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ARTICLE · 26 FEBRUARY 2020

Initial Rules Issued For Mexico's Carbon Market Program

Jones Day
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Mexico's National Carbon Market Pilot Program was published last fall by the Ministry of the Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales, or "SEMARNAT") ...

MexicoEnergy and Natural Resources
Mauricio Llamas
Mauricio Llamas
Mauricio Villegas
Mauricio Villegas
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Mexico's National Carbon Market Pilot Program ("Pilot Program") was published last fall by the Ministry of the Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales, or "SEMARNAT") (see "Mexico's Carbon Market Pilot Program," The Climate Report, Fall 2019), and was formally initiated on January 1, 2020. SEMARNAT has now published initial rules for the Pilot Program.

Greenhouse Gas Emissions ("GHG") Cap. As established by the Pilot Program, SEMARNAT has published on its website an annual cap of 271.3 million emission rights for 2020 and 273.1 for 2021, applicable to the energy and industrial sectors as a whole ("Emission Rights").

The publication includes the Emission Rights allocation for 2020 and 2021 based on the mentioned cap. In general terms, the electricity generation, cement, and oil and gas production sectors will receive the highest amount of Emission Rights, followed by the chemicals refining and metallurgic sectors. Also,

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