Readiness Support for Mexico

Mexico’s new federal administration (2018-2024) has expressed its intention to further strengthen its climate change framework by refining climate goals, updating its climate change policy and by building institutional capacities to enhance cooperation and unlock green finance. Central to this objective is the development of a Climate Finance Strategy to ensure NDC activities are effectively and efficiently funded, and that public funding leverage significant private resource mobilization. The new government created the Sustainable Finance Directorate within the Ministry of Finance (SHCP), where the Nationally Determined Authority (NDA) before the GCF sits. The NDA coordinates closely with the Secretariat of Environment (SEMARNAT), MoFA, and national development banks (NAFIN, BANOBRAS) to ensure complementarity between international and national green funds and their alignment with the country’s national priorities and commitments. In 2017, INECC estimated implementation costs related to NDC achievement. Meeting such ambitious climate goals will require doubling Mexico’s current efforts (largely insufficient) to close the investment gap. Among the many funds to this end is the Green Climate Fund (GCF), created to support developing countries to respond to the challenge of climate change. The Fund has a mandate to build countries' capacity to access funds through its GCF Readiness Programme, which prepares countries to plan for, manage, disburse and monitor climate financing. Improving the Mexico’s access to funds from GCF through the country’s existing development banks can help to de risk climate projects and unlock further private capital to finance NDC implementation.