Mexico City, December 08, 201
WB AND IDB RECOGNIZE MEXICO'S CUTTING-EDGE POLICIES AGAINST CLIMATE CHANGE WITH $1.1 BILLION IN FINANCING
• Conventions were signed within the framework of the UN Climate Change Conference (COP16)
In the framework of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP16) held in Cancun, the presidents of the World Bank (WB), Robert B. Zoellick, and the Inter-American Development Bank (IDB), Luis Alberto Moreno, signed today with the Secretary of Finance and Public Credit, Ernesto Cordero Arroyo, financing totaling USD 1.1 billion. With these operations, these international financial organizations recognize the policies and support actions undertaken by the Government of President Felipe Calderón Hinojosa in the field of climate change.
The loan package includes three loans with the World Bank for USD 700 million and one with the Inter-American Development Bank for USD 400 million.
The Administration of President Felipe Calderón has been implementing a transversal policy to promote sustainable development, clean, efficient and competitive production processes; as well as the preservation of natural resources. The policies of the Federal Government contain a short, medium and long-term vision in which desirable mitigation trajectories are proposed towards the horizons 2012, 2020 and 2050. These actions place Mexico at the forefront of the international community's efforts to address the challenges posed by climate change.
Currently, Mexico is leading international discussions in Cancun aimed at defining agreements for the implementation of global measures through long-term cooperation that guarantees the concerted international action indispensable to face a problem that no country will be able to solve in isolation. In this context, Mexico contributes with concrete policies, projects and programmes framed in the National Development Plan, the National Climate Change Strategy and the Special Climate Change Programme.
The loans signed today reflect the support of both international institutions for the efforts of the Government of Mexico:
1. The first loan was signed with the World Bank for an amount of USD 400 million. The operation recognizes the policies carried out by the Mexican Government in order to, among other things, increase the supply of renewable energy, promote sustainable forest management and investments in sustainable housing. The loan has a repayment term of 14 years and the applicable interest rate is variable based on LIBOR.
2. The second loan, also with the World Bank, in the amount of USD 250 million, will support the program to replace incandescent bulbs with energy-saving bulbs, and the program to replace appliances. The loan has a repayment term of 12 years and a variable interest rate based on LIBOR.
It should be noted that this loan is part of a comprehensive financing package that also includes: i) a concessional loan for Nacional Financiera for USD 50 million from the Clean Technology Fund; and (ii) a grant from the Global Environment Facility, for USD 7.1 million to be executed by SENER.
Additionally, a grant from the Global Environment Facility for USD 4.5 million was signed with the World Bank for actions aimed at adaptation to climate change in the wetlands of the Gulf of Mexico.
3. The third loan for USD 400 million was signed with the Inter-American Development Bank. This operation recognizes the actions implemented to consolidate the institutional and operational framework that underpins Mexico's climate change agenda, especially the actions that are highlighted are the advances in: i) the execution of the Special Program on Climate Change, ii) the preparation of state programs of action against climate change, iii) the institutional strengthening for the evaluation of climate change impacts, monitoring of goals and preparation of projects, and iv) the regulations, in particular, with the entry into force of the regulations of the Law for the Sustainable Use of Energy and the Law for the Use of Renewable Energies and the Financing of the Energy Transition. The loan has a repayment term of 20 years, which includes 5 years of grace. The applicable interest rate is variable based on LIBOR.
The projects supported have the purpose of promoting the sustainable development of Mexico, promoting the efficient use of energy, stimulating change in the consumption patterns of households and citizens. In this way, promoting a low-carbon economy is presented not only as a challenge, but as a door to new development opportunities that Mexico is taking advantage of.
It should be noted that these financings are contemplated in the debt ceiling authorized by Congress in the 2010 Budget.
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Authors: Val
