Scotiabank has acted as co-structuring sustainability agent for Mexico’s newly updated Sovereign Sustainable Financing Reference Framework, published on January 8, 2026 by the country’s Ministry of Finance and Public Credit. The revised framework strengthens governance, eligibility criteria, and transparency rules governing how the federal government accesses international capital markets through sustainable finance instruments.

The update replaces Mexico’s original 2020 sovereign framework and aligns the country’s sustainable financing strategy with its National Development Plan for 2025 to 2030. It is designed to support the issuance of green, social, sustainability, and sustainability-linked bonds, while expanding the scope of eligible expenditures classified as sustainable public spending.

Alignment With National Policy and Sustainable Taxonomy

A central change in the revised framework is the full integration of the Mexican Sustainable Taxonomy. This marks the first time Mexico’s sovereign financing rules explicitly embed taxonomy-based criteria, with the aim of reducing greenwashing risks and improving comparability with international sustainable finance standards.

The framework links sustainable bond issuance directly to national policy objectives, including the National Development Plan 2025–2030, the UN Sustainable Development Goals, and Mexico’s updated Nationally Determined Contribution, presented in 2025. By anchoring eligible spending to these policy pillars, the government is seeking to ensure that capital raised through sustainable instruments supports measurable development and climate outcomes.

Expanded Scope of Eligible Sustainable Instruments

According to Scotiabank, the revised framework broadens the range of thematic categories under which Mexico can issue sustainable debt. In addition to green and social instruments, the framework now explicitly recognises sustainability, transition, nature, biodiversity, climate adaptation, and climate resilience themes.

José Jorge Rivero, senior vice president of Corporate and Investment Banking and Capital Markets at Scotiabank International Banking, said the bank contributed its global experience in structuring sustainable finance instruments throughout the revision process. He noted that the framework represents a shift from a narrower SDG bond approach to a more comprehensive sovereign sustainable financing model.

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Governance, Project Selection, and Use of Proceeds

Under the updated framework, project selection and allocation of proceeds will follow a multi-stage governance process coordinated by Mexico’s Ministry of Finance and relevant line ministries and public entities. All eligible projects must demonstrate alignment with national development priorities and climate commitments.

The framework allows proceeds to be used for both new investments and the refinancing of existing projects, subject to defined look-back periods. Funds raised through sustainable instruments will be tracked through internal budgetary systems to ensure traceability and prevent double counting of expenditures.

Strengthened Reporting and Impact Disclosure

Mexico has committed to enhanced transparency through annual allocation and impact reporting for each sustainable finance instrument issued under the framework. Allocation reports will disclose how proceeds are distributed across spending categories, programs, and geographic regions.

Impact reporting will include quantitative indicators where data availability permits, covering environmental outcomes such as emissions reductions, renewable energy capacity additions, energy efficiency gains, ecosystem restoration, and waste management performance. Social indicators may include beneficiaries of health, education, housing, and social protection programs. Where direct measurement is not feasible, the framework allows the use of proxy indicators and qualitative assessments, provided methodologies are clearly disclosed.

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External Review and International Credibility

The framework has received the highest possible score, SQS1, from Moody’s in a Second Party Opinion. The assessment confirms alignment with international market standards, including the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines of the International Capital Market Association, as well as relevant global loan market principles.

This external validation strengthens Mexico’s credibility with international investors and positions the country to continue accessing global capital markets through sustainability-linked instruments as disclosure expectations tighten.

Strategic Signal to Global Investors

The updated Sovereign Sustainable Financing Reference Framework sends a clear signal that Mexico intends to deepen its role in sustainable capital markets while tightening governance and reporting standards. By aligning national policy objectives, taxonomy criteria, and international principles within a single framework, the country is seeking to attract long-term capital aligned with climate resilience, social development, and fiscal transparency.

For Scotiabank, the mandate reinforces its positioning as a structuring partner in sovereign sustainable finance across emerging and developed markets, as governments increasingly rely on labelled debt to finance climate and development priorities.

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