Author: Kenia Cardoza

 

Climate change is a global problem with growing impacts that include changes in weather patterns, sea-level rise, worsening of extreme weather events, among others. Despite advances in knowledge about climate change and the actions taken by many countries to mitigate greenhouse gas (GHG) emissions, emissions continue to grow.

The National Institute of Ecology and Climate Change (INECC) explained how Mexico has strengthened its institutional framework and carried out various measures to mitigate GHG emissions, including the publication of three National Climate Change Strategies; the adoption of the Special Program on Climate Change in 2009; and the submission of six national communications to the United Nations Framework Convention on Climate Change (UNFCCC). The General Law on Climate Change also came into force in October 2012, and in December 2015, Mexico presented its Nationally Determined Contribution (NDC) in Paris to mitigate its GHG emissions. In addition, Mexico has established an indirect tax on GHG emissions caused by the burning of fossil fuels and a binding target promising that by 2024, at least 35% of energy will be generated by renewable sources.

On September 25, 2015, 193 countries adopted the UN’s “Transforming Our World: 2030 Agenda for Sustainable Development.” The agenda contains 17 Sustainable Development Goals (SDGs) that will make it possible to achieve substantial progress in three fundamental areas for humanity: eradicating extreme poverty, combating inequality and injustice, and finding a solution to climate change.

The Ministry of the Environment and Natural Resources (SEMARNAT) explained that the actions required to achieve Mexico’s sustainable development goals and objectives include promoting the coherence of public policies; analyzing the costs, benefits and political capital of projects; improving intersectoral coordination, involving various actors in the different economic and political processes to establish a detailed plan of the activities with clearly defined incentives; improving the adaptive capacity of people, policies and institutions; and creating systems that reduce risk, decrease deforestation and develop the energy sector.

The relationship between the 2030 Agenda, the Paris Agreement and the co-benefits of implementing the economic, social and environmental dimensions of the NDC was addressed. In addition, the institutional architecture must be strengthened so that the SDGs are included in the national development and budget plans and an efficient measurement system is implemented.

In conclusion, the key is to coordinate the environmental processes to consolidate the goals and actions of the different agencies. This will help establish coherent plans and increase support for the objectives so that they can be implemented.

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

The seminar on “Adaptation to Climate Change and its Financing” addressed topics related to climate change vulnerability and their importance to public policy design. The seminar assessed the current situation, the challenges and opportunities of climate change adaptation, and financing sources for projects using innovative instruments. Mexico is especially vulnerable to the effects of climate change, and the continued emission of greenhouse gases will bring greater and more problematic change to the climate system. To counteract the problems and implement adaptation actions at the same time, intergovernmental groups of experts exist with initiatives to reduce vulnerability and support the population’s wellbeing.

 

The Special Program on Climate Change and the General Law on Climate Change establish objectives related to adaptation, vulnerability reduction and the conservation or restoration of ecosystems. They also recognize the changes to ecosystems and the economic and social development of vulnerable communities. Implementing the actions involves a cyclical process of identifying vulnerabilities, creating objectives, finding financing for adaptation and analyzing innovative instruments.

 

The National Institute of Ecology and Climate Change (INECC) presented the National Atlas of Vulnerability to Climate Change, which serves to identify priority areas and initiate the vulnerability diagnostic (origin of the problem, the place where it usually happens and the impacted place). The Atlas is a tool to identify vulnerabilities and help make decisions for the development plan. Given the importance of adaptation, implementation mechanisms are a key feature of the Paris Agreement. That’s why diagnostics are needed to find solutions to specific problems, as well as to identify the adaptation costs caused by risk increase and conduct cost-benefit analysis. The processes behind the adaptation and the evaluation, design and implementation of measures were also explained, as were those related to monitoring, capacity building, evaluation, cooperation and tracking.

 

The Ministry of the Environment and Natural Resources (SEMARNAT) presented on innovative adaptation financing instruments. The presentation focused on financing through international cooperation using mixed funds, and through programs, forums, and public, private, national and international organizations such as financial institutions and intergovernmental agencies like the UN. The objective is to channel financial resources to support the implementation of actions that combat climate change and finance adaptation projects in vulnerable communities by increasing investment in sustainable infrastructure.

 

In conclusion, the continued emission of greenhouse gases will cause greater and more intense effects, which is why it is fundamental to act based on the objectives of climate change adaptation, such as reducing the vulnerability of the population and the sustainable management of ecosystems.

 

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

The conference focused on the transition to a more efficient, less polluting economy and on reducing the use of natural resources to achieve sustainable development. This will be done by pursuing financial strategies and plans for the implementation of Mexico’s Nationally Determined Contribution (NDC).

 

Representatives from the National Institute of Ecology and Climate Change (INECC) commented that the cost estimate of the NDC is a commitment assumed by Mexico in order to contribute to the objectives of the Paris Agreement. The NDC aims to reduce emissions and prepare for climate change impacts. These strategies affect the country’s energy agenda.

 

To achieve these goals, two main changes are required: first, Mexico needs to transition towards an economy based on investments favoring the use of efficient energies; second, it needs to transform its financial system for the efficient reallocation of resources. As shown in figure 2, the plan to reduce emissions involves decreasing emissions in eight sectors.

 

Percent contribution to the target by sector; photo © SEMARNAT

 

The Ministry of the Environment and Natural Resources (SEMARNAT) presented the breakdown of how much each sector will have to contribute to reach the target of reducing greenhouse gases (GHGs) by 22%; the largest contributors are the transport and electricity generation sectors. The percent contribution of the reforestation for land-use sector is also significant for achieving the target.

 

The investments and financing analyzed provide an investment opportunity that could help transition to a low-carbon economy. Representatives from the Private Sector Studies Commission for Sustainable Development (CESPEDES) discussed the need for private sector financing, which requires long-term public policy, transversality between government agencies and their different levels, synergy between public policies, banking projects, private investment and competitive financial schemes. In addition, climate financing flows should be monitored to identify needs.

 

Available financial instruments; photo © Víctor Cárdenas

 

The World Wildlife Fund (WWF) presented on the different forms of financing and obstacles. For example, as the costs of renewable energy sources have decreased, their infrastructure has improved; however, attractive projects and regulated markets suitable for low-carbon investments are lacking. Currently, only 5% to 10% of bank loans are green, and there is no jurisdiction to establish a sustainable financial system.

 

SEMARNAT’s plan for implementing the NDCs also includes steps to reduce the vulnerability of strategic infrastructure. It is essential to prioritize the potential for emissions reduction and ensure profitability for investors, as well as to facilitate implementation and reduce investment costs. In conclusion, the climate change issue has already been incorporated into the government’s agenda, but financial institutions should now be involved to reduce the existing financing gap.

 

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

Mexico has major climate targets as part of the Paris Agreement. These include generating electricity through clean energy: 25% by 2018, 30% by 2021 and 35% by 2024. Likewise, greenhouse gases (GHGs) are expected to be reduced by 30% by 2021 and 50% by 2050. To achieve these targets, several measures have to be taken, including reducing the use of carbon-intensive energy sources, increasing clean energy sources and decreasing energy consumption in various sectors, such as housing.

 

Leonardo Beltrán Rodríguez from the Ministry of Energy (SENER) commented on the importance of strengthening national climate change policy. To achieve this, he discussed the promotion of the General Law on Climate Change, which seeks to increase the generation of clean energy until it reaches 50% of energy production. In addition, the intensity of final energy consumption will be reduced at an average annual rate of 2.9% between 2016 and 2050. In other words, energy consumption should be more efficient and its production should be cleaner.

 

This production could be achieved by replacing coal with natural gas or by generating energy through solar energy. Regarding solar energy, although it requires an initial investment higher than that of natural gas, it is a safe source of energy. Mexico is one of the countries that receives the most sunlight each year, which provides energy security and helps shield it against volatility and changes in the price of inputs such as gasoline and natural gas. According to the Bloomberg website, given that Mexico is an attractive country for solar energy, it should be able to attract foreign investment.

 

Prospective and medium- and long-term targets; photo © Santiago Creuheras Díaz, SENER

 

Olivia Flores Parra of SENER spoke about the implications of the energy transition in the electricity sector. Energy diversification is necessary for preventing risks due to price volatility, energy security and reducing polluting emissions; clean energies are the best tool for mitigating climate change. Given the growing opportunities for sustainable investments in Mexico, one of the most attractive emerging markets, the energy reform promotes the reduction of GHG emissions. Therefore, it is expected that, by incorporating more clean energies, electricity generation will be less intensive in fossil fuels.

 

Silva de Anzorena, the former director of the National Housing Commission (CONAVI), discussed how one of the most effective ways to achieve more efficient energy consumption is through the development of sustainable housing. Two of the programs that promote sustainable housing are EcoCasa and Hipoteca Verde. Mexico is the first country to develop a sustainability policy with a focus on social housing. Currently there are more than 60,000 houses of this type, with a potential for reducing carbon dioxide by 37,200 tons per year. This is due to the use of sustainable materials and energy savings of up to 40 percent in electricity and gas in cool and warm climates.

 

The seminar took the positions of the electricity, housing, transport and financial sectors into account. In conclusion, if Mexico wants to achieve its targets set out in the Paris Agreement, it will need to have a more efficient and cleaner energy network. The examples mentioned are just some of the many policy and investment options that Mexico will have to carry out if it wants a clean and safe energy future.

The ITAM Energy and Natural Resources Center and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH organized a forum to discuss the importance of carbon emissions pricing due to climate change. The objective of the forum was to review the status of carbon emissions pricing, both at the international and national levels. It aimed to facilitate discussion so that Mexico can make informed decisions about this public policy instrument.

 

Dr. María Amparo Martinez of the National Institute of Ecology and Climate Change (INECC) commented that putting a price on each ton of carbon dioxide released into the atmosphere reflects its cost to the environment and promotes the search for inexpensive ways to fight climate change. For her, carbon prices help reduce global emissions, while giving companies flexibility to find their own solutions for increasing efficiency.

 

The United States Environmental Protection Agency (EPA) defines the social cost of carbon as an estimate of the economic damages caused by a ton of CO2 emissions in a given year. Based on studies conducted in 2013, the average social cost of carbon was 31 euros per ton of carbon dioxide. Mexico contributes 1.4% of global CO2 emissions produced from the burning of fossil fuels. In 2013, part of the Tax Reform initiative sent to Congress considered a carbon price for each ton of CO2 emitted by fossil fuels.

 

According to Dr. Carlos Muñoz of the Ministry of Finance and Public Credit (SHCP), environmental taxes generate reliability in company costs. Their collection is simple in an efficient tax system, and they can be applied broadly. On the other hand, while the results of a cap-and-trade approach are fairly certain, its costs are not. With this approach, it is necessary to develop agile and deep markets. Finally, a significant challenge of the cap-and-trade approach is how to allocate the initial quotas. International experience indicates that, in practice, environmental taxes would be useful for Mexico because they have been shown to be an attractive option for emerging economies.

 

Dr. Alejandra Elizondo of the Center for Research and Teaching in Economics (CIDE) commented that carbon prices are important because they generate incentives to desist polluting activities. For her, economic instruments are necessary to drive private investment towards low-carbon options. Represented the private sector point of view, José Ramón Ardavín, an engineer from the Private Sector Studies Commission for Sustainable Development (CESPEDES), stated that electricity generation is the main action for complying with international commitments to reduce emissions; he stressed that Mexico could establish a formal market in record time if it builds a coalition among the main sectoral chambers, scientists, academics and authorities.

 

In the seminar, public and private sector representatives, as well as academics, expressed their opinions; these stakeholders agree that a carbon pricing system is necessary for Mexico to internalize the negative externalities for carbon emissions and, at the same time, comply with Mexico’s Nationally Determined Contributions (NDCs).

 

Climate change is a reality and problem that must be attacked from multiple fronts. On the other hand, no measure, action or idea that encourages the adaptation and/or mitigation of global warming should be underestimated, whose effects have already been seen in virtually the entire world. One way to deal with the seriousness of this problem is by generating and using real and consistent information about the status of ecosystems, so that appropriate decisions can be made.

 

 

In this context, SMART (Spatial Monitoring and Reporting Tool) is a tool that facilitates control and surveillance activities, which are essential to the efficient management of Natural Protected Areas (NPAs).

 

In the Selva Maya, shared by Belize, Guatemala and Mexico, expert instructors from the Monitoring and Evaluation Center (CEMEC) of the National Council for Protected Areas and Wildlife Conservation Society Guatemala have been strengthening the capacities of brigade members and park rangers through different workshops focusing on the use of SMART. The workshops are supported by the Promotion of Biodiversity and Climate Change Monitoring project, an initiative commissioned by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) with funds from the International Climate Initiative (IKI).

 

 

Among the advances of this initiative include the development of a data structure, training manuals and data catalogs. From this, a data model was proposed that includes the data recommended by the National Commission of Natural Protected Areas (CONANP) and, at the same time, reflects the reality of the threats faced by NPAs.

 

 

The most recent workshop took place in Palenque, Mexico, from November 12 to 16. The participants were selected based on their work in monitoring and following up on activities at the institutional level. Field staff from the natural protected areas of the Chiapas Complex participated (PN-Palenque, APFF Agua Azul Waterfalls, Metzabok, Naha, Montes Azules, Lacan-Tun, Chan-Kin, Yaxchilán), as did those from the NPA of the Cañón Usumacinta-Tenosique, Tabasco, and from Balam Ku and Balam Kin of the State of Campeche; staff of cooperating institutions also took part. It is important to note the key participation of personnel from CONANP, the PROMANP-Surveillance Program, and SEMARNATCAM (Balam Ku, Balam Kin).

The Energy and Climate Change Policy Convergence (CONECC) project, together with the Ministry of Energy (SENER) and the Ministry of the Environment and Natural Resources (SEMARNAT), carried out the White Certificates International Forum: An Instrument to Recognize the Efforts in the Saving and Efficient Use of Energy in Mexico? in Mexico City on October 23, 2018. The CONECC project is implemented under the International Climate Initiative (IKI), which is financed by Germany’s Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).

This event included the participation of international experts who discussed the benefits achieved and the lessons learned from operating White Certificates (WCs) in different parts of the world. There was also space for dialogue so that participants could offer their opinions of WCs and provide feedback on their possible implementation in Mexico. Participants agreed that work should continue on reviewing the feasibility of implementing a WC market in Mexico, which can serve as a useful instrument for achieving the national greenhouse gas mitigation goals established in the General Law on Climate Change. The project report of the forum will be ready in early 2019.

 

Forum opening and welcome. (From left to right) Santiago Creuheras Diaz, Leonardo Beltrán Rodríguez, Diana Guzmán Torres, Jonas Russbild, Oliver Knoerich and Israel Jáuregui Nares

 

 

Video

The Biodiversity and Sustainable Agrosilvopastoralist Livestock Landscapes (BioPaSOS) project brought together diverse local actors in working tables in Chiapas, Mexico, to further develop the climate-smart livestock concept.

On November 27, a group of local actors came to the Autonomous University of Chiapas (UNACH) campus in Tuxtla Gutiérrez, Chiapas, Mexico. Convened by the BioPaSOS project, they met to construct and develop the climate-smart livestock concept, and thus define the actions to be implemented in Chiapas, one of the three territories where the BioPaSOS project is carried out.

Working table participants working together on the climate-smart livestock concept

 

 

 

Experts participate in the Climate-Smart Livestock Forum: An Alternative for Sustainable Development, an initiative that takes place in Chiapas.

 

Actors and experts from the livestock sector gathered on November 26 at the Climate- Smart Livestock Forum: An Alternative for Sustainable Development, a space organized by the Biodiversity and Sustainable Agrosilvopastoralist Livestock Landscapes (BioPaSOS) project to address the development of climate-smart livestock in Mexico

 

Workshop participants © Pronatura SurDuring the forum, which was hosted by the Autonomous University of Chiapas (UNACH) in Tuxtla Gutiérrez, Chiapas, experts presented on topics such as normative and regulatory frameworks, livestock production and biodiversity, lessons learned in Jalisco, research progress, and challenges and opportunities for climate-smart livestock.

BioPaSOS Coordinator Claudia Sepúlveda explained that the forum sought to contribute to the development of climate-smart livestock in the Tablón basin in Chiapas by sharing experiences and analyzing the sector’s progress and challenges.

In addition, a panel of local experts discussed the opportunities and challenges of climate-smart livestock. Five organizations with programs in the Tablón basin participated in the panel: the National Commission of Natural Protected Areas (CONANP), Pronatura Sur, A.C., El Triunfo Conservation Fund (FONCET), The Nature Conservancy (TNC) and Ecology, Sustainability and Innovation A.C. (ESI A.C.).

 

 

Muhammad Ibrahim, General Director of CATIE, during his keynote speech at the Climate-Smart Livestock Forum; foto: © Pronatura Sur

 

BioPaSOS Researcher Alejandra Martínez commented that the forum will allow her to apply future actions that promote climate-smart livestock and help, through the promotion of agrosilvopastoral systems, to improve the quality of life of livestock families, reduce emissions, and conserve biodiversity and ecosystem services derived from it.

The forum was organized with the support of the CONANP, the Sepultura Biosphere Reserve (REBISE), the UNACH, the Faculty of Agronomic Sciences Campus V of the UNACH, the Academic Livestock Agroforestry Body, the College of the Southern Border (ECOSUR), the Ministry of the Environment and Natural History (SEMAHN) and the Ministry of the Countryside (SECAM).                     

Low-emission rural development (LED-R) requires large-scale strategies in all jurisdictions. Chiapas is characterized by tropical forest landscapes and different processes of deforestation and land-use change. From a broad perspective, low-emission rural development contributes to the fulfillment of the 2030 Agenda.

LED-R contributes to meeting the transversal goals of the 2030 Agenda, considering the five main pillars that define progress towards LED-R (see figure **).

**

Figure 1 (in Spanish) LED-R pillars © Pronatura Sur

In accordance with the Sustainable Development Goals (SDGs), the LED-R takes action to combat climate change (SDG 13), promotes the sustainable use of terrestrial ecosystems (SDG 15), strengthens alliances to achieve objectives (SDG 17), end hunger (SDG 2) and work for the end of poverty (SDG 1). The Implementing Low-Emission Rural Development Strategies project works directly towards other objectives as well, such as the goal to ensure sustainable consumption and production patterns (SDG 12).

The Implementing Low-Emission Rural Development Strategies project is working on a LED-R plan for Chiapas and for the sectors that drive deforestation in Chiapas: livestock, palm oil and forestry.

In the case of palm oil, through the IKI project , Pronatura Sur, A.C. participates in two spaces to implement a palm oil cultivation organization in Mexico and prevent associated deforestation: the Roundtable on Sustainable Palm Oil National Interpretation (RSPO-NI) and the Sustainable Palm Oil Group of the Coast of Chiapas.

 

 

 

Municipalities with the largest palm oil extension in Chiapas © Pronatura Sur

RSPO-NI in Mexico

The RSPO developed a model based on Principles and Criteria (P&C) that are adapted to the context of each country through the NIs, which establish the standards for all actors in the palm oil value chain.

Pronatura Sur, A.C. works to

  • include the particularities and socio-environmental effects of palm oil producing states and
  • recognize the negative effects of converting lands into monoculture plantations and avoid them.

Working Group on Sustainable Palm Oil of the Coast of Chiapas

With the goal to monitor palm oil cultivation on the Chiapas coast, the working group began operating in March 2017 and includes the following actors:

  • Government institutions
  • Industry
  • Civil society organizations
  • Local producers

Pronatura Sur, A.C. highlighted the particularities and effects of palm oil production, both locally and regionally. The working group’s impact is linked to economic and sustainable development through responsible production and consumption (SDG 12) in Chiapas and other palm oil producing states.

Links

 

Jurisdictional Incentive System Workshop © SEMADET

Likewise, the working group participates in the construction of a positive incentive system that helps mobilize financial resources for essential activities, which also contributes to the reduction of inequalities (SDG 10). On November 29 and 30, Pronatura Sur organized a workshop to take steps to create this jurisdictional incentive system. Among the workshop’s conclusions and agreements were the following actions:

  • Prepare guidelines to promote the elements of the National Development Plan, as well as of sectoral and state plans.
  • Create a brief document with LED-R public policy recommendations.
  • Organize the Second Incentives Workshop for LED-R.

 

The Implementing Low-Emission Rural Development Strategies project is financed through the International Climate Initiative (IKI) of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) of Germany.

This article belongs to Pronatura. Its content is the sole responsibility of the author.

 

At the Perspectives on Climate Finance in Mexico 2018-2024 dialogue, the findings of the working document Towards a Climate Financing Mobilization Route were presented. Participants also shared the results of multiple climate efforts, exchanged lessons learned and discussed financing prospects for 2018-2024.

 

 

 

On November 22, 2018, the Perspectives on Climate Financing in Mexico 2018-2024 dialogue was held in Mexico City. The event was attended by 35 people from different civil society, private sector and public institutions, as well as by international organizations and cooperation agencies.

 

 

 

The purpose of the dialogue was to present the document entitled Towards a Climate Financing Mobilization Route and to share the results of several efforts on climate financing issues, including the Climate Finance Day in Mexico held on September 18, 2018. The activities were designed to help make a first diagnosis and develop a series of recommendations for finance mobilization in the coming years to meet Mexico’s Nationally Determined Contribution (NDC).

 

 

 

During the meeting, participants agreed that to establish a climate financing route, the different forms of financing need to be identified; there also needs to be a clear plan and definitions (taxonomy) for transforming the political, economic, energy and financial environments to combat climate change. In addition, priority actions that should be implemented in the short, medium and long term were identified:

Short term

  • Include climate change as one of the strategic axes of the next National Development Plan and budget.
  • Identify the financing needs by sector and subsector described in the NDC.
  • Strengthen existing structures of the National System on Climate Change (SINACC).
  • Install and define the operating rules of the Financing Group created within the Intersecretarial Commission on Climate Change (CICC).
  • Create a multi-sectoral and multi-level coordination mechanism.
  • Train national and local governments to identify the main needs; and create and structure a portfolio of projects or funding sources that can be accessed.
  • Strengthen capacities in the private and financial sectors to improve decision making on where to direct investments.
  • Create a monitoring, reporting and verification (MRV) system for climate financing.

 

Medium term

  • Strengthen fiscal policies to diversify the country’s income and reduce dependence on fossil fuel.
  • Improve the measurement and reporting of emissions at the local level (states and municipalities) and of companies.
  • Implement early education and high-level programs on climate change.
  • Create departments that address climate change issues in public institutions.
  • Improve knowledge about project evaluation and investment priorities.

Long term

  • Maintain dialogue mechanisms between the different actors.
  • Mobilize significant amounts of financing to achieve a low emission economy.
  • Create an agency specializing in climate financing that coordinates the issue’s agenda.

 

 

The dialogue was organized by the Climate Finance Group of Latin America and the Caribbean (GFLAC), in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Climate Initiative of Mexico (ICM). It was the first in a series of exercises designed to generate an action plan on financing and promote dialogue among different actors so that resources can be mobilized to help Mexico meet its climate goals.

The design of the Emissions Trading System (ETS) in Mexico has required generating inputs focused on technical, regulatory and capacity-building aspects. With respect to the latter, in the first year of the Preparation of an Emissions Trading System in Mexico (SiCEM) project of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, efforts have been focused on the country’s industrial sector.

In accordance with the reforms to the General Law on Climate Change, in its pilot phase the preliminary legal basis of the ETS “should consider the circumstances around competitiveness of the national industry in the global context, particularly in those sectors whose economic activity is exposed to international competition, ensuring not to affect its competitiveness.” This mandate offered relevant greenhouse gas (GHG) emitting sectors the opportunity for an ongoing and close collaboration with the actors involved in the ETS project.

In 2018, a series of activities have been carried out with the industry to build sectoral capacities and support their participation in the ETS design and implementation processes. During the first half of 2018, generalized and specialized approaches were employed in the workshops, in which participants were taught both basic and complex topics. In the second half of the year, participants attended a study trip to Germany to witness the European Union ETS (EU ETS) design and implementation experiences firsthand. Interviews with representatives of key German institutions for the EU ETS gave participants a better understanding of the opportunities and challenges facing regulated sectors.

 

 

 

According to Goal 9: Industry, innovation and infrastructure of the United Nations Sustainable Development Goals (SDGs), innovation and investment in infrastructure are a fundamental part of economic growth and development. It is precisely at the moment of looking for permanent solutions in the technology field where research and innovation promote the path towards the achievement of sustainable industries.

The implementation of the ETS will support Mexican companies in making decisions to improve technologically and reduce their GHG emissions, or to participate in the market. This will catalyze innovation processes as companies seek the most cost-effective solutions. Currently, a series of sectoral workshops are being planned to study key decision-making elements, including about available technology in sectors such as steel, cement and financial analysis. The workshops will also cover the steps of the ETS compliance cycle and the issue of auctions, among other topics.

The SiCEM project is developed by GIZ  on behalf of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) of Germany, in support of the actions led by the Ministry of the Environment and Natural Resources (SEMARNAT).