Mexico's Ministry of Finance and Public Credit (SHCP), with the support of Scotiabank, has unveiled an updated Sovereign Sustainable Financing Reference Framework. Released on January 8, 2026, the revised framework aims to enhance the country’s governance and eligibility standards for accessing international capital markets through sustainable financial instruments.

Replacing its predecessor from 2020, the updated framework aligns with the goals of Mexico’s National Development Plan (PND) 2025–2030. It further integrates the Mexican Sustainable Taxonomy for the first time, a step intended to prevent greenwashing and improve transparency while maintaining consistency with international sustainability standards.

"We are proud to have shared our global expertise in sustainable finance structuring, supporting the Ministry of Finance in the transition from the Sovereign SDG Bond Framework to a Sovereign Sustainable Financing Reference Framework", said José Jorge Rivero, senior vice president of Corporate and Investment Banking and Capital Markets, Scotiabank International Banking. "This new framework broadens the scope of eligible instruments and incorporates new thematic categories, including green, social, sustainable, transition, nature, biodiversity, adaptation, and climate resilience."

Strengthened Governance and Broadened Scope

The revised framework provides a detailed governance structure for project selection and fund allocation, emphasizing coordination between SHCP, relevant line ministries, and public entities. All projects must align with Mexico’s updated Nationally Determined Contribution (NDC 3.0), presented at COP30, as well as the 2030 Agenda for Sustainable Development Goals (SDGs).

Eligible expenditures under the framework include both new investments and the refinancing of existing projects, which are subject to specific look-back periods. To ensure accountability, the funds raised through sustainable instruments will be tracked using internal budgetary systems, designed to prevent double counting.

In addition to expanding the types of instruments, the framework categorizes eligible spending areas, such as climate resilience, nature restoration, and transition financing. By integrating these broader themes, the framework aims to address critical environmental and social challenges.

Enhanced Transparency and Reporting Obligations

The updated framework mandates annual publication of allocation and impact reports for each sustainable finance instrument. Allocation reports will provide detailed information on the distribution of proceeds by category, program, and geographic location. Meanwhile, impact reports will offer quantitative performance indicators where feasible.

Environmental metrics include data such as greenhouse gas emissions avoided, renewable energy capacity installed, and hectares of ecosystems restored. Social indicators may detail the number of beneficiaries reached through education or health programs, affordable housing units supported, or improvements to access to services in underserved areas. In cases where direct measurement is not possible, proxy indicators and qualitative assessments will be used, with transparent methodologies and assumptions disclosed.

International Recognition

The framework has received the highest rating, SQS1, in a Second Party Opinion from Moody’s. This assessment confirms its alignment with international standards such as the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines of the International Capital Market Association. It also adheres to the Green Loan and Social Loan Principles set forth by global lending associations.

Through this collaborative effort, Scotiabank has played a pivotal role in helping Mexico strengthen its strategy for sustainable financing. By adopting these updated standards, the framework seeks to establish a robust foundation for transparent and impactful use of funds in addressing environmental and social priorities.

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