Capacity Building for Mexican Private Sector on the Implementation of an Emissions Trading System

Through its National Determined Contribution (NDC), Mexico has pledged to reduce its greenhouse gas (GHG) emissions by 22% below baseline in 2030. In order to achieve its GHG targets, Mexico decided to implement an Emissions Trading System (ETS) for the industrial and power sector as an effective market-based instrument for climate change mitigation actions. The Mexican Senate in April 2018 approved the reforms to the General Law on Climate Change (GLCC) that provide the legal framework to introduce an ETS. In October 2018 draft regulations for a pilot phase of the ETS, which is to start in 2019, were released with the objective to test the design of the system in practice. After the pilot, a second phase of the Mexican ETS is planned towards 2021.

Stakeholder dialogue, and more specifically, engagement with potentially regulated entities, will be key for the successful implementation of the ETS. To achieve this objective, the GIZ is undertaking a series of private sector capacity building activities. In this project, adelphi together with FutureCamp Climate GmbH contributed its experience in emission trading schemes and capacity building activities by organising and implementing a series of trainings in Mexico and developing the accordant material.

adelphi with its project partner was responsible for the planning, preparation and implementation of tailor-made training sessions for Mexican industry representatives who are affected by the Mexican ETS. Each training consisted of technical inputs, interactive formats and discussion sessions so that industry representative could become familiarised with specific steps in order to get prepared for their participation under the Mexican ETS. The trainings, for example, concentrated on data requirements from industrial entities, the identification of possible abatement options per sector, establishing internal management systems and structures for an ETS or good practices for preparing for an ETS. Furthermore, the project team developed follow-up material and trainings for industry preparation for a Mexican ETS.