Status of project components Country: Mexico Grant Executed By: - - PowerPoint PPT Presentation

Status of project components

Project Component Status

• Est. date of

completion Component 1: Urban NAMA Pending

• Dec. 2019

Component 2: Support to ETS Design & Piloting Roadmap Ongoing

• Dec. 2019
• Development of Emissions

Reductions Registry

Pending 2019

• Regulatory development for the ETS
• ffset program

Pending 2019

• Capacity building: ETS Simulation

Exercise with Private Sector

Finished June 2018

• Proposal to expand Capacity Building

(Second Phase of ETS Simulation)

Ongoing 3rd Qrt 2019 Country: Mexico Grant Executed By: World Bank Grant Amount (USD): 3,000,000

Key achievements since last ISR Climate Change Law Amendments

• Published on July 13th, 2018
• Harmonization to Mexico’s NDC targets
• SEMARNAT (Ministry of Environment and Natural Resource)

shall implement a mandatory ETS

• 36 month pilot

Key achievements since last ISR

ETS Regulation (Pilot Phase) – To be published on November 2019

• Mandatory
• Scope
• Threshold for participation
• Compliance periods
• Flexibility mechanisms
• Annual verification
• CAP, allocation plan (individual

regulation)

• Rules and guidance for ETS

registry ETS Design

• Energy and Industry (facility level)
• Absolute CAP
• CO2 (direct emissions from fuel

consumption and industrial processes)

• Allocation: free based on

grandfathering to all participants (to be reduced after pilot)

• Offsets limit usage for compliance

(up to 10%)

Key achievements since last ISR

First Developing Country to implement an ETS (National Level) !!!!

Key achievements since last ISR

ETS Simulation

CC Law Amendments

ETS Pilot Phase

Key achievements since last ISR

Key Achievements - PMR Project (ETS Simulation)

• The first simulation exercise in the Latin American region gathered over

100 companies

• Participant sectors: energy, power generation, aviation, chemical, iron

and steel, mining, car manufacturing, cement, pulp and paper, glass, construction, food and beverages, finance and others.

• Three exercises that simulated 12 calendar years in total
• Training introduction workshops, call center for participants
• Active engagement from all participants
• Final exercise included award ceremony for top performers

Key Challenges Going Forward

Offset Program Implementation

• f the Pilot

Phase Registry for reductions /ETS

Key Challenges Going Forward

Key Challenges

• Implementation of ETS in a Pilot Phase.
• The Pilot will run for three years, from 2019 to 2021 as the work plan

indicates.

• The offset program will be developed during the pilot, to work together

with project developers to have it ready during the Pilot Phase (PMR Support)

• Registry for reductions (ETS offsets, with PMR Support)

Key Lessons Learned

Consultation Process

• Through

this engagement, both parties, government and private sector, were able to discuss their interests when drafting the ETS regulation.

• It helped create a Speak &

Listen environment

ETS Simulation

• The PMR support to the Simulation Exercise opened the door

for more direct and technically focused exchanges with private sector representatives

• An opportunity that led way to creation of a Working Group,

and as stated in the regulation an ETS Committee

• The ETS Simulation exercise and the Working Group helped

in finding common ground on usually divergent positions.

Key Lessons Learned

• Consultation process developed with stakeholders from the private

sector.

• The PMR support to the Simulation Exercise opened the door for more

direct and technically focused exchanges with private sector representatives, an opportunity that led way to a Working Group.

• Through this engagement, both parties, government and private

sector, were able to discuss their interests when drafting the ETS regulation.

• The ETS Simulation exercise and the Working Group helped in finding

common ground on usually divergent positions, and positioned the ETS as a feasible option for GHG mitigation in Mexico.