MEXICO Law and Practice Contributed by: Federico Ruanova Guinea and Isabella Guzman, Baker McKenzie
13. Climate Change and Emissions Trading 13.1 Key Policies, Principles and Laws The Climate Change Law states that it is in Mexico’s strategic interest to carry out actions designed to mitigate or compensate for climate change and to develop the corresponding technical, as well as eco- nomic, instruments. Also, as a signatory to the Paris Climate Agreement, Mexico has agreed to contribute to fighting climate change and reduce GHG emissions within the country and to implement mitigation and compensation policies. 13.2 Targets to Reduce Greenhouse Gas Emissions The Climate Change Law set an aspirational 30% greenhouse gas reduction target by 2020, increasing to 50% by 2050 with regard to the year 2000 emis- sions. However, this target has not been achieved and the current government – led by Claudia Sheinbaum who is an environmentalist – does not seem to be too inclined to adopt actions to meet GHG reduction targets, focusing more on projects that consume fos- sil fuels. The Climate Change Law also provides that GHG reduction targets may be achieved if an interna- tional regime is in place that provides for financial and technological support afforded by developed coun- tries. Currently, the government has a target for 35% of the nation’s energy output to come from renew- able or “clean” sources by the year 2024. It is highly unlikely that this target will be met. The government requires that emitters of a minimum of 50,000 MT of GHGs a year report their output. This is widely seen as a prelude to a future emissions trad- ing scheme which has not yet materialised. There are currently no laws establishing a mandatory emissions trading scheme in Mexico. In 2016, the Mexican Stock Exchange and SEMARNAT unveiled a pilot programme to develop a carbon market in Mexico so that the private sector could reduce its GHG emissions and remain competitive in a global environment. However, although that pilot programme began in a very limited manner, it was only a virtual exercise among the parties involved. There is, how- ever, a voluntary market of emissions enacted which
Crimes are investigated by the National Prosecutor’s Office and any private citizen or authority may file a criminal complaint. Given that Mexico’s new president, Claudia Shein- baum, has a background in environmental and climate science, Mexico may expect the new federal adminis- tration to step up criminal enforcement actions against those parties that cause environmental harm or that fail to comply with the most important environmental permitting requirements. 12.5 Investigating Environmental Accidents Federal and state environmental laws provide a man- date to authorities to conduct investigations and inspections if there are any incidents that cause or may cause environmental damage, including acci- dents. Authorities have to be diligent in how they con- duct investigations because the Mexican Constitution requires all acts of authority to be properly supported by law and no person be deprived of their posses- sions or rights without a proper order signed by an authority having a mandate to carry out an investi- gation or inspection. In case of environmental emer- gencies or accidents, federal or state regulators may order that safety measures be applied immediately. Such measures are designed to protect public health or the environment and may consist of temporary shutdowns, the seizure of hazardous materials and any other action that may be warranted to protect the environment or third parties. Public complaints for environmental violations – or accidents and emergencies – may be submitted with- out having to meet complicated formalities; as dis- cussed above, these can even be anonymous or by telephone. Regulators may carry out investigative acts based solely on these types of complaints. PROFEPA or ASEA may act in co-ordination with Mexico’s General Prosecutor’s Office in investigating crimes against the environment.
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