Mexico will launch a cap-and-trade pilot programme in November 2016

The government of Mexico has announced the start of a pilot cap-and-trade programme in November 2016, before implementing a national carbon market in 2018 that will force polluters to offset CO₂ emissions with tradeable certificates. The pilot programme will involve up to 60 companies on a voluntary basis. The government will need to establish a cap on greenhouse gas (GHG) emissions and verify CO₂ emissions and declarations.



Mexican CO₂ emissions from fuel combustion have been rising since 2000, from 347 MtCO₂eq in 2000 to 438 MtCO₂eq in 2015. The country's Intended Nationally Determined Contribution (INDC) unveiled in March 2015 proposes to unconditionally reduce Mexico's GHG emissions and short-lived climate pollutants emissions by 25% below baseline emissions in 2030. This would represent a 22% cut in GHG emissions by 2030. Mexico will seek to decouple GHG emissions from economic growth and to limit the growth in emissions as of 2026: the country aims to cut the GHG intensity (GHG emissions per unit of GDP) by around 40% from 2013 to 2030. The 25% reduction commitment could increase up to 40% in a conditional manner, subject to a global agreement

addressing important topics. Within the same conditions, GHG reductions could increase up to 36% in 2030.