Colima Introduces Low-Carbon Framework with Emissions Seal

The government of Colima has launched a new regulatory framework to incentivize private-sector greenhouse gas (GHG) mitigation across the state, introducing the Low-Carbon Seal of the State of Colima and a State Emissions Compensation System. The rules were published in the Official State Gazette on Dec. 26, 2025, and entered into force immediately.  

The framework builds on reforms approved by the Colima state congress in November 2024, which introduced ecological taxes aimed at reducing GHG emissions. These taxes, which apply to emissions from fixed sources, took effect in January 2025.

Low-Carbon Seal of the State of Colima

The Low-Carbon Seal of the State of Colima (SBC-COL) is a voluntary certification available to companies, facilities and organizations operating in the state that can demonstrate verified emissions reductions or compensation. To encourage participation, the framework provides tax incentives under Colima’s ecological tax regime.

Two certification modalities are available. The first, SBC-COL1, applies to direct emissions reductions. To qualify, an organization must demonstrate a minimum 20% reduction in GHG emissions compared with the previous reporting year, verified by an accredited third party. The reduction must result from mitigation actions—such as process improvements, fuel switching or efficiency measures—and not from a decline in production or activity levels.

The second modality, SBC-COL2, applies to emissions compensation. Under this pathway, organizations may offset part or all of their taxable emissions by acquiring certified emissions reduction or removal certificates generated by approved carbon projects registered within the state system. Certificates used for this purpose must be cancelled and may not be double-counted.

Once awarded the seal, companies may apply for reductions in taxes owed under Colima’s ecological tax system, which levies charges on emissions of carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF₆). SBC-COL1 certification allows companies to apply a 15% reduction to their taxable emissions base, while SBC-COL2 offers deductions of up to 50%. The seal is issued for one year and specifies the volume of emissions reduced or compensated, expressed in metric tons of CO₂ equivalent (mtCO₂e). Authorities may revoke the seal if verification requirements are not met, false information is provided or compliance obligations are breached.

Verification requirements vary by emissions level. Facilities emitting more than 100,000 mtCO₂e annually must submit a verified emissions inventory each year. Those emitting between 25,000 and 99,999 mtCO₂e may rely on inventories valid for up to three years, provided emissions do not vary by more than 10%. Smaller emitters must submit annual verifications conducted by state-approved laboratories. All verification must comply with recognized standards, such as ISO 14064-3 or equivalent Mexican standards.

Applications for the Low-Carbon Seal must be submitted by the end of February each year. The Institute for the Environment and Sustainable Development of Colima (IMADES) has up to 30 business days to evaluate submissions and may conduct technical inspections to confirm reported data.

State Emissions Compensation System

As part of the same regulatory framework, Colima has also established a State Emissions Compensation System, which sets the rules for generating, registering and using emissions offsets to compensate for GHG emissions produced within the state. The system will be overseen by IMADES, which will maintain a public registry of approved emissions reduction and removal projects eligible to generate certificates for compensation purposes.

Eligible project types vary by sector. In agriculture and land use, projects may include reforestation, afforestation, soil carbon management and sustainable livestock practices. In waste management, eligible activities include landfill gas capture, methane recovery from wastewater and organic waste treatment. Energy-related projects encompass renewable energy generation, biogas production, energy efficiency improvements and transport electrification. Industrial process upgrades that reduce emissions intensity are also eligible.

Projects must be certified under recognized national or international standards, such as the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), Gold Standard, Climate Action Reserve or other registries approved by IMADES. Certification must demonstrate additionality, permanence and robust monitoring, reporting and verification procedures.

For emissions generated in 2025, organizations may use offsets from projects located in Mexico or elsewhere in Latin America and the Caribbean. Beginning in 2026, at least 50% of offsets used must originate in Mexico. This national sourcing requirement increases to 70% by 2030, reflecting the state’s objective of strengthening domestic carbon markets and local mitigation capacity.

Project developers seeking inclusion in the state registry must submit applications during defined registration windows, typically between Jan. 1 and Jan. 31 each year, although additional calls may be issued depending on offset demand. IMADES will assess projects for technical eligibility and compliance with state criteria before approving them for use in the compensation system. Once an offset is purchased, it must be cancelled in the registry to prevent reuse or double counting.