Grupo Bolsa Mexicana de Valores (Grupo BMV) announced the launch of the Mexican Carbon Association, which aims to contribute to the fulfillment of the commitments of the Paris Agreement, achieve the Sustainable Development Goals of Mexico and be able to reduce the impact of companies on the environment.
The states of the Mexican Republic, intermediaries, buyers, service providers and certifiers of the carbon market in Mexico will participate in the Association, who will add their experience to strengthen and consolidate said market.
“The action of governments – federal or state – and of the entire private sector is crucial to generate financial tools that allow preventing, mitigating, reducing and disclosing their greenhouse gas emissions in the most cost-effective way, such as thematic bonds, bonds linked to sustainability, carbon certificates, among others,” said José-Oriol Bosch, CEO of the BMV Group, in a statement.
The Association is an initiative of MÉXICO2, Grupo BMV’s environmental markets platform, and will carry out procedures to promote low-carbon markets.
David Colín, Director of Operations at MEXICO2, pointed out “although Latin America and the Caribbean contribute less than 10% of GHG emissions worldwide, there is great interest in carbon price instruments and five of the large economies in the region have with mechanisms implemented at the national and sub-national levels”.
Mexico has a General Law on Climate Change, created in 2012 and reformed in 2018 to establish the figure of the “National Determined Contribution (NDC)” and its commitment to the set of objectives and goals, assumed by Mexico, in the framework of the Paris Agreement, in terms of mitigation and adaptation to climate change.
Mexico’s efforts to combat climate change are based on the reduction of greenhouse gas emissions through a carbon market. Therefore, it is essential to ensure that carbon transactions and projects are developed under the highest quality standards.
Currently the states of Guanajuato, Querétaro and Sonora are carrying out various activities focused on the mitigation of greenhouse gas emissions, in order to contribute to the fight against climate change.
“Our state promotes a voluntary carbon market aligned with the highest standards of environmental and social integrity, which will promote investment and the transition to a low-emissions economy, aligned with federal goals and international commitments under the Paris Agreement,” María Isabel Ortiz, Secretary of the Environment and Land Management of Guanajuato, said in the statement.
For his part, Ricardo Torres, Querétaro’s Undersecretary of Sustainable Development, mentioned that “Querétaro is one of the pioneering Mexican entities in the implementation of carbon price instruments, aligned with the Carbon Price Declaration updated at COP 26. In addition, , this instrument contemplates a compensation mechanism that will promote the development of local investments in emission reduction projects, aligned with markets in different countries and key to achieving Mexico’s international commitments.”
According to its Nationally Determined Contribution (NDC), it is estimated that Mexico emitted 804 million tons of CO2e in 2020. As a signatory to the Paris Agreement, Mexico commits to reduce its Greenhouse Gases by 22% by 2030. , in the unconditional case.