Download México, parte del Protocolo de Kyoto

CARBON BONDS
Mexico
Bryan, Gonzalez Vargas & Gonzalez Baz, S.C.
Lic. Judith Wilson
BRAMEX CONFERENCE
Sao Paulo, Brazil
October 10, 2008
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BACKGROUND
• United Nations Framework
Convention on Climate Change
(UNFCCC) , 1992
– Conference of the Parties, First Session in
Berlin, 1995
• Kyoto, Japan, December 1997
– Commitment from developed countries to limit or
lower emissions by 5.2% from 1990 levels
– Took effect as of February 16, 2006
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MEXICO, NON-ANNEX I PARTY
TO THE KYOTO PROTOCOL
• Mexico signed the Kyoto Protocol on June 9, 1998,
- Ratified it on September 7, 2000 and
- Became effective on February 16, 2005.
• In 2004 the Mexican Committee for Emission
Reduction Projects and Capture of Greenhouse Gases
was created which is the Designated National
Authority under the Climate Change Commission
(Comision Intersecretarial de Cambio Climatico).
• As an emergent economy, Mexico has the primary
obligation of reporting its greenhouse gases by
inventories denominated National Communications
and up to 2006 it was the only country to have
submitted three National Communications.
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KYOTO MECHANISMS
• Emissions Trading (also known as “the
carbon market“) – Article 17
Trading Unit: Assigned amount units (AAU)
• Joint Implementation (JI) – Article 6
Trading Unit: Emission Reduction Units (ERU)
• Clean Development Mechanism (CDM)
– Article 12
Trading Unit: Certified Emission Reductions (CER)
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EMISSIONS TRADING
• Parties with commitments under the Kyoto
Protocol (Annex B Parties) have accepted targets
for limiting or reducing emissions. These targets
are expressed as levels of allowed emissions, or
“assigned
amounts”
over
the
2008-2012
commitment period. The allowed emissions are
divided into “assigned amount units” (AAUs).
• Emissions trading allows countries that have
emission units to spare - emissions permitted
them but not "used" - to sell this excess capacity
to countries that are over their targets.
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JOINT IMPLEMENTATION
(JI)
• This mechanism allows a country with an emission
reduction or limitation commitment under the
Kyoto Protocol (Annex B Party) to earn emission
reduction units (ERUs) from an emission-reduction
or emission removal project in another Annex B
Party, each equivalent to one tonne of CO2, which
can be counted towards meeting its Kyoto target.
• Mexico is not involved in any JI Project
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CLEAN DEVELOPMENT
MECHANISM (CDM)
• Under the Clean Development Mechanisms (CDM),
greenhouse gas emission reduction projects in
development countries can earn saleable emission
offset
credits,
called
Certified
Emission
Reductions (CERs), each equivalent to one tonne
of carbon dioxide. Countries with an emission
reduction or limitation commitment under the
Kyoto Protocol can use the Certified Emission
Reductions (CERs) to meet a part of their
obligations under the Protocol.
• A CDM project must provide emission reductions
that are additional to those without the project.
The projects must qualify through a rigorous and
public registration and issuance process. So far,
CDM projects have generated more than 135
million Certfified Emission Reductions (CERs).
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TRADING UNDER CDM
Emissions without a project
Excess Emissions
CERs
Limit of Emissions Authorized
Emissions with a project
Buyer
Annex I country
(Governments,
Individuals,
Companies, any
Legal entity,
Funds)
Seller
Non-Annex I
Parties to the
Kyoto Protocol
(Development
Countries)
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Clean Development Mechanism
SELLERS IN MEXICO
www.cdmbazaar.net has been launched by the
UNFCCC to facilitate exchange of information among
buyers, sellers and service providers engaged in the
Kyoto Protocol’s Clean Development Mechanism
(CDM).
• TÚ TRANSFORMAS
– Sectoral scopes: landfill gas, energy efficiency, renewable
energy, industrial gases abatement.
• GIRA
– a Mexican non-governmental organization which objective-related
activities are conducted on three areas: 1) rural energy; 2)
agroecology; and 3) community forestry
• Ejido of Felipe Carrillo Puerto, Mayan zone of
Quintana Roo State
– Forest management and reforestation and efficient
cookstoves
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CDM PROJECT
CERTIFICATION PROCEDURE
1.
2.
3.
4.
5.
Design
Validation
Registration
Implementation
Operation
No Objection Letter
a. Monitoring
b. Reporting
6. Verification
7. Issuance of CERs
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Slide on
Chart taken from the UNFCCC
http://unfccc.int
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PARTIES INVOLVED
Designated National
Authority:
Comisión Intersecretarial de Cambio Climatico
Blvd. Adolfo Ruiz Cortines 4209,
Cuarto Piso, Ala A,
Jardines en la Montaña, Delegación Tlalpan,
C.P.014210 México, D.F.
Project developer/
Operator
CDM Investor/
CER purchaser
Designated Operational
Entity:
either a domestic legal entity or an international
organization accredited and designated,
on a provisional basis until confirmed by the CMP
by the Executive Board (EB).
CDM Executive
Board
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CDM PROJECT TYPES
• Energy efficiency
• Methane recovery (landfills and water treatment
plants)
• Industrial process changes
• Cogeneration (use of waste heat from electric
generation)
• Transport (efficiency improvements, fuel
substitutes)
• Agricultural sector (reduction of any category of
greenhouse gas emissions)
• Land use (afforestation and reforestation)
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BIOGAS FROM LANDFILL
The installation of a methane collection system,
involves the following:
• Collection facilities – vertical and horizontal gas
wells
• Vacuum and yielding systems - pipes and
vacuum fans
• Measure/analysis system – measures biogas to
be burned/analyzes amount of methane
• Energy production system – in Mexico it is
commonly used for Municipal’s own consumption
• Alternatively, incineration: wellheads, blowers
and gas cleanup equipment. Flares collection
facilities.
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Abbreviated Landfill Authorization
Process
• Appointment with local Authorities
• Presention of the Project before Municipal
authorities and Mayor
• Undertake preliminary feasibility studies
• Negotiate Concession Contract
• Registration of the CDM Project with the
UNFCCC
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• Development of the Project
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GHG MEXICO
The GHG Mexico Program is a voluntary national program of
accounting and reporting Green House Gases (GHG) and also a
program to generate emission reduction projects. The program
arises from the initiative as a response of the industrial sector to
adopt voluntary actions to fight the climate change.
Under the affirmation of "which is not measure, cannot be
controlled", the program focuses in developing the technical
capacity for the quantification of GHG emissions because if you
can know the concentrations and the emissions sources, it is
possible to identify opportunity areas, thus, reduce these
emissions and develop reduction projects.
GHG Mexico Program is focused in two aspects:
• Corporative GHG inventories and
• Promotion of GHG emission projects
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GHG Mexico Program is coordinated by SEMARNAT and the
Commission of Studies of the Private Sector for the Sustainable
Development (CESPEDES), with technical support of the WorldResources Institute (WRI) and World Business Council for
Sustainable Development (WBCSD).
© Bryan, Gonzalez Vargas & Gonzalez Baz, S.C. 2008
Objectives
GHG Mexico Program’s objective is to develop corporate capacity
for:
a) Preparing effective corporative GHG inventories
b) Quantifying and documenting projects for emissions reduction.
The program provides a portfolio of resources and services
including the qualification and tools of calculation, it facilitates the
effective management of GHG as corporative scale as to project
scale; what allows the participant:
- To evaluate the risks and opportunities related to GHG
- To identify measures of efficiency and preservation; and
- To evaluate projects of GHG reduction.
GHG Mexico Program helps participants to position themselves at
a competitive level in a world more and more restricted in GHG
emissions, helping them in the management of these emissions
and with its participation in carbon markets through an action and
learning process. At the same time, the Program helps to increase
the related institutional capacities for the climate activities at the
governmental organizations and nongovernmental organizations,
as well as to increase the disclosure of information required from
the stockholders and other members of the entity.
http://www.geimexico.org
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COOPERATION BETWEEN
MEXICO AND THE WORLD
BANK
Mexico leads in the implementation of donations from
the Global Environment Fund (GEF), and in carbon funds
administered by the World Bank, which generate
additional financial income through the sale of nonemitted carbon emissions by creating clean energy
projects.
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COOPERATION BETWEEN MEXICO AND THE WORLD BANK
This operation builds on the Bank's engagement in the energy
and natural resources sectors in Mexico, and on the climate
change activities already supported by the Bank in Mexico.
•
•
Activities started back in the mid-1990s.
Now comprises 26 active initiatives, financed by:
-International Bank for Reconstruction and Development
(IBRD) loans,
-Global Environment Facility (GEF) grants,
-Carbon finance emission reductions purchase agmts
-Grants for capacity building in the carbon finance area,
-Grants for economic sector work and knowledge
products.
Objectives of the Engagement:
(a) Support for adaptation
(b) Policy development and institution building
(c) First-of-a-kind mitigation projects and programs, and
(d) Identification and promotion of short-term and longterm mitigation options.
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COOPERATION BETWEEN MEXICO AND THE WORLD BANK
•
Washington, DC October 2, 2008—The World Bank Board of
Directors approved a loan for US$300.75 million to assist the
Mexican government in its effort to better integrate sector
policies in order to achieve a balance between socioeconomic
development and environmental protection and improvement.
•
The amount is complementary to previous loans –US$501.25
Million approved last April for climate change, among others–
and seeks to establish the considerations on the subject of
environmental integration in public policies.
•
The project is a part of the new Country Partnership Strategy
that the World Bank signed with Mexican authorities last April, in
line with the five pillars of the National Development Plan 2007
– 2012.
•
This is a US$300.75 million fixed spread loan with a 15 year
grace period and a total repayment period of 15 years. The front
end fee is equivalent to 0.25 percent of the loan and capitalized.
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ADVANCES IN CLIMATE
CHANGE
•
National Emissions Inventory (INEGEI -2002)
•
3rd National Communication
•
National Strategy on Climate Change
•
CDM Projects
•
Mexican Carbon Fund (FOMECAR)
•
GHG Mexico Program: 45 participating entities,
emissions reports of 89 million tons of CO2 in 2005
•
Educational Programs
•
Promotion on Research, incentives, sponsorship
support by various governmental programs
30
and
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ADVANCES IN CLIMATE
CHANGE
• Mexico generates 2.0% of the emissions per capita of
greenhouse gases, however, it states in place 13 on
what respects to the quantity of carbon dioxide
emissions worldwide.
• National Ecology Institute, in compliance with the
commitments by the Mexican Government, created a
website to provide public updated information on
climate change.
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http://cambio_climatico.ine.gob.mx/
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CONCLUSIONS
• Mexico is getting profit from the opportunities that the
Kyoto Protocol provides through the marketing of
carbon bonds.
• Up to now, Mexico has authorized 97 projects that
would allow the reduction of approximately 6.4 million
tons of carbon dioxide yearly, which positions Mexico in
fourth place with more projects registered on the Clean
Development Mechanism.
• Mexico can receive up to 150 million dollars annually by
the sale of carbon bonds if it shows that greenhouse
gas production has been controlled.
• Mexico has a potential for emissions mitigation of 80
million tons of carbon dioxide yearly, amount that could
be reached by the use of aeolian, solar, or mini
hydraulic energy.
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