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WB/MEXICO: Promotion of Green Growth

November 20, 2012

Over 2000 Groups of Small- and Medium-Sized Agribusinesses across the Country to Benefit from Clean-Sustainable Technologies

WASHINGTON, November 20th, 2012 – The World Bank (WB) Board of Executive Directors approved today an additional loan of US$50 million to stimulate green economic growth in rural areas of Mexico, which will benefit more than 2,000 small- and medium-sized agribusinesses, while preventing the emission of almost 2,000,000 tons of CO2, saving 308,062 KW in energy.

The financing gives continuity to the implementation of the Sustainable Rural Development in Mexico project, which seeks to promote the adoption of sustainable technologies among small- and medium-sized agribusinesses.

This additional funding will help expand the range and goals established by the National Climate Change Strategy and thus the commitments that Mexico assumed under the Kyoto Protocol in relation to the adoption of environmentally sustainable technologies for agribusinesses (renewable energy, efficient energy and/or emission-reduction technology) and biomass conversion to be used as energy.

The project intends to increase the number of small- and medium-sized agribusinesses adopting environmentally sustainable technologies to 2,168; reduce greenhouse gas emissions by 1,987,500 tons; save 308,062 kWh of energy as a result of adopting efficient technologies; and contribute to the successful formulation of public policies on the part of the Secretariat of Agriculture, Livestock, Rural Development, Fishing and Food — SAGARPA — to mitigate the effects of climate change and monitor their implementation.

It will mainly invest in environmentally sustainable technologies for agribusinesses participating at various levels of the agricultural supply chain, which will be receiving support to improve their energy efficiency and biomass-to-energy management.

These technologies will serve to improve energy efficiency and optimize waste management (in some cases converting it into electricity) in the main dairy-production areas and in pig farming. Thus, beneficiaries will obtain positive financial results and will contribute to climate change mitigation efforts. Some of these technologies include: solar-powered water heaters used in food processing, construction and operation of biodigesters to generate gas from animal waste, and the installation of specialized generators to convert biodigestor gas into electricity.

“Mexico once again shows its commitment to an environmentally-friendly economic growth and continues its efforts to mitigate the effects of climate change by promoting the use of clean technologies,” said Gloria M. Grandolini, World Bank Director for Mexico and Colombia.

The support of the World Bank for Mexico is part of a comprehensive WB service package that includes financial as well as knowledge and convening services.

The agency responsible for carrying out this loan is the Secretariat for Agriculture, Livestock, Rural Development, Fishing and Food (SAGARPA) through the Shared Risk Trust Fund (FIRCO). The project will be granted US$131.25 million in additional financing. Of these, US$50.0 million correspond to a World Bank loan; US$10.5 million to a Global Environment Facility (GEF — which is implemented by the World Bank) grant; and US$70.75 million to contributions from beneficiaries themselves. It is a flexible loan with a variable spread to be repaid by November 1, 2024.


Media Contacts
In Mexico
Fernanda Zavaleta
Tel : (52-55) 5480-4244
In Washington
Marcela Sanchez-Bender
Tel : (202) 473-5863