Download Mexico´s dependance on fossil fuels and Climate Change policy

UICN ACADEMY OF ENVIRONMENTAL LAW 2011 COLLOQUIUM: SOUTH AFRICA
Mexico´s dependence on fossil
fuels and Climate Change policy
Payment for hydrological services as a tool for climate change
adaptation
José Juan González
Metropolitan Autonomous University
Mexico
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A. Vulnerability to climate change
Mexico is responsible for no more than 1.6% of the
world´s total fossil fuel-based carbon emissions, placing
it thirteen in the rank of emitter countries.
However, because of its geographical conditions,
Mexico is very vulnerable to climate change. Every state
in the Mexican Federation is confronted with at least
one considerable threat from climate change effects.
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 Agriculture, health and water are sectors particularly
vulnerable.
This applies especially in the northern parts of the country,
where water scarcity is a central issue, and in the southern
parts of the country, where tropical storms cause extensive
damage to crop and livestock production.
It is expected that, by 2030, over-exploitation and pollution
of aquifers will make all irrigation districts economically
unsustainable.
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B. Mexican Dependence on
Hydrocarbons
 Given that the main source of CO2 emission is fossil
fuel combustion (it contributes to 62% of the total
emissions) it is logical to conclude the mitigation of
climate change is possible by the simple substitution
of traditional sources of energy by renewable sources
of energy. Specially if we take into account that
Mexico has a huge potential of renewal sources such
as hydro, geothermal and wind energy.
 However, given the Mexican dependence on oil
sector it seems like the substitution of hydrocarbons
is not possible in the short term.
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C. Moving towars renewables
 It is important to mention that hydrocarbons are the main source of
energy because they provide 75% of the total energy that Mexico
consumes; they are also the main source of public revenue because
10% of the GDP comes from oil exportations and finally,
Hydrocarbons sector is the main generator of welfare. For instance
together the public monopoly of oil exploration and exploitation
and the public monopoly of electricity generation provides 247 000
employs.
 In addition, whereas Mexican production of hydrocarbons is
dramatically decreasing during the last years, its consume is
increasing. Mexico has passed of being exported to be importer of
gas, gasoline and other products of oil.
 So, the alternative, especially in the case of waters, is adaptation to
climate change effects.
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E. Adaptation to Climate Change. The
case of Rio Lerma´s Basin
 Rio Lerma´s Basin in one of the most important . I
crosses the country from the center to the occident
(5 States) and represents 7% of the national territory
where there are 19 million of inhabitants.
 It has a per-capita availability of 513 m3/year and
includes 4 big lakes (Chapala, Cuitzeo , Patzcuaro and
Yuridia ).
 The region produces the 17% of the GDP.
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E. Adaptation to Climate Change. The
case of Rio Lerma´s Basin
 The basin is over exploited and is facing problems of:




progressive pollution of waters,
relative scarcity of its caudal,
increasing demand, and
lack of access to the waters resources.
 These problems can not be addressed by using
traditional tools (NWA).
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F. The Bill for payment of
hydrological environmental services

Those using environmental services are obliged to pay to suppliers.

Environmental services : Activities address to increase water availability

Suppliers: Forest owners as well as those holders that do not use their waters concession

Users of Environmental Services; Those urban settlements, Industries , tourists companies etc.

Instruments:




The Fund
The environmental tax
The Certificate of Environmental Services
The Unit of Environmental Services
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Hydrological services as defined by the
bill include:
 Non use of previously allocated or assigned waters
 Saving water from introduction of high tech
agricultural irrigation systems
 Good Agro-forest Management
 Water rights markets
 Conservation of wetlands
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The Environmental Services tax
The bill introduces the environmental services Tax.
Those using national waters under an assignment or
an allocation are obliged to pay the tax.
The tax is 0.50 USD monthly.
Tax revenue are addressed to the Fund for Payment
of Environmental Services.
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Users of
Environmental
Services
TAXES
NATIONAL
WATERS
COMMISSION
A
D
D
R
E
S
S
UNIT OF
ENVIRONMENTAL
SERVICES
FUND FOR
PAYMENT OF
ENVIRONME
NTAL
SERVICES
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Technical
Council of E.
S.
Allocation
process
BONUS
PAYMENT
R
E
G
I
S
T
E
R
E
S
C
B
O
N
U
S
Suppliers of
Environmental
Services
Final Considerations
 The bill is currently under consideration of the National
Waters Commission.
 After that Executive could sent the bill to the Federal
Congress.
 Water users in the basin agree on the idea of paying for
environmental services.
 Those providing environmental services have expressed
interest in the proposed model.
 Approval by the Federal Congress is required.
 Congressmen do not easily accept incorporation of non
traditional instruments.
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