GHG Pilot Program in Mexico Program Specifications and Next Steps Jonathan Pershing WRI

1. GHG Pilot Program in Mexico Program Specifications and Next Steps Jonathan Pershing WRI

2. Program Specifications • Corporate Inventory • Emissions Report • Inventory Database • Accounting Principles and Methodologies • Quantification Tools • Verification • Project Quantification • Reporting Template

3. Emissions Report Corporate Inventory • Geographical and Organizational Boundaries • Corporate-level data for all Mexico operations is required. Facility-level data is optional • All six GHG emissions are required • Scope 1 emissions (direct GHG emissions) and Scope 2 emissions (indirect GHG Emissions) are required • Scope 3 emissions (all other indirect GHG emissions) are optional • Inventory verification is recommended • Any post-1990 emissions data can be registered as the base year

4. Corporate Emissions Report (cont) Inventory Registry • Corporate GHG inventory information will be stored in a database hosted by SEMARNAT Accounting and Reporting Principles • Reports to be prepared in accordance with the principles and standards provided in the GHG Protocol Corporate Accounting and Reporting Standards (revised edition)

5. Corporate Emissions Report (cont) Quantification Tools: • GHG Protocol calculation tools optional • Businesses can use their own tools. Must be consistent with GHG Protocol Corporate Standards Verification: • Third party verification of corporate inventories is encouraged • Capacity training to local verifiers • Subsidized international verification services may be available

6. Public Reporting TemplateA company participating in the Mexico Pilot Program shall include the following minimum information in its public GHG emissions report: 1. Organizational Boundaries - the chosen consolidation approach 2. Operational Boundaries - Scope 1, Scope 2, and if scope 3 is included, a list specifying which types of activities are covered 3. Reporting Period 4. Emissions data separately for each scope 5. Total scope 1 and 2 emissions 6. Emissions data for all six GHGs separately (CO2, CH4, N2O, HFCs, PFCs, SF6) in metric tonnes and in tones of CO2 equivalent. 7. Year chosen as base year, and an emissions profile over time that is consistent with and clarifies the chosen policy for making base year emissions recalculations 8. Appropriate context for any significant emissions changes that trigger base year emissions recalculation (acquisitions/divestitures, outsourcing/insourcing, changes in reporting boundaries or calculation methodologies, etc.) 9. Emissions data for direct CO2 emissions from biologically sequestered carbon (e.g., CO2 from burning biomass/biofuels), reported separately from the scopes 10. Methodologies used to calculate or measure emissions, providing a reference or link to any calculation tools used 11. Any specific exclusions of sources, facilities, and / or operations

7. Next Steps  • Learning and promotion of new climate change national or sectoral strategies in Mexico based on joint partnerships between business, governments and NGOs • Expansion and customization of the program to other countries in the region • Corperation between Mexico and other developing countries (India, South Korea, Philippines, South Africa)