Mexico City, 6 September 2016; Iniciativa Climatica de México (ICM) hosted a press conference to present the G20 “Brown to Green” Report of Climate Transparency in Mexico City on 6 September 2016.

The press conference was co-hosted by Transparency International (TI Mexico office), the Inter-American Association for Environmental Defence (AIDA), the Mexican Centre for Environmental Law (CEMDA), the Latin American and Caribbean Climate Finance Group (GFLAC), and the Institute for Transportation and Development Policy (ITDP).

ICM presented the content, rationale and main findings of the “Brown to Green” Report. Juan Carlos Arredondo highlighted the gap between the current ambition level of Mexico’s national climate goals and INDC and what is needed for decarbonising the economy. According to the climate expert, the low level of leadership within the country, despite the “adequate phrasing of goals”, had resulted in the stagnation of climate action. The lack of a decarbonisation roadmap, with milestones on 2020 (national target), 2024 (35% clean energy goal), 2026 (emissions peak), 2030 (Paris Agreement) and 2050 (national target) deterred green investments. Mr. Arredondo also discussed how the high dependency on fossil fuels, despite the Energy Reform, would hinder climate action if priorities in the energy policies of the country did not change significantly.

The participants also discussed the disconnection between pledges and budget allocation at the national level, and the lack of transparency regarding criteria used to label public investment as “climate change” investments. Current allocation does not follow priorities put forward in the National Strategy on Climate Change and sometimes leads to financing contradictory policies such as subsidies for diesel use in water pumping in agriculture.

Transparency International representative Vania Montalvo argued that inaction originated from the lack of alignment of government policies. She highlighted the need to develop MRV systems on climate measures and finance for credible, comparable and transparent action on climate change.

AIDA representative Andrea Rodriguez elaborated on the lack of participation of the Mexican government in the discussions and decisions on the Green Climate Fund (GCF). She mentioned how the first project approved by the GCF – USD20 million for green bonds on energy efficiency – is commanded by the Inter-American Development Bank without involvement of the Government of Mexico. The Government of Mexico did not explain how such funding and project fitted into the overall strategy for complying with national targets or implementing the INDC.

CEMDA representative Gabriela Niño described the public budget allocation process and the lack of consistency in the consideration of whether public investment could lead to emission reductions. Mrs. Niño stated that the lack of guidelines of the Secretariat for the Environment on what constitutes decarbonisation measures reduced the likelihood of compliance with national targets and the INDC.

GFLAC representative Mariana Castillo explained the similarities observed in the budget allocation of different countries in the region and the lack of capabilities to design low-carbon roadmaps that may guide countries in their transition to a low-carbon economy.