Mexico: Paving the Way for the Development of Emissions Trading

Mexico opted for the development of an Emission Trading Scheme (ETS) as its main instrument to scale up climate change mitigation efforts. To address design and implementation challenges, the country sought avenues of international cooperation and technical assistance, including by joining the Partnership for Market Readiness (PMR). Established and managed by the World Bank, the PMR is a grant-based, global partnership that provides systemic support and funding for technical and institutional capacity development and piloting of new and innovative market-based instruments. This report presents the main activities undertaken under the project and identifies the main outcomes. Observed results confirm the important contribution of this project to the Mexican development and climate policy landscape, developing technical knowledge products, practical tools and capacity building activities that are shaping the design of the national carbon pricing policy mix and informed the review of the NDC (submitted to the UNFCCC in December 2020).