Mexico announces launch of cap-and-trade pilot program

By Natalie Schachar, Reuters.

Mexico will launch a year-long simulation of a cap-and-trade program in November, Mexican officials said on Monday, in a test run for a national carbon market expected to launch in 2018.

The pilot program will involve the voluntary participation of up to 60 companies, giving them a chance to adapt to a forthcoming carbon credit system in which polluters will be obligated to offset emissions with tradeable certificates.

"When we have mechanisms that facilitate the reduction of greenhouse gases, we're implicitly reducing pollution," Mexico's deputy minister for environmental policy and planning, Rodolfo Lacy, said at an event in Mexico City.