Mexico is gearing up for a major shift in its environmental policy framework, with plans to relaunch its emissions trading system (ETS) and introduce a national carbon registry. Together, these initiatives are expected to expand access to carbon credits, strengthen oversight, and attract fresh investment in environmental projects.
The government has announced that the revamped ETS, targeted for late 2025 or early 2026, will give companies the ability to offset all their emissions with carbon credits. Officials say this unlimited use of offsets is meant to keep compliance costs low and speed up environmental action.
‘Our goal is to have no limit [on the use of offsets] because companies’ task is just too big’, said Jose Luis Samaniego, subsecretary for sustainable development at the Secretariat of Environment and Natural Resources, during the Mexico Carbon Forum. ‘And I doubt that all economic sectors will advance with technological development at speed… so our breakthrough will be by making it cheap to reduce emissions.’
Nature-based solutions are expected to play a central role in the ETS, with Samaniego pointing to mangrove and forest restoration as major sources of future credits. Covering just 10% of Mexico’s emissions through the system would require demand for around 67 million tonnes of CO₂ equivalent.
At the same time, the Mexican Stock Exchange’s carbon arm, MexiCO2, is launching the ‘Mexican Registry for the Green Transition.’ Scheduled for December, the platform will provide transparency and traceability for carbon projects, while helping them access financing.
‘The registry emerges as a platform that provides information to strengthen the competitiveness of the national carbon market through the adaptation of international standards to national circumstances’, MexiCO2 said. General director Eduardo Piquero added that the system will offer ‘a framework of transparency, traceability, and trust for mitigation projects, while at the same time facilitating their access to financing and their integration with Mexico’s climate commitments.’
The registry will operate with its own methodologies and also coordinate with global standards such as the US-based Climate Action Reserve. Credits generated will be eligible under state-level carbon tax programs and, eventually, within the ETS.
Several Mexican states already run carbon tax schemes, including Querétaro, which allows companies to use offsets for compliance. ‘Mexico needs to generate more certified emission reductions to meet its obligations under the Paris Agreement’, said Ricardo Torres, subsecretary for the environment at Querétaro. ‘Today we have a few projects, and it is necessary to facilitate the development of new initiatives in sectors such as energy, waste management, and agriculture.’
By combining regulatory flexibility with stronger infrastructure, Mexico is laying the foundation for a more robust carbon market that could direct significant capital toward domestic mitigation and nature-based initiatives.