Mexico is likely to launch a carbon cap and trade pilot programme later this year.
According to reports, it would be a 12-month programme ahead of a full scheme in 2018.
Up to 60 companies can voluntarily join the scheme which will give them the chance to adapt to a forthcoming carbon credit system, in which polluters will be obligated to offset emissions with tradeable certificates.
Cap and trade programmes put limits on companies’ greenhouse gas (GHG) emissions.
Those firms that produce emissions below their cap are able to sell their excess allowances to other businesses polluting above their limit.
Platform MEXICO2 will be in charge of the scheme in which the government will establish a cap on GHG emissions and verify the levels of carbon dioxide equivalents that businesses report to a national emissions registry.
The announcement is part of Mexico’s plans to reduce greenhouse gas emissions by 22% by 2030 as part of the Paris Agreement.
The country, alongside the US and Canada, also committed to produce 50% of their energy from clean sources.