to travel, changing to ecological means of transport and improving the energy efficiency of transportation is this very important. This can be achieved by encouraging the use of electric vehicles and through urban development.

 

In conclusion, Blockchain can be seen as a digital solution to identify financing for climate change adaptation projects.

 

The seminar was organized by the ITAM Energy and Natural Resources Center and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

The objective of the workshops was to bring together representatives of the steel and cement sectors to present and discuss the typical tasks and responsibilities that a company assumes under an Emissions Trading System (ETS).

 

The process of designing the ETS for Mexico has brought several opportunities for capacity development. The subjects taught during the trainings in 2018 have evolved as the design process has progressed. The training sessions have been focused on industry sectors whose historical emissions of greenhouse gases (GHGs) make them relevant for the design and implementation of the ETS in Mexico.

 

The preliminary bases constituting the legal framework of Mexico’s ETS were developed by the Working Group of the Ministry of the Environment and Natural Resources (SEMARNAT) in collaboration with the private sector. The bases are now ready and additional information sessions will be held to better publicize their content and objectives, as well as those of the ETS pilot program established by Article 94 of the General Law on Climate Change.

 

In this context, it is a priority to strengthen the capacities of relevant sector representatives regarding their knowledge of the ETS compliance cycle. Accordingly, the workshop covered topics related to the monitoring, reporting and verification (MRV) of emissions, as well as the delivery of emission allowances corresponding to the previous compliance period. Along these lines, the workshops addressed issues concerning decisions about reducing emissions within companies or buying emission allowances in the market to ensure compliance. Finally, the workshops covered other topics of interest, such as competitiveness and allowance allocation.

 

The sectoral workshops, starting with the steel and cement sectors, aimed to provide training designed for the particular needs of the sectors. Using interactive elements, the workshops provided specific examples and best practices for each sector so that they could answer the following questions: How should compliance be managed? What internal processes should be established? What aspects needs to be considered at the time of decision making?

 

Sectoral Workshops: Steel Sector 

In this workshop, a summary was given about “The State-of-the-Art Clean Technologies (SOACT) for Steelmaking Handbook,” a report that discusses the options for saving energy and reducing environmental impacts in the steel sector. Participants brought up several concerns during the workshop, including how to deal with the shortage of natural gas used in electric arc furnaces, and how to remain competitive at the business level. The workshop was held at the offices of National Chamber of the Iron and Steel Industry (CANACERO), which also helped organize the event.

Sectoral Workshop Presentation: Steel Sector

Agenda

 

Participants in the steel sector workshop

 

Sectoral Workshops: Cement Sector

The workshop included the presentation “CO2 Mitigation Strategies in the Cement Sector” by the engineer Enrique de Hoyos of CEMEX. One of the main concerns expressed during the workshop was how to deal with the high initial investment required to lower emissions in the cement sector, since the projects are large and take time to recover their investments. Other questions focused on the amount of allowances that should be allocated. The workshop was organized in collaboration with the National Chamber of Cement (CANACEM) and carried out in the offices of SEMARNAT.

Sectoral Workshop Presentation: Cement Sector

 

The workshops were held on December 4 for the steel sector and December 5 for the cement sector, with 30 total participants. The sectoral workshops were carried out within the framework of the Preparation of an Emissions Trading System in Mexico (SiCEM) project developed by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and commissioned by Germany’s Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) in support of SEMARNAT.

 

 

For more information on this topic, please contact us at:

comercio.emisiones-MX[at]giz.de

 

All the presentations are available just in spanish