Mexico launches first carbon exchange to cut CO2 emissions

MEXICO CITY Wed Nov 27, 2013 6:20am IST

MEXICO CITY Nov 26 (Reuters) - Mexico's stock exchange launched its first platform to trade carbon credits on Tuesday, a voluntary initiative that allows polluters to offset their emissions with tradeable certificates.

The new platform, called MEXICO2, provides an electronic forum for certificates conferring the right to emit one tonne of carbon dioxide, thereby attaching a cost to pollution.

MEXICO2 also seeks to have investors fund environmental projects aimed at curbing greenhouse gases.

"Increasingly, investors are asking that companies do their part to reduce their carbon emissions," Luis Tellez, chief executive of Mexico's stock exchange, said at the launch.

Tellez said he expects robust demand for the credits and the projects the new platform seeks to promote - despite the fact the exchange imposes no binding obligations on companies.

The new platform is the second such exchange in Latin America, following the launch of Costa Rica's BANCO2 market last month.

Eduardo Piquero, head of the platform, said MEXICO2 expects to handle a million carbon credits in its first year of operation, doubling to two million in the second year.

Piquero declined to say what the scheme would be worth, explaining that the price of credits will vary by project, which may include public transport initiatives or reforestation efforts.

The platform should benefit from Mexico's new carbon tax, set to take effect next year, thanks to a provision that allows companies to pay the levy with carbon credits.

Environment Minister Juan Jose Guerra said Mexico contributes 1.4 percent of global emissions, and already has some 200 certified projects generating tradeable carbon credits.

Those projects can yield the Certified Emissions Reductions (CERs) issued by the U.N.'s Clean Development Mechanism, the original carbon market created by the Kyoto Protocol. The CERs would then be made available for trading on MEXICO2. (Reporting by David Alire Garcia; Editing by Ken Wills)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Public Health

REUTERS SHOWCASE

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Market at Record

Market at Record

Sensex, Nifty hit record highs; reforms outpace hawkish Fed.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Samsung Results

Samsung Results

Smartphone woes drag Samsung Elec Q3 profit to more than 3-year low.  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage