Strengthening the financing of green and climate resilient infrastructures in northern Mexico

Mexico is the 14th largest economy of the world and ranks 17th in global CO2 emissions. It is also particularly vulnerable to climate change. Its northern border states face mounting pressure from nearshoring, urban expansion, and population growth, which strain infrastructure, basic services and natural resources. Public investment is urgently needed to ensure a transition to a resilient and sustainable economy.

The North America Development Bank, NADB, is a bi-national public development bank, owned equally by the governments of Mexico and the United States of America, that finances infrastructure projects that preserve, protect or improve the environment in the border areas, which in the case of Mexico consists of the states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora and Baja California.

The project aims to foster a green and digital transition while promoting sustainable and socio-economic recovery. It supports Mexico’s Nationally Determined Contributions (NDCs), strengthen climate adaptation and resilience among vulnerable populations and promote resources efficiency. It finances innovative, high-impact, climate-resilient infrastructure projects, particularly as part of the Sonora Sustainable Energy Plan and the nearshoring dynamics.

The project consists of an AFD loan to finance green and climate-resilient infrastructure and an European Union contribution in the form of both an investment grant for project promoters in the clean mobility, energy, green buildings and water and sanitation sectors, and technical assistance, to support NADB and its clients to prepare and implement those projects and improve their capacities beyond them.