Introduction
The Mexican Climate Community (CCM) has developed a practical guide to help states and municipalities transform climate initiatives into feasible projects, addressing financial limitations in their fight against climate change.
The Role of Local Governments in Climate Change Mitigation
Local governments are on the front lines of climate change defense, as they plan infrastructure projects related to water, waste, transportation, and sanitation that align with climate objectives. They are also responsible for responding to disasters like floods, droughts, and other climate-related impacts. Avelina Ruiz, Climate Policy Director at the Mexican Climate Initiative, emphasized their crucial role.
Financial Challenges
Implementing climate goals is estimated to cost between 7% and 14% of a country’s Gross Domestic Product (GDP) in Latin America. Of this percentage, 80% falls on the shoulders of municipalities and states. However, local governments face significant hurdles in financing these initiatives due to low tax revenues, insufficient federal funds, legal uncertainty for public-private partnerships, and lack of inter-institutional coordination.
Moreover, less than 1% of the federal budget is allocated for climate change, making it difficult for local governments to secure funding for climate-focused projects. Additionally, many lack specialized teams to design financially viable projects that meet national or international funders’ requirements.
Collaborative Solution by the Mexican Climate Community
To tackle these challenges, the Mexican Climate Community (CCM) introduced the Subnational Climate Project Structuring Tool. This resource aims to assist local governments in converting their initiatives into solid, financially compliant projects that meet national and international funding requirements.
Key Features of the Guide
The tool outlines four essential pillars for subnational climate financing: robust financial structures, solid business models avoiding isolated actions, gender and inclusion focus for international agencies, and clear climate impact measurement.
- A comprehensive list of 60 national and international funding sources, showcasing projects that received funding ranging from 1 million to 300 million pesos in areas such as waste management, sustainable transportation, and nature-based solutions.
Development and Collaboration
The guide was created through a participatory exercise involving 12 subnational governments, including states like Baja California Sur, Querétaro, Tabasco, and Tamaulipas, as well as municipalities such as Aculco (State of Mexico), La Paz (Baja California Sur), Mérida (Yucatán), and Zapopan (Jalisco).
Saúl Pereyra, Climate Action Manager at the Institute for Resources Worldwide (WRI), explained that the guide was designed to benefit these 12 governments and serve as a valuable resource for more authorities.
Target Audience and Accessibility
This free, digital tool is intended for state and municipal governments, public organizations, and independent consultants seeking resources to develop climate-addressing projects. Experts estimate that it may take up to 12 months to secure funding after utilizing this instrument.
The CCM, comprising the National Association of State Environmental Authorities (ANAAE), the Mexican Climate Initiative (ICM), WRI, and supported by UK Pact México, coordinated this collaborative effort.
