Mexico at the Forefront of Sustainable Financing: SHCP

Mexico’s Deputy Minister of Finance Gabriel Yorio highlighted at the COP 27 meeting that the country has implemented adequate sustainable financing tools to promote the UN’s Sustainable Development Goals (SDGs).

“Mexico is a pioneer and leader in regulation and sustainable financing worldwide, promoting the development of sustainable bonds, taxonomies and financing for local markets,” said Yorio according to a SHCP press release.

During the COP 27 meeting, which took place in Sharm el Sheikh, Egypt, Yorio explained the Mexican model and experience to mobilize sustainable financing to fight climate change. He also explained that Mexico aligns its budget with the SDGs to enhance its sustainable financing strategy. The country also sets its standards based on the UN’s green taxes, issuance of sustainable financial instruments, regulation, and the promotion of combined financing instruments, said Yorio. However, he added that progress has been scarce for seven years after the Paris Agreement, with social inequalities and climate goals lagging. 

Achieving carbon neutrality and limiting global warming to 1.5° C globally by 2050 will cost an estimated US$5 trillion a year, according to the OECD. Challenges to achieve these goals include the lack of incentives to finance environmental and inclusivity projects. The public sector faces challenges to reduce carbon emissions and enhance climate resilience. Yorio said that finance ministries underuse the economic mechanisms at their disposal and joint actions are needed to address climate-related financial risks.

“We have an unparalleled opportunity to expand the scope of Climate Action based on the work we do every day to create and maximize a positive effect not only in the financial sector but also in the economy in general. We can no longer postpone climate action. It is time, as finance ministries, to lead by example and promote equitable, sustainable and green development and growth,” said Yorio.