September 2, 2016
On August 15, 2016 Mexico announced it will launch a year-long simulation of a cap-and-trade program in November 2016 in a test run for a national carbon market expected to launch in 2018 according to a Reuters report.
The pilot program will involve the voluntary participation of up to 60 companies, giving them a chance to adapt to a forthcoming carbon credit system in which polluters will be obligated to offset emissions with tradable certificates.
“When we have mechanisms that facilitate the reduction of greenhouse gases, we’re implicitly reducing pollution,” Mexico’s deputy minister for environmental policy and planning, Rodolfo Lacy, said at an event in Mexico City.
Cap-and-trade systems put limits on companies’ greenhouse gas emissions. Firms that produce emissions below their cap are able to sell their excess allowances to other businesses polluting above their limit.
In order to fully roll out the program, the government will need to establish a cap on greenhouse gas emissions and verify the levels of carbon dioxide equivalents that businesses report to a national emissions registry, said Andres Prieto, a research analyst at MEXICO2, the platform that will oversee the trade of carbon credits.
In December, Mexico said it would implement measures to reduce greenhouse gas emissions by 22 percent by 2030 as part of the Paris climate agreement. Additionally, the country, a major oil producer, aims to generate 50 percent of its energy from clean sources by 2025.
What this means to you
Mexico announced it will launch a cap-and-trade simulation program in November in a test run of launching a carbon market in 2018. Mexico has said it would reduce GHG emissions by 22 percent by 2030 as part of the Paris climate agreement.
MIRATECH can help
Contact MIRATECH for information about stationary engine emission control in Mexico.