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Climate Change Mitigation in Developing Countries: Mexico

Climate Change Mitigation in Developing Countries: Mexico. Fernando Tudela El Colegio de Mexico Side Event – COP 8 October 29, 2002. MEXICO: NAFTA PARTNER MEMBER OF OECD NON -ANNEX I / DEVELOPING COUNTRY 54% OF POPULATION BELOW POVERTY LINE

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Climate Change Mitigation in Developing Countries: Mexico

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  1. Climate Change Mitigation in Developing Countries:Mexico Fernando Tudela El Colegio de Mexico Side Event – COP 8 October 29, 2002

  2. MEXICO: NAFTA PARTNER • MEMBER OF OECD • NON -ANNEX I / DEVELOPING COUNTRY • 54% OF POPULATION BELOW POVERTY LINE • MEXICO IS HIGHLY VULNERABLE TO CLIMATE – RELATED DISASTERS

  3. Mexico: climate change action Federal Government´s Committee on Climate Change (1997)  CC committees in Advisory Councils on Sustainable Development  Activities implemented jointly: ILUMEX, Scolel-té projects  Climate change included as a priority for publicly funded research  GHG Inventories (1990, 1994, 1996, 1998)  Two complete National Communications to UNFCCC • Mexico was the first large (100 Million inhabitants), oil exporting country to ratify the Kyoto Protocol: Approval from ALL parties at Senate session April 29th 2000 • Open to discussions on the evolution of commitments

  4. Mexico´s energy sector • Energy: a constitutional State monopoly • 40% of public investment to energy projects • 5th oil producing country • Oil exports: 1.7 M barrels/day • Oil taxation: 37% of all federal revenues

  5. Origin and use of Energy 2000 Uses: Total Supply Origin: Total Demand Including losses Source: SENER, 2002

  6. Mexico’s GHG Emissions • Net CO2 emissions (mid 1990´s): 2% world´s total • Mexico: the largest emitter in Latin America & the Caribbean • CO2 from fuel combustion:3.4 tons/ per capita (1/5 USA) • Carbon intensity (fuel comb.): 0.47 kg CO2/ USD90ppp

  7. MexicanGHGsEmissions by sector* 1996 *In terms of CO2 equivalentSource: 2nd Nat´l Communication

  8. Mitigation efforts LULUCF • Conservation/ Sustainable utilization of natural resources • Curbing deforestation • Energy • Improving energy efficiency • Fuel substitution and pricing Source: 2nd Nat´l Communication

  9. Mitigation costs

  10. Land cover control • Expansion and consolidation of protected areas • Sustainable wildlife programs • Forest management programs • Reforestation As of 2000, ¼ of the area with original vegetation (70% of the land) benefits from one of those programs Still threatened: rainforests

  11. National Power Grid Mexico2000-2004- 41% reduction 1,709 Fuel Oil 1,574 Coal 1,299 1,207 1,015 1,016 1,013 2000 2001 2002 2003 2004 2005 2006 Declining use of dirty fuels Source: SENER, 2002

  12. Level of emissions 120 1.2 1.0 100 0.8 80 Avoided emissions millions of tons of CO2 0.6 60 0.4 millions of tons of avoided CO2 40 0.2 20 0.0 0 0.2 1997 1998 1999 2000 1991 1994 1995 1996 1992 1993 Avoided CO2 emissions in electric sector CO2 emissions in thermal plants • Emissions by GWh (thermal) have been decreasing. • In 2002, natural gas accounted for 22.3 % of the total fuel combustion; while in 1990 it was of 16.1 %. 820 (tons of CO2/GWh) 810 800 790 780 770 760 750 740 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 CO2 emissions in electric sector • Introduction of natural gas in power generation avoided 413.4 million tons of CO2 in 2000. • Acumulated avoided CO2 amounted to 4.5 million tons between 1991 and 2000. Source: SENER, 2002

  13. Institutional efforts I • Energy saving institutions: CONAE (1989), FIDE (1990)  Conae - Technical Norms: 674G Wh saved and 1000 MW avoided in 2000. - Daylight saving time: 6329 GWh saved and 863 MW avoided since 1996. FIDE - Energy saving programs: 1866 GWH saved and 525 MW avoided till 1999. • Mexico City develops its own climate change strategy

  14. Institutional efforts II • PEMEX (State-owned oil/gas company) is the first oil company in a developing country to establish an internal emissions trading system (cap & trade for CO2) • PEMEX reduced 5% its own energy consumption Source: SENER, 2002

  15. Kilojoules / peso (GDP) Energy intensity • In the last decade, energy intensity of the Mexican economy is decreasing Source: SENER, 2002

  16. GDP 120 Internal Supply of energy CO2 emissions 115 110 105 100 95 90 1994 1995 1996 1997 1998 1999 Decoupling emissions / GDP GDP, Internal Supply of energy, CO2 emissions (energy sector) (1994 =100) Source: IEA, CO2 Emissions from fuel combustion(2001)

  17. Mitigation results A plausible guess: • Mitigation efforts have resulted in a  5 % reduction of GHG emissions below BAU • Multiple ancillary benefits

  18. Mitigation potential POTENTIAL 2010 262 M tons CO2 131 M tons CO2 73%: Management of temperate forests 53%: Combined cycle power plants (natural gas) Source: 2nd Nat´l Communication

  19. Conclusion The case of Mexico shows that: A large, oil exporting, developing country may: • Build up institutional capacity • Achieve mitigation results, based upon self-interest • Support the Kyoto process as a State policy

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