Technical support and high-level capacity building in Mexico's emissions trading system (ETS) and sub-national carbon pricing instruments with a focus on carbon taxes

This assignment aims to provide tools to the Mexican Secretariat of Environment and Natural Resources (SEMARNAT), other governmental agencies, and regulated private entities to make decisions grounded in the best available knowledge and the most up-to-date international experience on the design, implementation, and interaction of carbon pricing instruments (CPIs). The aim is to :

• support the transition from the Mexican ETS pilot phase to its operational phase through informed and science-based policy decisions;
• ensure policy coherence by assessing the design, implementation, and interaction between different CPIs in Mexico, such as the ETS, the national carbon tax, subnational carbon taxes and carbon crediting schemes; and
• facilitate dialogue between and strengthen the capacities of different governmental institutions and regulated entities with a view to ensuring their effective participation in the design and implementation of CPIs .

In this project, Oeko-Institut focuses on providing insights into allowance auctioning and on how to align the Mexican ETS with the Mexican Nationally Determined Contribution (NDC).