Mexico holds the official launch event of the Eco Crédito Sustentable programme to support the financing of energy efficiency in SMEs nationwide.
On February 26th 2024, a collaborative effort aimed at enhancing the sustainable competitiveness of the private sector was consolidated through the official launch of the program Eco Crédito Sustentable. This financing program is led by the Mexican National Development Bank, Nacional Financiera (Nafin), the Ministry of Finance and Public Credit (SHCP), the Ministry of the Environment and Natural Resources (SEMARNAT) and the Mitigation Action Facility through the project SMEs as a contribution to a low carbon economy in Mexico.
The event brought together key stakeholders from various sectors, both in person and virtually. Participants included representatives from commercial chambers and banks, subnational governments, and other entities involved in the supply and demand of energy efficiency solutions for SMEs.
Boosting SMEs through Energy Efficiency Investment
The program provides SMEs access to standardized high-quality services, including customized energy audits. These audits help SMEs identify specific energy efficiency measures that can lead to long-term economic savings and mitigation while maintaining production levels. Additionally, the program offers financing options for a wide array of energy-efficient technologies, ranging from lighting upgrades to industrial boilers, through concessional credit terms with participating commercial banks nationwide (BBVA, BanRegio, Banorte, Mifel, Citibanamex, and Afirme).
Institutional Collaboration and Innovative Financing in Energy Efficiency Markets
The United Kingdom and the Federal Republic of Germany, through their respective embassies, highlighted the effective collaboration with Mexico to introduce an innovative financing model for SMEs in the energy efficiency sector. The partnership exemplifies the active role of the private sector in mitigating climate change. Stakeholders, on the other hand, emphasized program appropriation, recognizing its broader significance beyond immediate financial innovation. SEMARNAT focused on how the program supports the industrial sector in meeting its nationally determined contributions to climate mitigation, while SHCP discussed the initiative as a crucial component of its Sustainable Financing Strategy. Nafin emphasized the untapped potential of energy efficiency to bolster the growth of SMEs in an environmentally friendly and profitable manner.
With an estimated 1,000 projects implemented, a reduction of 100,000 tons of CO2e and 1,500 million pesos mobilized over a period of two years, this collaborative effort not only reduces carbon emissions but also enhances competitiveness in key sectors of the Mexican economy, fostering a sustainable future for all involved. The project is expected to mitigate up to 486,539 tCO2e and mobilize around €252 million ($6,000 million MXN) of private investment.
The Path Forward
The event also reflected on the challenges and opportunities the Eco Crédito Sustentable program presents for SMEs. Insights from pioneering institutions, the Association of Banks of Mexico, and the National Chamber of the Transformation Industry CANACINTRA shed light on the future challenges and prospects of the program, highlighting the importance of business growth sustainability.
This approach integrates environmental responsibility with economic viability, setting a standard for the future of SME energy efficiency. The initiative invites all stakeholders to participate and support a greener, more sustainable future, highlighting the importance of collaboration in achieving environmental and economic objectives.
