Mexico has started to implement its pilot emission trading scheme (ETS) that was launched on 1 January 2020. The ETS will be implemented in two phases: a three-year test phase allowing companies in the energy and industrial sectors to know the behaviour of an emission market; and the operational phase that will follow on 1 January 2023.
Large emitters involved in the first phase are those emitting more than 100 ktCO2/year - they account for more than 90% of Mexico’s CO2 emissions - including the hydrocarbon industry and power generation. Free emission rights will be assigned in a proportion equivalent to the participants' emissions. Clean energy certificates may not be converted into their equivalent in emission rights or compensation credits. The Secretariat for Energy may implement an auction scheme of the emission rights deposited in the auction reserve without economic effects, as of the second year of the pilot phase (2021).
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