Mexico’s Nafin Offers Green Loan to Help SMEs Go Sustainable

Mexican development bank Nafin has introduced the "Eco Crédito Sustentable," a green loan program designed to help small and medium-sized enterprises (SMEs) reduce energy consumption and carbon emissions. This initiative is part of the federal government’s Plan México, a US$277 billion development strategy launched earlier this year. 

Under the program, SMEs can access up to MX$15 million (US$796,000) over eight years, including a grace period before repayments begin, with a maximum interest rate of 16%. Nafin notes that these terms are significantly more competitive than conventional bank loans. Participating SMEs will also have access to a government-sponsored energy audit outlining potential energy and cost savings.

According to Iván Vicente Cornejo Villalva, director of International Financial Organizations at Nafin, industries such as manufacturing, textiles, hospitality, food and beverage, and automotive stand to benefit most from the program. He cites data from the National Institute of Ecology and Climate Change (INECC), which shows that 62% of greenhouse gas emissions in Mexico stem from energy generation and consumption.

The initiative aims to support at least 1,200 enterprises, with 240 already having received financing. Nafin projects that the program's net carbon reduction will be equivalent to removing 160,000 vehicles from Mexico’s roads each year.