On October 28th, 2014, implementing provisions to the General Law on Climate Change on matters related to the National Registry of Emissions (Reglamento de la Ley General de Cambio Climático en materia del Registro Nacional de Emisiones) (the "Regulations") were enacted and entered into effect on the following day (October 29th, 2014).
These Regulations are key to several commercial, services and industrial sectors, including banks, real estate developers, hotels, hospitals, schools and other activities which may generate greenhouse gases ("GHG") and which up until now were not subject to GHG measuring and reporting obligations, as opposed to other sectors, such as energy and automotive, which were already obligated to report under the emissions registry and transfer of pollutants regulations.
Companies and persons operating in such sectors should be aware of these new Regulations and take the necessary steps, including the allocation of human and financial resources, to be able to comply with their measuring and reporting obligations in a duly and timely fashion to avoid administrative sanctions and/or risks of other liabilities.
Activities subject to GHG measuring and reporting obligations
Criteria. Regulated Activities subject to measuring and reporting obligations must meet three basic criteria:
Carry out an activity within a regulated sector under the General Law on Climate Change ("Regulated Activities"), which are (i) energy, (ii) transportation, (iii) industry, (iv) agriculture and livestock, (v) wastes, and/or (vi) commercial activities and services. The activity must generate any of the relevant GHGs1; and That the generated GHGs exceed directly or indirectly, a threshold of 25,000 tons of carbon dioxide equivalent ("CO2e") per year. Reporting obligations
Regulated Activities are subject to the following main obligations:
Identify direct emissions deriving from mobile and stationary sources; Identify indirect emissions arising from the consumption of electric and thermal energy; Measure or calculate the release of GHG emissions of each and all the sources within the facility, based on the methodologies issued by the Ministry of Environment and Natural Resources ("SEMARNAT") or the Intergovernmental Panel on Climate Change ("IPCC"). Although the different methodologies are mentioned in the Regulations, the formulas to be used in each of them are yet to be issued by SEMARNAT; Collect and use data specified in the measuring...