Mexico’s public development banks, executing entities and subnational governments face various barriers, such as the limited number of affordable financial flows for the rural sector, insufficient financial flows for the water/sanitation sectors (particularly in drought-prone northern Mexico), capacity gaps on access to results-based payments (RBP) from reducing emissions from deforestation and forest degradation (REDD+), reporting framework, capacity and regulatory gaps within Mexico’s carbon and green finance systems, limited institutional capacity at subnational levels to access competitive climate finance and limited institutional capacity to integrate environmental and social considerations into public-private partnerships (PPP) processes and projects.

This proposal aims to provide solutions to all the above challenges through the support for the PSAA accreditation for Trust Funds Related to Agriculture (FIRA in Spanish); support institutional accreditation for the North American Development Bank (NADB); enhance capacities on results-based payments (RBP) from reducing emissions from deforestation and forest degradation (REDD+); strengthen Frameworks via a Roadmap for green finance transparency system and National Carbon Policy inputs (Output 2.2.2).