Mexico

Mexico is engaging the financial and the private sectors to bring the buildings transition to scale. The construction sector is booming in the country: the residential sector is adding between 300,000 and 400,000 new units every year, while the government expects 100 million square meters of new school buildings to be constructed by 2030.

Yet, affordable finance offers for investment in energy efficiency measures are still largely unavailable. High energy demand from buildings has an impact in Mexican climate commitments: the sector is responsible for 20% of energy demand and greenhouse gas emissions.

Sustainable buildings in Mexico: an opportunity for investment

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.

Mexican policies already 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.

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.

Past impacts

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 potential for transformation via the mobilisation of the private sector was already identified in PEEB’s previous phase in the country. Achievements include the update of energy efficiency norms, guides about energy efficiency, support in energy efficiency concepts for the hotel chain “Grupo Misión”, and others. Explore all our resources and activities below!

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.