International Experiences and Lessons to Inform the Development of Mexico's ETS (May 2014)

The workshop was jointly organized by the Ministry of Energy (SENER), Ministry of Environment (SEMARNAT) and the PMR. It brought together international experts with Mexican policy makers and stakeholders to share information and discuss the key design features and lessons learned from ETS in various jurisdictions. The closed door working meeting was aimed to inform Mexico’s current plans and decision-making process on design options and challenges to develop a domestic ETS for Mexico’s power sector.
Date: 
May 08 - 09, 2014
Venue: 
Mexico City, Mexico
Day 1: May 8, 2014
1. Opening and Introduction
9:00
Efraín Villanueva, SENER, Mexico
Luis Muñozcano, SEMARNAT, Mexico
Xueman Wang, PMR Secretariat
2. Regulatory Framework and Energy Sector in Mexico
This was an introduction to the national context, including existing and planned targets, policies, and instruments of Mexico’s climate change policies and legislation. In addition, presentations covered the energy sector: status of development and reform.
9:30
Chair: Efrain Villanueva, SENER
10:30 Break
3. Decision Making and Policy Choice – Why an Emissions Trading Scheme?
This session included an overview of existing and emerging ETS around the world by the Secretariat. Then, experts shared their experince from policy mapping and reasoning for an ETS.
10:45
Chair: Luis Muñozcano, SEMARNAT
Felix Matthes, Öko-Institut
EU: Policy Mapping and Interactions
Edie Chang, Air Resources Board, California
California: Policy Mapping
Will Space, Massachusetts Department of Environmental Protection, RGGI
Regional Greenhouse Gas Initiative
Tang Jin, SinoCarbon, China
China: Decision Making and Policy Choice
12:30 Lunch
4. Key Design Features of ETS
The main focus of this workshop was to go through key deisgn features of an ETS. In each session, Mexico shared its views on implementation challenges whilte the EU, California, RGGI, and China shared their experience from designing an ETS. The topics were:

- Scope, Point of Regulation, Cap Setting, and Allocation
- Key Technical Components: MRV, Data and Registry
- Cost Containment Measures and Use of Offsets
- Auctions and Use of Revenues
- Enabling Trading and Business Preparation
- Institutional Arrangement for ETS
14:00
Chair: Xueman Wang, PMR Secretariat
Felix Matthes, Öko-Institut
EU: Cap Setting and Allocation
Edie Chang, Air Resources Board, California
California: Scope, Point of Regulation, Cap Setting, and Allocation
Will Space, Massachusetts Department of Environmental Protection, RGGI
RGGI: Cap Setting and Allocation
Tang Jin, SinoCarbon, China
China: Cap Setting and Allocation
15:00
Felix Matthes, Öko-Institut
EU: Key Technical Components - MRV, Data, and Registry
Edie Chang, Air Resources Board, California
California: MRV, Data, and Registry
Will Space, Massachusetts Department of Environmental Protection, RGGI
RGGI: Key Technical Components
Tang Jin, SinoCarbon, China
China: MRV, Data, and Registry
16:00 Break
16:15
Felix Matthes, Öko-Institut
EU: Cost Containment Measures and the Use of Offsets
Edie Chang, Air Resources Board, California
California: Cost Containment Measures and the Use of Offsets 4
Will Space, Massachusetts Department of Environmental Protection, RGGI
RGGI: Use of Offsets
Tang Jin, SinoCarbon, China
China: Use of Offsets
17:15
Felix Matthes, Öko-Institut
EU: Auctions and the Use of Revenues
Edie Chang, Air Resources Board, California
California: Auctions and the Use of Revenues
Tang Jin, SinoCarbon, China
China: Institutional Arrangement
18:15 Wrap up
End of Day 1
Day 2: May 9, 2014
5. Key Design Features of ETS (cont.)
9:00
Ÿ Felix Matthes, Öko-Institut
EU: Institutional Arrangements for ETS
Ÿ Edie Chang, Air Resources Board, California
California: Institutional Arrangements for ETS
Ÿ Will Space, Massachusetts Department of Environmental Protection, RGGI
RGGI: Auction Mechanics
Ÿ Tang Jin, SinoCarbon, China
China: Carbon Allowance Auction
10:00
Ÿ Felix Matthes, Öko-Institut
EU: Auctions and the Use of Revenues
Ÿ Edie Chang, Air Resources Board, California
California: Auctions and the Use of Revenues
Ÿ Will Space, Massachusetts Department of Environmental Protection, RGGI
RGGI: Auction Mechanics
Ÿ Tang Jin, SinoCarbon, China
China: Carbon Allowance Auction
11:00 Break
6. Lessons Learned and Conclusion
11:15
General Discussion: Key Lessons Learned and Conclusions
12:30 Lunch
Working Meeting: Roadmap for Design of ETS for Power Sector in Mexico
The last session covered key issues and challenges for ETS development in Mexico’s power sector. More specifically, participants assessed options, discussed a roadmap and timetable for ETS development in Mexico, and planned activities for PMR support.
14:00
Chair: Xueman Wang, PMR Secretariat
17:30 Wrap up
End of event