Green Infrastructure for Northern Mexico's Growing Communities

Mexico is the 14th largest economy in the world and the 17th highest emitter of CO2 globally. The country is particularly vulnerable to climate change, and its northern border states face mounting pressure from nearshoring, urban expansion and population growth, all of which strain infrastructure, basic services and natural resources. Public investment is urgently needed to ensure a transition to a resilient and sustainable economy. 

The EU is partnering with AFD to support the North American Development Bank (NADB), a binational public development bank owned equally by the governments of Mexico and the United States, which finances infrastructure projects that preserve, protect or improve the environment in the border region. In Mexico, this covers the states of Tamaulipas, Nuevo León, Coahuila, Chihuahua, Sonora and Baja California. 

Objectives

The project drives a green and digital transition, supporting sustainable and socio-economic recovery. It backs Mexico's Nationally Determined Contributions (NDCs), builds climate adaptation and resilience among vulnerable populations and promotes resource efficiency. It funds innovative, high-impact, climate-resilient infrastructure projects, particularly under the Sonora Sustainable Energy Plan and in response to nearshoring growth. 

Project activities

The project combines an AFD loan to finance green and climate-resilient infrastructure with an EU investment grant for project developers in the clean mobility, energy, green buildings, and water and sanitation sectors. It also provides technical assistance to help NADB and its clients prepare and deliver those projects and build lasting capacity. 

(Expected) Results

The project will contribute to the following results: 

• Wider access to financial services for both public and private actors.
• Greater renewable power generation capacity from clean sources.
• Better transport and logistics infrastructure and facilities.
• Upgraded, climate-proof urban, water and sanitation infrastructure. 

Implementing partners

AFD