Emissions trading in safe hands
Vertis, a MiFID II trading firm, supports companies in navigating through carbon compliance schemes, including different EU Emissions Trading Systems, CBAM and CORSIA, in a cost-effective way
Emissions trading in safe hands
Vertis, a MiFID II trading firm, supports companies in navigating through carbon compliance schemes, including different EU Emissions Trading Systems, CBAM and CORSIA, in a cost-effective way
Traders of Environmental Progress
STX Group is a global environmental commodities trader offering physical and financial solutions across compliance and voluntary systems for energy, fuels, gas and carbon markets.
Blog Articles
Mexico’s energy regulation allows two different EACs (Energy Attribute Certificates) to coexist and complement each other: Clean Energy Certificates (CEL) and International Renewable Energy Certificates (I-REC).
With the implementation of the Electricity Industry Law, in 2014, the Wholesale Electricity Market (MEM) was shaped, giving access to energy generators and consumers to a market that was traditionally reserved for state-owned companies, creating an important market competition. This law also created the Certificados de Energía Limpia (CEL), or Clean Energy Certificates in English, which is an EAC used to comply with the current regulation.
These certificates are generated by renewable energy and energy efficient projects commissioned after 2014. Also, this Law dictated a minimum amount of these certificates to be purchased and retired, equivalent to a percentage of the annual electricity consumption of a company, creating a financial incentive for renewable energy generation.
As of 2022, this regulation obliges the “qualified consumers” to purchase 13.9% of CELs equivalent to the Annual Electricity Consumption. In consequence, CELs have made significant strides in promoting clean energy adoption in Mexico, as this certificate was the first EAC to operate in the Mexican market.
The International REC Standard (I-REC Standard) is a non-profit international organization, which created a robust, and internationally applicable mechanism to develop energy attribute tracking systems around the world. Its main objective has been to ensure renewable energy generation around the world, through incentives for the generators, such as I-RECs. These certificates are generated solely from renewable energy projects, issued by international issuing bodies and are used in various markets around the world.
This is one of the main mechanisms recognized by RE100, an international initiative created in collaboration with the Carbon Disclosure Project, tracking the renewable energy objectives and best practices of some of the biggest companies in the world.
Additional to the claiming rights both EACs grant for the renewable origin of the energy consumption, these certificates also confer the end party an environmental attribute for the avoided Scope 2 GHG Emissions, translated into t CO2e / MWh.
These certificates complement corporate environmental strategies. The proper implementation of both EACs offers a strong opportunity for corporates seeking to maximize financial gains while embracing sustainability.
While CELs have played a significant role in promoting renewable energy in Mexico, I-RECs now offer additional advantages for corporates. The tracking quality of I-RECs make them an option for businesses aiming to both comply with Mexican regulation and pursue broader sustainability goals.
As Mexico continues its renewable energy journey, companies should consider integrating I-RECs into their value chain to unlock new opportunities. Some reasons to use both EACs in a Scope 2 strategy include geographic recognition, regulatory framework, price and risk management.
Using both EACs – fulfilling the minimum CEL requirement of 13.9% and claiming the rest of consumption through I-RECs – allows corporates to diversify their renewable electricity portfolios. This reduces exposure to domestic regulatory changes and market fluctuations, improving long-term stability, financial predictability, and compliance with authority, clients and stakeholders.
Our company works with organizations globally helping them comply with regulations and reach environmental objectives. We offer a comprehensive approach that goes beyond renewable electricity procurement. We are committed to designing long-term solutions that reflect a sustainable, environmentally friendly vision.
Fill out this form to start your climate conversation with our team.
Our company prides itself on working closely with organizations worldwide, helping them comply with regulations and reach their environmental objectives, encompassing a comprehensive approach that goes beyond procurement of renewable energy. We are committed to designing long-term solutions that reflect a sustainable and environmentally-friendly vision. Fill out this form to start your climate conversation with our team.
