Mexico is the second largest economy in Latin America. It is a modern country with a dynamic economy. Mexico is committed to the fight against climate change and has made environmental protection a priority, while rethinking its cities with the aim of improving the framework for living together. AFD is a partner in achieving these objectives.
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In Mexico, plants grow again after deforestation
AFD and Mexico: Green and inclusive growth a priority
In Mexico, plants grow again after deforestation

Fighting against climate change

Young farmer in Xochimilco, Mexico

Fighting against climate change

Mexico is the world’s 13th largest greenhouse gas emitter. Its dynamic industrial activity and the omnipresence of private cars are the main reasons for this. 
The Mexican Government is fully aware of the environmental issues and is very proactive. Its Special Climate Change Program has an ambitious target: reduce greenhouse gas emissions by 50% by 2050.

AFD is supporting this national effort and the revitalization of Mexico’s economy via “climate loans”. The target issues are:

  • Forest preservation;
  • The ecological development of the territory; 
  • Climate change economics;
  • The adaptation of agriculture to climate change.

AFD is also supporting Mexico’s energy transition. Our action: renovate and rehabilitate water and power infrastructure. We are assisting the Federal Electricity Commission and Water Management Agency in:

  • Upgrading gas-fired power plants and reducing their carbon footprint;
  • Reforming the water sector and improving its governance.

Protecting natural resources

In Mexico, farmers in Yucatán. REDD+ reforestation mechanism

Protecting natural resources

Mexico’s variety of climates and landscapes makes it a biodiversity hotspot: the diversity of its ecosystems is unique in the world. The country is indeed home to over 10% of global species. However, the overexploitation of natural resources is threatening this heritage. AFD uses the model of French regional nature parks to develop Mexico’s natural resources and promote an ecological development of the territory.

Stemming deforestation 

Over the past fifteen years, Mexico has lost between 300,000 and 800,000 hectares of forests a year. At this rate, forests will have completely disappeared from the country over the coming half century. Deforestation increases greenhouse gas emissions and vulnerability to climate change in Mexico. 

We are working closely with intermunicipal associations on forest conservation projects and we are gearing up for Mexico’s entry into the REDD+ mechanism.

Thinking cities differently, with its residents

Young girls on the podium during a feedback meeting on the project “What city for tomorrow?”, Mexico

Thinking cities differently, with its residents

Mexico’s development has led to uncontrolled urban sprawl. This urban explosion has negative consequences on the quality of housing, public services and the environment, and fuels inequalities.

AFD is working alongside Mexico to promote sustainable urban development and participatory governance. Two projects are currently being implemented:

  • Renovating Mexico City’s metro to provide high-quality public transport and reduce the number of private vehicles in the capital;
  • Improving governance in the Mexico City region and rethinking the sustainable development of territories. AFD and the French Facility for Global Environment (FFEM) are supporting the lake region of Xochimilco for urban planning and improving water reserve management.

When children rethink cities

During the competition for ideas “¿Qué ciudad de México queremos para mañana?”, AFD and Mexico City gave a voice to children from the Mexican capital. Several hundred primary school pupils gave recommendations on how to improve the urban spaces in which they will grow up. For the first time, they were able to make their voice heard during the UN Habitat III Summit

Extending our action

Mexico: Beatriz Bugeda, Mónica Echegoyen,  Jean-Marc Liger. Fighting climate change discussion

Extending our action

AFD wants to take things further in Mexico: it is seeking to scale up its action to support the energy transition and to become more involved in the fight against climate change and the sustainable use of natural resources. Research is currently being conducted on energy efficiency in Mexico City’s hospitals. 

Another objective is to include the gender dimension in our climate projects

We also aim to further extend our partnership with actors operating in Mexico. We are managing several projects financed by the French Facility for Global Environment (FFEM), which aim to: destroy ozone-depleting substances, develop sustainable fishing, and protect marine and lake areas.

To build the capacities of defenders of rights, we are supporting several NGOs, such as Doctors of the World (MDM), the Movement for a Non-violent Alternative and the French Committee for a Civil Peace Intervention

Finally, we are a partner of the Mario Molina Research Institute, which provides public authorities with solutions to combat climate change. 

billion euros committed in 8 years
of AFD commitments in Latin America
of the country’s GDP: the cost of environmental degradation

Mexico is the second largest economy in Latin America. It is a modern country in terms of telecommunications, energy and public finances. It has an open economy and has developed strong ties with his American neighbor.

But it has paid a heavy price for these developments: the rapid growth has alarming consequences on the environment, especially in urban areas. Almost half the population is affected by violence and poverty. 

Mexico is both an actor and victim of climate change. It has made the protection of its natural resources a priority and has a very proactive position. Examples of its commitment:  it hosted COP20 in Cancun in 2020 and has launched an ambitious plan to halve its greenhouse gas emissions by 2050. 

AFD has been operating in the country since 2009, where it supports green and inclusive growth. In 7 years, it has committed EUR 1.4bn via loans, grants, subsidies and technical assistance. 

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