Last October 10th, 2012, the General Law for Climate Change (LGCC) came into effect in Mexico.

The LGCC creates the National Emissions Registry ("RENE"), which requires private industries ("Establishment Subject to Registration") to annually present a report of all directly or indirectly produced greenhouse gases and compound emissions ("CyGEI").

This requirement applies when:

a) The activity being carried out falls within one of the following productive sectors:

Ÿ Energy

Ÿ Transport

Ÿ Industry

Ÿ Agrobusiness

Ÿ Waste

Ÿ Services and commerce

b) The annual direct or indirect emissions of CyGEI are higher or equal to 25,000 tons of carbon dioxide equivalent (Coe).

Since 2015, law enforcement has been incremental. Until now, industries subject to registration just needed to self-determine their CyGEI emissions and report them to the RENE. However, for 2018 and 2019, most establishments subject to reporting will be required additionally to have a verification report issued by a verification agency approved by the Federal Environmental Protection Agency ("PROFEPA").

The LGCC contemplates economic sanctions of up to 1. USD $14,120.00 (fourteen thousand one hundred twenty dollars) to all establishments that do not present said report to the RENE, and a fine of up to USD $ 47,069 (forty-seven thousand sixty-nine) to the establishments that report wrongful information.

To calculate the CyGEI Emission generated by a given installation, one must consider the direct emissions (i.e. produced by the burning of fossil fuels used within its activities) and the indirect emissions (produced during the electrical consumptions). In some cases, to estimate the emissions one must consider the consumption within all the facilities used for the development of its activities.

As an example, if the annual fuel consumption is about eight million liters of diesel, ten million liters of gasoline, nine million jet fuel, and the electricity consumption is about 42,000 MWh, or a combination of the later, would trigger the obligation to submit the CyGEI report to the RENE.

Business such as banks, airlines, hotels, courier services, transport, hospitals, schools, among others, could be required to present this report.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.