Mexico Ranks Fourth in Green Investment in Latin America

A new study ranks Mexico as the fourth-largest center for green investment in Latin America, based on levels of sustainability-focused investment over the past two decades. The study, conducted by Exness Insights, indexed countries in the region based on a range of indicators, including investments in climate bonds, investments in green energy, percent change in green investment over the past decade, number of B Corp company headquarters and CO2 emissions per inhabitant. Mexico earned a total of 72 points out of 100, with 100 representing the greenest possible score. 

Mexico’s score reflects about US$4.3 billion in green bond issuance and US$3.2 billion invested in renewable energy over the past two decades. The country also hosts 94 certified B Corp entities, or companies that have been certified for their ESG credentials by B-Lab, a US nonprofit. Among the first two companies to receive B Corp certification were Donadora, a crowdfunding platform, and Ilumexico, a social enterprise. 

Mexico trails Argentina (80 points), Chile (74 points), and Ecuador (73 points). Argentina leads the region with US$4.8 billion in renewable energy investment over 20 years, a 4.24% growth in the last decade, and 244 B Corp-certified businesses. Chile ranked second, led by US$14.6 billion in green bond issuance plus US$4.6 billion deployed in clean energy and 251 B Corp-certified firms. Ecuador holds third place, with US$4.4 billion in clean energy investment and an 8.61% increase over 10 years, the highest growth rate in the region. Coming in at fifth place was Brazil, with 71 points. It leads Latin America in green bond issuance, totaling US $17.3 billion, and has seen a 2.90% rise in green energy investment over the past decade. In 2024, nearly 90% of Brazil’s electricity generation came from renewables, a percentage that leads the entire G20 group of nations. 

While Mexico’s position in the index indicates unrealized potential, various data points indicate optimism for the country’s green investment future. Though Mexico only generated 31.2% of its electricity from renewables in 2022, the US International Trade Association (ITA) notes that Mexico has a large and varied enough renewable energy resource base to propel a substantial increase in clean generation capacity. According to the ITA, Mexico’s national technical potential consists of 24,918GW of solar photovoltaic capacity, 3,669GW of wind, 2.5GW from conventional geothermal sources, and 1.2GW from hydropower plants that are already online. In total, these sources could satisfy an electricity demand over 100 times the current amount. 

Although the ITA noted a backlog of private companies seeking to obtain green power permits from the Mexican government, Mexico’s Development Program of the National Electrical System (PRODESEN) projects an increase in clean electricity generation during the 2023–2027 period. 

Further facilitating investment in low-carbon projects, the Ministry of Finance and Public Credit (SHCP) introduced a Sustainable Finance Mobilization Strategy in 2023. Through a three-pronged plan, the strategy aims to strengthen the allocation and tracking of public expenditure in line with the UN’s 17 Sustainable Development Goals, mobilize sustainable financing through the incorporation of ESG factors in investment decisions, and to ensure diverse gender perspectives in the state’s financial decisions. 

The Mexican banking sector has also made significant strides in green financing, says Adrián Carrillo, Go-2 Market Manager, FORLIANCE. Carrillo adds that many Mexican banks and investment funds now offer sustainable financing options, the integration of sustainability indicators into investment evaluation criteria, and incentives for projects that comply with sustainability criteria. Among the institutions that have implemented these policies are BBVA Bancomer, Santander Mexico, HSBC Mexico, Banorte,. and Nacional Financiera (Nafin).