Mexico AND Emerging Carbon Markets Investment Opportunities for Small and Medium-size Companies and the Global Climate Agenda Commission for Environmental Cooperation Commission for Environmental Cooperation 393, rue Saint-Jacques Ouest, Bureau 200 Montréal (Québec) Canada H2Y 1N9 Tel: (514) 350-4300; Fax: (514) 350-4314 E-mail:
[email protected] http://www.cec.org ISBN: 2-922305-57-0 © Commission for Environmental Cooperation, 2001 Legal Deposit-Bibliothèque nationale du Québec, 2001 Legal Deposit-Bibliothèque nationale du Canada, 2001 Disponible en français - ISBN: 2-922305-59-7 Disponible en español - ISBN: 2-922305-58-9 x CCE/Financing & Environ ANG 29/10/2001 16:11 Page 1 Acknowledgements iii Preface v Executive Summary vii 1Introduction: Finance and the Environment 1 1.1 Environmental Issues and Risk Management 3 1.2 Environmental Investment Opportunities 5 1.3 Defining Environmental Expenditures 6 2 The Climate Agenda 9 2.1 The Kyoto Mechanisms 10 2.2 The Role of Small and Medium-size Firms for Flexible 12 Mechanism Projects: Challenges and Opportunities 3 The Electric Power Generation Sector: 13 Demand- and Supply-side Opportunities 3.1 Introduction 13 3.2 Structure of the Mexican Electric Industry 14 3.3 Balance of Trade 20 3.4 Energy Savings and Efficiency 20 3.5 Overview of Emissions from Power Generation 24 3.6 Power Generation and Energy Efficiency Projects under AIJ 28 3.7 SME Market in the Power Generation and 30 Energy Efficiency Sectors 3.8 Opportunities for Power Grid Emission Reductions for SMEs 33 3.9 Energy Regulatory