MEDEC Low-Carbon DPL Loan

closed

The objective of the Low-Carbon Development Policy Loan for Mexico is to support sector-specific, high-priority policy and regulatory reforms that have been identified as critical to achieve Mexico's climate change mitigation targets under the Special Program for Climate Change (PECC). The policy areas that are included in the proposed DPL promote low-carbon development for: (1) increasing renewable energy supply, promoting energy efficiency through cogeneration, reducing gas flaring and venting, and piloting the reform of the rural agricultural electricity subsidy; (2) improving the efficiency of the vehicle fleet and road transport operations in Mexico; (3) strengthening the market for energy-efficient housing; and (4) mainstreaming climate change considerations into land-use and forestry activities. In addition, the proposed operation will contribute to the efforts of the Mexico government to: (i) facilitate Mexico's involvement in the international carbon market, and (ii) implement Nationally Appropriate Mitigation Actions (NAMAs), in particular the ones adopted in the PECC.