Building on earlier findings from the Energy Efficiency in Small and Medium Enterprises (SMEs) project in Mexico, a new analysis takes a closer look at how women actually participate in climate finance practice. While previous work highlighted structural barriers and perceptions among women entrepreneurs, this follow-up focuses on portfolio-level data to better understand who benefits from financial instruments and how these outcomes differ across gender.
In Mexico, only one third of individuals who accessed an energy efficiency credit for SMEs were women. This disparity highlights a critical insight: even when financial instruments are designed to be broadly accessible, participation and outcomes may still vary significantly between social groups. It underscores the importance of systematically collecting and analysing gender-disaggregated data to identify gaps that may otherwise remain invisible.
SMEs play a central role in the Mexican economy and represent a key opportunity for climate mitigation through the adoption of energy-efficient measures. However, access to finance remains a major constraint in enabling this transition, particularly for women-led enterprises. To better understand these dynamics, the Mitigation Action Facility-supported project launched a pilot initiative combining a targeted market study with a portfolio analysis to strengthen the evidence base on women-led SMEs and access to finance.
The first step of the pilot consisted of a mixed-methods market study, including 130 telephone surveys and 12 in-depth interviews with women entrepreneurs across the industrial, commercial, and service sectors. The study explored perceptions, decision-making processes, and barriers related to accessing finance. Identified challenges include limited trust from financial institutions, insufficient knowledge of financial products, fear of rejection, reliance on informal networks, delayed entry into entrepreneurship often triggered by external shocks, and the continued under-recognition of women as business leaders.
Building on these insights, the project then analysed the credit portfolio of the Eco Crédito Solar financial mechanism. Between October and December 2025, 39 loans were granted through the programme. In line with banking practice and data protection requirements, gender information is recorded only for natural persons, not for legal entities with more complex ownership structures. Of the 39 credits granted, 18 were issued to individuals. Women accounted for 33% of beneficiaries but received only 23% of the total financing volume. On average, loan sizes for women were approximately 42% lower than those for men; a gap that persisted even within the same enterprise size category.
Overall, the findings suggest that gender disparities in climate finance are shaped not only by individual firm characteristics, but also by broader structural conditions within the financial systems. The pilot initiative highlights several important implications:
- First, more comprehensive gender-disaggregated data is needed to better understand participation patterns and identify underserved groups. Without such data, financial programmes risk overlooking differentiated needs or unintentionally reinforcing existing inequalities.
- Second, complementary measures such as tailored financial advisory services, collateral enhancement mechanisms, and risk-sharing instruments may help address structural barriers affecting women entrepreneurs.
- Third, financial institutions engaged in climate finance programmes could benefit from targeted capacity development to recognise and mitigate gender biases in lending processes, thereby supporting more equitable access to investment opportunities.
Although limited in scale, the pilot demonstrates the value of integrating gender-sensitive data and analysis into climate finance initiatives. By combining survey-based insights with portfolio-level evidence, it contributes to a more nuanced understanding where gaps persist and how they can be addressed. These lessons can inform the design of future financial instruments and institutional approaches, helping ensure that the transition to a low-carbon economy creates opportunities for all entrepreneurs.
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