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

This briefing by the Climate Bonds Initiative examines the potential for using green and sustainable bonds to finance low-carbon buildings in Mexico. It details the country's climate commitments, the current state of the green bond market, specific financial instruments like FIBRAs and CKDs, and the certification proxies used to identify eligible low-carbon assets.

• Mexico has committed to reducing greenhouse gas emissions by 22% by 2030 under its unconditional nationally determined contributions (NDC) target, with a potential increase to 36% by 2030 if sustainable building construction and residential solar use are promoted. Additionally, the 2012 General Climate Change Law set a goal to reduce emissions by 50% by 2050.
• There is a significant investment opportunity in green buildings in Mexico City, where more than 50,000 new houses are projected to be built annually until 2030, representing a USD 18bn opportunity. More broadly, 34% of the climate-smart investment potential for future sustainable cities in Latin America, totaling USD 901bn, is directed toward green buildings.
• As of September 30, 2020, only 10.6% of green bond proceeds raised by Mexican issuers were allocated to low-carbon buildings, with energy receiving the largest share at 43.2%.
• Several entities have utilized green or sustainable bonds for low-carbon building projects in Mexico. Mexico City allocated 25% of its 2018 green bond (MXN 1.1bn/USD 54m) to the low-carbon building sector. BBVA's first green bond in Mexico (MXN 3.5bn/USD 186m) allocated 54% of proceeds to low-carbon buildings. Vinte issued sustainability bonds in 2018 (MXN 800m/USD 42m) and 2020 (MXN 460m/USD 20m) for sustainable communities, including social housing.
• The Climate Bonds Standard accepts specific proxies for certifying low-carbon buildings in Mexico. For residential buildings, the EcoCasa program is accepted if it achieves a minimum 20% reduction in CO2e emissions against its baseline. Other accepted proxies for both commercial and residential buildings include LEED Gold or Platinum (with 30% improvement over ASHRAE 90.1), EDGE certification, and Living Building Challenge certification.
• Alternative financial instruments in Mexico, such as CKDs (Certificates of Capital Development), CERPIS (Investment Project Certificates), and FIBRAS (real estate investment trusts), offer opportunities for green labeling. While none of the 15 FIBRAS and seven CERPIS listed on the BMV or BIVA were labeled green as of the report date, some already fund LEED-certified properties, such as FIBRA UNO, FIBRA Prologis, and FIBRA DANHOS.

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} }