Design of a results-based climate finance mechanism in Mexico

For the cogeneration sector

Renewable energy, energy efficiency and waste management systems offer significant potential to reduce greenhouse gas (GHG) emissions in Latin America. However, effective mechanisms are needed to enable the implementation of GHG mitigation projects as well as to leverage funding by the public and private sector.

By providing financial incentives that are performance-based and linked to emission reductions, the EC-CAF-KfW Facility for Performance Based Climate Finance seeks to address barriers to investment, including high upfront costs and risks.

Ecofys, together with G-Advisory and Garrigues, are designing a pilot results-based finance mechanism for the Mexican cogeneration sector in the context of the Facility. The mechanism aims to support mitigation in the cogeneration sector by providing payments for emission reductions. The project already identified potential projects that can benefit from the Facility's support. It also set an emissions baseline, proposed an MRV system, and designed the financing mechanism.

Contact

Noémie Klein
Climate Strategies and Policies
E-mail
Jialiang Zhang
Climate Strategies and Policies
E-mail
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