Mexico and France: Green Allies in Finance

Mexico and France committed to supporting green finance during the third edition of the High-Level Economic Dialogue event. The two countries, represented by Mexico’s Ministry of Finance and France’s General Directorate of the Treasury, signed a Memorandum of Understanding to support access to technical cooperation programs financed by France. These programs aim to promote an ecological, financial transition in both countries, announced the Mexican government through a press release.

Based on the framework created in the dialogue between both countries, Mexico’s Ministry of Economy will draw a roadmap to continue promoting economic cooperation while promoting an even stronger economic relationship. In the press release, the Mexican government “reiterated its commitment to the fight against climate change,” and called it a priority for this government alongside the promotion of sustainability in public finances.

During the meeting, both countries’ financial institutions discussed a multilateral agenda concerning green finance, trade policy and trade data. The countries also discussed different investment projects in the bilateral relationship, while also addressing the matter of economic cooperation, particularly on issues such as sustainable development, inclusive trade and innovation. 

The virtual meeting hosted several experts from Mexico and France, including Mexico’s Undersecretary of Foreign Trade of the Ministry of Economy, Luz María de la Mora Sánchez, and the Undersecretary of Finance and Public Credit of Mexico, Gabriel Yorio González. France experts at the event included the Director-General of the French Treasury, Emmanuel Moulin. This is part of France and Mexico’s historied cooperation efforts.

What Opportunities Are There for Green Finance in Mexico?

“Mexico is important because of its resilient economy and because it has one of the largest climate change impacts in terms of carbon emissions, compared to other countries in the region,” explained Arturo Palacios, Acting Director at Carbon Trust Mexico, in an interview with MBN. “Companies in Mexico and the rest of Latin America are lagging behind in terms of how they structure their targets related to environmental performance.”

Green finance is still young in Mexico and abroad, and some have yet to understand its implications and benefits, explained Palacios. “Green bonds are relatively young – the first was issued in 2008 by the World Bank. This set the example for how bonds should be evaluated to be considered ’green.’ The emergence of green bonds demonstrated the appetite for green financial instruments.” The key lies in creating strategies to help people understand their benefits.