Based in Seoul, the Global Green Growth Institute (GGGI) is an intergovernmental organization founded to support and promote a model of economic growth known as "green growth", which targets key aspects of economic performance such a poverty reduction, job creation, social inclusion, and environmental sustainability. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. The organization partners with countries, multilateral institutions, government bodies, and private sector to help build economies that grow strongly and are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change. 

GGGI has a diverse portfolio of programs in developing countries around the world. These in-country programs, together with global products and services, focus on delivering results through an integrated approach of evidence-based green growth planning and implementation aligned to countries’ development priorities. The organization also focuses on knowledge development and management activities which build a strong theoretical and empirical basis for green growth, while providing concrete options and guidance for policymakers; as well as building the conditions for public and private green infrastructure investments.

GGGI’s Work in Mexico

Mexico’s development priorities have evolved in the context of global and domestic changes, resulting in a significant push to transform the public life to achieve a greater benefit for all. This intent is ingrained in the National Development Plan 2019-2024, which serves as an umbrella for the federal sectoral and institutional plans and a key tool for cooperation fostering inclusive development. The ultimate goal of its political, social and economic pillars is to bring the nation toward prosperity, security, sustainability; thus, green growth and a low-carbon society are key development objectives for the country.

Over the last decade, the Global Green Growth Institute (GGGI) has consolidated its role as a trusted advisor to Mexico’s federal and subnational governments, actively working shoulder-to-shoulder with key counterparts to establish a strong green growth foundation in the country. In 2014, the Mexican Senate ratified the Agreement for the Establishment of GGGI, which signals Mexico’s commitment to green growth and its recognition of the shared value of this development paradigm in cooperation with GGGI. In 2021, the Country Agreement between GGGI and Mexico was signed between the Mexican Foreign Affairs Secretariat and GGGI; hence, formally recognizing GGGI as one the country’s key partnering international intergovernmental organizations.

Through two offices (a national representation and a regional one for Latin America and the Caribbean, LAC). The Mexico office provides support to federal and subnational governments in line with national goals and the GGGI's own National Planning Framework 2021-2025 (CPF). The CPF was developed hand in hand with the Ministries of Environment and Natural Resources, Foreign Relations, and Finance and Public Credit, prioritizing strategic actions for said institutions and in line with the transition towards green growth. Specifically, the programmatic solutions prioritized in the CPF are: climate action (with a local focus), sustainable financing and investments, sustainable landscapes, resilient agriculture, clean transport and waste.

Climate Finance Workstream

Between 2019 and 2021, the Ministry of Finance and Public Credit of Mexico (SHCP for its acronym in Spanish) as National Designated Authority (NDA) of the Green Climate Fund (GCF), through the GCF Readiness Programme, has received funding to support activities that enhance and strengthen Mexico’s climate finance architecture to mobilize public and private, national and international, climate financing for mitigation and adaptation projects and programmes in the country. The GCF Readiness Programme has entailed supporting accredited and candidate direct access entities (DAEs) —NAFIN and BANOBRAS to mobilize climate finance and enhance their institutional capacities in gender, environmental and social risks management in support of their accreditation as DAES before the GCF. Other key deliverables within this project are Mexico’s Country Programme; the No Objection Procedure; plus supporting SHCP in launching the Green Finance Taskforce of the Inter-Ministerial Climate Change Commission and its efforts in support of the development of a Sustainable Taxonomy for Mexico.

More recently, GGGI is implementing another GCF Readiness Program from 2022-2024, to further support the strengthening of the NDA, DAEs, including the Mexican Fund for the Conservation of Nature (FMCN for its acronym in Spanish) and Executing Entities. In addition, the Program entails creating conditions to effectively mobilize climate finance by developing a national climate finance strategy, supporting the development of ESG and climate related risk regulation by promoting technical advisory and key sectorial assessments to bolster national efforts towards e-mobility and energy efficiency; hence, supporting reaching Mexico’s development objectives, SDGs and NDC.

Moreover, this Program considers furthering capacity building on ESS/ESRM within the NDA, DAEs (e.g., at HQ and the regional/subnational offices) and Executing Entities and strengthening ESS and ESRMS knowledge and skills of Financial Intermediaries to successfully allocate sustainable/green/climate finance.

Furthermore, with support from the UK Partnering for Accelerated Climate Transitions (UK PACT), GGGI has worked closely with the National Banking and Securities Commission (CNBV).  This project aims to support the efforts of Mexico’s financial regulator–the CNBV–on greening finance through the development of capacities and increase knowledge within the Commission itself and with its regulated entities. The project has entailed developing knowledge products on the integration and disclosure of environmental, social   and   governance (ESG) standards; developing recommendations   to integrate climate-related risks in financial products/services for specific vulnerable groups; and by providing capacity building and skills enhancement for CNBV staff and members of the Sustainable Finance Committee. The project also includes the development of a self-assessment tool, which will allow regulated entities to evaluate where they stand on ESG integration and what actions they need to undertake to advance their efforts.

As one of the beneficiaries of the Multiyear GCF Readiness Program, CNBV aims to further delve into environmental and social risks integration as part of the ESG standards. This entail designing and implementing capacity building activities to consider ESS/ESRM in the financial sector.