Overview

Description

In November 2023, the Director General of IMADES (Institute for the Environment and Sustainable Development of the State of Colima) announced the government’s interest in developing a ‘green tax’ with the aim of encouraging a low-carbon economy and reducing emissions of greenhouse gases in the State. On December 3, 2024, the Congress of Colima approved the implementation of the carbon tax to take effect in 2025. The tax applies to facilities in the state whose production processes generate greenhouse gases and compounds. The tax rate is set to be the equivalent to five times the daily value of the Unit of Measurement and Update (UMA) per ton of carbon dioxide equivalent (CO2e) emitted. The measure targets fixed sources of emissions within the state, allowing up to 50% of the tax to be offset with emission reductions from projects certified under recognized carbon standards. Tax incentives will be granted to entities that achieve up to a 20% reduction in emissions during a fiscal year. This initiative aims to discourage environmentally harmful behaviors and activities.

Recent Developments

No changes

Coverage

The tax applies at the time that the subjects make emissions into the atmosphere of Greenhouse Gases and Compounds. The determination will be made through a direct measurement or estimation of the emissions into the atmosphere of greenhouse gases and compounds that are generated. The tax applies to natural and legal persons, as well as federal, state, municipal government institutions and decentralized and deconcentrated organizations, whose processes derived from their economic activity generate emissions of Greenhouse Gases and Compounds into the atmosphere.

Pricing and Allocation Approaches

Set price

Compliance Approaches

Annual

Relation to Other Compliance CPIs

Subjects participating in the National ETS are exempted from the tax.

Covered Sectors

Electricity and heat

Industry

Mining and extractives

Buildings

Agriculture, forestry and fishing fuel use