ley general de cambio climático - the pmr - towards a... · s e cre t a 5Ë$ de m e d io a m bie n...

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Towards a Climate Market in Mexico S M A SEMARNAT SECRETARIAT OF ENVIRONMENT AND NATURAL RESOURCES

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Page 1: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

Towards a Climate Market in Mexico

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT SECRETARIAT OF ENVIRONMENT

AND NATURAL RESOURCES

Page 2: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT WHERE IS MEXICO STANDING?

GENERAL CLIMATE CHANGE LAW (2012)

Low-carbon emissions economy

Resilient Mexico

Inclusive policy

NATIONAL CLIMATE CHANGE STRATEGY (2013)

10-20-40 years vision

Mitigation and Adaptation actions and policies

SPECIAL CLIMATE CHANGE PROGRAM * PECC 2013-

2018 (2014)

Actions to be carried out by federal public entities in both

mitigation and adaptation throughout the current

administration

Page 3: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT ASPIRATIONAL REDUCTION GOALS GENERAL CLIMATE CHANGE LAW

By 2020: 30% GHG emissions reduction with respect to baseline

By 2024: 35% of electricity generation from clean energy sources

By 2050: 50% GHG emissions reduction with respect to 2000 emissions

Page 4: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

4

PECC´s contribution to national mitigation

efforts

400

500

600

700

800

900

1,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MM

tCO

2e

106* MtCO2e/yr PECC´s

contribution 909

760

*The amount of 106 MtCO2e/year comprises: 75.1 MtCO2e/year from PECC 2013-2018 mitigation action lines, and 31 MtCO2e/year, from continuous methane reduction actions by PEMEX since 2012 (Preliminary data, under review for old and new PECCs)

National baseline GWP100

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT

Page 5: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

ENERGY 40.93

AGRICULTURE 6.74

ENVIRONMENT 14.87

TRANSPORT 0.48 SOCIAL

DEVELOPMENT 2.05

NAMA 9.42

55%

9%

20%

0.64%

3% 13%

TOTAL = 75.1 MtCO2e*

Sectorial contribution to mitigation in PECC

goals (MtCO2e)

13

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT

*preliminary data

Page 6: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT WHAT IS NEEDED TO GET READY FOR A CLIMATE MARKET?

NATIONAL EMISSIONS REGISTRY

CARBON TAX

INVESTMENT: INNOVATION AND

TECHNOLOGY

ECONOMIC INCENTIVES

TRANSACTIONS PLATFORM

MRV

CAP-AND-TRADE MECHANISM

Page 7: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT HOW IS MEXICO GETTING READY?

• NATIONAL EMISSIONS REGISTRY Starting in 2015

• CARBON TAX Started in 2014

• INVESTMENT: INNOVATION AND TECHNOLOGY Energy Reform

2014

• ECONOMIC INCENTIVES Energy Reform 2014

• VOLUNTARY CARBON MARKET PLATFORM Started Nov. 2013

• MRV Development in process

• EMISSIONS REQUIREMENTS FOR POWER GENERATION Energy

Reform 2014

Page 8: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

-Energy, Industry, Waste, Agriculture and Services -Direct and Indirect emissions -Mobile and Stationary sources -CO2, CH4, N2O, SF6, HFCs, PFCs, HCFCs, NF3 and Black Carbon

CER sold Secretariat of Finance allows the use of carbon offsets to reduce carbon tax liability

Private sector manages the monetization of CERs in the UNFCCC Registry

NATIONAL EMISSIONS REGISTRY

CLIMATE MARKET

-VCS -PLAN VIVO -GOLD STANDARD -CAR -Carbon capture in forestry Norm (in development)

CER proceeds

INDICATIVE STRUCTURE

CARBON TAX

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT

GHG and Compounds accounting and reporting

>25,000 ton CO2e

* After 2015

CERs, VCU, VER, PVC*

portfolio

VOLUNTARY MARKET

CDM OF KYOTO

PROTOCOL

MEXICO2

Voluntary carbon market platform in Mexico

Page 9: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

Example A

PEMEX

CARBON OFFSETS

SELLERS

REDUCE GHG EMISSIONS

CDM Project

A CDM Project

C CDM Project

B

Carbon Tax

CDM Project

D

TO COMPLY WITH CARBON TAX

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT

BUYER

Page 10: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

Example B

COMPANY A, INSTITUTION X,

INDIVIDUALS

CARBON OFFSETS

SELLERS

REDUCE GHG EMISSIONS

VCS Project B

CSR

VOLUNTARY MARKET

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT

BUYER

MEXICO2 PLATFORM

TRANSACTION

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DETERMINANTS OF SUCCESS

• EXTERNAL ISSUES: – Market terms: price, coupon, yield

– Demand: buyer interest

– Supply: availability of technology

– Carbon market issues: regulations, prices

– Competition: for buyers; for projects

• OTHER ISSUES: – Acceptable risk

– Tenure, currency, etc.

– Domestic policies

– Capacity building

11

SECRETARÍA DE MEDIO AMBIENTE

Y RECURSOS NATURALES

SEMARNAT SEMARNAT

Page 12: Ley General de Cambio Climático - the PMR - Towards a... · S E CRE T A 5Ë$ DE M E D IO A M BIE N T E Y R E CU RS O S N A T U RA L E S SEMARNAS E M A RN A T T ASPIRATIONAL REDUCTION

General Climate Change

Direction San Jeronimo 458, third floor

Col. Jardines del Pedregal

011 52 55 54 90 21 27

[email protected]

www.semarnat.gob.mx