Implementation of Mexico NAMA in the new construction sector - BMU financing

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The project is the FC component of the joint TC-FC project to implement the Mexican NAMA (Nationally Appropriate Mitigation Action) for sustainable housing, which the Mexican government presented at COP 17 in Durban (South Africa) in December 2011. It is financed from the NAMA Financing Facility, a joint initiative of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and the British Department of Energy and Climate Change (DECC). The aim of the FC component is the gradual inclusion of small and medium-sized project developers in the new market for energy-efficient housing in Mexico by overcoming existing investment barriers and lack of access to credit. The FC component thus contributes to the creation of a self-sustaining market for energy-efficient housing in Mexico. The FC component is implemented by the Mexican state development bank Sociedad Hipotecaria Federal (SHF) and consists of three activities (1) Financial incentives for financial intermediaries that finance the construction of energy-efficient housing by small and medium-sized project developers. (2) Financial incentives for small and medium-sized project developers to use a limited number of energy efficiency and eco-technologies. (3) Project-specific advisory services for participating project developers and financial intermediaries. By combining financial incentives and advisory services under the programme with existing SHF programmes for the provision of guarantees and bridging loans, we expect to mobilise between EUR 80 million and EUR 120 million for the construction of energy-efficient housing over the project period of 5 years.