2. Status of the implementation of Mexico's emissions trading system (ETS)
In 2020, Mexico introduced the emissions trading system (ETS) for the first time in Latin America and began trial operations. As a result, the country's emissions trading system is referred to as the "Mexico ETS."
After the preparation phase and the start of trial operations, Mexican stakeholders learned from countries like Germany, which have already implemented ETS, and contributed to the operation of the Mexico ETS by sharing and utilizing that knowledge domestically. According to sources, the Mexico ETS may be fully implemented in 2026.
On the other hand, while the federal government of Mexico has not yet fully implemented the ETS, 11 out of the 32 states have already introduced a carbon tax at the state level:
- Nuevo León
- Tamaulipas
- Durango
- San Luis Potosí
- Guanajuato
- Querétaro
- Zacatecas
- Ciudad de México
- Morelos
- Yucatán

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In 2020, the emissions trading system (ETS) was introduced in Latin America for the first time, and a pilot operation began. As a result, the country's emissions trading system is referred to as the "Mexico ETS."




