CLIMATE CHANGE

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SEMARNAT MEXICO
CLIMATE CHANGEA PERSPECTIVE FROM MEXICO Seminar
of Governmental Experts Bonn, 16-17th of May,
2005
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As a developing country, Mexico

• adopts poverty erradication as an absolute
  priority
• avoids policies that may jeopardizedevelopment/
  economic growth
• perceives climate change as both a threat and an
  opportunity to foster sustainable development
• is risk-averse climate change impacts/ response
  measures

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Climate Action

• Strengthening national capacities is the
  foundation for improved output in terms of GHG
  emissions
• A step-by-step process involving subsequent
  cycles capacity/ P Ms/ actions/ monitoring/
  evaluation

• Setting up institutions
• Administration
• Law / Regulations
• Functional clusters

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Institutional Development

• Office of Climate Change at SEMARNAT (2003)
• Intersectoral Committee for Climate Change
  Mitigation Projects (NDA) (early 2004)
• Climate Change Committee for the Energy
  Sector (February, 2005)
• InterMinisterial Climate Change Commission
  April 25, 2005
• Law on Renewable Energy (in progress)

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Seven Functional Clusters

• Preparation of GHG inventories Natl Coms
• Formulation of CC policies (incl. reporting,
  monitoring, assessment)
• Intersectoral, multilevel coordination
• Research Development on CC
• Promotion control of mitigation projects
  (AIJ, CDM) adaptation projects
• Participation of civil society in CC policies
  (business,NGOs, other stakeholders)
• Effective participation in CC negotiations

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Functional Development I

• Virtual Cap Trade for CO2 throughout the Oil
  Gas sector (PEMEX, the State monopoly)
• Workshops promoting CDM in different States
• Governmental promotion of the GHG Protocol
  (WRI/ WBCSD) setting up of two pilot groups of
  public and private enterprises, including entire
  productive sectors
• First Non-Annex I country to produce a Second
  National Communication (2001)

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Functional Development II

• Currently working on
• A new Inventory of GHG Emissions from all
  sectors (ready end 2005)
• New National Strategy for Climate Action, in
  collaboration with the Mario Molina Center and
  academic / business institutions (ready end
  2005)
• Third National Communication (published end
  2006)

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CDM a failed opportunity?

• In Latin America CDM induced positive
  institutional arrangements
• CDM has not lived up to expectations so far
• Areas of dissatisfaction in Mexico
• CDM unable to strike an adequate balance between
  effectiveness and environmental integrity
• Crippling transaction costs
• Insufficient flow of approved methodologies/
  projects
• CDM may become a perverse incentive preventing
  developing countries from mobilizing its own
  potential to a full extent

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Some conceptual standpoints I

• Short term / long term Current action is
  framed by some vision of what might be the
  medium / long term evolution of the
  international climate regime
• Advanced developing countries In the context of
  common but differentiated responsibilities,
  further differentiation among developing
  countries should be effected
• Inaction Other Parties inaction or
  non-compliance should not be an excuse for not
  carrying out ones own best efforts. It may
  however affect nature and scope of commitments

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Some conceptual standpoints II

• Action / commitments For the scope of meeting
  the ultimate objective of UNFCCC, progressive
  climate action is more significant than the
  adoption of legally binding commitments,
  especially if the latter are limited to ensure
  compliance
• Compliance Buying in external carbon markets or
  facing sanctions for non-compliance would be
  socially /politically unacceptable
• Equity Equity concerns essential. Per capita
  emissions and their evolution should play a more
  central role in the international regime
• Flexibility National circumstances
  differentiated needs. Flexible convergence of
  per capita emissions

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Flexibility in the convergence process f1 f2
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To be discussed...

• Types of commitments
• Binding vs non-binding Pledge Review...
• Commitment contents
• From projects to entire economic sectors
• P M, CC / Environmental Regs
• Dynamic targets
• GHGs / GDP may be flawed
• Carbon efficiency standards
• GHGs / ton of cement, steel, Al, thermal KWh,
  ton road freight, etc
• Incentives for overcompliance

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THANK YOU