As nations consider better aligning economic growth with sustainability development, Mexico has emerged as an early mover in emerging markets, seeking to mobilize MXN$15 trillion into sustainable development by 2030. More than an aspiration, this effort reflects a shift from incremental change towards a coordinated, long-term approach to national economic and development planning.
To make this vision a reality, Mexico has developed an update to its Sovereign Sustainable Finance Framework, which provides a more flexible architecture that expands the categories of eligible sustainable projects, as well as the range of financial instruments — both thematic — and aligns sovereign issuances with domestic policy priorities and international market standards.
At the heart of helping the Mexican government execute the framework is Scotiabank’s strategic role, grounded in a shared commitment to translating policy ambitions into actionable market solutions. Drawing on its North American scale and connection to global capital markets, Scotiabank’s team aims to support the Mexican government in its steps to align government objectives with investor expectations and facilitate efficient capital allocation.
Mexico’s evolving sustainable finance framework
Mexico pioneered sovereign sustainable finance ever since the world’s first SDG Bond Framework in 20201, anchoring its federal budget to the UN Sustainable Development Goals. Now, at the mid-way mark to 2030, the country is transitioning from the foundational SDG Bond Framework to the broader Sovereign Sustainable Finance Framework. This evolution addresses structural shifts since 2020 and the need to keep pace with its national strategy, which includes:
- The launch of the Mexican Sustainable Taxonomy (2023), which defines environmentally aligned economic activities and integrates social measures such as gender equality2
- The Sustainable Finance Mobilization Strategy (2023), which is geared to channel capital at scale through public-private collaboration and market instruments
- The National Development Plan (2025–2030), which includes goals for sustainable growth and investment and is part of a broader push to incorporate environmental and social considerations into national investment planning and economic strategy
Together, these steps position Mexico as a compelling example of how emerging markets can mobilize sustainable capital at scale.
“Mexico is modernizing its sustainable finance architecture to make it more agile and inclusive, creating a platform that is designed to better channel capital efficiently toward national priorities like clean energy, sustainable development, and biodiversity. We are grateful to the Government of Mexico, and especially to the Ministry of Tax and Public Credit (Secretaría de Hacienda y Crédito Público) for the trust placed in us to collaborate on this Framework and participate throughout the process,” said Jose Jorge Rivero, Senior Vice President, Corporate Banking, International Banking GBM.
From SDG bonds to a consolidated, sustainable financing architecture
Mexico’s new sustainable finance framework expands beyond bonds to encompass loans, finance and additional labels such as blue economy, transition, biodiversity and green finance, as well as gender equality initiatives. It helps build a sustainable financing strategy for the future, aligned with the National Development Plan (2025–2030) and the Sustainable Taxonomy. For investors, it offers consistent eligibility criteria and reporting standards—helping to drive confident capital allocation decisions and market depth.
As Mexico continues to evolve its economic and policy landscape, Scotiabank has worked to provide support through its local presence and capital markets capabilities across financing instruments. Scotiabank’s dedicated sustainable finance team supports a wide range of financing needs—including local and international bond issuances, corporate loans, project finance, derivatives, and deposits—and works with public‑sector entities, corporates, and commercial clients across diverse sectors.
This mandate also reinforces Scotiabank’s North American corridor strategy during a pivotal period leading up to the USMCA joint review scheduled for July 1, 2026. It aligns with Scotiabank’s growing focus on cross border capital flows, supply chains and infrastructure investment, while deepening ties across wealth, retail and small business channels.
Empowering Mexico’s sustainable future through strategic advisory
As Mexico intensifies its commitment, Scotiabank has acted as an advisor on sustainable finance frameworks for the government of Mexico as well as government-owned agencies, including the public electricity company and developoment banks.
“This mandate underscores Scotiabank’s strategic role as a long-term advisor for Mexico’s sustainable development and reflects our belief in its growing leadership on the global stage,” said Agostina Pechi, Managing Director, Head of Global Capital Markets, Latin America.
To ensure the framework is both robust and actionable, Scotiabank has supported on key enhancements that Mexico has put in place to strengthen its credibility and transparency. The most significant include:
- Framework transition: Transition from the SDG Sovereign Bond Framework to the Sustainable Finance Framework, allowing for the issuance of new labels beyond the SDGs.
- Alignment with Mexico's sustainable taxonomy: A strengthened methodology to align eligible expenditures to the MST, including assessing objectives, technical evaluation criteria and qualifications.
- Integration with the federal budget and addition of SDGs to the Framework: The federal budget continues to be aligned with the SDGs, which will now include two additional priority SDGs: Reduced Inequalities and Responsible Consumption and Production.
- Second party opinion (SPO): SPO from Moody’s has assigned the framework the highest rating, “SQ1 – Excellent,” and will continue to support annual reviews of alignment between the budget and framework.
Helping to shape the future of sustainable markets across Latin America
Scotiabank has participated in several sovereign and corporate sustainable finance transactions and policy initiatives across Latin America, including:
- Joint bookrunner for Mexico’s first blue bond (FEFA/FIRA) for the debt capital market (MXN$4,500 million), supporting sustainable fishing and aquaculture3
- Sustainable Structuring Agent for Esval’s first corporate local blue bond in Chile, the first by a water utility in the local market (4 million UF)4
- Participation in the working group to support the build out of Chile’s Taxonomy of Environmentally Sustainable Economic Activities5
- Sole bookrunner, ratings advisor and sustainable finance advisor for the first green bond in Peru for Arauco Holding6
“In Latin America, our impact extends beyond capital transactions; we’re actively working to help shape the sustainable finance ecosystem,” said Daniel Gracian, Director of Sustainable Finance. “Ongoing dialogue and advisory innovation are at the heart of our approach.”
Scotiabank’s Sustainable Finance Group: Partnering to advance sovereign sustainability
Scotiabank’s Sustainable Finance Group supports Mexico’s ongoing relationship with the Bank by providing advisory services and developing practical sustainable finance solutions. The team applies cross‑industry and cross‑market experience to turn policy objectives into strategies that mobilize capital for sustainable growth.
With operations across Canada, the U.S., and Mexico, Scotiabank offers integrated expertise to help organizations incorporate sustainability into capital markets activities. The Bank supports clients considering sustainable bonds, loans, or related instruments, providing guidance to help them evaluate how various financing options may support their long-term sustainability priorities.
Learn more about our Sustainable Finance Group
1 UNDP, Historic $890 million Sustainable Development Goals Bond issued by Mexico, September 14, 2020.
2 Integrated National Financing Frameworks, Mexico’s Sustainable Financing Mobilization Strategy, September 1, 2023.
3 Scotiabank, First Blue Bond issued in Mexico by FIRA, December 9, 2024.
4 Smart Water Magazine, Esval issues first blue bond from the private sector in Chile for about US$164 million, September 8, 2025.
5 Scotiabank, Chile praised for new taxonomy of environmentally sustainable activities, August 6, 2025.
6 Scotiabank, Parque Arauco issues landmark retail real estate green bond in South America, September 18, 2025.
