Program for Environmental Restoration and Compensation (Mexico)

At the national level the General Law of Ecological Equilibrium and Protection of the Environment (LGEEPA) establishes the need for Environmental Impact Assessment (EIA), and the Secretary of Environment and Natural Resources (SEMARNAT) implements this law and dertemines if an EIA is required for the development of any given project. If an EIA is required, and Environmental Management Plan (EMP) is issued, consisting of seperate mitigation, compensation and follow-up measures for development activities, and distinguishing on-site and off-site actions. A developer is able to create offsets themselves or to pay into a copmensation fund managed by the National Forestry Commission (CONAFOR). If the developer chooses to pay into the CONAFOR fund, a compensation ratio of greater than 1:1 is required. However, the current system does not make transparent whether the reforestation activities linked to compensation are succesful or not, and if their location and timing truly compensate for the environmental services lost. In addition, a number of CONAFOR programs are difficult (or impossible) to seperate, and thus cannot be evaluated for effectiveness by developers, public ir civil society organizations involved. In order to remedy this problem, the National Institute of Ecology (INE) is preparing an initiative for SEMARNAT to develop a system of banking and trading biodiversity offset credits. In addition, the Federal Enviromental Attorney (PROFEPA) oversees compensation payments (either in-kind or cash) obtained from damages to biodiversity due to accidents or regulation violations. The PROFEPA and the National Commission for the Knowledge and Use of Biodiversity (CANBIO) formulated an agreement by which they would launch an offset-like program (the Program for Environmental Restoration and Compensation) that aims to compensate for regulation violations and accidents through the planned restoration or recovery of ecosystems and natural resources on site, and then if that is not possible, avoiding or mitigating damage elsewhere.

Program Statistics

Date Established: 1989 Status: Active Program Type: One-Off Offset
About the program:
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Bank regulator information: PROFEPA - Procuraduria Federal de Proteccion Ambiental; CONABIO - Comision Nacional para el Conocimiento y Uso de l Biodiversidad Last Updated: June 22, 2010