Financing low-carbon transport in Mexico

This briefing by the Climate Bonds Initiative explores the potential for using green and sustainable bonds to finance low-carbon transport (LCT) in Mexico. It highlights the transport sector's significant contribution to national greenhouse gas emissions and identifies specific infrastructure projects and corporate initiatives that could benefit from green financing to meet Mexico's climate goals, including its unique commitment to reduce black carbon.

• The transport sector is a primary driver of emissions in Mexico, with road transportation accounting for approximately 90% of these emissions. Overall, transport is the largest sector for national emissions, contributing 25.1% of the total.
• Mexico has established a unique international commitment to reduce black carbon emissions by 51% by 2030. The transport sector is a major contributor to this, responsible for 38% of the country's black carbon emissions.
• There is a significant opportunity to renew Mexico's cargo vehicle fleet, which consists of over 980,000 vehicles with an average lifespan of 18 years.
• Despite the potential, low-carbon transport represents a very small fraction of green bond proceeds raised by Mexican issuers, accounting for only 1.27% as of January 31, 2021.
• Several large-scale low-carbon transport projects are underway or planned in Mexico, including the Mexico-Toluca Train (estimated investment of MXN 90bn/USD 4bn), the Jalisco Line 3 of the Guadalajara Light Rail (costing MXN 32bn/USD 1.5bn), and a zero-emissions bus corridor on Eje 8 Sur in Mexico City (estimated cost of USD 115m for Phase 1 and USD 90m for Phase 2).
• Private sector initiatives are also emerging, such as the multinational company Bimbo, which plans to invest approximately USD 146m through its subsidiary Moldex to manufacture 4,000 electric vehicles over four years.
• Mexico City has utilized green bonds for transport, with a 2016 bond allocating 58% of its MXN 1bn issuance to projects including Metrobus line 5 and the repair of the metro-Metrobus network.

APA

Climate Bonds Initiative (2021). Financing low-carbon transport in Mexico. https://www.climatebonds.net/files/documents/publications/Financing-low-carbon-transport-in-Mexico_2025-02-17-163038_ukxj.pdf

Chicago

Climate Bonds Initiative. Financing low-carbon transport in Mexico. 2021. https://www.climatebonds.net/files/documents/publications/Financing-low-carbon-transport-in-Mexico_2025-02-17-163038_ukxj.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Financing low-carbon transport in Mexico |date=February 2021 |url=https://www.climatebonds.net/files/documents/publications/Financing-low-carbon-transport-in-Mexico_2025-02-17-163038_ukxj.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2021financing, author = {{Climate Bonds Initiative}}, title = {{Financing low-carbon transport in Mexico}}, institution = {Climate Bonds Initiative}, year = {2021}, month = feb, url = {https://www.climatebonds.net/files/documents/publications/Financing-low-carbon-transport-in-Mexico_2025-02-17-163038_ukxj.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }