The Mexican Secretariat of Energy announced a cap-and-trade system for carbon emissions from the energy sector in February (press release – Spanish). The ETS is one of a number of measures included in the recently approved energy reform. The announcement comes shortly after the introduction of a carbon tax on fossil fuels in January. The tax is set at approximately USD 3.50 per tCO2e, though firms will be allowed to use offset credits (from CDM offset projects) to fulfill their tax liability. It remains to be determined how the different policy instruments (cap-and-trade for energy, the carbon tax, and a potential voluntary ETS under the 2012 General Law on Climate Change) will work together