Clean Energy Cost-Savings: A Study of Mexico’s Federal Electricity Commission (CFE)

Clean Energy Cost-Savings: A Study of Mexico’s Federal Electricity Commission (CFE)

Figure 10. Particulate Matter Emissions

These graphs further illustrate the benefits of using cleaner fuels, such as natural gas, for power generation whenever the use of fossil fuels cannot be avoided. It is clear that fuel oil– and coal-fired power plants have the largest SO 2 , NO x , and particulate matter emissions, which are the most harmful to human health. Value of Avoided CO 2 Emissions The market value of the avoided emissions can be estimated with the information available from the emissions trading markets in place in several countries for different gases. On January 1, 2005, the European Union launched the most ambitious CO 2 emissions trading market to date under Directive 2003/87/CE. It covers all 27 member states for CO 2 emissions generated by the following activities: • Thermal power plants; • Cogeneration; and • Combustion installations with a rated thermal input exceeding 20 MW Emissions allowance trading, also known as a cap-and-trade system, is a market instrument that creates a financial incentive or disincentive to encourage industrial plants to collectively reduce their production of pollution-causing emissions.

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