Tag: GIZ

On March 30, 2022, Gabriela Niño, technical advisor of the Mexican-German Climate Change Alliance, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, accompanied by the National Commission of Compliance (CONACOM), carried out the forum “International Cooperation on Climate Financing Between Mexico and Germany“.

International cooperation on climate finance between Mexico and Germany / © CONACOM México, 2022

In his opening speech, Ernesto Infante, coordinator of the Public Compliance & ESG Committee, pointed out the economic and commercial importance between Mexico and Germany, as well as the parallel interests between these two countries regarding issues such as transparency, corruption, accountability and intersectoral communication in government.

Later, Gabriela Niño mentioned that the main objective of GIZ Mexico is to provide technical assistance within the framework of alliances, agreements and international governance in accordance with international agendas–specifically, the Sustainable Development Goals (SDGs) of the 2030 Agenda and the Paris Agreement, as well as the development of digital tools, and the development of capacities and transmission of knowledge.

In this sense, Gabriela explained that help would be provided in the adoption of a National Climate Change Policy through Mexico’s climate change adaptation and mitigation commitments; intersectoral communication of the government’s different levels; the acceleration in the use of sustainable energies; creating resilient infrastructure; the integration of the private sector, and the development of a post-COVID-19 recovery plan.

© CONACOM, 2022

Finally, it was mentioned that the climate financing agenda has been taking place in Mexico since 2015, as a result of the international rapprochement between financial and environmental sectors. Thus, GIZ Mexico, in coordination with the Association of Mexican Banks (ABM) and other associations that bring together various financial sectors, have worked on several green finance issues, including the analysis of the sensitivity of bank portfolios and the green bonds market; how far the Mexican government is prepared to engage in climate financing; workshops on climate risks and green taxonomies for the banking sector in Mexico; the socialization of climate change risk information , and the benefits of an adequate financial policy.

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Technological innovation is a way to promote local climate action and determined processes of green economic reactivation. Since 2019, the Secretariat for Sustainable Development of the state of Querétaro (SEDESU) in coordination with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH through the project Enhancing the Coherence of Climate and Energy Policies in Mexico (CONECC) have worked on the creation of an innovation Hub, now named HUBIQ, in the field of renewable energy and energy efficiency. HUBIQ seeks to develop competencies and capacities in startups, ventures, and other actors that seek to promote technological innovations for the deployment of sustainable energy in the state, through the strengthening of business models that incorporate the social, economic and environmental effects of these technologies. To achieve this, the aim is to promote a linkage platform based on the triple helix cooperation model —made up of government, companies and academia— constituting the core of the Hub’s value proposition.

 

Technological Innovation Hub in the field of sustainable energy for climate action in the state of Querétaro. UB IQ. GIZ / CONECC / Elaboración Laguna Centro.

The event featured messages from the State Secretary for Sustainable Development, Marco A. del Prete Tecero; the President of the Energy Cluster, Patrice Rimond; the Director of the CONECC project, Jonas Russbild and Natalia Nila Olmedo, Director of the Reconfigurable Control Research Laboratory (LiCore). It was stated that HUBIQ would promote technological innovation and synergies with various actors to seek innovative solutions to climate change and strengthen the local energy ecosystem.

The study “Towards an Optimal Concept for the Implementation of a Technological Innovation Hub in Renewable Energies and Energy Efficiency for Climate Action in Querétaro” was also presented, in which the analysis of alternatives and viability was carried out, which led to the implementation of the Hub in the state of Querétaro. The study includes a documentary analysis and diagnosis of the local electricity market and the local innovation ecosystem, and a set of alternatives that led to an action plan for the creation of the platform. Furthermore, the process adopted a multi-stakeholder and highly participatory approach, including more than 90 local stakeholders from the innovation sector.

Dersu Figueroa Zaráte, HUBIQ coordinator, presented the activities and objectives of the project, along with the areas of specialization and its offer of services, which includes: strengthening human capital capacities through training and technical training; business relations, and services for the maturation and commercialization of technologies. Natalia Nila, Director of LiCore, presented the Technological Innovation Project Acceleration Program, which is financed by the Support for the Implementation of the Energy Transition in Mexico (TrEM) program. Through this program, the first generation of HUBIQ projects and other invited MSMEs from the state energy sector have strengthened their technological innovation capabilities and promoted a green economic reactivation in the face of the crisis caused by the SARS-CoV-2 virus.

Kick off of HUBIQ activities by Dersu Figueroa Zaráte, HUBIQ Coordinator, Marco A. del Prete Tercero, Secretary of SEDESU and Jonas Russbild, Director of the CONECC project. CONECC / GIZ

HUBIQ’s next milestone will be its formation as a Civil Association (A.C.). In addition, it is expected that the official start of HUBIQ will help inspire other states in the Mexican Republic to promote the energy transition and local climate action through Innovation Hubs.

The Hub’s experience allows us to identify the potential of technological innovation to achieve Mexico’s climate goals, with an emphasis on disruptive approaches applied to energy transition processes and recognizing the contribution of the sub-national level; this translates into the strengthening of ecosystems of innovation and strengthening of the links that allow the sustainability and impact of innovation in favor of sustainable development.

To see the live recording of the official start, click here (in Spanish).

Official launch of the Technological Innovation Hub in terms of sustainable energy for climate action in the State of Querétaro. GIZ / CONECC / Elaboración Laguna Centro

For more information, you can consult and download the study in PDF as well as the presentations of the event speakers.

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The GIZ project “Preparation of an ETS in Mexico” (SiCEM) provides support to the Ministry of Environment and Natural Resources (SEMARNAT) in the continuous development of capacity-building activities for relevant actors and decision-makers from public and private sectors. The project, which began on January 1, 2020, is carried out within the framework of the Emissions Trading System (ETS) Test Program in Mexico.

In this context, the 2020 ETS Academy was held for the second consecutive year. On this occasion, it was successfully carried out virtually, and focused on the implementation aspects of the Test Program. The course was convened by SEMARNAT and developed with the support of the World Bank’s Partnership for Market Readiness (PMR), the International Carbon Action Partnership (ICAP) and GIZ Mexico.

Between August 18 and September 10, productive space for exchange and networking was generated among around 60 course participants. During these four weeks, learning was strengthened with presentations of the lessons learned, merits and challenges in the implementation of an ETS by national and international experts (China, Quebec, California, European Union, etc.), as well as the use of innovative digital tools and images that captured the key points discussed during the sessions.

Finally, there were two sessions open to the public, attended by Mr. James Grabert, Director of Mitigation of the United Nations Framework Convention for Climate Change (UNFCCC), as well as an exchange session between Latin American countries on carbon price instruments.

Photographic Archive 2020 ETS Academy © GIZ

Week 1. ETS Architecture, Pilots from Mexico and the World

The first week set the stage for subsequent sessions, introducing the concept of carbon pricing instruments and the opportunities presented by the ETS in order to meet the NDC mitigation climate targets based on the Paris Agreement. Although the international experience has shown that it is a cost-effective instrument, its effective implementation requires clear regulatory frameworks, a national policy that responds to international commitments, and close communication with the actors involved in the process.

Jurisdictions such as China, Quebec, and Spain (as part of the European ETS) shared their ETS experiences in the early phases. They stressed the importance of having a strong regulatory and political framework, creating opportunities for dialogue with the regulated sectors and ensuring the quality and robustness of emissions data. In recent years, Mexico has implemented a legal and institutional framework on the matter based on the reform of the General Law on Climate Change in 2018 and the publication of the Agreement establishing the preliminary bases of the ETS Test Program, in which the figure of the Advisory Committee is also created as a space for dialogue and feedback. It also has a robust MRV framework, reflected in the National Emissions Registry (RENE).

Week 2. Allocation and Market Dynamics. What are the Options?

During the second week, the methods to allocate Emission Allowances (DEM) were discussed. Each jurisdiction chose a method (or combination of methods) to use based on national priorities and ETS objectives, among which the following stand out: incentivizing abatement measures, increasing revenue at the government level, protecting the competitiveness of regulated facilities or manage a gradual transition to an ETS. In the case of Mexico, the Trial Program will start a free scheme based on historical emissions per installation in order to facilitate the transition to the Formal Phase of the ETS; later on, the implementation of a percentage of allocations through auctions is envisaged.

Once DEMs are assigned, they can be traded on the secondary market. In the sessions, actors involved in DEM trading in the European ETS covered the different alternatives that exist for this trade, such as exchanges or stock exchanges, or bilaterally through a mechanism known as over-the-counter, as well as looking at the relevant difference that exists between regulated carbon markets (a public policy instrument with a defined legal framework and jurisdiction to reduce GHG emissions) and voluntary ones (a decentralized initiative to promote the reduction of emissions and facilitate the participation of more actors in mitigation activities).

 

Photographic Archive 2020 ETS Academy © GIZ

Week 3. Monitoring, Reporting and Verification Systems (MRV): ETS Challenges and Successes

An effective ETS requires a robust MRV scheme, as this allows designing the top of the ETS and making a better DEM allocation. Also, it ensures environmental integrity and enables compliance monitoring of the covered sectors. It was highlighted that it is crucial to incentivize compliance in an SCE, since otherwise, there is a risk of distorting competition between regulated entities. Jurisdictions such as California, Germany, the Netherlands, and China, shared the mechanisms used to strengthen compliance in their jurisdictions, such as the involvement of the regulated from the early stages of the process so that they are well aware of their obligation, the constant and proactive communication of obligations, listening to feedback, even administrative and economic sanctions.

Week 4. ETS Social and Environmental Benefits and Progress in Latin America. Where are we, and where are we going as a region?

During the last week, the 2020 ETS Academy addressed two topics: offset mechanisms and carbon price instruments in Latin America.

Regarding the first, the ETS includes mechanisms to encourage mitigation actions in non-regulated sectors under the offsets scheme. These contribute to the sustainable development of other sectors and actors indirectly linked to the ETS. Similarly, they allow cost reduction by improving the efficiency of the ETS. With a view to the Operational Phase, a global overview of these mechanisms was presented, as well as an exploration of the possibility of generating offsets for sectors such as forestry, livestock and agriculture, and transportation, within the Mexican context.

On the closing, the 2020 ETS Academy culminated with the exchange of experiences in the Latin American region. The participants had the opportunity to learn about the different advances in the area based on carbon prices. In this regard, countries such as Chile, Peru, and Colombia have implemented a tax on carbon or fossil fuels, while Brazil is analyzing the most cost-effective instrument for the country. Mexico is positioned as the first country in the region to have both a carbon tax and an ETS, so it will be of great interest to learn about their valuable experiences during the design of the ETS and the implementation of the Test Program.

 

Participants and speakers at the 2020 ETS Academy © GIZ

For more information on this topic, please contact us at: Comercio.Emisiones-MX@giz.de

As Mexico is a megadiverse, multicultural country and highly vulnerable to the impacts of climate change, the Ecosystem-based Adaptation (EbA) approach is being integrated into national instruments to select high-impact adaptation measures that contribute to reducing vulnerability and fulfilling the Paris Agreement.

In October 2015, the Ministry of Environment and Natural Resources (SEMARNAT) – with the support of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, through the Mexican-German Climate Change Alliance – presented the first version of the Methodology for the Prioritization of Adaptation Measures against Climate Change. This document considers the list of criteria contemplated in ENCC 10-20-40 and involves the economic evaluation of each of the contemplated adaptation measures. Since then, it has served as a guide for the development of the State-level Climate Change Programs (PECCs) and Climate Change Adaptation Programs (PACC) in Protected Natural Areas (NPA).

Considering Mexico’s megadiversity, both in climates and ecosystems, the Update of the Methodology for the Prioritization of Adaptation Measures was presented in 2018, with the integration of the EbA approach as its main feature. This approach addresses the country’s potential to reduce its vulnerability, and that of its population, through the sustainable management of resources, the restoration of ecosystems, and the conservation of biodiversity.

 

 

The methodology contemplates a participative process at each stage, involving all the actors that benefit from ecosystem services. In addition to functioning as an exercise in transparency and governance, the methodology demonstrates the potential of prioritizing EbA measures at a sectoral level, and even a private sector level, in response to the potential impacts to their productive activities caused by climate change.

Other great benefits of emphasizing the EbA approach in the selection of adaptation measures are the integration of local knowledge and the contribution to disaster risk reduction. Furthermore, EbA projects can be more cost-effective and accessible compared to other gray adaptation measures (construction of infrastructure and/or engineering works); this in turn favors the access to the portfolios of projects applicable for some type of green financing.

Home refrigeration and air conditioning contribute to the global warming of the planet. This is due to the fact that these appliances contain refrigerant chemical compounds called Hydrochlorofluorocarbons (HCFC) and Hydrofluorocarbons (HFC). HFCs were considered an alternative to HCFCs, which were ozone-depleting substances (ODS).

While HFCs do not contribute to the Ozone Depletion Potential (ODP), these gases have high Global Warming Potential (GWP), meaning their use actively contributes to the worsening of this phenomenon. In Mexico, the national consumption of HFC has increased by an annual rate of 14.5% in the period from 2007 to 2017, going from 12.75 million tons of carbon dioxide equivalent (MtCO2e) to 49.43 MtCO2e. The increase in HFC is directly linked to production increase in the following sectors:

The planet’s rising temperature has meant that conserving food, medicine, and other perishables – as well as maintaining human comfort – have become critical necessities. For this reason, an additional increase to refrigeration consumption in the next few years is inevitable. This also means that the refrigeration sector is directly linked to several Sustainable Development Goals (SDGs).

With the intention of decreasing the consumption of HFCs, the Mexican government has adopted and developed several public policy instruments, and the Montreal Protocol Unit of the Ministry of the Environment and Natural Resources (SEMARNAT), with the support of the project Sustainable and climate-friendly Phase-out of Ozone Depleting Substances (SPODS) of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, developed the National Diagnosis for the Mitigation of HFC Emissions. In addition, in November 2019, a planning workshop was held for the socialization of the Kigali Amendment and for the HFC Reduction Plan.

The diagnosis identifies mitigation actions for each one of the sectors that consume HFC. The majority are actions that involve replacing HFCs with low-GWP alternatives such as hydrocarbons and mixtures of Hydrofluoroolefins (HFO). For example, they suggest using R-600a (isobutane) in the domestic refrigeration sector, while for the commercial sector, they recommend R-290 (propane). The document also highlights the importance of implementing the recovery, recycling, and destruction of refrigerating gases.

As its primary outcome, the study proposes 11 mitigation measures that are feasible in the Mexican sectors of HFC consumption. These measures are aligned with the Kigali Amendment and can be included as part of Mexico’s conditional NDCs and contribute to the fulfillment of several SDGs. One example of the suggested measures is the substitution of HCFC-22 and R-410A with alternatives such as R-32 (difluoromethane) during the period of 2020 – 2045. It is estimated that this measure has a mitigation potential of 1.2tCO2e per substituted device, with a cost of $500 USD per device.

Making sure that these actions can be taken to an implementation phase will depend on the commitment of the government, private sector, and society itself when buying refrigeration systems that contain natural refrigerants. You can consult the diagnosis yourself to find out more details about the measures and suggestions for HFC mitigation.

The Emissions Trading System (ETS) in Mexico is a reality, and its Pilot Program will begin on January 1st, 2020. In this context, GIZ’s project “Preparation of an Emissions Trading System in Mexico” continuously carries out capacity building activities for the facilities required to participate within the ETS so that they have the theoretical and practical tools in order to participate in the System.

 

 

 

Within this framework, the Federal Electricity Commission (CFE), the Ministry of Environment and Natural Resources (SEMARNAT) and the ETS project implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (German Cooperation for Sustainable Development, GIZ) on behalf of  the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), joined forces and organized the workshop “Introduction to the Emissions Trading System (ETS) for representatives of the Federal Electricity Commission (CFE)”, with the main objective of building capacities for compliance with the ETS in participating facilities of this System in Mexico. The workshop was held on April 1st and 11th at the facilities of the CFE in Mexico City.

Impacts on the operation, infrastructure and market, are some of the risks that climate change poses for the tourist destination of Riviera Nayarit-Puerto Vallarta. In the face of such a climate emergency, the Association of Entrepreneurs of Puerto Vallarta and Bahía de Banderas) (AEBBA) has taken the lead in promoting ecosystem-based adaptation solutions.

Entrepreneurs recognize that conservation of the bay, mountain forests and wetlands are a priority for socio-economic development, to ensure water in the future and protect against floods and storms.

 

Credits: © ADAPTUR / Mariana Rodriguez Aguilera. Mountain forests in Riviera Nayarit-Puerto Vallarta

 

The commitment was ratified on August 2nd through the signing of the Memorandum of Understanding, between AEBBA and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German Cooperation for Sustainable Development), as well as the creation of a Green Agenda Committee, which will be led by entrepreneurs from the region. During the event, the president commented:

” Today we assume this challenge of starting the process of adaptation to climate change in our companies and partners, as something indispensable with a sense of urgency.”

The objective of this collaboration is to build joint solutions between the private, public and civil society sectors, which is why the state and municipal tourism authorities of Nayarit and Jalisco expressed their support for the initiative. Some highlight actions are: making adjustments to the policy and regulatory framework, encouraging financial mechanisms to implement adaptation solutions, and integrating the risks of climate change into new developments in real estate and tourism infrastructure.

 

Credits: © AEBBA / Ana Lilia Medina. Signing of the Memorandum of Understanding between AEBBA and GIZ

 

Riviera Nayarit – Puerto Vallarta is one of the three pilot sites in Mexico to implement the Ecosystem-based adaptation to climate in cooperation with the private sector (ADAPTUR). It is funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in conjunction with the Ministry of Tourism (SECTUR) and the Ministry of Environment and Natural Resources (SEMARNAT), and the technical support of the National Commission of Natural Protected Areas (CONANP) and the National Institute of Ecology and Climate Change (INECC).

 

Credits: © ADAPTUR / Ana Lorena Gudiño Valdez. Business leaders of Riviera Nayarit-Puerto Vallarta

The exchange of experiences is a key factor for the development of the municipalities’ climate policy. Considering the above, with the beginning of the elaboration of the Municipal Climate Change Program (MCCP) of Puerto Vallarta, a portal that seeks to promote these actions, as well as promoting work and knowledge networks among actors and municipalities in the development of their programs was created.

As part of Jalisco’s efforts to combat climate change, the municipality of Puerto Vallarta has begun its activities for the development of its Municipal Climate Change program, based on the Guide for the development or updating of the MCCP. During this process the importance of opening a public space was recognized as a fundamental step for the follow-up of its activities and the exchange of information. For this, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German Cooperation for Sustainable Development) supported the creation of a MCCP Portal in Mexico, which was presented in a webinar on April 9th of this year. In the webinar, the experience of Jalisco in implementing the guide, the progress and lessons learned from Puerto Vallarta in the preparation of its program and a brief user guide to interact with the portal was presented.

In that sense, since last February 2019, the municipality of Puerto Vallarta has been sharing stage by stage its activities and progress through this portal. Additionally, on the blog you can find the achievements and challenges of the municipality for the development of its MCCP, videos, studies and documents of common interest related to climate change. In this way, other municipalities can follow the process of developing their program and in turn can share their own experiences.

The MCCP Portal of Mexico is available on Energypedia, a platform available to the public where knowledge on renewable energy, access to energy and energy efficiency is exchanged. On the site, you can find an interaction guide with the portal step by step, framework questions for writing articles, the complete Guide, among other tools for the development of the MCCP.

 

 

For more information about this Portal, access the following links:

  • Presentation webinar of the MCCP Portal in Mexico.
  • MCCP Portal in Mexico.