Mexico BioCarbon Emission Reduction Program

pipeline

The proposed Mexico Emission Reductions Program (Mexico’s ERP) is led by the Government of Mexico (GoM) with the goal of generating verified ISFL emission reductions and distribute emission reductions payments in accordance with an agreed Benefit Sharing Plan. Mexico’s ERP will be implemented across four northern states Chihuahua, Coahuila, Durango, and Nuevo Leon. The selection of these states is based on their mitigation potential in the forestry and agricultural sectors, as well as their political commitment to integrated landscape management. For the GoM, this program represents an opportunity to scale up various interventions at the forest-landscape level to better address the main drivers of deforestation and degradation. The Program recognizes that deforestation and forest degradation are complex and multifactorial phenomena, especially considering that in Mexico forests are found in multiple land use landscapes and deforestation is not only determined by direct productive activities but also by underlying causes involving multiple stakeholders. Thus, the program seeks to: (i) strengthen intersectoral collaboration to better align investments in forest landscapes, (ii) reduce greenhouse gas (GHG) emissions from the land sector and improve forest livelihoods through the promotion of activities to conserve and sustainably use and restore forest landscapes, (iii) maintain and enhance Mexico’s capacity to monitor and report GHG emissions. By achieving the Program objectives, the GoM will enhance its capacity to access new sources of climate finance. Mexico’s Emissions Reduction Program will adopt a programmatic approach beginning with interventions in the LULUCF sector and aiming to transitioning a potential second phase to emissions reductions from the AFOLU sector. This ESRS focuses on the first phase. A potential second phase which would be prepared separately will require a stand alone E&S assessment depending on program activities under this second phase. The Program measures/activities that will generate the Emission Reductions will be financed by CONAFOR and implemented through its public incentive programs. The ERP is designed in three components: Component 1: Landscape investments. Subcomponent 1.a.: Underlying activities that will generate ERs (activities financed and implemented by CONAFOR) and Subcomponent 1.b: Strengthen value chains in sustainable forest landscapes; Component 2. Payment for Emission Reductions distributed in accordance with the agreed BSP: Subcomponent 2.a.: Payment for ERC, and Subcomponent 2.b.: Distribution of Emission Reductions payments as per an agreed BSP; and Component 3: Program Operation and Coordination. Activities through this component will better target Program measures, maintain program operation, enhance GHG inventory data, improve interagency collaboration, and mainstream gender.