Environmental Fund Model, Case: Mexico City’s Climate Change Fund – 2014
Proposals for Design, Contracting and Operating Rules
Having sufficient resources to address the challenges posed by climate change is complex, especially for a local government. Therefore, in this document, we intended to give Mexico City’s Environmental Fund for Climate Change (FACC, acronym in Spanish) tools that would make it dynamic in procurement and in the allocation of these funds; by thinking in the fund not only as an account which provides resources to projects but as an entity capable of generating them, to increase its assets and catalyze greater actions and projects in addition to pursuing its own subsistence. Thus, in its design we propose new sources of income for the FACC, among which we highlight partnerships with the private sector or other associations, such as nongovernmental organizations. In this sense, we propose a number of additional activities than those currently planned for the fund, such as active international fundraising and consulting services for financing mitigation projects, as well as providing services such as representing third parties in the sales of carbon credits. Additionally, we propose control and transparency mechanisms that go beyond those foreseen in the applicable laws, which seek transparency and making information accessible and easily digestible for the general public regarding resource management. Also, we propose a structure that ensures a programmed fund management, meeting the main needs and objectives outlined in Mexico City’s climate change policy instruments – such as Mexico City’s Local Climate Action Strategy and the Program on Climate Action- with the objective that the needs and challenges that Mexico City faces in terms of climate change are efficiently met.
MARIO MOLINA CENTER FOR STRATEGIC STUDIES ON ENERGY AND THE ENVIRONMENT