Mexico GHG Program

Mexico GHG Program, is a public-private initiative conformed by an partnership between the Secretariat of Environment and Natural Resources (SEMARNAT), the World Business Council for Sustainable Development (WBCSD), the World Resources Institute (WRI) and the Mexican Coordinating Council (CCE) through its Business Council on Sustainable Development (CESPEDES). After 6 operating years the program has created a strong instrument that is the basis to induce the development of business strategies to prepare Mexican businesses for an increasingly carbon-constrained world, by building capacity to measure and manage GHG emissions as climate competitiveness opportunities.

The flexibility offered by the program as a volunteer program and the structure based on a public-private alliance partnership aimed for developing technical capacity in the industry for decision making, are key elements that offer the potential for climate governance.

Based on the GHG Protocol Corporate Accounting and Reporting Standard (WBCSD/WRI 2004), the program provides a platform for accounting and reporting GHG emissions. After six operative years, the program has created capacity building not only in the industrial sector, another important and representatives sectors have join the program such as transport, commerce, services, landfill, agribusiness, academy institutions, entertainment companies and municipalities as well. The program has provided training to 1400 technical operators from different companies and developed more than 50 practical workshops along the entire Mexican Republic.

In the starting up of the program, 15 companies submitted their first GHG inventory, which account 84 MtCO2e. Year by year, the program has gained recognition not only by the industrial sector, but also by government and other sectors, increasing the number of participating companies and sectors. In November 2010, the participating companies increased to 150, from which 84 are active submitting their GHG inventory from 2009 period[1], these companies belong to 25 different sectors. All inventories account for 140 MtCO2e, which represent 21% of the National GHG Inventory (INEGEI-2002)^{^[2]} and 76% of the national industrial sector^{^[3]}.

The expansion of the program to other sectors is slowly gaining place. From 140 MtCO2e, 39% of the emissions come from the industrial sector, 57% from the oil sector, 2% from transport, 1% from commerce, services and other, and 1% from landfills. In this way, the program is opening new horizons for new sectors interested on measuring its carbon performance. Al the GHG inventories are public available on the WEB page of the program: www.geimexico.org

Current participation of companies by sector is broad, for the industrial sector case it includes 100% of the companies belonging to cement, oil and brewery sectors; it has as well the participation of 75% of the steel and mining. Other member sectors whose participation is in less proportion are chemical, sugar, automotive, bottle drinks, packing development, pulp and paper and glass.

Mexico GHG Program has become an instrument that serves business for the adoption of a new climate change culture, as a result business has started the development of climate change mitigation strategies. More than 40% of the companies have reported the adoption of emission reduction strategies. As it was though, measuring performance induced companies to looks for participation in carbon markets, more than 11 companies have initiated the process for the registry of emission reduction projects under the CDM framework on the UNFCCC, 4 companies have gotten the registry, other companies are looking for opportunities in another carbon markets as the Spanish Carbon Fund.

In 2007, the program was adopted in the National Strategy on Climate Change, it is recognized as a capacity-building instrument and source of information to promote climate change mitigation in the industrial sector, and it was adopted as part of the country’s portfolio of efforts to address climate change.

In 2009, it was adopted in the Special Program of Climate Change launched by the Federal Government. Mexico GHG Program contributes with the follow objectives to be reached by 2012:

· Accounting for 80% of the national emissions generated by generation and use of power energy and industrial processes

· Designing and implementing the GHG emission reductions registry platform that will enable the recognition of voluntary actions

· Development of 5 studies about technologies and best practices for specific sectors.

[1] All the reports are available in the WEB page of the program: www.geimexico.org

[2] GHG National Inventory 1990-2002 (INEGEI 1990-2002). INE-SEMARNAT.

[3] The percentage was calculated taking in consideration the scope 1and scope 2 emissions of the Mexico GHG program in relation with the GHG emissions generated by fuel consumption, power consumption and process emissions from the industrial sector.