Mexico

Mexico is engaging the financial and the private sectors to bring the buildings transition to scale. In this booming sector, affordable finance offers for investment in energy efficiency measure are still largely unavailable. PEEB Cool is working together with Mexico to promote an offer of attractive energy efficiency finance solutions and ensure that the private sector meets this offer through building projects with high performance standards.

Sustainable buildings in Mexico: an opportunity for investment

Mexico is going through a construction boom. 25 billion USD flowed in the real estate market in 2017. The residential sector is adding between 300,000 and 400,000 new units every year, while 100 million square meters of new school buildings will be constructed by 2030. This has an impact on the country’s climate commitments: the sector is responsible for 20% of energy demand and greenhouse gas emissions.

Energy efficiency has the potential to reduce energy demand and promote savings. Mexican policies for energy efficiency cover 44% of building energy efficiency, but their implementation is still lacking. Developers and construction firms face challenges in access to affordable finance for sustainable buildings. Financial institutions perceive energy-efficient projects as high-risk and costly, leading to a persistent funding gap for sustainable infrastructure.

PEEB Cool is working with Mexico to offer finance on attractive conditions and preparing the private sector to access it. Furthermore, it will support government strategies to accelerate this change. Find out more about our activities below.

Combining finance and policy in Mexico

Mobilising finance

The French Development Bank (AFD) is working with the Mexican Development Bank NAFIN (Nacional Financiera) on a financing window for sustainable building projects. This cooperation will not only make 100 million USD available for project developers via NAFIN, but also build this bank’s capacity to identify the benefits and mobilise finance for energy efficient and resilient buildings. The combination of 25 million USD from the Green Climate Fund (GCF) and 75 million USD from AFD will reduce the costs of financing.

Enabling sustainable building investments

GIZ is working with public and private actors to prepare the sector for a large-scale transformation. A decarbonisation roadmap, developed in cooperation with the Energy Ministry, will set a clear pathway for the adoption of energy efficient construction practices. PEEB will also work with the private sector for the development of skills for a comprehensive sector transformation, including courses on the sustainable finance taxonomy and trainings for preparation of energy-efficient projects.

Mexico and PEEB: a long-lasting partnership

PEEB has helped us innovate our energy saving goals so as to offer higher value to our investors and clients.

Alejandro Fis, former director of expansion and development of the hotel chain Grupo Mision

PEEB has been cooperating with Mexico to be bold on buildings since 2017. The large transformation potential of mobilising the private sector was already identified in PEEB’s previous phase in the country. Click below to read more!

Partnering with the private sector for transformation

Energy enables a key human activity: leisure. Leisure takes place not only in people’s homes, but also in the buildings of many economically relevant sectors. The tourism sector is one of them, with hotels consuming xx in energy. In its first phase working with Mexico, PEEB and other stakeholders identified the large potential for energy savings in the hospitality industry. Besides that, activities targeting finance mobilisation strategies and skills development amongst sector professionals helped to deliver impactful results!

Achievements

Hotel norm updated with energy efficiency requirements, thanks to PEEB expert support to the Ministry of Environment (SEMARNAT)
Technical guide on energy efficiency in hotels
20 hotels of the Mexican chain “Grupo Misión” received support on energy efficiency concepts
Technical guide on increasing energy efficiency in public office buildings
Policy paper on non-monetary incentives for mobilizing private investments in energy efficient buildings
Private sector mobilisation through recommendations on financial incentives and trainings on financing energy efficiency
An info sheet on energy efficiency for low-income households (ECOCASA PROGRAMME)

Activities

A model hospital for health and climate

📍 Saint Joseph, Palestinian Territories
🛠️ Investment Grant

In the Palestinian Territories, PEEB is supporting the renovation of St. Joseph Hospital. Hospitals are intensive energy consumers due to their high activity levels, large staff, patient and visitor numbers, and the energy demands of specialized equipment. PEEB Med is supporting this project with a €1 million grant to ensure energy-efficient upgrades aligned with climate resilience goals.

The hospital’s energy consumption is expected to drop by 57%—equivalent to the annual consumption of roughly 405 Palestinian households!

Sustainable tourism and hospitality centers

📍 Tunisia
🛠️ Technical assistance

In Tunisia, PEEB supports the renovation of four tourism and hospitality training centers in Sousse Nord, Monastir, Tozeur, and Ain Draham.

PEEB Med supports the renovation of these schools by providing a technical assistance that will focus on energy efficiency. More specifically, it has conducted an energy audit and has provided recommendations for energy-efficient equipment and renovations, proposals for autonomous energy production systems, and best practices to optimize equipment use, particularly in the cold chain.