Tag: #ComercioEmisionesMX

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

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

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

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

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

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

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

 

After two years collaborating on the creation of a science-based dialogue around Mexico’s Emissions Trading System (ETS), the book “Towards an Emissions Trading System in Mexico: Rationale, Design and Connections with the Global Climate Agenda” was presented.

The book, the first of its kind in Latin America and the Caribbean, includes contributions from more than 20 researchers from various public and private universities in Mexico and other countries. Coordinated by Dr. Simone Lucatello of the Mora Institute, the book compiles, through fourteen chapters divided into three parts, a set of reflections and perspectives on key aspects of the ETS and its operational elements.

The book was published by Springer in an Open Access format, allowing for free access to its contents. The publication has been well received by ETS analysists and researchers in Mexico and abroad. Although not in a print format, the digital version of the book already has more than 25,000 downloads.

The event aimed to provide a platform for discussing the co-authored book on the Emissions Trading System (ETS) in Mexico, with the goal of presenting the primary conclusions and ideas contained in the publication and highlighting the role of the academic and research sector in the implementation of an ETS in Mexico.

Gustavo Sosa from the Dr. José María Luis Mora Research Institute; Suriel Islas of the Ministry of Environment and Natural Resources (SEMARNAT); Vanesa Villa and Juan Carlos Mendoza, SiCEM technical advisors during the welcoming remarks © GIZ México

Welcoming remarks were given by Gustavo Sosa from the Dr. José María Luis Mora Research Institute; Suriel Islas from the General Directorate of Climate Change Policies (DGPCC) of the Ministry of Environment and Natural Resources (SEMARNAT); and Vanesa Villa from SiCEM. Two introductory presentations followed: one on the process of dialogue with the academic sector on the ETS by Juan Carlos Mendoza, technical advisor to SiCEM from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German Sustainable Development Cooperation); the second a general presentation of the book, its scope and main discussions by the book’s editor, Simone Lucatello.

Key actors for the Mexican ETS gave comments on the book. Suriel Islas, Deputy Director of Monitoring Actions to Promote Sustainable Development of SEMARNAT, stressed the importance of books like this one as a reference for students interested in the subject. He congratulated the authors for the publication of the book and described it as a great step towards analysing, studying and deepening knowledge on the ETS in Mexico.

José Ramón Ardavín, Executive Director of the Commission of Private Sector Studies for Sustainable Development (CESPEDES), stressed that the Mexican ETS was the first in Latin America, and highlighted the important support of the German Government and GIZ in the development and implementation of the ETS. Ardavín underlined the significance of having bodies that encourage participation in the ETS framework, such as the Consultative Committee of the Emissions Trading System (COCOSCE), an important forum to strengthen cooperation and dialogue between academia, the regulatory sector and authorities.

Finally, Dr. Francisco Estrada Porrúa, General Coordinator of the UNAM’s Climate Change Research Programme (PINCC), highlighted that the fact that this publication is the first book of its kind in Latin America is a sign of the importance of including science in decision-making for climate action. The ETS exemplifies a cost-effective mechanism to meet Mexico’s climate goals.

Suriel Islas, de la SEMARNAT; José Ramón Ardavín de CESPEDES; Simone Lucatello, del Instituto Mora y; Juan Carlos Mendoza, de SiCEM escuchando la participación de Francisco Estrada Porrúa del PINCC de la UNAM © GIZ México

As part of the event’s closing, the publication’s authors exchanged perspectives and opinions, thus fostering a multi-stakeholder debate on the ETS. In addition to these perspectives, SEMARNAT highlighted the importance of establishing alliances with the private sector, academia and civil society for improving the design and operation of Mexico’s ETS. It acknowledged the role of GIZ in implementing the ETS, the work of several years and how it contributed to the design of the next phases of the system.

The event took place on 5 July 2022, and was organised by GIZ through the SiCEM project, and the Instituto de Investigaciones Dr. José María Luis Mora. Held in the Mora Institute’s auditorium, more than 80 people, both in person and online, joined the initiative seeking to continue promoting dialogue on the ETS. SiCEM will continue to promote similar events and a participatory ETS with the academic sector.

Diana Guzmán, de la SEMARNAT, dando las palabras de cierre al evento © GIZ México

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