CONTEXT

Mining is one of the most polluting and destructive industries, which is why proper operational planning is needed to cushion as much as possible the ecological damage it generates. To minimise such damage, investments must be made in a way that also increases financial returns.

The Inter-American Development Bank (IDB) is currently supporting the Mining Development Trust (FIFOMI) and the Institutional Trusts in Relation to Agriculture (FIRA) in playing a more active role in promoting activities that promote energy efficiency and green projects, which can help reduce the environmental impact of mining companies and the agro-industrial sector in Mexico and to increase productivity.

PROJECT

The general objective of the project was to design a financial strategy for FIFOMI to support energy efficiency projects and green projects for the mining sector.

The goal was to develop a market study that supports the design of the strategy that include the potential energy efficiency and green projects that FIFOMI could promote. Structuring effective financing strategies includes understanding not only the development of adequate financial and guarantee instruments but also technical assistance, consulting and support the training of financial intermediaries and final beneficiaries, who can promote and execute financing programs for climate change mitigation projects.

OUTCOME

The analysis of areas of opportunity for the program included the analysis of the FIFOMI loan portfolio in order to identify the main subsectors currently served by the institution (according to the categorisation used by FIFOMI), and the financial instruments were also evaluated FIFOMI offers in order to analyse its potential to finance energy efficiency technologies.

In parallel, a list of energy efficiency technologies (equipment that consumes electricity and other fuels), electricity generation, as well as applicable technologies for the protection and care of the environment relevant to the mining sector was prepared. The technologies were evaluated individually according to their relevance in the processes, and energy intensity in each industrial subsector of the mining sector in order to specify the areas of opportunity.