Development of an evaluation framework for the Mexican emissions trading pilot program (ETS Pilot)

Without proper environmental policies, greenhouse gas (GHG) emissions will continue to increase, and our environment will continue to degrade. In order to control emissions, it is increasingly important to implement policies and measure results to know if they are adequate and, where appropriate, to be able to introduce changes that make them effective. Therefore, it is necessary to evaluate the operation of the environmental policies put in place to reduce GHG emissions.

To achieve this objective, Metroeconomica developed and proposed a methodological approach to evaluate the effectiveness and results of the pilot phase of Mexico’s ETS (Emissions Trading System). It also developed the criteria to be used in the ex-post evaluation of the pilot phase of Mexico’s ETS, in accordance with Article 11 of the Agreement establishing the preliminary bases of the ETS Pilot Program (ETS Agreement). Draft procedures for the ex-post evaluation of the effectiveness of Mexico’s pilot phase of the ETS were also developed, in accordance with Article 11 of the ETS Agreement. Finally, the draft documentation was integrated into a single “evaluation framework manual”.

In order to attain these objectives, the study was based on scientific and grey literature, in English and Spanish, and on available public data sources. These studies were complemented by the collection of additional information from relevant stakeholders.