Mexico Takes Major Steps to Implement Sustainable Taxonomy
The Ministry of Finance and Public Credit (SHCP) reported that the development of Mexico’s Sustainable Taxonomy, announced earlier this year, is advancing. The ministry highlighted that experts from different fields participated in work groups to define the next steps for the implementation of the taxonomy, which aims to make the Mexican economy more sustainable and environmentally friendly.
The taxonomy is being developed by SHCP, numerous economic associations, academic institutions, state ministries and civil society organizations. The SHCP highlighted that economic sectors have welcomed the project and its potential to promote the transition toward a sustainable economy. However, the collaboration of about 300 financial institutions is needed for the project to be successfully assimilated and implemented, explained the SHCP via a press release.
Pilot tests will be conducted to allow integration in financial institutions and its operations, while developing regulations and complementary legislation to provide legal certainty. The objective is to provide a clear and robust framework to adopt the taxonomy.
The SHCP highlighted that phase one of the implementation will complete the technical criteria for Sustainable Cities in Mexico, allowing for the evaluation of financial resources for sustainable urban projects and infrastructures that promote climate resilience and quality of life. Financial instruments will also be developed in alignment with sustainability and social responsibility projects to channel resources to positively impact the environment and society.
“With these steps, we will advance in the implementation of the Sustainable Taxonomy of Mexico, laying the foundations for a more sustainable and responsible economy. We will work closely with financial institutions, government actors and civil society to achieve an effective transition towards financial practices aligned with the objectives of sustainability and the equitable development of our country,” explains SHCP.
The SHCP presented the project to create Mexico's first sustainable taxonomy during the 2023 Banking Convention. The taxonomy seeks to address climate change, gender equality and access to basic services related to sustainable cities. Gabriel Yorio, Deputy Minister of Finance, said that the taxonomy is a “unique initiative worldwide,” and that it considers social objectives and gender equality as a primary objective. The SHCP seeks to position Mexico as a global leader in well-being, communities and environment, as reported by MBN.