GIZ MX Pool of Experts II – Analysis of auctioning system

The Mexican Emissions Trading System (ETS) is one of the principal instruments Mexico has adopted for achieving its climate commitments. In January 2020, the ETS began its pilot phase, which was intended to build technical capacities of regulated entities and therefore was implemented in such a way as to not result in economic impacts for participants. In 2024, the ETS was expected to transition to its operational phase, in which companies would face economic costs.

This assignment provided tools to the Ministry of Environment and Natural Resources (SEMARNAT), other governmental agencies, and regulated private entities to make decisions grounded in the best available knowledge and the most up-to-date international experience on the design, implementation, and interaction of Carbon Pricing Instruments (CPIs). Under this assignment, adelphi helped conceptualize, research and develop both a tool to estimate costs to regulated entities from transitioning to an auctioning scheme and the road map towards its implementation. Work took place between November and December 2024.