The Ministry of the Environment and Natural Resources (Secretaria de Medio Ambiente y Recursos Naturales) (SEMARNAT), has submitted to the National Commission for Regulatory Improvement (Comisión Nacional de Mejora Regulatoria) (CONAMER), a draft of the Preliminary Guidelines for the Test Program of the Emissions Trading System.
The main purpose of the proposed guidelines is to implement a test program prior to the commencement of the Emissions Trading System (ETS) contemplated in article 94 of the General Law on Climate Change (Ley General de Cambio Climático). The guidelines delineate the features of such test program, including its effective term, its guiding principles, the scope of authority of SEMARANT in the context of the test program, monitoring and evaluation mechanisms, the industrial sectors and greenhouse gases covered by the test program, the obligations of the participants, the creation of a multidisciplinary advisory committee, and the operation mechanisms of the program.
The test program will be effective for 36 months and it will applicable to those facilities whose annual emissions are equal to or greater than 100 thousand tons of direct emissions of carbon dioxide from fixed sources in the following sectors and sub-sectors:
exploitation, production, transportation and distribution of hydrocarbons, and generation, transmission and distribution of electricity. Industrial sector
automotive industry; cement and cement industry subsector; chemical industry; food and drinks industry; glass industry; steel industry; metallurgical industry; mining industry; petrochemical industry; pulp and paper industry, and other industrial subsectors that generate direct emissions from fixed sources. Initially, the participants will be the facilities whose annual emissions have been reached or exceeded 100 thousand tons of direct emissions of carbon dioxide in any of the years 2016, 2017 or 2018. The facilities whose emissions reach or exceed this threshold during 2019 or afterwards will be considered new participants.
Beginning in 2020, participants will be subject to: (i) emissions reporting and verification obligations with respect to their emissions during the previous year, and (ii) obligations related to the delivery of emission rights (allowances), also with respect to their emissions during the previous year. However, the test program is not intended to have economic effects, which means that there will...