Financing low-carbon transport in Mexico

The document outlines the critical need for low-carbon transport in Mexico, where the sector is the second largest source of greenhouse gas emissions. It highlights the potential for green bonds to fund electric mobility, rail infrastructure, and fleet renewals, while noting that only 1.27% of green bond proceeds from Mexican issuers have been allocated to transport as of January 2021.

• Transportation is the second largest source of greenhouse gas emissions in Mexico, with approximately 48% of the country's energy consumption used for moving people and goods.
• Mexico has set a unique international commitment to reduce black carbon emissions by 51% by 2030, a goal that is heavily dependent on the transport sector, which generates 38% of these emissions.
• The Mexican transport sector is dominated by road transport, which accounts for roughly 90% of the sector's emissions. The vehicle fleet grew from 8 million to 21 million between 1996 and 2006, partly due to used car imports from the US.
• As of January 2021, low-carbon transport represents a very small fraction of green bond allocations by Mexican issuers, receiving only 1.27% of proceeds, compared to energy at 45.73%.
• Several large-scale low-carbon transport projects are underway in Mexico, including the Mexico-Toluca Train (estimated investment of USD 4bn), the Jalisco Line 3 of the Guadalajara Light Rail (approximately USD 1.5bn), and the Zero Emissions Corridor on Eje 8 Sur in Mexico City.
• Private sector initiatives include the company Bimbo, which plans to invest USD 146m via its subsidiary Moldex to manufacture 4,000 electric vehicles over four years, powered by renewable energy from the Piedra Larga Group wind farm in Oaxaca.
• Mexico City has utilized green bonds for transport, with a 2016 issuance allocating 58% of MXN 1bn to projects including Metrobus line 5 and light rail units.

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} }