1. CLIMATE CHANGE A PERSPECTIVE FROM MEXICO Seminar of Governmental Experts Bonn, 16-17th of May, 2005 SEMARNAT MEXICO

2.  adopts poverty erradication as an absolute priority  avoids policies that may jeopardize development/ economic growth  perceives climate change as both a threat and an opportunity to foster sustainable development  is risk-averse [climate change impacts/ response measures] As a developing country, Mexico:

3. Climate Action Climate Action  Strengthening national capacities is the foundation for improved output in terms of GHG emissions  A step-by- step process involving subsequent cycles: capacity/ P & Ms/ actions/ monitoring/ evaluation  Setting up institutions  Administration  Law / Regulations  Functional clusters

4.  Office of Climate Change at SEMARNAT (2003)  Intersectoral Committee for Climate Change Mitigation Projects (NDA) (early 2004)  Climate Change Committee for the Energy Sector (February, 2005)  InterMinisterial Climate Change Commission: April 25, 2005  Law on Renewable Energy (in progress) Institutional Development

5. Seven Functional Clusters Seven Functional Clusters 1. Preparation of GHG inventories & Nat´l Coms 2. Formulation of CC policies (incl. reporting, monitoring, assessment) 3. Intersectoral, multilevel coordination 4. Research & Development on CC 5. Promotion & control of mitigation projects (AIJ, CDM); adaptation projects 6. Participation of civil society in CC policies (business,NGOs, other stakeholders) 7. Effective participation in CC negotiations

6.  Virtual Cap & Trade for CO 2 throughout the Oil & Gas sector (PEMEX, the State monopoly)  Workshops promoting CDM in different States  Governmental promotion of the GHG Protocol (WRI/ WBCSD): setting up of two pilot groups of public and private enterprises, including entire productive sectors  First Non-Annex I country to produce a Second National Communication (2001) Functional Development Functional Development I

7. Currently working on:  A new Inventory of GHG Emissions from all sectors (ready: end 2005)  New National Strategy for Climate Action, in collaboration with the Mario Molina Center and academic / business institutions (ready: end 2005)  Third National Communication (published: end 2006) Functional Development Functional Development II

8. CDM: a failed opportunity? In Latin America CDM induced positive institutional arrangements CDM has not lived up to expectations so far Areas of dissatisfaction in Mexico:  CDM unable to strike an adequate balance between effectiveness and environmental integrity  Crippling transaction costs  Insufficient flow of approved methodologies/ projects  CDM may become a perverse incentive preventing developing countries from mobilizing its own potential to a full extent

9. Some conceptual standpoints I  Short term / long term Current action is framed by some vision of what might be the medium / long term evolution of the international climate regime  Advanced developing countries In the context of common but differentiated responsibilities, further differentiation among developing countries should be effected  Inaction Other Parties inaction or non-compliance should not be an excuse for not carrying out one’s own best efforts. It may however affect nature and scope of commitments

10. Some conceptual standpoints Some conceptual standpoints II  Action / commitments For the scope of meeting the ultimate objective of UNFCCC, progressive climate action is more significant than the adoption of legally binding commitments, especially if the latter are limited to ensure compliance  Compliance Buying in external carbon markets or facing sanctions for non-compliance would be socially /politically unacceptable  Equity Equity concerns: essential. Per capita emissions and their evolution should play a more central role in the international regime  Flexibility National circumstances; differentiated needs. Flexible convergence of per capita emissions

11. Flexibility in the convergence process: f 1 f 2

12. To be discussed...  Types of commitments Binding vs non-binding; Pledge & Review...  Commitment contents  From projects to entire economic sectors  P & M, CC / Environmental Regs  Dynamic targets: GHGs / GDP: may be flawed Carbon efficiency standards: GHGs / ton of cement, steel, Al, thermal KWh, ton road freight, etc  Incentives for overcompliance

13. THANK YOU