Mexico – Implementation of the New Housing NAMA

The NSP

The residential building sector is responsible for approximately 17 per cent of Mexico’s total energy consumption. As the population grows by approximately 1.7 million per year and an increasing number of Mexicans aspire to better housing, an estimated 600,000 new residential units will need to be built every year over the next decade. In the absence of measures to increase energy efficiency, these new housing units alone would lead to additional greenhouse gas (GHG) emissions of approximately 25 Mt CO2e per year by 2020.[1]

To address the problem, in 2012 the National Housing Commission CONAVI developed the world’s first National Appropriate Mitigation Action (NAMA) in the sector. The Mexican New Housing NAMA is based on the whole-house approach focusing on the total energy performance of a building.

The overarching goal of the NAMA Support Project is to implement the New Housing NAMA, which promotes cost-effective energy-efficient building concepts across the housing sector, with a particular focus on low-income housing. The NAMA Support Project contributes to the implementation of the NAMA in two ways:

  1. It promotes the penetration of basic efficiency standards in the entire new housing market in Mexico by means of: (a) technical assistance to large public housing financiers and housing developers and; (b) financial incentives and project-related technical support for small and medium sized developers and financial intermediaries.
  2. It promotes the upgrading of energy efficiency standards to more ambitious levels.

This NAMA Support Project combines technical assistance to CONAVI (technical cooperation component) as well as financial incentives and project-related technical support in cooperation with the Mexican development bank SHF (financial cooperation component) to pave the way from the initial NAMA development towards a broad sector-wide implementation of sustainable housing, focusing on:

  • Improvement of capacities of federal, state and local authorities on energy efficient and sustainable housing, as well as building codes and the legislative framework conditions;
  • Development of a local market for environmentally friendly technologies;
  • Improvement and application of existing Mexican promotion and incentive instruments with more ambitious energy efficiency standards at federal and state level;
  • Fostering the application of more ambitious energy efficiency standards through the provision of investment grants for incremental costs as well as the inclusion of additional eco-technologies

The project focusses on a long-term impact leading to the increased construction and use of energy efficient houses and decreasing GHG emissions, therefore contributing to a sector transformation towards a less carbon-intensive housing sector.

Financial ambition: Through the combination of the loan guarantee to financial intermediaries and subsidies for small and medium-sized developers with SHF’s standard programmes, of guarantees and bridge loans, it’s expected that between EUR 80 and 120 million will be mobilized for the construction of low carbon houses within the implementation period of the FC component of 7 years.

Mitigation effect: the financial incentives and project-specific advisory services are expected to lead to the construction of approximately 11,000 energy efficient housing units by small and medium-sized project developers. With an assumed average CO2e emissions reduction of 20 per cent, this would contribute to up to 400,000 t CO2e emissions saved during the lifetime of these buildings.

[1] CONAVI. 'Supported NAMA for Sustainable Housing in Mexico – Mitigation Actions and Financing Packages', 2012, p.2

Facts
Partner MinistriesMinistry of Environment and Natural Resources (SEMARNAT), Ministry of Agrarian, Territorial and Urban Development (SEDATU)
NAMA Support OrganisationDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Kreditanstalt für Wiederaufbau (KfW)
Implementing PartnersNational Housing Commission (CONAVI), Sociedad Hipotecaria Federal (SHF)
Funding Volume ProvidedEUR 14 million
Project Duration2014-2021
StatusImplementation
Call1st Call

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