Financial Mechanism and Resources

Mexico: Financing for Biodiversity

CIRAD: Innovative mechanisms for financing biodiversity conservation: experiences from Mexico, final report in the context of of the project “Innovative financing mechanisms for biodiversity in Mexico / N°2015/368378”. Brussels, Belgium. The study found 162 cases related to biodiversity financing, of which two main categories can be distinguished: green markets (64% of cases) and payments for environmental services (27%). In addition, the source of funding for these instruments (green markets and payments for environmental services) are the production process itself (56%) and public environmental funds and civil society in the majority of cases (21%). In terms of ecosystems, most of the cases (56%) focus on forests and secondly on arable land (17%).

Conservation of Coastal Watersheds to Achieve Multiple Global Environmental Benefits in the Context of Changing Environments (GEF 2012), Environmental Services Project (GEF 2005), Mainstreaming the Conservation of Ecosystem Services and Biodiversity at the Micro-watershed Scale in Chiapas (GEF 2009)
Paying for biodiversity benefits, hydrological ecosystem services programme and programme to develop ecosystem services markets for carbon sequestration and biodiversity and to establish and improve agro-forestry systems, forest land use change compensation programme
Case studies of biodiversity markets for forest environmental services: El Triunfo Biosphere Reserve – Biodiversity-friendly coffee, Northern Chihuahua – biodiversity management contract, Biodiversity-friendly cocoa; Case studies for carbon sequestration markets: Agroforestry in Scolel Te (AIJ) - protocarbon credits, Community silviculture in Sierra Norte, Oaxaca (AIJ), Chiapas carbon offsets, Halophyte Cultivation in Sonoro (registered USIJI project); Case studies for landscape beauty markets: Community recreational park near Mexico City - package tours, Community ecotourism in Oaxaca - package tours
UNDP and UNEP: Making the Economic Case: A Primer on the Economic Arguments for Mainstreaming Poverty-Environment Linkages into National Development Planning. Marshall, E., and A. Newton. 2003. “Non-Timber Forest Products in the Community of El Terrero, Sierra de Manantlán Biosphere Reserve, Mexico: Is Their Use Sustainable?” Economic Botany 57(2): 262–78. In a highland community in Mexico’s Sierra de Manantlán Biosphere Reserve, it was found that the collection and sale of non-timber forest products was almost exclusively undertaken by women. Sales of such products ranked as the most important source of cash income for 30 percent of the women interviewed, and either the second or third most important for the remainder.
Bundling of ecosystem services in agroforestry, Mexico (2009)
Payments for hydrological environmental services (PSAH) programme
Paying for the Hydrological Services of Mexico’s Forests
Defining Environmental Goods and Services: A Case Study of Mexico (2005)
Manual para el Desarrollo de Programas de Pago por Servicios Ambientales Hidrológicos Locales (2005)
An Assessment of Mexico’s Payment for Environmental Services Program (2005)
Payment for Forests Watershed Environmental Services in Mexico
Mexico City State forests hydrological services, Temporary Employment Program (PET), Transferable hunting rights
Mexico‘s experience with ES Assessment and Valuation for Conservation, by Alonso Martínez, National Commission for Protected Natural Areas
Mexico submission on innovative financial mechanisms
Mexico’s views on the draft document concerning guidance to the financial mechanism 2009
Economic and Ecological Accounts, El valor de los bienes y servicios que las áreas naturales protegidas proveen a los mexicanos
Economic and environmental accounting, economic valuation of biodiversity and forests, biodiversity and tourism
Informe Final - Estado y Evolucion de las Cuentas del Medio Ambiente en America Latina (1997), by Fundacion Futuro Latinoamericana
Green National Accounts: Policy Uses and Empirical Experience (1996) by World Bank
Integrated Environmental and Economic Accounting - A case Study for Mexico (1991), by World Bank
Towards estimating Total Economic Value for forests in Mexico (1994), by Centre for Social and Economic Research on the Global Environment
Sistema de Cuentas Económicas y Ecológicas de México: Metodología (2005), by Instituto Nacional De Estadística Y Geographía (INEGI)
Proceedings & Papers of the Ninth Meeting of The London Group on Environmental Accounting (2004), by Statistics Denmark
Technical note on the Environmental Protection Expenditure Account of Mexico
Amount of budgets in million pesos: 217.0 (2000), 565.7 (2001), 512.1 (2002), 796.4 (2003), 645.2 (2004)
environment-related expenditure and financing, SEMARNAT budget, federal budget for natural protected areas, public expenditure on biodiversity and forests
Federal Public Administration (APF), development banks
Support policy to agriculture and fisheries, greening the tax system, water charges and pricing, waste charges, rewarding environment-friendly goods and activities, removing environmentally harmful subsidies (energy subsidies, agricultural support, fishery support, access fees
Reengineering of agricultural subsidies, Elimination of tax exemptions to agrochemicals, Decreased irrigation subsidy
Incentives to Peasant Creativity and Research for the Conservation and Efficient Management of Biodiversity in the Center Mountain Region of the State of Guerrero
Structural Adjustment, Market and Policy Failures: The Case of Maize
Mexican Nature Conservation Fund (FMCN), National Financial Trust Fund for Biodiversity (CONABIO), Protected Natural Areas Fund, Gulf of California Conservation Fund, Monarch Butterfly Conservation Fund, El Triunfo and Manantlan Conservation Fund, Support Fund for the Energy-Saving Program of the Electrical Sector (FIDE), Mexican Carbon Fund, Sectoral Fund for Environmental Research, Fund to Assist the Rural Population Affected by Climate Contingencies, Trust Fund for Energy Saving, Thermal Insulation Fund (FIPATERM), Trust Fund of Shared Risk (FIRCO), Fund for Natural Disasters (FONDEN), Mexico-U.S.A Science Foundation (FUMEC), Sectoral Funds that the National Science and Technology Council (CONACYT), Green Fund (PERGE), Fondo Nacional de Infraestructura (FONADIN), Fondo de Desastres Naturales (FONDEN), Fondo de Prevención de Desastres Naturales (FOPREDEN), Fondo para la Comunicación y la Educación Ambiental (FCEA); FMCN (pdf), (ppt); *The Monarch Butterfly Conservation Fund
Engaging the private sector, greenhouse gas emission trading
Trade and environment, Biodiversity and tourism
Fundación Gonzalo Río Arronte
Triangular cooperation and as a donor, Mexican Agency for Development Cooperation
projects, tourism certification
Compensation fund
General Law of Ecological Balance and Environmental Protection
Carbon offsets for sustainable land use, Scolel Te Plan Vivo Program, Mexico (2010)
Novartis-UZACHI Biolead Project; Novartis – UZACHI; Kissling article
International Cooperative Biodiversity Groups (ICBG) – Maya; Maya Medicine in the Biological Gaze
When Nature Goes Public
Between Legality and Legitimacy
Nacional Financiera (NAFIN): incorporated environmental criteria into investment projects financed by development banks
Mexico's stimulus invested in forest fire prevention measures
Oil Revenues Stabilization Fund of Mexico
Investing in the environment to promote economic growth
Exchange program for debts
Commercial debt swap

Biodiversity instruments

Conservation programmes
Protected areas Protection of terrestrial and inland water areas Protection of coastal and marine areas National Landcare Program Reef 2050 long-term sustainability plan

Recovery plans for threatened species and ecosystems

Economic instruments

Conservation covenants

Biodiversity offsets

Environmental Stewardship Program

Paying for ecosystem services, a successful approach to reducing deforestation in Mexico by Stefano Pagiola on 03.04.2019. Mexico has the largest PES program in the region, with over 2 million hectares of forest receiving conservation payments. The program, which is administered by the National Forest Commission (CONAFOR), pays forest communities $10-$40 per hectare per year to conserve forests, depending on the type of forest and the risk of deforestation. An impact evaluation conducted by a team of researchers from Oregon State University and Amherst College, found that Mexico’s PES program has indeed reduced deforestation. Although the effect is not statistically significant in areas at low risk of deforestation, it is quite significant in areas at high risk of deforestation, where participants cut down 29% less forest than they otherwise would have. For those who have been in the program the longest, the effect is even larger: they cut down 38% less forest than they otherwise would have. Without targeting, most PES payments might be made in areas at low risk of deforestation, where the program’s impact is minimal. PES is not a magic formula that, when invoked, solves all problems. One must take great care in designing the program — setting eligibility rules, targeting high priority areas, establishing payment levels —to obtain the results desired.

Fishery fees, grants and quotas

National park fees

Subsidies harmful to biodiversity


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