30×30 Zero Program

Implementing organization: International Finance Cooperation (IFC)    Duration: 01/2021 - 12/2028 Main counterpart: SHCP IKI area: Mitigación







Initial situation 

Implementing NDCs in emerging markets requires substantial amounts of financing, for which the financial sector plays a fundamental role. However, several factors, such as limited support for climate finance opportunities and a lack of consistent policies, have so far prevented sufficient mobilization of funds. To increase climate lending, the project supports the creation of national markets for climate finance in partner countries. It follows a holistic approach, working at the level of policy, market, and financial institutions. This includes aligning financial sector strategies to support NDC implementation. In addition, by 2030, the share of climate lending in the total credit portfolio of participating banks will increase significantly, while climate- and carbon-related risks are reduced. Finally, the project promotes climate investments through the development of national green bond markets. 

Objectives  

  • Help financial institutions, especially banks, incorporate improved green finance strategies into their investment plans, reduce climate risks, and ultimately reduce greenhouse gas emissions. 
  • Work with financial institutions to strengthen their role as aggregators of climate finance by increasing climate-related lending to 30 percent of their total portfolio on average, with near-zero coal exposure by 2030. 

Activities 

  • Support the regulation of sustainable finance policies with public institutions and financial authorities to advance sustainable finance regulations aligned with development policy lending.  
  • Improve smallholder farmers’ access to finance through electronic warehouse receipts (EWRs) as part of sustainable agricultural finance. 
  • Provide advisory support for the first sustainability-linked bond (SLB) issued by a financial institution in Mexico to expand sustainable SME financing and participate in key industry events to promote sustainable capital markets.  
  • Build capacity and provide advisory services to financial institutions, including green building certification. 
  • Create a roadmap to scale up financing for distributed renewable energy generation projects and seek advice from external legal and energy experts to align recommendations with Mexico’s evolving regulatory landscape.