Programme to implement national climate protection targets in the Mexican transport sector

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The project provides for an FC development loan of up to EUR 100 million to the Mexican development bank NAFIN, which provides loans to MSMEs for the financing of low-emission vehicles via financial intermediaries and, if necessary, directly. The FC loan is accompanied by an investment grant of EUR 10 million and an accompanying measure (BM) of EUR 2 million. The aim of the FC module is to contribute to reducing greenhouse gas emissions in the transport sector in Mexico and thus to support the Mexican government in fulfilling its climate commitments (NDC). In order to actually achieve the targeted emission savings, an old vehicle is scrapped for every new vehicle. Since there are currently hardly any regulatory or financial incentives for the scrapping of vehicles in Mexico, borrowers are offered scrapping premiums, which are financed by the investment grant and contributions from the participating Mexican federal states. The BM is also intended to strengthen local scrapping capacities. The BM also supports the design and implementation of state policies at the state level that contribute to achieving the module objectives, as well as the political dialogue between federal and national institutions. In addition, NAFIN, as the program sponsor, receives advisory support to be able to implement the complex project. The direct target group of the FC project is MSMEs in the urban transport sector in the states of Mexico City, Jalisco and Oaxaca. The indirect target group is the population in the cities or urban areas in which the project is being implemented.