UK PACT has partnered with Mexico, a country with a rich history of commitment to climate action and alliance with the UK.
Mexico was among the first countries to pass comprehensive climate change legislation and submit its Nationally Determined Contribution ahead of the 2015 Paris Agreement, allowing it to become a key influencer in the region. Through the Partnership for Sustainable and Inclusive Growth, Mexico and the UK have committed to collaboration and increased investment in social, economic and environmental sustainability. Ahead of COP 26 and over ten years after Mexico hosted COP 15, UK PACT will support projects that respond to Mexico’s emerging priorities, while achieving greenhouse gas emission and poverty reductions.
In the first round of funding, Mexico-UK PACT funded 13 projects and three skill-shares. Following a successful round of implementation of the first phase of Mexico-UK PACT, the second round of funding was launched in August 2020 (see carousel below). Projects have been selected across five priority sectors: green finance, sustainable mobility, climate policy, energy and forests and land use.
Following the second call for proposals held in 2020, 14 projects have been selected in these core areas:
Project lead - Ecometrica
“Our project will help government to monitor the dynamic of forest cover and land use. This will improve their design and implementation, promoting the sustainable management of rural territories.” - Jorge Fernandez Medina, National Forestry Commission
This project will strengthen the use of data, maps and tools to steer progress to reduce land use emissions in Campeche, Chiapas and Tabasco. It will improve the capacity of decision-makers to use accurate information and state-of-the-art tools to monitor deforestation, analyse the impact of subsidies and deforestation programmes, and identify key actions needed to reach Mexico’s net-zero deforestation goal in 2030.
Project lead - Pronatura Sur A.C.
“This program will help us advance our goals to combat climate change, promote the conservation of biodiversity and reduce deforestation rates.” - Sayda Melina Rodríguez Gómez, Secretary of Sustainable Development of the State of Yucatán
The project aims to reduce greenhouse emissions associated with the farming sector in six jurisdictions of Mexico’s southern region by improving local capacity and skills for the sustainable production of meat, resin, honey and other forest products. Business, organisational and commercial skills in the value chain will also be strengthened.
Project lead - eeTestudio (Espacio entre tiempo estudio SA de CV)
"It’s possible to reverse the socio-environmental degradation in Mexican territories. Fighting climate change needs all sectors and actors working together to protect and restore resources. We can create a framework that can be replicated elsewhere" - Eetestudio team
This project seeks to reduce deforestation and improve agricultural productivity in the Central Mexican altiplano, which has seen a progressive loss of agricultural and ecological value and is particularly vulnerable to the effects of climate change. The project will build local capacity to manage and conserve forest and water, promote sustainable agricultural practices by using cost-effective nature-based solutions and link efforts with green finance policies.
Project lead - Dalberg Advisors (Asesores en Desarrollo Dalberg S. de R.L.)
“By supporting the transition to electric buses and trolleybuses we can enhance the quality and performance of this critical system, while also improving the health and resilience of our local communities and the planet.” - Fabiola Salman Carrasco, Partner, Dalberg Advisors
This project will analyse the legal, technical and financial requirements needed to ramp up the adoption of electric buses and trolleybuses in Mexico City. It will collect data on their operations and efficiency and provide financial modelling and analysis. This will enable better decision-making for regulators and system operators and help improve purchase decisions, route planning, fleet management and simulation modelling.
Project lead - Centro de Transporte Sustentable A.C. (WRI México)
"Our joined efforts will make it possible to reduce the costs of the technological transition for the infrastructure of charging of electric vehicles and public transport. This promises a significant contribution to the sector's CO2 emissions reduction.” - Fernando Páez, Director of mobility, WRI Mexico
The project aims to accelerate the climate transition through expansion of the electric infrastructure network for electric vehicles in urban areas. A key objective is to enable the technical, social and financial sustainability needed to expand e-mobility in Mexico City by identifying specific and differentiated needs for EV charging infrastructure for both single vehicles and public transport.
Project lead - Bikencity
“We want to strengthen Mexican local governments for the implementation of active mobility and public space projects. Thus, together we will achieve the rapid change that cities need. This change requires the participation of all government levels, the academy, civil society organizations, and the private sector" - Kennia Aguirre, CEO, Bikencity
This project will work with 15 local governments to help them plan and put in place pop-up bike lanes and facilities for pedestrians to improve the design of active mobility and public space infrastructure. It will focus on public policy, technical, social and financial areas to help guide governments towards the consolidation of sustainable mobility initiatives to combat climate change and build resilience to Covid-19 effects.
Project lead - Steer
"This project will have a local and city-wide positive impact in reducing carbon emissions. It will become the keystone to a more sustainable freight transport system." - MSc Daniela Muñoz, Planning Director, Ministry of Mobility CDMX
This project will produce recommendations to rearrange and order rail and truck traffic flows in the vicinity of the Pantaco terminal. Given the logistical complexities of Pantaco and its links with the metropolitan area, this project will help regulate heavy cargo transport in Mexico City, reduce congestion, emissions and traffic conflicts as well as improving social wellbeing.
Project lead - South Pole Carbon Mexico
“We’ll work to facilitate the adoption of science-based targets by Mexican business and help establish this at national level. Targets specifying how much and how fast a company must reduce its GHG emissions will drive increased action on climate change." - Paola Delgado, Corporate Relations Manager, WWF
This project will work to enhance the knowledge, skills and capacity of government and key private sector stakeholders in setting science-aligned emissions reductions targets in their strategies. It will also lay a solid foundation for public-private cooperation to boost existing instruments and policies for the effective implementation of corporate action on climate change.
Project lead - Soluciones en Legislación y Política Ambiental A.C.
“Our project will promote the sub-national action necessary to reduce Mexico's GHG emissions and contribute to its climate change targets by developing, strengthening, harmonizing and updating state climate change laws.” - Andrés Ávila, Executive Director, Polea
This project will provide technical assistance to six legislative branches of government at the sub-national level and inform the design or update of robust national legislation on climate change. This will contribute to Mexico’s commitment to reduce carbon emissions by 22% by 2030 and enable a coordinated environment that supports a better implementation of policies on climate change.
Project lead - Centro Mario Molina
“Our project will establish the foundations for introducing novel and promising mitigation technologies in Mexico and provide useful information for updating Mexico’s climate change targets.” - Marco Aurelio Jano Ito, Energy Project Leader, Centro Mario Molina
This initiative will evaluate the greenhouse gas mitigation potential and economics of green hydrogen and propose a roadmap for its use in Mexico. It will also inform the adoption of innovative pilot projects by state energy or private companies and the incorporation of green hydrogen in Mexico’s energy policy. The project will strengthen ties between Mexico and the UK in research, industrial collaboration and public policy design.
Project lead - Ilumexico
“There are still 269,000 families in Mexico living off-grid. We will work with governments to design universal sustainable energy access programs and help improve the quality of life of these families." - María José Campos, CCO, Ilumexico
This project seeks to provide technical assistance to help beneficiaries develop strategies to provide universal energy access through solar energy. This will benefit rural, isolated, off-grid communities in Mexico by developing affordable financial models for this energy supply.
Project lead - Green Growth Institute
“Stemming from requests from across the financial ecosystem, this project increases awareness and understanding of green finance for both the national regulator and the financial institutions that it regulates, mainstreaming climate-related risk and ESG standards among the financial sector, thus transforming the way it operates and moves capital from brown to green investments” - Pablo Martínez, Mexico Country Representative , GGGI
This initiative will support the efforts of the Mexican National Banking and Securities Commission (Mexico’s financial regulator) to mainstream green finance by building capacity on climate-related risks. This will accelerate development of relevant regulation and, ultimately, greater compliance with standards by financial institutions and a rapid transition towards a low carbon, climate resilient economy.
Project lead - MexiCO2
“Key stakeholders across Mexico’s financial sector have been frustrated by the lack of a dedicated resource to help them identify green investment opportunities and assess climate risks. The Climate Finance Hub responds directly to that need.” - Alba Aguilar, CEO, Green Advisory Council
This project consolidates numerous workstreams under a single initiative to support the mobilization of capital needed to scale Mexico’s low-carbon transition. The Hub will address the barriers within the financial sector to invest in green solutions by strengthening the skills and understanding of Mexican institutional investors to identify green investment opportunities and measure risks to the current climate crisis.
Project lead - IDOM Ingeniería S.A. de C.V.
“Sub-national governments have publicly committed to low-carbon and sustainable projects, but faced challenges in accessing the capital needed for delivery. This initiative will overcome this obstacle by enabling municipal governments gain access to public and private green finance products.” - Mariana Silva, Senior Consultant, IDOM
The project will accelerate the flow of private and public green capital to fund low-carbon local projects by promoting access to green finance products to municipal governments. It will link leading banks with local government initiatives and provide a proven methodology, comprehensive guidelines, tools and advice for cities to access financial services, thereby establishing a "trusted" path to financing smart and sustainable cities.
The second Mexico-UK PACT funding round closed in August 2020.
Projects were assessed as part of an open call to prospective applicants following two stages: 1) Expression of Interest (EOI) to outline how a proposed project responds to the call; and 2) a request for detailed proposals for those shortlisted at the EOI stage.
UK PACT (Partnering for Accelerated Climate Transitions) is a unique capacity-building programme. Jointly governed and funded by the UK Government’s Foreign, Commonwealth and Development Office (FCDO) and the Department for Business, Energy and Industrial Strategy (BEIS) through the UK's International Climate Finance, it works in partnership with countries with high emissions reduction potential to support them to implement and increase their ambitions for tackling climate change.
