Mexico has the opportunity to become a leader in financial innovation and sustainable transportation, through economically viable long-term projects. Mexico’s transportation sector is fundamental to the country’s economic growth, but it also represents significant risks. In Mexico, transportation is the largest source of climate pollutants (25% of greenhouse gases and 38% of black carbon emissions).
Last April 9th, a workshop on sustainable transportation financing was held in Mexico City, where the main stakeholders of the sector met. It served as a framework for discussion to design a road map to invite to action.
This workshop was the first activity of the Financial Innovation Lab promoted by the Inter-American Development Bank (IDB) with resources from the International Climate Initiative (IKI) of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) of Germany , and in collaboration with the Banks of Mexico Association (ABM) and the Green Finance Advisory Board (CCFV) where an agenda of meetings and discussions that seek to mobilize financing in the area of climate change in the main sectors such as transportation, agriculture, industry, housing, among others, was developed.
The workshop analyzed the role of development banking to accelerate public and private investment in sustainable transport infrastructure in the country. In addition to seeking to strengthen the collaboration among financial institutions, technology manufacturers, and public and private agencies to promote investment in addressing climate change.
The multilateral bank is a relevant agent in the promotion of investments that induce the development and welfare of nations. Thus, the IDB is an actor in the promotion of sustainability and green finance, providing resources and promoting the innovation of financial instruments that adapt to the needs of the different sectors that require an impulse for their growth and maturity.
The IDB works with multi-sectoral actors to identify bottlenecks to private investment in sustainable solutions, analyze and design innovative financial instruments and good practices that support Mexico’s sustainable development.
The project specialists in sustainable transport and Green financing who participated in the workshop focused on the planning of portfolios of sustainable transport, its financing, the definition of sustainable projects and the measurement and evaluation of climatic impacts in them. The panelists shared experiences about the integration of sustainability considerations into the planning process, evaluating the experience of the Subway of Los Angeles, California and the vision of Mexico City.
In Mexico, the transport sector is the largest source of climate pollutants and transport infrastructure is increasingly exposed to the physical risks of climate change. There is a real need to promote financial solutions that allow a transition in the transport sector; so that buses, trucks and other vehicles are friendly to the environment and human health, low in carbon and climate resilient. Mexico’s financial sector can and should be part of the climate solution.
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