Scotiabank Supports Mexico’s New Sustainable Finance Framework

Scotiabank has announced that it served as co-structuring sustainability agent in the update of Mexico’s Sovereign Sustainable Financing Reference Framework, published by the Ministry of Finance and Public Credit (SHCP) on Jan. 8, 2026. The framework was designed to strengthen the  governance and eligibility rules governing how the federal government accesses international capital markets through environmental, social, and sustainability-linked instruments.

The updated framework replaces the original version published in 2020 and aligns Mexico’s sustainable financing strategy with the objectives of the National Development Plan (PND) 2025–2030. As with the previous framework, it establishes the rules under which Mexico may issue green, social, sustainability, and sustainability-linked bonds, while also outlining the categories of expenditures deemed eligible as sustainable spending. For the first time, the framework fully integrates the criteria of the Mexican Sustainable Taxonomy, aiming to prevent greenwashing and enhance transparency and comparability with international sustainable finance standards.

José Jorge Rivero, senior vice president of Corporate and Investment Banking and Capital Markets, Scotiabank International Banking, said the bank contributed its global experience in structuring sustainable financial instruments throughout the framework’s revision process.

“We are proud to have shared our global expertise in sustainable finance structuring, supporting the Ministry of Finance in the transition from the Sovereign SDG Bond Framework to a Sovereign Sustainable Financing Reference Framework,” Rivero said. “This new framework broadens the scope of eligible instruments and incorporates new thematic categories, including green, social, sustainable, transition, nature, biodiversity, adaptation, and climate resilience.” 

Sovereign Sustainable Financing Reference Framework

Under the new framework, project selection and fund allocation will involve a multi-stage governance and validation process, with SHCP working in coordination with relevant line ministries and public entities. Projects and programs must demonstrate alignment with the PND 2025–2030, the Agenda 2030 Sustainable Development Goals (SDGs), and Mexico’s updated Nationally Determined Contribution (NDC 3.0), presented this year at COP30. Eligible expenditures may include both new investments and the refinancing of existing projects, subject to defined look-back periods. The framework specifies that funds raised through sustainable instruments will be tracked using internal budgetary systems to ensure traceability and prevent double counting.

The updated framework strengthens reporting obligations by committing Mexico to publish annual allocation and impact reports for each sustainable finance instrument. Allocation reports will detail the distribution of proceeds by category, program, and geographic region, while impact reports will disclose quantitative performance indicators, where data availability allows.

Indicative environmental metrics include greenhouse gas emissions avoided or reduced, renewable energy capacity installed, energy savings achieved, hectares of ecosystems restored, and volumes of waste diverted or recycled. Social indicators may include the number of beneficiaries reached through health, education, or social protection programs, the number of affordable housing units supported, and access to basic services in underserved regions. Where direct measurement is not feasible, the framework allows the use of proxy indicators and qualitative assessments, provided that methodologies and assumptions are transparently disclosed.

The framework has received the highest possible score, SQS1, in a Second Party Opinion from Moody’s, confirming alignment with international standards such as the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines of the International Capital Market Association. It also aligns with the Green Loan and Social Loan Principles issued by the Loan Market Association, the Loan Syndications and Trading Association, and the Asia Pacific Loan Market Association.