Credit program to promote renewable energy and energy efficiency in Mexico

completed

Mexico currently ranks third in terms of greenhouse gas emissions. Around 80% of the country's electricity needs are met by conventional power plants (which run on fossil fuels). In its NDCs (Nationally Determined Contributions), the country has committed to reducing greenhouse gas emissions by 22% by 2030. With conditional international support, a reduction of as much as 36% is to be achieved. The aim of this loan program is to reduce GHG emissions in Mexico and to promote the spread of energy-efficient and environmentally friendly technologies in Mexico. A low-interest development loan of up to a maximum of EUR 100 million in favor of the Mexican state development bank Nacional Financiera (NAFIN) is to finance investments in renewable energy projects that are not yet marketable, as well as innovative energy efficiency measures. The amount is to be used in two components in consultation with the Mexican partners: Component 1 amounting to EUR 1.5 million. USD 45.4 million will be used to purchase and install solar PV systems and replace old electrical equipment with new energy-efficient equipment by micro, small and medium-sized enterprises (MSMEs). Component 2, worth USD 68.0 million, will refinance three solar parks.