‘Bonds and Climate Change: State of the Market 2016’ Mexico Edition Launched

Climate Bonds Initiative and MÉXICO2 have today (Monday 22 August) launched the ‘Mexico Edition’ 2016 report on the state of the international green bonds market.

This is the first time this report has been translated and published in Spanish. Moreover, the report includes an additional section that focuses on the state of green bonds in Mexico and future prospects

The report estimates that there is approximately $649bn in climate-aligned bonds outstanding globally, a dramatic increase from 2015’s estimate of $96bn. This estimate includes both labeled green bonds with defined use of proceeds and non-labeled climate-aligned bonds.

The $649bn USD climate-aligned bond universe encompasses 6 crucial sectors for the transition to a climate-resilient and low-carbon economy: transport (67%), energy (19%), multi-sector (8%), water (3%), buildings and industry (2%) and agriculture and forestry (1%).

In Mexico, there are $1.3bn in climate-aligned bonds outstanding; including the country’s only labeled green bond ($500 million) issued by Nacional Financiera (NAFIN). Although climate-aligned issuances in the country have been small, the potential for future issuances is vast, considering Mexico’s ambitious climate goals.

The report identifies a range of policy measures that would stimulate green bond investments to fund low carbon energy, transport, building and water infrastructure development & pollution reduction plans.

Eduardo Piquero, MÉXICO2 CEO:

“Given the need for climate-resilient infrastructure; substantial amounts of capital will be required in all sectors of the economy to help the country comply with its targeted GHG reductions.”

Just to comply with clean energy generation, Mexico needs over $5bn per year.

 

Sean Kidney, CEO Climate Bonds:

“This report launch is another step towards developing green bond finance in Mexico. A well-established financial sector, growing pension funds, clear project pipelines and national leadership committed to climate action means all the elements are there for Mexico to lead in developing LATAM green finance models.”