Initial situation 

With the 2018 reform of the General Climate Change Law, Mexico incorporated its Nationally Determined Contributions (NDCs) under the Paris Agreement into national legislation. In addition, the country internationally expressed its commitment to reduce greenhouse gas emissions by 22% by 2030—or by 36% with international support—compared with a scenario without mitigation measures, known as the Business as Usual (BAU) scenario.

Climate change adaptation is another area in which Mexico is pursuing ambitious objectives, defined through 21 concrete actions. The country aims to halt deforestation, meaning the (illegal) conversion of forest areas to land intended for other uses. The objective is to reduce by at least half the number of cities and communities that are particularly vulnerable to the effects of climate change. In addition, nationwide early warning systems are planned.

However, efficient management, planning, and monitoring tools are lacking. The country also needs robust climate finance instruments and methods. Human and financial resources are limited, particularly in various regions of the country. In addition, a successful transition from planning to implementation is required.

Objective

The Mexican-German Climate Change Alliance, together with the Government of Mexico, supports the implementation of the Nationally Determined Contribution (NDC) through concrete actions that improve climate change adaptation and local resilience and reduce greenhouse gas (GHG) emissions, while leaving no one behind.

Approach

The project supports Mexico’s Ministry of Environment and Natural Resources (SEMARNAT) in developing short- and long-term planning tools, as well as establishing a transparency system to monitor and continuously improve progress toward NDC targets. In addition, the project promotes innovative financing mechanisms for concrete measures. This also applies to innovations emerging from the private sector.

Together with the Government of Mexico and the country’s federal entities, the project supports and promotes the strengthening of capacities among agencies and institutions involved in the climate agenda so that they can better implement and monitor their contributions at both federal and subnational levels. It also promotes Mexican-German and international exchange for the implementation of climate commitments through the systematization of lessons learned and the exchange of experiences, as well as through a sustainable and climate-friendly consumption and production approach, including private-sector innovations. In addition, it works closely with Mexico’s financial and banking sectors to support the greening of a green and climate-focused financial system that can serve as a driver and catalyst for climate action in the country. Finally, the project supports regular exchange and knowledge management among all projects of the International Climate Initiative (IKI) in Mexico.

Greening the financial system

With the objective of mobilizing resources for the public and private sectors to support the implementation of Mexico’s climate targets and the creation of transparent and sustainable financial regulatory frameworks, the Mexican-German Climate Change Alliance works together with the Ministry of Finance and Public Credit (SHCP), the Bank of Mexico (Banxico), the Ministry of Environment and Natural Resources (SEMARNAT), and the private sector, with support from business and financial associations, to develop actions that enable the implementation of climate change targets within the financial sector.

Through the strengthening of the social economy, the Alliance helped mobilize private financing and technical assistance for nine socio-environmental projects in various states across the country that positively contribute to climate change adaptation. It also collaborated with SHCP and the private sector in developing two processes focused on strengthening metrics and identifying a green asset framework for a sustainable taxonomy.

In addition, the project supported the consolidation of the Task Force on Climate-related Financial Disclosures (TCFD Mexico) through training workshops with the private and financial sectors, while also supporting and communicating the launch of the TCFD Mexico Consortium. Furthermore, it seeks to help mobilize resources for the public and private sectors to achieve Mexico’s climate targets, bringing the climate and financial sectors together with a local perspective.

Contributing to the country’s climate commitments

The Alliance cooperates with the Government of Mexico to ensure that the country has concrete measures at the federal and subnational levels to achieve its national climate targets by supporting planning processes consistent with climate change policies and creating a transparency framework; strengthening stakeholders’ capacities to implement the targets; developing and strengthening financial planning instruments; and promoting international dialogue.

For this reason, working together with federal and subnational stakeholders, the Alliance supports the strengthening of Mexico’s climate targets, with particular emphasis on the adaptation component. To increase ambition, support was provided for the process of identifying adaptation measures and economic valuation tools. Participatory consultations and capacity-building activities were also carried out. In addition, SEMARNAT was supported in incorporating human rights and gender perspectives into climate commitments.

Local climate action

Climate action at the local level is at the forefront of implementing Mexico’s climate targets. For this reason, the Mexican-German Climate Change Alliance works together with the Government of Mexico and subnational governments to strengthen, develop, and improve the implementation of actions aimed at fulfilling the country’s adaptation and mitigation commitments.

For example, together with SEMARNAT, we developed the Subnational Climate Action Tracking System to report both mitigation and adaptation actions; we supported Mexico City in incorporating the adaptation component into its Local Climate Action Strategy and Program; and we worked with the states of the Yucatán Peninsula to harmonize climate change and forestry legislation. In addition, together with Sinaloa, we implemented a Blue Carbon program in the municipality of Angostura.

Additionally, together with the United Nations Development Programme (UNDP), the RAECO mobile application was developed as a tool to facilitate and foster a culture of recycling Waste Electrical and Electronic Equipment among citizens.

Measuring progress in climate action, Laguna & GIZ Mexico, 2021

Blue carbon quantification in the municipality of Angostura, Sinaloa, 2022

Cooperation dialogue

The Mexican-German Climate Change Alliance supports networking among projects in the International Climate Initiative (IKI) portfolio in Mexico. It supports 32 projects implemented by 21 organizations and promotes exchange and communication within the IKI project network through the IKI Alliance Mexico knowledge platform, a quarterly newsletter on key cooperation topics, annual exchange workshops among IKI projects, and high-level political dialogue spaces between Mexico and Germany.

Sixth IKI Project Exchange Workshop in Mexico / © GIZ Mexico

Together with the Government of Mexico, we also promote concrete actions to communicate climate change adaptation and mitigation targets in order to inform, persuade, and mobilize climate action. For example, joint work has been carried out with the National Institute of Ecology and Climate Change (INECC) and SEMARNAT to update the country’s official website, “Mexico and Climate Change,” including comparative analysis and the identification of knowledge-management needs related to climate policy planning in Mexico.

To learn more about what the Alliance does to green the financial system, click on the image:

To learn more about what the Alliance does to contribute to climate commitments, click on the following image:

To learn more about what the Alliance does to contribute to local climate action, click on the following image:

To learn more about what the Alliance does to promote cooperation dialogue, click on the following image:

Discover the achievements and future pathways of the Mexican-German Climate Change Alliance in the following booklet:

Learn about some of the work carried out in recent years by the Mexican-German Climate Change Alliance and the Ministry of Environment and Natural Resources: https://iki-alliance.mx/caja-de-productos-alianza-mexicana-alemana-de-cambio-climatico/