Mexico and EIB Enhance Collaboration on Sustainable Financing for Development Projects

Mexico and EIB Enhance Collaboration on Sustainable Financing for Development Projects

(IN BRIEF) The European Investment Bank (EIB) and the Ministry of Foreign Affairs in Mexico have signed a declaration of intent to strengthen their strategic partnership on financing sustainable development in Mexico. The agreement aims to provide appropriate and affordable sustainable finance instruments to support priority areas of common interest. It will also establish a technical working group to collaborate on Mexican programs and projects that would benefit from long-term investment and technical support. The targeted initiatives will align with the EU’s Global Gateway initiative and generate positive social, economic, and environmental outcomes in Mexico. The EIB will play a crucial role in channeling Mexico’s ambition for sustainable finance into tangible projects by collaborating with various entities in the country.

(PRESS RELEASE) LUXEMBOURG, 16-Jun-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, announces that during European Commission President Ursula von der Leyen’s visit to Mexico and her meeting with President Andrés Manuel López Obrador, the European Investment Bank (EIB) and the Ministry of Foreign Affairs signed a declaration of intent in Mexico City. The agreement aims to reinforce their strategic partnership in financing sustainable development initiatives in Mexico.

This declaration of intent builds upon the existing strategic partnership between the European Union (EU), the EIB, and Mexico, and provides fresh momentum to the ongoing work under the Global Gateway initiative. It emphasizes priority areas of common interest and sets the stage for a long-term cooperation initiative, offering appropriate and affordable sustainable finance instruments to support relevant initiatives. Additionally, the agreement facilitates the creation of a technical working group to collaborate on Mexican programs and projects that would benefit from long-term investments, favorable conditions, and necessary technical support.

The targeted programs and projects will align with the EU Global Gateway initiative, aiming to generate positive social, economic, and environmental outcomes for the people of Mexico. Examples include the Plan Sonora for Sustainable Energy and related services, as well as projects aligned with institutions such as the Federal Electricity Commission (CFE), the National Water Commission (CONAGUA), Lithium for Mexico (LITIO MX), the National Bank of Public Works and Services (BANOBRAS), Nacional Financiera SNC (NAFIN), the National Bank of Foreign Trade (BANCOMEXT), and the Ministry of Welfare, among others.

The EU’s Global Gateway initiative aims to bridge the global investment gap by mobilizing up to €300 billion of investments for sustainable and high-quality projects between 2021 and 2027. This initiative aligns with Mexico’s ambitious plans for sustainable finance, particularly for less favored social sectors and regions, capitalizing on global trade and production changes. The EIB, as a partner, will help translate this ambition into tangible projects through collaboration with various entities in Mexico.

The declaration of intent was signed by Kristin Lang, EIB Head of Division for Latin America and Caribbean – Public Sector, and Ambassador Carmen Moreno Toscano, Undersecretary of Foreign Affairs of the United Mexican States.

“I am very pleased to announce the strengthening of the EIB’s longstanding relationship with Mexico to enable strategic investments in the country. EIB Global is a natural partner for Mexico with its ambitious climate agenda. I am proud to see cooperation between the European Union and Mexico growing through initiatives like these,” said Lang.

Ambassador and Head of the Delegation of the European Union to Mexico Gautier Mignot said: “Team Europe, consisting of the European Union, its Member States and the European Investment Bank, is determined to support Mexico’s sustainable development under the Global Gateway. It will respond to the country’s strategies and the needs of its people, as expressed by the President of the European Commission and the President of the United Mexican States at their meeting today. This important declaration of intent is a tangible example of the EIB’s contribution to this joint effort, which will be put into action through projects implemented by other members of Team Europe in Mexico.”

Background information

About the EIB:

The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms — competitive interest rates with loan durations aligned with projects. Through our partnerships with the European Union and other donors, we can often provide grants to further improve the development impact of the projects we support.

About EIB Global in Mexico:

The EIB is the largest multilateral public bank in the world and financed around €10.8 billion in investments outside the European Union in 2022 via EIB Global, the arm of the EIB created in 2022 for activities outside the European Union. Since the EU bank started working in Mexico in 1997, it has provided over €884 million to finance investments with favourable conditions — in terms of both maturity and interest rates — with the aim of improving the quality of life of the Mexican people.

About EIB Global in Latin America:

EIB Global has provided economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around €13 billion to support more than 150 projects in 15 countries in the region.

About the Global Gateway initiative:

EIB Global is a key partner in the implementation of the European Union’s Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside our partners, fellow EU institutions and EU Member States, we aim to support investment of €100 billion, around one-third of the overall budget of the initiative, by the end of 2027, including in Mexico and Latin America.

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.

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Media contacts:

Enrico Possenti
e.possenti@eib.org
+352 4379 – 82144

Press Office
press@eib.org
+352 4379 – 21000

SOURCE: European Investment Bank