| | |  Editorials | Environmental | October 2009 
Mexico: US $1.5 Billion to Stimulate Green Growth
 The World Bank
go to original
October 26, 2009
Washington - The World Bank Board of Executive Directors approved a US $1.5 billion loan aimed to develop public policies to support the stimulus of the economy while strengthening the framework for long-term sustainable growth. In order to achieve this, regulatory, monitoring and financial frameworks will be developed for low greenhouse emissions evolution of the urban transport and energy sectors, key to generate a low carbon growth model.
These implementations will try to create a favorable investment framework in public and private sectors in the areas of clean and renewable energy, massive transport systems and associated technologies. These investments will tend to stimulate the economy in the short term, while improvements in urban mobility and energy efficiency will increase the perspective for productive growth in the medium term.
“The World Bank’s support and close collaboration will help the government live up to its public commitment to reduce emissions in the country. Besides having ratified the United Nation’s Framework Convention on Climate Change and the Kyoto Protocol, our country is one of the first developing countries to commit to a specific reduction of emissions through the use of clean and efficient energies,” said Juan Rafael Elvira Quezada, Mexico’s Secretary of Environment and Natural Resources.
The three Policy Areas in which the Bank’s support will be centered on are:
• A comprehensive policy framework for the reduction of emissions across sectors;
• Enabling and monitoring framework for the reduction of emissions in urban transport and energy; and,
• Establishment of financing mechanisms to facilitate the reduction of emissions in transport and energy.
"This loan supports the Government of Mexico as it implements a uniquely forward-looking set of policies. We recognize and value that even in the face of a difficult global economic situation the government set its efforts to reduce emissions in the long term and to reach sustainable growth”, said Gloria Grandolini, World Bank Country Director for Mexico and Colombia.
The project will support the Special Climate Change Program (PECC) approved this year by the Mexican government. The PECC promotes sustainable sectorial policies as well as initiatives and regulations aimed to reduce greenhouse emission gases. For example, it will support government initiatives -implemented in response to the economic crisis - to invest in infrastructure, backed by policies that will consolidate the sustainable growth of the Mexican economy.
The World Bank recognizes that ensuring environmental sustainability and strengthening Mexican institutions in order to reach these objectives on inter sectorial levels is essential for the country’s development. Facing this challenge through measures in mitigation, as the improvements in the clean urban transport services propose, in order to reach greater levels of energy efficiency and promote the use of renewable energy will have positive effects on poverty and inequality, as they will increase accessibility and availability of these services. At the same time, these actions will have a positive effect on the country’s competitiveness, particularly in the energy sector.
The entity in charge of implementing the loan is the Ministry of Finance and Public Credit, who has designated the National Savings and Financial Services Bank (BANSEFI) as the financial agent. It is a single tranche Development policy Loan with a variable-spread loan (6 month LIBOR), to be paid in 17 years with a 16.5 year grace period. A 0.25% Font end Fee (disbursement fee) has been agreed. The project is expected to be completed by May 2011 and will be supported by a wide array of technical assistance support. |
|
| |
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us