BMV Creates the Mexican Carbon AssociationBy Eliza Galeana | Tue, 09/13/2022 - 18:56
As part of the initiatives of MEXICO2, the environmental market platform of The Mexican Stock Exchange Group (BMV), the financial entity announced the launch of the Mexican Carbon Association.
The association’s main objectives will be to contribute to the fulfillment of the commitments made in the Paris Agreement, to work toward achieving the UN Sustainable Development Goals and to reduce the impact industries have on the environment. It will feature the participation of Mexico’s state government as well as other relevant market actors such as developers, intermediaries, buyers, service providers, certifiers and carbon market experts. “Both public and private sectors are crucial in order to generate financial tools to prevent, mitigate and dissipate greenhouse gas (GHG) emissions in the most cost-effective way, such as through thematic bonds, sustainability bonds and carbon certificates, among others," said José-Oriol Bosch, CEO, BMV Group
Mexico’s strategy to fight climate change is based on reducing GHG emissions through a carbon market. Therefore, carbon transactions and projects must be developed to the highest quality standards. David Colín, Operations Director, MEXICO2, pointed out that even though Latin America and the Caribbean contribute less than 10 percent of global GHG emissions, there is great interest in carbon pricing instruments, as five of the major economies in the region have already implemented mechanisms at national and subnational levels.
María Isabel Ortiz, Minister of Environment and Territorial Planning of Guanajuato, highlighted that its voluntary carbon market is aligned with best practices regarding environmental and social issues, enabling investment and the transition to a low-emission economy. Ricardo Torres, Undersecretary of Sustainable Development of Queretaro, described his state as one of the pioneers in the implementation of carbon pricing instruments, aligned with the Carbon Price Declaration updated at COP26.
Diana Durazo, Director of Sonora’s Ecology and Sustainable Development Commission, stressed that Sonora already has its own Climate Change Program. Furthermore, the state also promotes the development of GHG emission reduction projects that will generate a voluntary carbon market at a local scale, as well as a methodology proposal through which organizations will be able to estimate, reduce and compensate for their GHG emissions. Moving to the southern states, Sergio Aguilar, Director of Climate Change of Yucatan, stated that the promotion of the social and environmental well-being of local communities is the state’s main priority, before moving forward with carbon markets. In this regard, he said that Yucatan offers a great opportunity for carbon forests and blue carbon projects, which would boost sustainable development and the distribution of economic benefits among local communities.