Latinoamérica Sostenible: ¿Cómo impulsar una recuperación justa y resiliente a partir del financiamiento climático en México?

This policy brief by Transforma argues that climate finance is essential for a just and resilient recovery in Mexico following the COVID-19 pandemic. It examines the current state of national and international climate funding, warns against the risks of the recent elimination of the Climate Change Fund (FCC), and provides specific recommendations for both the public and private sectors to align economic recovery with sustainability goals and international commitments.

• Climate finance is presented as a critical tool for a just and resilient recovery, which requires transforming production and consumption models to achieve carbon neutrality and the Sustainable Development Goals (SDGs). The document warns that without explicit climate criteria, recovery instruments may cause a "rebound effect" where emissions increase rapidly after a temporary dip, similar to the pattern observed after the 2008 financial crisis.
• Mexico's Nationally Determined Contributions (NDCs) established in 2015 include goals to reduce emissions by 22% through national climate finance and 36% through international climate finance. Other targets include zero deforestation by 2030 and a 51% reduction in black carbon emissions. However, the document notes that in 2020, Mexico merely reaffirmed its original NDCs, which is viewed as a sign of low ambition.
• National climate finance is primarily managed through Annex 16 of the Federal Expenditure Budget (PEF). In 2020, the majority of these resources were allocated to the Federal Electricity Commission (CFE), specifically for transporting natural gas to power plants. This shift has come at the expense of other sectors; for example, the agricultural sector's share of funds dropped from 31% in 2013 to 0.3% in 2020, and SEMARNAT's share fell from 40.7% to 14.1% in the same period.
• The elimination of the Climate Change Fund (FCC) via a reform to the General Law on Climate Change (LGCC) on November 6, 2020, is identified as a significant setback. The FCC was designed to manage public, private, national, and international resources for climate action. Its removal leaves Annex 16 as the only guaranteed source of national climate finance and creates challenges for climate governance, multisectoral coordination, and transparency.
• Mexico is the second largest recipient of international climate finance in Latin America, following Brazil. The Inter-American Development Bank (IDB) is the primary bilateral source, followed by the German Development Bank (KfW). Other key contributors include the French Development Agency (AFD) and the World Bank. Additionally, the Global Environment Facility (GEF) and the Green Climate Fund (GCF) support various regional projects.
• The document recommends several public sector measures: strengthening SEMARNAT and the National Climate Change System (SINACC) in governance and transparency; prioritizing public spending based on technical mitigation and adaptation criteria; improving the technical capacity of public officials; and supporting subnational governments in their climate actions.
• For the private sector, the brief recommends active participation in defining climate finance guidelines, such as the Green Taxonomy for the Mexican Financial System. It also suggests increasing support for public-private financing schemes and diversifying investments through impact investing, blue carbon, and carbon bonds to meet corporate sustainability goals and the NDCs.

APA

Transforma (2020). Latinoamérica Sostenible: ¿Cómo impulsar una recuperación justa y resiliente a partir del financiamiento climático en México? https://transforma.global/wp-content/uploads/2025/05/Latinoamerica-Sostenible-Como-impulsar-una-recuperacion-justa-y-en-Mexico.pdf

Chicago

Transforma. Latinoamérica Sostenible: ¿Cómo impulsar una recuperación justa y resiliente a partir del financiamiento climático en México? 2020. https://transforma.global/wp-content/uploads/2025/05/Latinoamerica-Sostenible-Como-impulsar-una-recuperacion-justa-y-en-Mexico.pdf.

Wikipedia

{{cite report |author=Transforma |title=Latinoamérica Sostenible: ¿Cómo impulsar una recuperación justa y resiliente a partir del financiamiento climático en México? |date=November 2020 |url=https://transforma.global/wp-content/uploads/2025/05/Latinoamerica-Sostenible-Como-impulsar-una-recuperacion-justa-y-en-Mexico.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{transforma2020latinoamrica, author = {{Transforma}}, title = {{Latinoamérica Sostenible: ¿Cómo impulsar una recuperación justa y resiliente a partir del financiamiento climático en México?}}, institution = {Transforma}, year = {2020}, month = nov, url = {https://transforma.global/wp-content/uploads/2025/05/Latinoamerica-Sostenible-Como-impulsar-una-recuperacion-justa-y-en-Mexico.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }