Towards an Emissions Trading System in Mexico: Rationale, Design and Connections with the Global Climate Agenda
Outlook on the first ETS in Latin-America and Exploration of the Way Forward
- Open Access
- 2022
- Open Access
- Book
- Editor
- Dr. Simone Lucatello
- Book Series
- Springer Climate
- Publisher
- Springer International Publishing
About this book
This Open Access book provides detailed information about the incoming Mexican Emissions Trading System, including an analysis on why the system was implemented, how the system was designed, how it operates, how it could work, and how it could be strengthened by 2023 when it will be formally launched. This document is aimed at those who want to understand how an ETS can operate in an emerging economy. Although it has been written for experts and non-experts, this book does not provide the underlying theory of market-based instruments and emissions trading systems in general. The book can be read from start to finish, but can also be used as a reference for specific components of regional ETSs.
The book draws upon a meticulous study of background documents and fieldwork from different authors to tell the story of how a Mexican ETS, the first of its kind in Latin America, can be set in the country. The emissions trading system cover many greenhouse gas emissions and has been hailed as one of the cornerstones of the Mexican climate policy. The book also examines and explains how the ETS is designed and implemented.
Advertisement
Table of Contents
-
Emissions Trading and Mexican Climate Policy: National and International Perspectives
-
Frontmatter
-
Chapter 1. Key Theoretical, Policy, and Implementation Experience Considerations for the Mexican ETS: Toward an Equitable and Cost-Effective Compliance Phase
- Open Access
Download PDF-versionThe chapter delves into the intricacies of implementing a successful Emissions Trading System (ETS) in Mexico, drawing on global experiences and theoretical frameworks. It discusses the shift from conventional command-and-control regulations to market-based approaches, emphasizing the importance of carbon pricing and innovative policy designs. The text also explores the challenges and lessons learned from the European Union ETS and the California cap-and-trade system, providing a roadmap for Mexico's ETS implementation. It highlights the need for strong institutional frameworks, political commitment, and continuous adaptation to achieve a cost-effective and equitable reduction in greenhouse gas emissions.AI Generated
This summary of the content was generated with the help of AI.
AbstractThis chapter presents a brief overview of the policy design and theoretical environmental economic principles that underpin the concept of emissions trading systems (ETS) as a policy approach to address climate change. It discusses basic environmental economic principles pertinent to the development of market-based solutions to mitigate greenhouse gas (GHG) and co-pollutants. The chapter serves as the technical basis for the broader discussion that this book as a whole presents on the launch of the pilot phase of the Mexican ETS on January 1, 2020. Understanding international program design experiences, theoretical principles, and implementing best practices is key to ensuring Mexico’s success in the transition from the pilot or learning phase to an operational ETS compliance system. This will ensure Mexico fulfills its national climate policy goals and nationally determined contributions (NDC) under the Paris Agreement in a cost-effective manner, while also providing compliance flexibility to the industrial sectors covered under the program. A well-designed ETS ultimately provides the right incentives for industrial carbon emission reductions to drive cost-effective abatement and clean innovation. Secondly, this chapter presents a more in-depth review of policy developments focusing specifically on key implementation lessons from the two most advanced ETS systems in operation to date: (1) the European Union ETS and (2) California’s cap-and-trade program. In short, this chapter outlines a set of key policy lessons and design parameters to support the transition from the pilot Mexican ETS to an operational compliance phase in a socially just, environmentally sound, and cost-effective manner. -
Chapter 2. Bringing Emissions Trading Schemes into Mexican Climate Policy
- Open Access
Download PDF-versionThe chapter delves into the introduction of emissions trading systems (ETS) into Mexican climate policy, examining the factors that influenced their adoption. It begins by discussing the appeal of ETS for both government and industry, emphasizing their potential for higher levels of efficiency compared to other regulations. The chapter then focuses on the design and implementation of the Mexican ETS pilot program, detailing the analytical framework used to evaluate its effectiveness and the stakeholders involved in the process. It also highlights the international experiences that influenced the Mexican ETS, including the Regional Greenhouse Gas Initiative (RGGI), the European Union (EU), and China. The chapter concludes by discussing the challenges and future prospects of the Mexican ETS, emphasizing the need for specialized personnel and continuous negotiation with industry.AI Generated
This summary of the content was generated with the help of AI.
AbstractEmissions trading schemes (ETS) have become popular as a policy instrument to tackle climate change. This chapter analyses the decision to deploy carbon markets and their interaction with other instruments in Mexico’s climate policy. Instrument selection has been thoroughly explored in the regulation and public policy literature (Kern et al. in Res Policy 48, 2019; Capano and Lippi in Policy Sci 50(2):269–293, 2016; Wurzel et al. in German Policy Studies 9:21–48, 2013; Harker et al. in Climate Policy 17(4):485–500, 2017; Baldwin et al. in Understanding regulation, Oxford University Press, 2012; Jordan et al. in Policy instruments in practice. Oxford handbooks online 536–549, 2011), but its application to carbon markets is mainly focused on environments such as Europe, the US and, more recently, China. The decision to adopt an ETS relies not only on specific characteristics of each instrument but also on institutional constraints and messy political considerations. A combination of preferences and institutional factors affect the choice of instruments, and the ultimate decision must be legitimate and instrumental for each context. I analyse the considerations involved in the deployment of the ETS pilot project, looking at its distinctive characteristics and those it shares with other available instruments, as well as the requirements for its implementation. -
Chapter 3. The Political Economy of Regulation: An Analysis of the Mexican Emission Trading System
- Open Access
Download PDF-versionThe chapter delves into the political economy of the Mexican Emission Trading System, hypothesizing that the introduction of carbon pricing policies is influenced by high-interest and high-power stakeholders. Using theory-guided process tracing, it explores the policymaking process of Mexico’s pilot ETS, identifying key stakeholders and their impact on policy stringency. The analysis provides insights into the challenges and opportunities of implementing ETSs in middle-income countries, emphasizing the need for transparency and fair stakeholder engagement. The chapter contributes to the literature on the political economy determinants of national climate action, offering a nuanced understanding of the factors influencing climate policy outcomes.AI Generated
This summary of the content was generated with the help of AI.
AbstractThe chapter argues that the design of carbon pricing policies takes place as a sequential, negotiated process whereby specific constituencies have privileged access to shape policy design because they have high stakes in regulations. These groups, identified ex ante based on the political economy of regulation and a stakeholder approach, exhibit two characteristics: first, they are high-interest actors, as a change in the status quo would impose concentrated costs on them; second, they are high-power actors, since their resources and participation in the national economy make them a critical sector. Using theory-guided process tracing and the policy stages heuristics framework, the empirical analysis explores the policymaking process of the Mexican pilot emission trading system and discusses key features of its design. -
Chapter 4. Moving Towards an ETS in Mexico: The Case of International Cooperation
- Open Access
Download PDF-versionSince signing the UNFCCC in 1994, Mexico has been at the forefront of climate change mitigation efforts, particularly through the adoption of market-based mechanisms. This chapter delves into the political and international context that has driven Mexico's climate agenda, including the establishment of a national carbon market. It highlights key milestones such as the foundation of the Mexican Carbon Fund, the country's participation in international initiatives like the Carbon Pricing Leadership Coalition, and the significant financial and technical support from organizations like the World Bank and GIZ. The chapter also discusses the challenges and opportunities that Mexico faces in fully implementing its Emissions Trading System (ETS) and the potential impact of changing political agendas on its climate ambitions. Throughout, the text emphasizes the crucial role of international cooperation in advancing Mexico's climate goals and the need for sustained political will to ensure the success of its ETS.AI Generated
This summary of the content was generated with the help of AI.
AbstractMexico has participated in different international climate initiatives and has benefited from international collaboration. This cooperation, both at the political and technical levels, has been crucial for the design and implementation of the national carbon market. Through its climate diplomacy leadership, Mexico has played a key role in international carbon pricing initiatives, and in the technical sphere, the country has benefited from peer-to-peer international experiences and knowledge. This chapter analyzes those initiatives and their contribution to continue broadening collaboration towards a carbon market in the country. It explores how recent changes to the environmental agenda, adopted as of 2018 by the new federal administration, could hinder the implementation of the market mechanism.
-
-
Legal Frameworks and Design Perspectives for a Mexican ETS. Building the Blocks
-
Frontmatter
-
Chapter 5. The International Influence of the Emissions Trading System in Mexico
- Open Access
Download PDF-versionThe chapter delves into the global significance of Mexico's Emissions Trading System, tracing its roots back to the Kyoto Protocol and the Paris Agreement. It discusses the international cooperation required to combat climate change, focusing on Mexico's efforts to reduce greenhouse gas emissions through various mechanisms such as the Clean Development Mechanism and the European Union's Emissions Trading System. The text also explores Mexico's Nationally Determined Contributions and the pilot phase of its Emissions Trading System, emphasizing the challenges and potential benefits of such a system in a developing country context.AI Generated
This summary of the content was generated with the help of AI.
AbstractThis article aims to give an overview of the international influence of the Emissions Trading System (ETS) in Mexico. It is divided into three parts. First, it briefly examines both the international Climate Change regime through the description of such instruments as the 1997 Kyoto Protocol and the 2015 Paris Agreement, and the national regime by reviewing as the 2012 General Law on Climate Change (LGCC), the National Emissions Registry (RENE) and its Regulations, as well as other instruments regarding mitigation from carbon tax and clean energy. Second, it analyzes the legal framework of the pilot phase of the ETS in Mexico (under the cap and trade principle) which seeks to reduce carbon dioxide emissions (CO2) only in the energy and industry sectors whose emissions are greater than 100 thousand direct tonnes of CO2. In doing so, it also explains the relevance of implementing an ETS as a cost-effective mitigation measure to achieve the Nationally Determined Contributions (NDCs) in order to reduce 22% greenhouse gas (GHG) emissions by 2030 (increasing to 36% if there is international support and financing) and 50% by 2050 as a developing country. Third, it focuses on the European Union Emissions Trading System (EU ETS) experience and shows that all its phases must be done gradually by adopting the learning-by-doing approach. -
Chapter 6. Particularities of the Legal Framework for the Mexican Emissions Trading System
- Open Access
Download PDF-versionThe chapter examines the legal framework of Mexico's emissions trading system, emphasizing its foundation in international agreements such as the UNFCCC, Kyoto Protocol, and Paris Agreement. It discusses the economic principles and environmental policies that drive this system, including the quantified commitments, flexible mechanisms, and the role of economic instruments. The text also highlights the challenges in implementing a cap-and-trade scheme, such as the need for a reduced emissions cap and the importance of the 'polluter pays' principle. It concludes by stressing the relevance of environmental integrity and the need for common guidelines in international carbon markets.AI Generated
This summary of the content was generated with the help of AI.
AbstractThis paper examines the legal bases for the mandatory regulation of the emissions trading system in Mexico. They are derived from the main international instruments on climate change: the United Nations Framework Convention on Climate Change (UNFCCC) and its ambitious objective, the quantifiable commitment of the Kyoto Protocol, and its tie to economic instruments. The Paris Agreement, the Nationally Determined Contributions (NDCs) and the market mechanisms regulated in Article 6, the implementation of which is essential to achieve the Agreement’s objectives are also part of this broad system. Legally, the international foundations of the emissions trading system are reflected at the national level. For these, the constitutional and legal bases underpin the current regulation of the mandatory market instrument. It aims to effectively reduce, in terms of costs, the greenhouse gas emissions from the most polluting economic activities, without replacing direct control measures. The core aspects of this system are highlighted from a national regulatory analysis, with special emphasis on the importance of a limited cap and its future reduction, as well as the legal nature of allowances that are allocated by the public administration to the regulated industries’ facilities. -
Chapter 7. The Political Economy of Carbon Pricing: Lessons from the Mexican Carbon Tax Experience for the Mexican Cap-and-Trade System
- Open Access
Download PDF-versionThe chapter delves into the political economy of carbon pricing, focusing on Mexico's experience with a carbon tax and cap-and-trade system. It explores the theoretical advantages of carbon pricing, such as efficiency and cost-effectiveness, and the practical challenges faced in implementing these policies. The author discusses the political dynamics and lobbying efforts that shaped Mexico's carbon tax, providing insights into the complexities of designing and enacting climate change mitigation policies. The chapter also offers recommendations for future policy-making, emphasizing the need for broad coalitions, clear long-term trajectories, and effective communication strategies.AI Generated
This summary of the content was generated with the help of AI.
AbstractPrice-based climate change policy instruments, such as carbon taxes or cap-and-trade systems, are known for their potential to generate desirable results such as reducing the cost of meeting environmental targets. Nonetheless, carbon pricing policies face important economic and political hurdles. Powerful stakeholders tend to obstruct such policies or dilute their impacts. Additionally, costs are borne by those who implement the policies or comply with them, while benefits accrue to all, creating incentives to free ride. Finally, costs must be paid in the present, while benefits only materialize over time. This chapter analyses the political economy of the introduction of a carbon tax in Mexico in 2013 with the objective of learning from that process in order to facilitate the eventual implementation of an effective cap-and-trade system in Mexico. Many of the lessons in Mexico are likely to be applicable elsewhere. As countries struggle to meet the goals of international environmental agreements, it is of utmost importance that we understand the conditions under which it is feasible to implement policies that reduce carbon emissions. -
Chapter 8. Carbon Finance and Emission Trading in Mexico: Building Lessons from the CDM Experience and FOMECAR (Mexican Carbon Fund)
- Open Access
Download PDF-versionThe chapter delves into the four distinct stages of carbon markets' evolution, from their inception in the mid-90s to the present, focusing on Mexico's experience with the CDM and FOMECAR. It discusses the lessons learned from these initiatives, such as the importance of transparent emissions data and stringent reduction targets, which are crucial for the successful implementation of a future Mexican ETS. The text also explores the need for robust compliance mechanisms and the potential replication of financial funds like FOMECAR to support the new emissions trading system. By drawing parallels with international experiences and providing a detailed analysis of Mexico's carbon finance history, the chapter offers valuable insights into the design and implementation of a future Mexican ETS.AI Generated
This summary of the content was generated with the help of AI.
AbstractA more general lesson from the past decade is that climate policy and carbon initiatives such as ETS and carbon pricing are not static concepts, but are instead constantly evolving and building upon previous experiences. The vision of a single, top-down global trading system has shifted toward the reality of various single and regional trading system programmes. Building a national emission trading system in Mexico will surely pass through processes and experiences that the country has somehow undertaken from the Kyoto Protocol (KP) in 2005, particularly with the Clean Development Mechanism (CDM), the Mexican Carbon Fund (FOMECAR) and their legacy. Additional design elements or provisions must be prepared under the new ETS in Mexico: regulation will possibly include definitions, scope, compliance obligation, legal procedures and other necessary provisions such as the allocation of permits. However, in order to start the process, important questions on financing the initiative and accompanying the development of an ETS will go through a finance support scenario. Thus, who is going to finance the starting process for allocating emissions, financing bonds and other design issues for the implementation of the Mexican ETS? Who will be financing and offering technical cooperation to follow up on eligible projects for the ETS and who will be supporting education and information activities about ETS implementation? Those and other questions will be addressed in this article, in the light of international and regional experiences. -
Chapter 9. Emission Trading System and Forest: Learning from the Experience of New Zealand
- Open Access
Download PDF-versionThis chapter examines the feasibility of integrating forestry into Mexico's Emissions Trading System (ETS) by drawing lessons from New Zealand's successful implementation. It provides an in-depth analysis of the forestry sectors in both countries, the regulatory frameworks, and the challenges and opportunities associated with such integration. The chapter discusses the strengths and weaknesses of Mexico's current forestry policies and the potential environmental and economic impacts of including forestry in the ETS. It also explores the socio-political dynamics that could influence the successful implementation of such a system in Mexico.AI Generated
This summary of the content was generated with the help of AI.
AbstractIn the area of international policy to mitigate climate change, the forest has been important in achieving the objectives of liable countries. The Emissions Trading System in New Zealand (NZ ETS) is the only case of an ETS integrating forestry as a mandatory actor. This is the result of prolonged political discussions and the characteristics of New Zealand forestry. Forest landowners are liable to surrender allowances for deforestation and can potentially receive allowances for the level of carbon sequestered. This scheme created new opportunities for forestry activities and impacted the decision-making trade-offs related to land-use changes. In Mexico, the implementation of an Emissions Trading System in 2020 is evidence of the country’s commitment to controlling domestic emissions under the Paris Agreement. Nevertheless, for now, the forestry sector is not involved as a liable actor. It is possible to envision the integration of the forest sector because of the extensive forest cover in the country, which provides a livelihood for a large part of the population. Mexico has the experience and institutional framework to integrate forestry into national emission accounting and carbon forest projects in the voluntary market. The potential impacts of this integration are both positive and negative. Environmental impacts are positive because forest areas can help mitigate emissions, but intensive carbon farming disrupts native forests and biodiversity. The economic impacts would be highly favorable for forest landowners if market volatility were controlled, but there is a potential loss of public revenue for the State. Finally, carbon forestry has the potential to cause conflict between economic sectors involved in land use and among participating communities. -
Chapter 10. Non-additionality, Overestimation of Supply, and Double Counting in Offset Programs: Insight for the Mexican Carbon Market
- Open Access
Download PDF-versionThe chapter delves into the complexities of offset programs in carbon markets, highlighting key issues such as non-additionality, overestimated supply, and double counting. It offers a global perspective on these challenges and provides actionable recommendations for the Mexican carbon market, emphasizing the importance of quality projects and transparent accounting systems. The text also explores the role of offset programs in complementing Emissions Trading Systems and discusses the potential for integrating international and voluntary offset programs.AI Generated
This summary of the content was generated with the help of AI.
AbstractMexico utilizes an emissions trading system as one of its carbon pricing instruments. Mexico’s planning, like that of other countries, includes flexible mechanisms such as offsets. Offsets allow market participants to compensate for their emissions through mitigation projects. Offsetting via participation in the Clean Development Mechanism and Joint Implementation was fundamental to the Kyoto Protocol. In contrast, the Paris Agreement is ambiguous about its use. Other national or regional offset programs, such as the EU, Australia, New Zealand, Japan, or Korea, work within emission trading systems. Subnationally, the California-Quebec program has been in effect since 2014. As Greenhouse Gases (GHGs) are global, offsetting allows market participants to compensate for their emissions through mitigation projects, whether domestically or abroad. Given their global scope, such programs present a wide variability in quality. This chapter presents an overview of offset programs worldwide and argues that non-additionality, overestimated supply, and double counting are their three most pressing quality problems. This analysis sheds light upon the nascent Mexican system and its offset program. -
Chapter 11. Capacity Development Associated with the Implementation of Emissions Trading System in Mexico
- Open Access
Download PDF-versionThe chapter delves into the capacity development required for the successful implementation of an Emissions Trading System (ETS) in Mexico. It begins with an overview of international and national environmental governance, emphasizing the role of international organizations in influencing national policies. The text then explores corporate governance, highlighting the need for companies to adapt to environmental regulations and the ETS. The methodology section outlines a proposal for capacity development, focusing on the basic conditions and priorities for stakeholders to execute each phase of the ETS. The capabilities approach, used as a methodological framework, is discussed in detail, along with the evolution from capacity building to capacity development. The chapter concludes with an analysis of results and conclusions, stressing the importance of government innovation and the need for interdisciplinary cadres to ensure the ETS's success. Throughout, the text emphasizes the need for a holistic approach to climate change mitigation, integrating environmental, economic, and social aspects.AI Generated
This summary of the content was generated with the help of AI.
AbstractThe creation of an emissions trading system in Mexico as response to international policy on climate change forces the government and corporations to create new activities and responsibilities to address this issue. It is also important to know who will be the decision-maker and who is in charge of the institutional work (representation and negotiation). The main objective of this chapter is to point out who the stakeholders involved in the design, implementation, evaluation and transparency of the system are, or should be, according to the national regulatory framework and international summons. We shall also analyze the mechanics and information provided by the system and how it helps to make environmental policy, which helps to reduce emissions. Finally, we will also analyze whether it also helps to establish strategic alliances and international agreements toward common objectives and priorities. The chapter approaches the topic based on capacity development theory, which focuses on improving governance among different levels and stakeholders: government, companies, civil organizations, and scientists. We emphasize the potential of training spaces as a place for transformation and developing a learning framework whose own relevance relies on the focus of emergent strategies, which ensure the environmental integrity and conditions for the country’s competence in the international context. This chapter contributes to existing literature about the understanding of executing such a system, the stakeholders involved at the national level, and their potential to create international networks.
-
-
Mexican ETS Connected Issues with the Broader Climate Agenda
-
Frontmatter
-
Chapter 12. The Environmental Justice Dimension of the Mexican Emissions Trading System
- Open Access
Download PDF-versionThe chapter delves into the environmental justice dimension of Mexico's Emissions Trading System (ETS), examining the spatial relationship between regulated CO2 emissions and air pollution exposure. It explores whether vulnerable communities are disproportionately affected by polluting facilities and if the ETS can mitigate these disparities. The analysis shows that high CO2 and NO2 emitters are located near disadvantaged communities, and simulations suggest that the ETS could significantly reduce NO2 emissions in these areas. The chapter concludes by discussing potential policy implications and future research directions to maximize the ETS's environmental justice benefits.AI Generated
This summary of the content was generated with the help of AI.
AbstractEmissions trading systems have the potential of increasing air quality given that GHG emissions are often co-produced with local pollutants such as NOx, SOx, and Particulate Matter (PM). Can emissions trading systems exacerbate or alleviate environmental justice concerns in emerging economies? According to the U.S. Environmental Protection Agency, Environmental Justice is achieved when no group is disproportionately affected by an environmental policy or phenomenon. The main objective of this chapter is to estimate the pollution burden faced by marginalized neighbourhoods in Mexico. This is relevant for Mexico given the beginning of the pilot program of the Mexican Emissions Trading System (ETS) and the country’s history of income inequality and poverty. Using linear regression and two-way fixed effects methods, we found that the highest emitters regulated under the ETS are located near poor populations. We estimated a 5\(\%\) CO2 emissions-reduction scenario corresponding to national targets and associated NO2 emissions to that scenario. We find that this scenario is consistent with a decrease in the exposure of NO2 pollution for the most marginalized neighbourhoods. This chapter also discusses other potential sources of environmental injustice that could result after the beginning of the ETS and the potential to address them. -
Chapter 13. Blue Carbon in Emissions Markets: Challenges and Opportunities for Mexico
- Open Access
Download PDF-versionThe chapter delves into the crucial role of Mexico's blue carbon ecosystems—specifically mangroves—in mitigating climate change through their exceptional carbon storage capabilities. It examines the challenges and opportunities presented by the inclusion of blue carbon in emissions markets, particularly under the Paris Agreement's Sustainable Development Mechanism. The author also discusses Mexico's collaboration with the California cap-and-trade program and presents a case study of the Vizcaino Biosphere Reserve, illustrating the potential for Mexico to enter the blue carbon emissions markets. The chapter concludes by emphasizing the importance of integrating blue carbon into Mexican public policy and the challenges that need to be addressed.AI Generated
This summary of the content was generated with the help of AI.
AbstractMangroves are ecosystems made up of trees or shrubs that develop in the intertidal zone and provide many vital environmental services for livelihoods in coastal areas. They are a habitat for the reproduction of several marine species. They afford protection from hurricanes, tides, sea-level rise and prevent the erosion of the coasts. Just one hectare of mangrove forest can hold up to 1,000 tons of carbon dioxide, more than tropical forests and jungles. Mexico is one of the countries with the greatest abundance of mangroves in the world, with more than 700,000 ha. Blue carbon can be a novel mechanism for promoting communication and cooperation between the investor, the government, the users, and beneficiaries of the environmental services of these ecosystems, creating public–private-social partnerships through mechanisms such as payment for environmental services, credits, or the voluntary carbon market. This chapter explores the possibilities of incorporating blue carbon in emissions markets. We explore the huge potential of Mexico’s blue carbon to sequester CO2. Then we analyse the new market instrument that allows countries to sell or transfer mitigation results internationally: The Sustainable Development Mechanism (SDM), established in the Paris Agreement. Secondly, we present the progress of the Commission for Environmental Cooperation (CEC) to standardize the methodologies to assess their stock and determine the magnitude of the blue carbon sinks. Thirdly, as an opportunity for Mexico, the collaboration with the California cap-and-trade program is analysed. We conclude that blue carbon is a very important mitigation tool to be included in the compensation schemes on regional and global levels. Additionally, mangrove protection is an excellent example of the mitigation-adaptation-sustainable development relationship, as well as fostering of governance by the inclusion of the coastal communities in decision-making and incomes. -
Chapter 14. Relationship Between Emissions Trading System and the 2030 Agenda for Sustainable Development
- Open Access
Download PDF-versionThe chapter delves into the relationship between Emissions Trading Systems (ETS) and the 2030 Agenda for Sustainable Development, highlighting how ETS can contribute to various Sustainable Development Goals (SDGs) beyond climate change mitigation. It begins with an overview of ETS, their relevance, and global examples, including the European Union's ETS and regional initiatives like the Regional Greenhouse Gas Initiative (RGGI) and the Western Climate Initiative (WCI). The chapter then explores the 2030 Agenda, its goals, and how ETS can assist in achieving a wider range of SDGs, such as promoting energy efficiency, sustainable industrialization, and reducing poverty. The case of Mexico's ETS pilot programme is examined, detailing its legal framework, participating sectors, and potential links to Mexico's approach to the 2030 Agenda. The chapter concludes with comments and suggestions on how to move forward with the ETS pilot programme and its impact on the 2030 Agenda, offering a unique perspective on the intersection of climate policy and sustainable development.AI Generated
This summary of the content was generated with the help of AI.
AbstractWith the Paris Agreement and through Nationally Determined Contributions, nation-states have agreed to reduce their emissions of greenhouse gases. Some of them have approached this aspect by setting emission trading systems. In some cases, it is in the regional and sub-national levels where these types of developments are taking place. The relevance of this market-based instrument is increasing over time, to the point of being regarded as a cornerstone of climate change mitigation strategies, despite the lack of global agreement on the matter. The importance of emission trading systems, however, can be observed when assessing their relevance for achieving the 2030 Agenda for Sustainable Development. Implementing them can, and should, assist in reaching diverse targets of different Sustainable Development Goals. This is the case of the goals related to energy, economic growth, inclusive industrialization, sustainable cities, sustainable production and consumption patterns, marine and land life, as well as the climate itself. Then, the relevance of emission trading systems can be observed throughout the whole 2030 Agenda. It is thus in this context that this contribution aims to assess the manner in which this relationship takes place in the global fora and in Mexico. A key argument is that there should be the participation of a wider set of sectors and actors.
-
- Title
- Towards an Emissions Trading System in Mexico: Rationale, Design and Connections with the Global Climate Agenda
- Editor
-
Dr. Simone Lucatello
- Copyright Year
- 2022
- Publisher
- Springer International Publishing
- Electronic ISBN
- 978-3-030-82759-5
- Print ISBN
- 978-3-030-82758-8
- DOI
- https://doi.org/10.1007/978-3-030-82759-5
Accessibility information for this book is coming soon. We're working to make it available as quickly as possible. Thank you for your patience.
