PROJECT

Projects

Project Name Pending

Project Number

606410

Primary Business Area

Financial Institutions Group

Disclosure Date

Jun 10, 2024

Country

Mexico

Region

Latin America and the Caribbean

Status

Active

Estimated Total Budget

$3,684,065.00
(Project budget includes all project-funded activities)

Last Updated Date

Nov 25, 2024

Project Estimated Start Date

Oct 30, 2021

Project Estimated End Date

Dec 31, 2027

Project Description

The 30x30 Zero Program seeks to increase financial sector financing for climate projects aligned with the country's NDC goals. The Program’s sub-objectives are: I) Increase the average climate portfolio over the total portfolio in the 6 target banks (in %, from 3.5% to 9.5%, and in absolute figures, from $8,222 million to $27,145 million, from 2022 to 2027). ii) Decrease the exposure to coal supply chain in the portfolio of the 6 target banks (from 1 to 6 banks that have measured the carbon intensity of portfolios of power generation and steel production, and established decarbonization targets, from 2022 to 2027) iii) Support the development of the sustainable capital market in particular through the issuance of green and climate thematic bonds (issuance of $204 million of green and climate thematic bonds, by an FI or real economy corporate, by 2027) iv) Facilitate IFC climate financing to Mexican banks ($300 million of Value of financing facilitated, by IFC and/or other investors, by 2027) The above sub-objectives will be achieved through the following 5 components: 1. Develop climate-focused ESG public policies with regulators and supervisors, including the development of a national sustainable taxonomy (WB to lead) 2. Contribute to the development of the sustainable capital market, with a focus on climate, targeting institutional investors, especially pension funds. (IFC FIG to lead) 3. Support a priority sector (NDCs) of the real economy. (IFC CBD to lead) 4. Accompany the climate transformation of 6 target banks (increase green business and incorporate climate risks). (IFC FIG to lead) 5. Sensitize and train the financial sector to increase climate finance. (IFC FIG to lead)

Development Results

E&S Risks / Impacts and Mitigation