Mexico-UK Climate Partnership: Accelerating Net-Zero Goals

As the impacts of climate change intensify globally, the need for coordinated international action becomes increasingly apparent. No nation — regardless of its size, wealth, or emissions profile — can tackle this crisis alone. Climate change is a collective challenge, and its solutions must be collaborative. For countries like Mexico, which are vulnerable to climate impacts and key players in the global transition to net zero, international partnerships can help amplify national efforts and accelerate progress.

Mexico has recently set out ambitious climate objectives. It plans to present an updated Nationally Determined Contribution (NDC) this November in Belém, outlining a pathway toward net-zero emissions by midcentury. Achieving these goals will require political commitment and domestic investment, complemented by technical expertise, financial resources, and innovation that results from working with international partners. A strong example of this collaborative approach is the robust and evolving relationship between Mexico and the United Kingdom in the realm of climate action. The UK has established itself as a global leader in climate diplomacy and green finance. Through its International Climate Finance (ICF) facility, it has contributed to initiatives in countries like Mexico that pursue low-carbon and climate-resilient development.

Accelerating Climate Transitions in Mexico

One of the UK’s flagship initiatives is UK PACT (Partnering for Accelerated Climate Transitions), a program launched in 2018 that has become central to climate cooperation between the two countries. UK PACT supports projects that reduce emissions and build capacity across key sectors. To date, it has funded 24 projects in Mexico, investing approximately £14 million (US$18 million) across five priority areas: climate policy, sustainable finance, energy transition, low-carbon mobility, and the AFOLU (Agriculture, Forestry and Other Land Use) sector.

The results of this cooperation are already visible. In climate policy and governance, UK PACT has partnered with organizations such as POLEA to assist several Mexican states in developing or strengthening their climate legislation and regulatory frameworks. With this support, nine states have successfully enacted laws aligned with national targets and international commitments, reinforcing the legal foundation for subnational climate action.

In green finance, the program has worked with the Global Green Growth Institute (GGGI) to pioneer innovative financial instruments. These include Latin America’s first resilience bond, which raised US$160 million to strengthen agricultural value chains in Mexico, and a US$595 million sustainability bond issued by Mexican development bank NAFIN through the technical assistance from UK PACT, bolstering the financial sector’s role in climate adaptation and mitigation.

UK PACT has also made significant progress in the AFOLU sector, which is vital for both emissions reduction and biodiversity conservation. Through partnerships with organizations such as Kew Gardens and Pronatura Sur, the program has worked with smallholder coffee producers in Veracruz and beekeepers in Yucatan to adopt sustainable land-use practices. These initiatives help reduce emissions and also enhance the economic and climate resilience of rural communities.

In the energy sector, UK PACT has supported innovative, community-based models, such as Ejido Solar, in collaboration with Iniciativa Climática de México, a leading NGO in the Mexican climate space. This initiative promotes renewable energy generation while respecting communal land ownership and fostering rural development, demonstrating how climate solutions can also address social and economic challenges.

A New Phase, A Renewed Commitment

Earlier this year, UK PACT launched a second phase in Mexico, which will run until March 2027. This phase will deepen impact in three core sectors: climate policy, sustainable finance, and AFOLU. A new call for proposals is expected by the end of August, opening further opportunities for collaboration.

Two high-impact projects are already underway in this new phase. One, in partnership with the Ministry of the Environment and Natural Resources (SEMARNAT), supports the revision of Mexico’s General Climate Change Law to reflect the country’s updated NDC and its commitment to achieving net-zero emissions by 2050. The other, in collaboration with the Ministry of Finance (SHCP), aims to strengthen Mexico’s Sustainable Taxonomy —a key tool for directing public and private investment toward environmentally responsible projects.

These initiatives underscore the value of well-structured international partnerships. They demonstrate how shared expertise and targeted financial support can accelerate national progress while building institutional and technical capacity. And more importantly, they also highlight how countries can learn from one another and co-create solutions tailored to local contexts. 

The United Kingdom remains committed to walking alongside Mexico on this journey, not only through UK PACT but also via other programs under the ICF umbrella. What unites all these efforts is a shared conviction: Through meaningful partnerships, we can address the challenge of climate change while fostering a more inclusive, resilient, and sustainable future for all.