Advancing inclusive change in support of a low-carbon industrial transformation in Mexico

Context

Mexico continues to rely on fossil fuels, making it difficult to reduce emissions despite growing international pressure and trends in export-driven industries. Foreign companies operating in industrial parks have begun adapting stricter regulations, yet climate protection measures remain limited.

Nonetheless, the transition to a low-carbon economy faces resistance from businesses concerned about job losses, while corruption, insecurity, and informal employment undermine trust in policy initiatives. Persistent gender inequalities and political uncertainty further complicate progress. However, renewed government commitment offers a chance to accelerate decarbonisation through investment in renewable energy and a Just Transition for all stakeholders.

Objective

Relevant actors have implemented a Just Transition in selected areas of the Mexican economy.

Approach

The project addresses the Just Transition in Mexico through the following measures:

• Promoting green technology financing by aligning financial products with market needs, expanding the skills of financial institutions to assess and adapt financing instruments, and facilitating investments in green technologies;
• Improving regulatory instruments to drive decarbonisation in industrial parks and supporting policy development and renewable energy infrastructure to boost the uptake of green technologies by businesses;
• Developing a participatory governance framework with measurable climate impact and implementing an inclusive strategy for social and gender justice in regional and local governments.

Last update: April 2025