CARBON PRICING ENERGY POLICY NEXUS & MARKET INSTRUMENTS, A VISION FROM MEXICO

Transcription

1 SEMARNAT SECRETARÍA DE MEDIO AMBIENTE Y RECURSOS NATURALES CARBON PRICING ENERGY POLICY NEXUS & MARKET INSTRUMENTS, A VISION FROM MEXICO Partnership for Market Readiness November 2014

2 CLIMATE CHANGE LAW ACCOMPLISHMENTS April 28 SPECIAL PROGRAM 1 o de diciembre January 29 CLIMATE CHANGE INTERMINISTERIAL COMMISSION 14 Secretariats June 3 NATIONAL STRATEGY FOR CLIMATE CHANGE Vission FOR CLIMATE CHANGE January1 CARBON TAX January1 NATIONAL EMISSIONS REGISTRY October 10 LGCC May 14 CLIMATE CHANGE COUNCIL December Congress approves an ENERGY REFORM November 30 CLIMATE CHANGE FUND November 14 Congress approves a CARBON TAX For fossil fuels June ENERGY REFORM BYLAWS October REGULATIONS

3 ENERGY REFORM IN MEXICO - In December 2013 the Mexican Congress modified the Constitution, allowing domestic and foreign private investment in the energy sector. Also promotes renewables - Power Sector. Private parties will be allowed to participate in service contracts in the generation, transmission and distribution of electricity. - Special policies can be developed promoting the use of renewables A new market instrument described by law: Certificados de Energía Limpia (Clean Energy Certificates) First regulations in the use of the instrument were published last week Use of Certificates Emission Mode of allocation Modes of exchange Trade requirements Trade platform Time lines

4 NATIONAL EMISSIONS REGISTRY National GHG registry by law. Emissions reporting will start in 2015 for 2014 SOURCES: Stationary and Mobile TYPE: Direct and Indirect emissions GREENHOUSE COMPOUNDS: CO 2, CH 4, N 2 O, SF 6, HFCs, PFCs, HCFCs, NF 3, and Black Carbon THRESHOLDS: > to 25,000 ton CO 2 e/year, (more than 95% of emitters covered) MRV: Verification every 3 years SECTORS: Industry, Energy, Transportation, Waste, Agriculture and Services

5 CARBON TAX A Carbon Tax was introduced in January 2014 Applies only for the use of fossil fuels The Tax is intended to create awareness of CO2 emissions, pu ts a price to carbon and promotes the use of cleaner fuels (price wasset at $3.5 US$/tCO2e) It also allows use of offsets (CDM) Natural gas was exempted Estimated revenue: approx $US 1Bn Transferred to Finance Dept by first producers/importers

6 CARBON TAX 0.0 /l 6.60 /l /l /l /l /l /l $/ton $/ton 15.6 $/ton $/ton

7 Expected reduction of emissions for 2014 Natural gas Gasoline Petroleum Coke Diesel Fuel oil LPG (Million tons of CO2) Initial proposal Approved La generación de escenarios de crecimiento urbano permite 0.0 comprender las implicaciones de la expansión de las ciudades. Reduction of CO 2 emissions in 2014 (Mt/CO 2 ) % of Mexico s total emissions Proposal % Approved % Source: Centro Mario Molina.

8 Expected tax revenue for 2014 (Million pesos per year) La generación de escenarios de crecimiento urbano permite comprender las implicaciones de la expansión de las ciudades. Tax revenue 2014 (million pesos) % of total tax revenue of Federal Government (2012) Proposal $ 26, % Approved $ 11, % Source: Centro Mario Molina

9 NATIONAL NAMA REGISTRY (23 REGISTERED) Execution (1) Government 9 Private sector 11 Other 3 Pilot (4) Design (9) Idea (9) 1. NAMA for sustainable new housing in Mexico 2. NAMA for existing houses in Mexico 3. Green Roads Program (replacement of diesel urban public transport units for units on natural gas 4. Energy efficiency in Federal Freight Transportation 5. NAMA for the Pulp and Paper Industry 6. Urban NAMA: Designing Sustainable Communities 7. Low Emission Schools 8. Federal Cargo NAMA for single unit owners and small companies 9. Photovoltaic generation in the manufacture export industry 10. Integrated Urban Mobility Systems 11. Cogeneration in the Mexican Oil & Gas sector 12. Fugitive Emissions Reduction in Natural Gas Processing, Transport and Distribution 13. Domestic Refrigerators NAMA 14. Cement Industry 15. Reduction of fluorinated gases emissions in refrigeration, ACs and polyurethane foams 16. Renewable energies 17. Fuel replacement for thermic energy generation in the private industry 18. Fuel replacement for electricity generation 19. Solid waste and biomass 20. Vehicle fleet renewal in Mexico 21. Cogeneration in Mexico 22. Solar heaters 23. Concrete eco stoves

10 NAMA NOT YET REGISTERED (15 PROJECTS) Execution (1) Government 8 Private sector 3 Other 4 Design (3) Idea (11) 1. Energy efficiency in small and medium companies (tourism sector) 2. Urban logistics for Freight Transport 3. Burners and steam systems in the Mexican Oil and Gas Industry 4. Mining industry 5. NAMA for the brick industry 6. NAMA project for sugar mills 7. NAMA for the marine sector 8. NAMA for the conservation and restoration of livestock and agricultural lands in Mexico 9. NAMA for rural waste energy recovery 10. Wastewater treatment NAMA 11. Water efficiency practices 12. Energy efficiency and water savings in home appliances 13. Chemical industry, detergents and synthetic resins subsector 14. Mining industry 15. Steel industry

11 LINKING TO OTHER MARKETS LOOKING FOR OPPORTUNITIES Some of Mexico s capability as Offset provider for North American Carbon Markets Offset market size Market MtCO 2 California Quebec 4.32 RGGI 3.0 Mexico s Potential in MtCO 2 e Accepted Sectors for Offsets in North American Markets 2.83 Manure management from CDM 8.60 Forestry Mexican Norm (in development) 2.58 Ozone depleting from CDM tbe Soil restoration in cattle farms from NAMAs 3.07 Waste management from CDM 2.20 End use energy efficiency from Housing NAMAs Total from CDM and NAMAs

12 SEMARNAT Luis Muñozcano Álvarez Deputy Director General for Climate Change Projects