On October 2023, Mexico’s national development bank, Nafin, launched Eco-Credito Sustentable (Sustainable Eco-Credit) with the financial support of the Energy Efficiency in Small and Medium Enterprises project. Through this innovative financial product, Small to Medium sized businesses (SMEs) will have access to financing of up to €630,000 ($15 million pesos MXN) for implementing energy efficiency measures. The total project impact is expected to save up to 486,539 tCO2e and to mobilise around €252 million ($6,000 million pesos MXN) of private investment for energy efficiency developments within the industry, services and commercial sectors.
Currently, the credit is available through five commercial banks: BBVA, Citibanamex, BanBajío, Afirme, and Mifel, which have contributed to the development of a more sustainable portfolio to finance carbon mitigation in SMEs. This achievement has been facilitated by the collaboration between GIZ and Nafin, with funding from the Mitigation Action Facility via the Energy Efficiency in Small and Medium Enterprises project.
How does Eco Crédito Sustentable work?
The credit is open to SMEs looking to acquire or install high-efficiency energy equipment, including renewable technologies, as well as replacing appliances with high energy consumption. This product offers SMEs financing with a fixed annual rate of up to 16% and a repayment period of up to eight years. Consequently, companies could achieve savings of up to 15% on gas bills and up to 80% on electricity bills across at least 1,200 projects.
SMEs from all regions of Mexico are invited to apply to the programme via the application form on Nafin’s website. Following a detailed technical and financial evaluation, eligible companies will be connected with a project developer to conduct their energy audit. Each audit is validated by an independent third party to ensure the project’s technical accuracy and profitability viability. Upon completion of these steps, the SME can access an executive project proposal, identifying the most effective energy-saving measures. Additionally, SMEs can utilise this documentation to apply for credit and implement the identified energy-saving practices and equipment.
The implementation of Eco Crédito Sustentable encourages key market players, such as developers, banks, business chambers, and local governments, to mobilise funds and drive a transformational shift towards energy efficiency in Mexico.