Mexico - BioCarbon Emission Reduction Project

Overview & Synopsis

The BioCarbon Emission Reduction Project aims to generate payments for measured, reported, and verified Emission Reductions (ERs) from the Land Use, Land Use Change, and Forestry (LULUCF) sector within its jurisdiction, and to distribute these payments in accordance with an agreed Benefit Sharing Plan (BSP). The total project cost is 108 million dollar and is organized into three components. The first component, Landscape Investments, supports activities that generate emission reductions and strengthen sustainable value chains. It comprises two subcomponents: (i) 86 million dollar finances sustainable forest management, restoration, agroforestry, and forest protection through CONAFOR’s public incentive programs and community contributions; and (ii) 3.6 million dollar, financed by BioCFPlus, provides technical assistance to develop value chains for candelilla wax and low-carbon meat and dairy through silvopastoral systems. The second component, Emission Reductions Payments, finances results-based payments for verified carbon credits generated during the 2022-2027 crediting period, targeting up to 2 million tCO₂e. It ensures that 80 percent of ER payment proceeds are distributed directly to final beneficiaries, including local communities, Indigenous peoples, women, and youth engaged in emission reduction activities. The third component, Project Operation and Coordination, covers program management and institutional sustainability. It is funded by CONAFOR 3.6 million dollar and BioCFPlus 0.4 million dollar. Activities include program coordination, operation of the grievance redress mechanism (MAC), implementation of environmental and social standards, and monitoring, reporting, and verification (MRV) functions.