The city of 21 million people is tapping into climate finance through the C40 to get its 21 million people moving again, reports Diana Rojas
With a coveted AAA rating, Mexico City issues some $200m in municipal bonds every year. But in December it became the first city in Latin America to close on a green bond worth $50m (1 billion pesos) to finance the Green Corridor, an ambitious plan to build a 23 km “green corridor” along the Eje 8 Sur Popocatepetl, one of Mexico City’s largest arterial roads.
Investor interest was overwhelming: the five-year bond was oversubscribed by two and a half times. Tanya Muller Garcia, Mexico City’s secretary of the environment, says that thanks to the green bond and international technical financial assistance, the dream will become a reality next year, when the city takes delivery of a fleet of 100 electric buses. These will traverse dedicated lanes, connecting with four metro lines and another bus line. Bicycles will share the corridor and new pavements will be built for pedestrians. Trees and green will adorn buffer spaces and wells will harvest rainwater.
To get to this point, Mexico City worked with C40 Cities Finance Facility (CFF) to develop a sellable plan. Launched at the Paris COP21, the CFF assists cities to develop capacity to prepare urban climate change projects...