Chapter 1: Introduction
for the study was intended to cover areas in which information was not abundant and to avoid overlap with earlier studies and projects. The sector analyses cover five themes: • Power generation, which includes the production of electricity by centralized or decentralized power plants • The oil and gas industry, which includes oil and gas extraction, pipelines, and refineries • Energy end-use, which includes energy efficiency in the manufacturing and construction industries and the residential, commercial, and public sectors • Transport (the single largest emitter of carbon dioxide equivalent [CO2e] in Mexico), which includes primarily road transport • Agriculture and forestry, which covers crop and timber production, forest and other land-use management, and a broad range of biomass energy. The study also undertakes economic and emissions modeling and scenario analysis, in order to provide a broad perspective of opportunities and achievable goals, from an international perspective. The modeling uses the outputs of each sector analysis and develops emission scenarios to 2030. The study conducts cost-benefit analyses of specific low-carbon opportunities for reducing greenhouse gas emissions in each sector, the financial requirements for investment in the sector, and the issues related to implementing the low-carbon development portfolio. Climate change mitigation options (referred to as “interventions”) were selected based on their potential for greenhouse gas reduction, net costs (benefits), and feasibility in terms of political, social, institutional, legal, and other preconditions. The interventions identified are presented both by sector and individually, in order to allow the government or other institutions to assess what a combination of reduction activities would entail in terms of investment costs and reduction potential and to be able to assess this flexibly within the framework of political conditions, available resources, and other considerations.
Strategic Significance to Mexico of Low-Carbon Development Mexico could benefit from moving to a low-carbon economy for at least four reasons: • It is likely to suffer disproportionately from the impacts of climate change and therefore has a strong interest in ensuring that an international agreement to limit emissions is adopted. • Various “no-regrets” interventions (that is, interventions that have positive economic rates of return and should be undertaken regardless of climate change considerations) can contribute substantially to the country’s economic development.
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