E3G is working with the Government of Mexico to develop financing strategies that enable low-carbon investment. The project partners are the National Institute for Ecology and Climate Change (INECC) and the Secretary of the Environment and Natural Resources (SEMARNAT).
Mexico has a history of leadership in climate change and the government recently presented its INDC which sets out climate change targets between 2020-30. However, pressing social needs, high cost of capital, and other real or perceived barriers present obstacles to this transition.
E3G is supporting the government in developing a credible climate finance strategy that can illustrate to Mexican decision-makers how low-carbon investments can be promoted and be affordable to effect change. A key element of the project is to identify needs and gaps of climate investments by involving the private sector – financial institutions as well as investors and project developers.
Ultimately, the project will provide the Mexican agencies in charge of climate change policy and planning with a clear perspective of what works well and what needs to change in order to optimise the flow of finance for implementation of climate mitigation measures.
This will be achieved by:
- assessing the effectiveness of the existing domestic financial ecosystem;
- extracting lessons of international best practice and UK expertise on low carbon finance through a Mexican delegation coming to the UK;
- strong stakeholder engagement to enhance exchange between the public and private sector and development of potential project pipelines;
- developing concrete, targeted policy recommendations on financing options for implementation of national climate objectives by testing initial findings and agreeing a common agenda for implementation with key stakeholders.