This grant will support the Center for Clean Air Policy (CCAP) to work in cooperation with Mexico's ministries of the environment and finance to develop a sustainable greenhouse gas mitigation program for the country's small, medium and micro enterprises sector. In 1997, Mexico declared its commitment to prioritizing climate change adaptation and mitigation efforts at the highest levels of government and in every sector of the economy. Since then, its top-level policy makers, researchers and private sector representatives have been working with CCAP to identify opportunities for reducing greenhouse gas (GHG) emissions in its productive sectors. The Tinker Foundation supported CCAP's advisory role with a previous grant. To date, analysis of Mexico's greenhouse gas mitigation opportunities in energy-intensive sectors has focused on large and often new and well-funded facilities in major industrial sectors. The reality, though, is that small, medium and micro enterprises (SMEs) dominate Mexico's economy. They make up 70 percent of the country's enterprises, employ 64 percent of the workforce, and account for over 40 percent of GDP. SMEs have a significant emissions reduction potential, particularly in terms of energy efficiency strategies, although financial and policy barriers impede the likelihood of their adopting such changes.
The project team will analyze the size and nature of potential SME mitigation opportunities across a wide variety of businesses, because as a sector they face similar impediments. CCAP will then identify barriers to the implementation of mitigation strategies and recommend policies or other strategies to overcome these challenges, including capacity building, policy formulation, developing new financial structures and other actions needed to improve enterprises' abilities to reduce emissions. Developing a robust system of emissions monitoring, reporting and verification will be a specific focus of this effort.