Financing low-carbon buildings in Mexico in the green bond market

The document examines the potential for green bonds to drive the decarbonisation of Mexico's building sector. It highlights that while only 10.6% of green bond proceeds from Mexican issuers were allocated to low-carbon buildings as of September 2020, there are significant opportunities, including a USD 18bn potential in Mexico City's housing growth. The briefing details the use of international and local certification proxies, such as EcoCasa, to identify eligible assets under the Climate Bonds Standard and discusses alternative financial instruments like CKDs, CERPIS, and FIBRAS that could be labelled as green.

• Mexico has committed to reducing greenhouse gas emissions by 22% by 2030, with a potential increase to 36% if sustainable building construction and residential solar use are promoted. The 2012 General Climate Change Law set a longer-term goal of a 50% reduction by 2050.
• There is a substantial investment opportunity in green buildings in Mexico City, where over 50,000 new houses are projected to be built annually until 2030, representing a USD 18bn opportunity.
• As of September 30, 2020, low-carbon buildings accounted for only 10.6% of the green bond proceeds raised by Mexican issuers, with energy receiving the largest share at 43.2%.
• Several entities have used green or sustainable bonds for low-carbon buildings in Mexico: Mexico City's government allocated 25% of a MXN 1.1bn bond to the sector; BBVA allocated 54% of a MXN 3.5bn bond to low-carbon buildings; and Vinte issued sustainability bonds for sustainable communities and social housing.
• The EcoCasa program, developed by the Federal Mortgage Society (SHF), is accepted as a proxy for Climate Bonds Standard certification in Mexico if residential buildings achieve at least a 20% reduction in CO2e emissions against their baseline.
• Alternative financial instruments in Mexico, such as CKDs (Certificates of Capital Development), CERPIS (Investment Project Certificates), and FIBRAS (real estate investment trusts), offer potential for green labelling. Some FIBRAS, such as FIBRA UNO, FIBRA Prologis, and FIBRA DANHOS, already hold LEED or BOMA Best certifications for their properties.

APA

Climate Bonds Initiative (2020). Financing low-carbon buildings in Mexico in the green bond market. https://www.climatebonds.net/files/documents/publications/Financing-low-carbon-buildings-in-Mexico.pdf

Chicago

Climate Bonds Initiative. Financing low-carbon buildings in Mexico in the green bond market. 2020. https://www.climatebonds.net/files/documents/publications/Financing-low-carbon-buildings-in-Mexico.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Financing low-carbon buildings in Mexico in the green bond market |date=November 2020 |url=https://www.climatebonds.net/files/documents/publications/Financing-low-carbon-buildings-in-Mexico.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2020financing, author = {{Climate Bonds Initiative}}, title = {{Financing low-carbon buildings in Mexico in the green bond market}}, institution = {Climate Bonds Initiative}, year = {2020}, month = nov, url = {https://www.climatebonds.net/files/documents/publications/Financing-low-carbon-buildings-in-Mexico.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }