Global Development Alliance
The Mexico Clean Economy 2050 (MCE2050) Project was founded as a Global Development Alliance (GDA) cooperative agreement between Stanford University and the United States Agency for International Development (USAID) for the period April 17, 2017 – May 18, 2020.
The GDA project aimed to maximize the business opportunities presented by the clean energy transition in Mexico. It focused on how to leverage Mexico’s energy reform and climate action ambition as policy drivers to trigger business transformation and low-carbon innovation processes in support of a clean and prosperous regional economy.
The Stanford – USAID Mexico Clean Economy 2050 GDA aimed to support Mexico’s efforts to bridge the gap between the energy reform and emissions reduction.
The GDA fostered stakeholder dialogue, research, policy analysis, partnerships and pilot projects to achieve its objectives. The GDA focused on two complementary subthemes: 1) Smarter Communities, Energy Transition, and Infrastructure Innovation; and 2) Carbon Pricing, Markets, and Innovation.
Smarter Communities, Energy Transformation, and Infrastructure Innovation
This sub-theme of the GDA focused on the opportunities for enhanced collaboration between Mexico and California to support low-carbon development, deployment of clean and smart energy systems in the border region, and sustainable transport systems innovation. Its activities were aligned with low-carbon economic development efforts in Mexico by supporting clean tech markets’ regional integration, as well as assisting regions in the process of smart infrastructure upgrading and deployment (mainly in the energy, water, urban and transport sectors).
This collaboration connected the two emerging innovation hubs in Mexico: Tijuana, Baja California, and Monterrey, Nuevo Leon.
Cali-Baja Region
The Stanford-USAID Mexico Clean Economy 2050 GDA hosted a multi-sectoral workshop in Tijuana, Baja California Norte on the central role that energy infrastructure and electrification of the economy will play in advancing a clean economy model at the local level to support the emergence of a binational clean innovation hub in the Cali-Baja region.
Monterrey, Nuevo León
The Stanford-USAID Mexico Clean Economy 2050 GDA facilitated a multi-sectoral workshop focused on planning for the development of sustainable transport and alternative energy systems to help decarbonize the industrial base of the Monterrey economy, while realigning its manufacturing and innovation capacities towards the supply chains of the new clean economy in North America.
As a result of the workshop, a Memorandum of Understanding (MOU) was signed between Stanford | Energy and Tecnológico de Monterrey's School of Engineering & Sciences.
Cali-Baja Clean Economy 2050
Cali-Baja Clean Economy 2050: Challenges and Opportunities
September 19th to 20th 2019 | Research and Planning Workshop
Participants were divided into three groups for a working session, focusing on Smarter Communities and Climate Change, Energy Transformation and Regional Competitiveness, and Clean Innovation and the Infrastructure of the Future. They were asked to identify the challenges and opportunities present in making Cali-Baja a binational hub for clean innovation that improves the quality of life of those who live in the border region in a smart and inclusive manner, and fosters low-carbon development through social, technological and business innovation.
Nuevo Leon Clean Economy 2050
Nuevo Leon Clean Economy 2050: Challenges and Opportunities
November 15th 2019 | Research and Planning Workshop
Event participants were divided into two working group sessions, the first focused on Smarter Communities, Climate Change & Quality of Life, and the second focused on Clean Innovation & the Infrastructure of the Future. They were asked to identify challenges and opportunities present in fostering innovative, regional clean development in Nuevo Leon.
Carbon Pricing, Markets and Innovation
The Stanford-USAID Mexico Clean Economy 2050 GDA held a series of dialogues in the ongoing national conversation in Mexico around the potential for carbon pricing, as well as market-based solutions, for cost-effective Greenhouse Gas (GHG) emissions mitigation. Topics included the supplementary role of agriculture, forestry and other land uses (AFOLU) in industrial carbon management (i.e., natural climate solutions or nature- based solutions).
Monitoring, Reporting & Verification (MRV) for Mexico's National Emissions Registry (RENE)
The MCE2050 GDA created an monitoring, reporting and verification (MRV) working group to focus on providing guidance, technical training, and sharing lessons learned from California to strengthen Mexico’s MRV system for GHG reporting. The working group increased exchange of information among verifiers, members of industry and government representatives to address Mexico's national emissions registry rules implementation issues. The working group discussed the role of conflict of interest and transparency in the context of carbon markets in preparation for the launch of the Mexican emission trading system (ETS).
Natural Climate Solutions
MCE2050 held an international workshop focused on Natural Climate Solutions opportunities and challenges in Mexico. The objective was to clarify how forest-based carbon credits could be supplied and sold within the Mexican context and to provide policy-constructive input from the private sector to the GOM.
As a result, a policy report on Natural Climate Solutions was developed with the analysis of the challenges and how best to overcome them.
Mexican Emissions Trading System (ETS) Pilot
Convene high-level dialogues between the private sector, government and other key stakeholders to analyze the implications of the implementation of a federal emission trading systems (ETS), such as a cap-and-trade, to support decision making in carbon management and policy in Mexico. The MCE2050 GDA also facilitated exchange of expertise between regulators and businesses from California, Europe and Mexico in the development of the Mexican ETS. This exchange emphasized through working groups and workshops the flexibility of the market-based system and the consequent regulatory cost-mitigation aspects, while focusing on the need for accuracy and transparency in carbon accounting standards and practices.
During the three year period of activities of the Mexico Clean Economy 2050 GDA cooperative agreement between Stanford University and the United States Agency for International Development, the program successfully held a series of dialogues with policymakers, private sector representatives, and key stakeholders focusing on the Mexican context of decarbonization, while sharing lessons learned from California and other initiatives in North America and around the globe. Topics of these exchanges included the design of the pilot phase of the new emissions trading system in Mexico; carbon policy options and innovations; Natural Climate Solutions; credibility of MRV systems; and urban clean energy and transport system innovation towards decarbonization.
The project continues its mission beyond the GDA at Stanford's Precourt Institute for Energy.