Mexico’s State of Sonora affirms commitment to Green Bonds at GGGI’s Green Finance Workshop in Hermosillo

Hermosillo, December 11 — Sonora’s Treasurer Daniel Galindo Ruiz and Commissioner Luis Carlos Romo of the State Commission for Ecology and Sustainable Development (CEDES) opened a workshop on Green Bonds today in Hermosillo to inaugurate the launch of Sonora’s Green Bond Framework. The workshop, hosted by the Global Green Growth Institute (GGGI) and the State of Sonora, highlighted opportunities to access climate finance through Green Bonds in the State. The State of Sonora has recently committed to issuing a green bond to support the development of green projects, including urban mobility projects such as the State’s Integrated Transport System (ITS) system. “We trust that these joint efforts reflect a finance strategy that will both generate green growth benefits and bring savings to the public finances of the state,” emphasized Treasurer Daniel Galindo Ruiz as he opened the workshop.

The workshop, and the State of Sonora’s commitment to issue a green bond, builds on green growth initiatives that have been prioritized in Sonora since 2016, including the Green Growth Strategy which emphasizes priority areas for green growth in the state, and the Green Growth Cabinet, which meets regularly to discuss progress on green growth projects in the state. “With the foundation of the Green Growth Strategy, we are working on green growth governance, implementation, and finance for priority projects,” noted CEDES Commissioner Luis Carlos Romo. “We are looking for opportunities to finance priority projects in the areas of energy, transport, water, sustainable energy, and natural resources.”

Through interactive sessions and discussions, participants were able to understand the process of issuance for a green bond, types of projects that can be financed by a green bond and the necessary steps to prepare bankable projects. Presenters included representatives from GGGI, Carbon Trust, GIZ, MexiCO2 and Mexico City government, who shared their expertise on green bonds and addressed the opportunities, challenges and requirements in the process of green bond issuance. Green growth stakeholders from across the State of Sonora attended the workshop, including representatives from the Office of Strategic Projects for the State of Sonora (IMPULSOR), the Office of the Chief of Staff of the Governor, the State Fund for the Modernization of Transport (FEMOT), the Treasury of the State of Sonora, the Sonora Ministry of Finance, the State Water Commission of Sonora, the Sonora Institute of Women, the General Directorate for Transport (DGT), the Sonora Ministry of Economy, and more.

“The workshop was an excellent opportunity to hear various expertise from our partners in order to further understand their experiences with green bonds, selecting and developing bankable projects, and accessing finance,” said Pablo Martinez, GGGI’s Mexico Country Representative. “Now is the moment to implement and transform the state into one that is economically viable, environmentally sustainable and socially inclusive.”

One important discussion at the workshop centered around finding entry points in green projects that promote social and gender inclusion. Blanca Saldaña from the Sonora Institute of Women emphasized, “Everything that has to do with the environment, also has to do with women. It is critical to include the perspective of women and how projects affect the security and well-being of women. We would like to understand how we can access resources from the green bond that also benefit women equally.”

Such initiatives are at the core of GGGI’s vision, who has been working in the State of Sonora since 2016. “Finding entry points for gender inclusive projects is key for low carbon, green growth in Sonora,” noted Jose Amaya, Program Officer of GGGI Mexico.

The workshop concluded with a session on Monitoring, Reporting, and Verification (MRV), and the requirements of reporting on a green bond. GGGI will continue to support the State of Sonora in its green growth projects and issuance of a green bond in 2019.