The Mexican Council for Sustainable Finance (CMFS), with the support of the British Embassy in Mexico through the UK PACT (Partnering for Accelerated Climate Transition) program, has presented its report “State of the Market 2022: Sustainable Finance in Mexico”, during the event “Sustainable Finance MX23”.

The document includes data and initiatives from several financial associations within the stock and banking markets, as well as new and best practices in relation to the disclosure of ESG information, and the key milestones in the national sustainable agenda.

The labeled debt market in Mexico has reached a total of 267,370 million pesos (equivalent to approx. 13 billion dollars) with 44% YoY growth, through the issuance of 45 labeled bonds by 21 different issuers. Sustainable sovereign bonds led in 2022 with a 37.5% share in the total labeled debt market. Also noteworthy is the first blue bond for 1.4 billion pesos by Desarrollos Hidráulicos de Cancún, which aimed to finance projects that increase the quality of sanitation services and access to drinking water.

The report concludes that the main challenges include: i) the generation of quality information related to ESG factors; ii) sectoral action, a series of collaboration and linkage measures that must be implemented by the public and private sectors, to achieve climate goals (mitigation and adaptation) and sustainable development goals; iii) regional action to align and standardize criteria related to sustainable finance and promote the development of taxonomies and their interoperability; iv) competitive value chains, transforming traditional value chains into sustainable value chains; and v) a just transition, promoting gradual changes with specific and diverse pathways for each market player.