Mexico Leads Sustainable Financing in Latin America: SHCP

The Ministry of Finance and Public Credit (SHCP) participated in the Mexico Carbon Forum 2023. According to SHCP, Mexico is moving forward in the consolidation of its carbon market through four strategies: efficient carbon pricing, price coordination, investment in forest offsetting and offset project diversification. 

On August 14, 2023, Gabriel Yorio, Deputy Minister, SHCP, attended the third edition of the Mexico Carbon Forum, held in Queretaro. He highlighted the progress in sustainable financing, the strengthening of the Mexican carbon market and outlined priority actions for an equitable energy transition. "Climate change is not just a challenge, but a responsibility. At SHCP, we are committed to define and achieve clear goals that guarantee a fair and equitable energy transition, ensuring the right to a healthy environment for the advancement and well-being of everyone,” said Yorio. 

Yorio stressed that financial innovation is a crucial tool for the transition, with Mexico at the forefront of sustainable financing leadership in Latin America. “Over the past four years, SHCP has issued sustainable bonds that account for more than US$11 billion in four different currencies, solidifying the Mexican corporate bond market as the strongest in Latin America,” he stated. Additionally, the recently launched Mexican Sustainable Taxonomy constitutes a key tool to guide investments into 124 activities within six vital sectors of the national economy. 

Currently, SHCP is working on the implementation of the Emissions Trading System (SCE), which focuses on strengthening the energy and industrial markets through four key strategies. The first strategy seeks to establish a carbon price that encourages the reduction of GHG emissions, by ensuring fair compensation for offset projects. Secondly, Hacienda will design mechanisms to unify carbon pricing criteria, including the Special Tax on Production and Services (IEPS) among other state taxes, in addition to the price reflected in the SCE. The third strategy considers increasing investments for offset projects in the forestry sector to benefit communities. Finally, the ministry plans to diversify its investments on offset projects such as marine carbon sinks and waste management, following Mexico's Sustainable Taxonomy.

Yorio pointed out that these strategies aim to establish a robust and fair carbon market that benefits both nature and people. “Our vision is for every Mexican household to have access to clean energy sources, as a healthy environment is an inalienable right. In this context, solar energy can be an innovative solution for our rural communities, generating tangible benefits for their inhabitants,” Yorio said.

The Mexican Carbon Forum is a space that allows dialogue among leaders and stakeholders committed to fight climate change, minimizing the carbon footprint and mitigating environmental impact. The event was attended by distinguished figures, including Mauricio Kuri, Governor, Queretaro; Agustín Ávila, Director General of Climate Action Policies, SEMARNAT; José Oriol Bosch-Par, CEO, Mexican Stock Exchange Group, and Eduardo Piquero, CEO, Mexican Carbon Platform MEXICO2.