Year: 2002

Publication type: Executive Reports

Public files

Climate change or greenhouse gas management issues are essential elements when any organization or government is considering new development projects. In addition, existing projects are also being reviewed to evaluate any potential climate change mitigation strategies.

As such, industrialized countries are now increasing investments toward achieving reduction on emissions of greenhouse gases as prescribed by the Kyoto Protocol. A key area for policy development since Kyoto has been the design of national systems and the building of experience in the use of market based instruments to deal with greenhouse gas emissions. The Clean Development Mechanism (CDM) was one of the key elements approved in principle at Kyoto and defined under Article 12 of the Kyoto Protocol. The international community is now working out the rules and modalities of the CDM. Article 12 allows for the transfer of certified emissions reductions (CERs) from developing countries to Annex I Parties (industrialized countries). The CDM has two primary objectives, to contribute to the sustainable development of host countries and to assist Annex I countries to meet their emissions reduction obligations under the Kyoto Protocol in the most cost/effective way possible.

ARPEL, together with PEMEX hosted and sponsored a high level, international two day Workshop (Mexico City - October 24-25, 2001) that brought together key figures from academia, government, business, and non-government organizations and provided expert views on issues that needed to be considered in addressing emissions reductions crediting while developing projects in Latin America and the Caribbean. The Workshop participants were requested to address specific questions concerning the -not yet established- rules and procedures for effective GHG emission trading. The conclusions and recommendations arising from the Workshop are described in this document.