ALLCOT follows up on the Public Consultation of the Agreement that establishes the preliminary bases for the Mexico cap-and-trade Pilot Programme

In addition, the company continues to encourage its clients to review this agreement, to those who have not yet done so, and to provide timely follow-up to their comments.

Mexico will gradually establish an Emissions Trading System with the objective of promoting emission reductions that can be carried out at the lowest possible cost, in a measurable, reportable and verifiable manner, without harming the competitiveness of the participating sectors, considering the international markets.

For the implementation of the Emissions Trading System, the preliminary bases for a Pilot Program will be established without economic effects for the participating sectors, which will be valid for thirty-six months.

To implement this Pilot Program, some meetings were held between the Ministry of Environment and Natural Resources and the representatives of the participating sectors. In addition, companies in the sector such as ALLCOT are contributing their comments and reflections so that this initiative works as well as possible.

Thus, the Agreement establishing the preliminary bases for the Emissions Trading System Piltot Program will be applicable to facilities that carry out activities only in the energy and industry sectors.

For the energy sector, these bases will be applicable to the subsectors of exploitation, production, transportation and distribution of hydrocarbons and to the subsector generation, transmission and distribution of electricity. For the industrial sector, these bases will be applicable to the subsectors of the automotive, cement and lime industry, chemical industry, food and beverage industry, glass industry, steel industry, metallurgical industry, mining industry, petrochemical industry, pulp industry and paper and other industrial subsectors that generate direct emissions from fixed sources.

This Agreement shall apply to facilities whose annual emissions are equal to or greater than 100 thousand tons of direct emissions of carbon dioxide from fixed sources in the sectors indicated above.

Reflections of ALLCOT

In response to this agreement, as stated above, ALLCOT has been participatory. It was one of the companies that submitted comments on the CONAMER link regarding the public consultation of the Agreement on the preliminary bases of the pilot program. So far there have not been many who have responded, so we encourage you to do it here

ALLCOT suggested technical questions about the program, mainly with respect to offset credits. In addition, he expressed concern about a limitation the company considers important: who participates in this pilot programme cannot participate in other markets. ALLCOT calls for more flexibility in this regard, as is the case with the Law of South Africa, which allows negotiation with CDM credits.