Mexico City, Mexico, March 27, 2012—
IFC, a member of the World Bank Group, is helping Mexico’s financial sector develop services that could encourage investments in renewable energy and energy efficiency in a country that is one of the world’s largest emitters of greenhouse gases.
Mexico has high potential for developing renewable energy, thanks to the significant natural resources it enjoys for geothermal, wind, solar, and hydro power. In recent years, prospects for developing these resources have improved dramatically because of a more favorable regulatory landscape and a strong national commitment to addressing climate change. But a financing shortfall has hindered the development of this sector.
IFC’s Sustainable Energy Finance Program in Latin America and the Caribbean works with financial institutions to promote opportunities in energy finance. In Mexico, with support from the Global Environment Facility’s Earth Fund, IFC seeks to increase private sector implementation of sustainable energy projects by expanding access to finance.
“IFC brings a unique approach to addressing climate change,” said Roberto Albisetti, IFC’s Senior Manager for Mexico and Central America. “We are identifying ways to contribute to reduced greenhouse emissions through energy efficiency, renewable energy, and cleaner-production initiatives. Our engagement in Mexico shows our commitment to promoting climate-friendly investment in the country.”
IFC has commissioned an assessment of sustainable energy finance in Mexico to identify companies and sectors that face high energy costs and are likely to have a strong economic interest in obtaining finance for sustainable energy projects.
Working with the Mexican Association of Banks, IFC also conducted a survey of 80 Mexican financial institutions to assess their level of experience and interest in sustainable energy projects. The survey showed that nearly 95 percent of respondents have a strong interest in such projects, although nearly 60 percent reported having no experience of lending for clean-energy projects. Respondents identified dedicated lines of credit as the single most important tool to allow them to better serve the market.
IFC organized conferences in Mexico City, Monterrey, and Guadalajara to present ideas on how financial institutions can develop strategies to engage in the sustainable energy finance market. Participants heard from experts who shared experiences in financing and implementing sustainable-energy projects.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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