Sustainable financing of the operation of new federal nature reserves (FINANP+)

completed

On behalf of the German Federal Government (BMZ), KfW is supporting the reform efforts of the Mexican government in the field of nature reserves with the first promotional loan in the field of biodiversity. This is the first phase of a multi-stage program that is linked to concrete reform progress in the North American country. As part of the UN Convention on Biological Diversity, Mexico has committed itself to placing 17 percent of terrestrial and 10 percent of marine and coastal areas under nature conservation. This requires a significant expansion of the area under protection by 2020 in a protected area system that is already latently underfinanced. Reforms in various priority areas are necessary for sustainable growth of the nature reserve system. KfW wants to promote this process with the loan, which is designed as a sector reform program (Policy Based Lending, PBL). Accordingly, the loan funds are only paid out after the activities agreed within the framework of a policy matrix have been implemented. The world's first sector reform program with a focus on nature reserves focuses on contributions to the financial sustainability of the nature reserve system, environmentally friendly economic growth in nature reserves, improving management effectiveness in nature reserves and harmonizing government incentives within the protected areas to promote the conservation and sustainable use of natural resources. Mexico is one of the world's so-called megadiverse countries, which are characterized by a very high level of biodiversity. However, this diversity is under threat due to overexploitation and increasing fragmentation of habitats. The causes are large-scale land use changes in forests, wetlands, coastal zones and other natural areas. Illegal logging and illegal trade in endangered animal and plant species are also changing the original species composition and reducing the performance of ecosystems. At the same time, long-term economic growth and the well-being of the people in Mexico are heavily dependent on the quality and availability of natural resources. The project thus contributes to the preservation of global biodiversity. At the same time, the natural livelihoods of the population are being secured, especially against the background of the expected effects of climate change.