Mexico’s Queretaro state readies carbon offset program

Mexico's central Queretaro state said it will launch a new compensation mechanism to provide a structured framework for carbon reduction projects.

The joint initiative between the state government and MexiCO2, a subsidiary of Mexico's stock exchange, "aims to support all sectors in reducing emissions through frameworks tailored to Mexico's needs and at the lowest possible cost," said Eduardo Piquero, chief executive of MexiCO2 during the Mexico Carbon Forum in Leon, Guanajuato.

The mechanism will also track emission reductions used for state-level carbon tax payments, voluntary offsets and other purposes, contributing to Mexico's commitments under the Paris Agreement.

The compensation mechanism registers and certifies emission reduction projects within the country, integrating standards and eligibility criteria designed to ensure the initiative achieve real, verifiable, and transparent benefits, Ricardo Torres, Queretaro's deputy environment ministry told Argus on the sidelines of the event.

Queretaro leads Mexico in carbon reduction efforts, as it is the only state currently allowing a combination of carbon taxes with utilization of carbon offsets to meet state-level carbon tax compliance obligations.

The compensation mechanism is expected to launch in 2025, with plans by MexiCO2 to expand it to other states, including Guanajuato and Tamaulipas, Ricardo Torres, Piquero told Argus.

By Antonio Gozain