The objective of the virtual segment was to understand the relationship between the design aspects of an ETS and transparency and accountability from different perspectives. The event was organized by the General Directorate for Climate Change Policies (DGPCC) of the Mexican Environmental Ministry SEMARNAT in collaboration with GIZ.
The series consisted of four virtual sessions given during the month of March 2021. Throughout the first sessions, there were contributions from: FactorCO2, German Emissions Trading Authority (DEHSt, for its acronym in German), European Energy Exchange (EEX), Spanish Association for Standardization and Certification (AENOR), Carbon Market Watch, and BC3, who shared their overall experiences and knowledge about the environmental and financial integrity of ETS. Suriel Islas from SEMARNAT was also present and shared an overview of the Mexican ETS in its testing phase.
Additionally, CEMEX and Acciona participated; they each highlighted the importance of having a robust MRV scheme, as well as developing adequate strategies to ensure companies’ internal GHG reduction. The relevance of flexible compliance mechanisms, also known as offsets, and their relevance in the process of ensuring the environmental integrity of ETSs, was also highlighted. During the last session, the contribution of civil society was emphasized, as well as the importance of achieving an adequate understanding of the objectives and implications of an ETS, in order for civil society to be a counterweight in the discussion of relevant aspects.
This series of virtual sessions sets a precedent for the relevance of aspects such as market monitoring, financial regulation, the legal nature of emissions rights, and the cybersecurity of the monitoring system, among others; together they generate a common understanding of the risks —both financial and environmental— that must be observed and mitigated in an ETS to ensure its proper functioning.
Access the material from the sessions in the Downloads section.