MEXICO SUSTAINABLE DEBT STATE OF THE MARKET REPORT 2023

Mexico's sustainable debt market reached a cumulative GSS+ volume of USD 55.7bn by the end of 2023, with sustainability bonds emerging as the dominant instrument. The market is heavily driven by the public sector, particularly the federal government and development banks, though private corporate participation is increasing. The report highlights the introduction of the Mexican Sustainable Taxonomy in March 2023 as a key development to guide investments. While Mexico is a global leader in sustainability bond volume, challenges remain in the sustainability-linked bond (SLB) market regarding the credibility of GHG targets. Key opportunities for growth are identified in renewable energy, sustainable agriculture, and low-carbon construction, supported by trends such as US nearshoring.

• By the end of 2023, Mexico's cumulative GSS+ volume reached USD 55.7bn, with USD 38.3bn (69%) aligned with Climate Bonds screening methodologies. In 2023, aligned volume grew by 25% to USD 14.7bn, making Mexico the largest source of sustainability debt globally that year.
• The public sector is the primary driver of the market, accounting for 75% of overall volume. The Mexican government issued 14 sustainability deals totaling USD 13.3bn, and the development bank Banobras issued 17 deals worth USD 4.5bn.
• Sustainability bonds are the most prevalent label, representing 72% of the cumulative aligned Mexican GSS+ market. In 2023, Mexico contributed USD 11.2bn to the global aligned sustainability volume, representing 11% of the global total.
• The Mexican Peso (MXN) is the preferred currency for issuances, accounting for over 60% of the total aligned market. In 2023, MXN represented 75% of GSS+ volumes, largely driven by sovereign issuances.
• The Mexican Sustainable Taxonomy, launched in March 2023, provides a framework for identifying sustainable activities across six sectors, including energy and transportation. It uniquely includes a gender equality index to evaluate projects across pillars of just labour, well-being, and social inclusion.
• Sustainability-linked bonds (SLBs) in Mexico have a cumulative aligned volume of USD 1.3bn. However, many SLBs are non-aligned due to a lack of GHG targets and partial emissions coverage, though alignment rates improved to 21% in 2023.
• Green bonds account for 13% (USD 4.9bn) of the cumulative aligned volume, with non-financial corporates contributing 40% of this volume. Renewable energy and green buildings are the most common use-of-proceeds categories.
• Social bonds reached a cumulative volume of USD 4.5bn by the end of 2023. These are primarily issued by public institutions, with government-backed entities and development banks accounting for 84% (USD 3.8bn) of the volume, focusing heavily on affordable infrastructure.
• Mexico's energy sector is a primary source of GHG emissions, with electricity generation and other energy sources combined accounting for nearly half of national emissions in 2019. There is significant potential to add over 24,000 MW of renewable energy by 2030.

APA

Romay, A. B., Borges, S., Costa, D., de Araujo, B. C., & Contreras, V. D. (2024). MEXICO SUSTAINABLE DEBT STATE OF THE MARKET REPORT 2023. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Climate-Bonds_Sustainable-debt-state-of-the-market-Mexico-2023_EN_Aug-2024.pdf

Chicago

Romay, Andrea Barrenechea, Sofia Borges, Daniel Costa, Bruno Coloma de Araujo, and Valeria Dagnino Contreras. MEXICO SUSTAINABLE DEBT STATE OF THE MARKET REPORT 2023. Climate Bonds Initiative, 2024. https://www.climatebonds.net/files/documents/publications/Climate-Bonds_Sustainable-debt-state-of-the-market-Mexico-2023_EN_Aug-2024.pdf.

Wikipedia

{{cite report |last1=Romay |first1=Andrea Barrenechea |last2=Borges |first2=Sofia |last3=Costa |first3=Daniel |last4=de Araujo |first4=Bruno Coloma |last5=Contreras |first5=Valeria Dagnino |title=MEXICO SUSTAINABLE DEBT STATE OF THE MARKET REPORT 2023 |publisher=Climate Bonds Initiative |date=August 2024 |url=https://www.climatebonds.net/files/documents/publications/Climate-Bonds_Sustainable-debt-state-of-the-market-Mexico-2023_EN_Aug-2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{romay2024mexico, author = {Romay, Andrea Barrenechea and Borges, Sofia and Costa, Daniel and de Araujo, Bruno Coloma and Contreras, Valeria Dagnino}, title = {{MEXICO SUSTAINABLE DEBT STATE OF THE MARKET REPORT 2023}}, institution = {Climate Bonds Initiative}, year = {2024}, month = aug, url = {https://www.climatebonds.net/files/documents/publications/Climate-Bonds_Sustainable-debt-state-of-the-market-Mexico-2023_EN_Aug-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }