Mexico First Carbon Offset Market of the Region

Following in the wake of the institution of national climate change legislation (2012) and a national carbon tax on fossil fuels (this legislative session), Mexico’s financial exchange, Bolsa Mexicana de Valores (BMV), is finalizing the launch of the first carbon offset credit exchange in the Latin American region.

Dubbed MEXICO2, the carbon credits exchange will offer public and private sector organizations a financial incentive to “green” their activities by developing projects that mitigate climate change and reduce carbon and greenhouse gas emissions, such as forest conservation, sustainable agriculture and renewable energy systems deployment. On the other side of transactions, polluters will be able to offset their emissions by purchasing credits, and use the expense to offset any carbon tax they may incur.

A nationwide platform for reducing carbon emissions, spurring sustainable development.

The defining motivation behind MEXICO2 is two-fold. First, it aims to promote and foster development of high-impact emissions reduction projects by offering a financial incentive for businesses and individuals “who seek to demonstrate long-term vision and environmental leadership.” Second, it aims to spur socially and environmentally responsible investments by promoting and fostering collaboration among community, public and private sector organizations, according to BMV and project partners.

Developers whose emissions reduction projects qualify for UN Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) Certified Emissions Reduction (CER) credits will be able to sell them on MEXICO2. So will developers who qualify for voluntary carbon credits that meet the highest international standards.

Joining BMV in developing the platform is wholesale financial markets broker SIF ICAP. Supporting partners included the British Embassy in Mexico City and the United Nations Environment Programme (UNEP), as well as Mexico’s Secretariat of Environment and Natural Resources, National Forestry Commission and the National Institute of Ecology and Climate Change.

The MEXICO2 platform “seeks to forge a Mexican voluntary carbon market that allows companies in the country to support CDM and voluntary markets in order to support the transition of Mexico toward a greener future,” BMV explains.

Source | Triple Pundit