Core area “Climate and energy, just transition” Fostering a sustainable economy and advancing the transformation of transport systems

One focus of German activities in this core area is on fostering climate-friendly mobility. In addition, the German Development Ministry (BMZ) is supporting the Mexican government in implementing its Nationally Determined Contributions (NDCs).

Sustainable mobility

Roughly a quarter of Mexico’s greenhouse gas emissions are caused by the transport sector. In addition, the number of cars per head of the population is continuously growing. In urban areas, where about 80 per cent of the population lives, the number of vehicles on the road and the resulting air pollution are particularly high. In order to slow down this trend, the country needs a high-grade public transport system as an attractive alternative to cars.

Under the framework of Financial Cooperation, KfW Development Bank is therefore supporting the expansion of public transport and the transition of the transport sector to environmentally friendly vehicles. As part of Technical Cooperation, GIZ is supporting the efforts of policymakers and public sector officials at the national, regional and municipal levels to elaborate intelligent, efficient, socially compatible and inclusive mobility solutions.

This includes the development of demonstration projects in the public transport sector as well as pilot projects for the implementation of infrastructure schemes for sustainable and inclusive mobility in Mexican cities and federal states. The solutions currently being trialled include using electric buses and expanding charging infrastructure. All of this is being accompanied by measures to improve accessibility or to make public transport safer for women and vulnerable groups.


Climate change mitigation and adaptation

Mexico has made a commitment to meet the goals of the Paris climate agreement and reduce its greenhouse gas emissions. Germany is helping its partner country Mexico to mobilise the necessary financial means to meet these commitments. Through cooperation with national development banks, KfW Development Bank is fostering access for Mexican businesses to investment financing for various climate-relevant sectors of Mexico’s economy. The aim is for the economy to transition to a climate-neutral, socially compatible and gender-responsive way of doing business (Just Transition).

GIZ is also assisting the Mexican government in mobilising more funds for climate financing. The advisory services provided by GIZ are concerned with strengthening coordination and planning instruments in the public sector and with improving regulatory standards in Mexico’s financial sector. The intention is to strengthen the sector’s competitiveness and facilitate a higher influx of financial capital for climate financing.

As at: 04/10/2024