Mexico - Climate Change Development Policy Loan

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The Climate Change Development Policy Loan (DPL) Project will support a government of Mexico efforts to mainstream climate change considerations into public policy. The operation consists of policy reforms in three areas: (i) improved analytical basis for policy responses through the submission of a third national communication to the United Nations (UN) framework convention on climate change; (ii) the approval of the national climate change strategy by the government's intersecretarial commission on climate change and its announcement by the President; and (iii) the integration of climate change considerations in sector programs. This operation builds on the Bank's engagement in the energy and natural resources sectors in Mexico, and on the climate change activities already supported by the Bank in Mexico. The Bank's engagement with Mexico on climate change issues dates back to the mid-1990s. This engagement now comprises 26 active initiatives, financed by International Bank for Reconstruction and Development (IBRD) loans, Global Environment Facility (GEF) grants, carbon finance emission reductions purchase agreements, grants for capacity building in the carbon finance area, and grants for economic sector work and knowledge products. These initiatives are the result of a long-standing dialogue with a wide range of Mexican stakeholders and center on the following main objectives: (a) support for adaptation; (b) policy development and institution building; (c) first-of-a-kind mitigation projects and programs; and (d) identification and promotion of short-term and long-term mitigation options.