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Mexico Emissions Trading System

Mexico Emissions Trading System: define preliminary obligations for covered installations under the Emissions Trading System test program

Maílis Carrilho
Written by Maílis Carrilho
Updated on February 18th, 2026

Summary

Mexico’s ETS pilot bases (DOF 1 Oct 2019) establish participation and MRV expectations for covered installations under a test program that precedes a full cap-and-trade regime. Covered entities should confirm inclusion, implement auditable MRV, and prepare for registry-based administration. Key risks are reporting failures, weak data controls, and misapplication of integrity rules for compensations/offsets. ETS readiness should be integrated with RENE emissions reporting governance.

Details

Jurisdictions
  • Mexico
Mandatory for

Mandatory for covered installations defined by sector, emissions profile, and inclusion rules of the pilot.

Exemptions

Exceptions generally arise from:

installations outside defined sectors,

emissions below inclusion thresholds,

transitional rules for new entrants or specific facility types where the pilot provides phased-in treatment.

Deep dive

2 min read
Published Feb 18, 2026

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What’s Required

Under the ETS pilot bases, regulated entities typically must:

  • Identify covered installations and confirm inclusion under the pilot scope defined by the agreement and subsequent technical criteria.

  • Implement monitoring, reporting, and verification (MRV) consistent with ETS requirements, including data quality controls and auditable records.

  • Engage with the registry/allowance administration processes as specified in pilot rules (account management, submissions, and compliance interactions).

  • Observe rules on offsets/compensations where applicable (pilot frameworks commonly restrict eligible offsets and establish criteria; Mexico’s ETS technical materials emphasise integrity safeguards).

Important Deadlines

  • Adoption/publication: 1 October 2019 (DOF).

  • Pilot programs are typically time-bound and may be extended or transitioned to a compliance phase via further regulation; firms should track SEMARNAT publications for updates.

Current Status

  • The ETS pilot bases are published and form the legal foundation of the test program. The broader ETS pathway is anchored in the LGCC.

  • Technical documentation and capacity-building materials indicate continued development toward a fully operational ETS regime.

Penalties for Non-Compliance

In pilot systems, enforcement commonly focuses on:

  • administrative sanctions for failing to submit required information,

  • compliance consequences related to registry participation,

  • escalations under environmental administrative enforcement frameworks where reporting duties are legal obligations.

Examples of Known Violations

Typical ETS failure modes include:

  • late or inconsistent emissions submissions,

  • insufficient evidence for reported activity data (fuel use, process emissions drivers),

  • internal control gaps causing restatements,

  • misunderstanding of offset restrictions or double-claiming risks.

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on Feb 18, 2026 by Maílis Carrilho ·