Projects

The Financing for Climate Action in Mexico (FINACC) project aims to enhance Mexico’s regulatory and financial frameworks to mobilise climate finance. In particular, the primary goal of the project is to improve Mexico’s financial system by making it more conducive to investments in climate action.

Working closely with the Ministry of Finance (SHCP), the Central Bank of Mexico (Banxico), the Mexican Ministry of the Environment and Natural Resources (SEMARNAT) and financial institutions, the project seeks to improve coordination mechanisms with the aim of promoting public-private investments (blended finance) compatible with the national climate goals.

The technical support focuses on the development, improvement and implementation of regulations in the financial system intended to enable effective climate finance prioritizing gender equality and a just transition.

The project operates in three fields of activity: 1) It supports public stakeholders in coordinating and planning climate finance; 2) It creates control mechanisms that enable climate aspects to be incorporated in financing decisions; and 3) It improves financial frameworks and builds capacities for implementing green mixed finance instruments.

This initiative is crucial for Mexico to bridge the financing gap in its climate agenda, to meet its Paris Agreement commitments, and make a significant contribution to the global effort to combat climate change.

The project is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ)

The project works directly with decision-makers and public employees of financial regulators and supervisors of financial institutions. It aims to benefit borrowers and investees (companies, public institutions, households) and savings and loan cooperatives.

The FINACC project, launched in September 2022 will continue until August 2026. It has had a significant impact through the following activities:

• Festival de Financiamiento Sostenible (26–29 June 2023): Organised with the SHCP, this event attracted 1,296 participants and more than 10,000 live stream views, indicating strong interest and engagement in sustainable finance.
• CIIGEF (Interinstitutional Committee for Gender Equality in Financial Entities): The project’s support in establishing and shaping the CIIGEF has been vital to promoting opportunities for gender equality and financial inclusion in Mexico’s financial sector. This initiative represents a significant step towards equitable and inclusive financial practices.
• Banking Evaluation: The project improved the evaluation system of the banking sector, integrating financial inclusion, gender, climate, and sustainability – all essential for the SHCP to analyse and optimise the financial system.
• Taxonomy implementation: The project supports the SHCP in the practical application of the sustainable taxonomy, crucial for regulation and implementation, in partnership with the National Commission for the Pension System (CONSAR).
• Task Force on Climate-related Financial Disclosures (TCFD) workshops: In 16 workshops with 77 participants, the project facilitated the adoption of the TCFD recommendations, broadening the understanding and implementation of climate-related financial disclosures.
• Cooperative Financing for Sustainability: In alliance with the National Institute of Social Economy (INAES), the project held eight workshops with 31 credit cooperatives on sustainable financial instruments and developed a guarantee fund for these cooperatives.
• Sustainability Protocol Update: The project assisted the Mexican Banking Association (ABM) in updating its Sustainability Protocol, providing Mexican Banks with a guide on how to integrate ESG criteria and aligns with national and international regulations and standards,
• Climate Scenario Analysis Pilot: In collaboration with the Central Bank of Mexico, FINACC conducted a pilot that applied the CLIMRISK and GCAM models to analyse climate scenarios for ten financial institutions.
• In collaboration with the Mexican Board for Research and Development of Financial Reporting Standards (CINIF), the project developed a greenhouse gas calculator for Small and Medium Enterprises and a tool to identify risks related to biodiversity-protected areas and water stress.