Mexico launches $10 million fund to tackle environmental challenges, including sargassum

Mexico has officially launched the Environmental Capital Fund for Mexico, a new mechanism designed to raise $10 million and mobilize public, private, and multilateral resources for environmental projects. The fund will support initiatives in ecosystem restoration, water management, the circular economy, and climate action.

Environment Secretary Alicia Bárcena announced that the fund is structured and ready to operate immediately, following eight months of work involving the Ministry of Environment and Natural Resources, the Ministry of Finance and Public Credit, and CAF-Development Bank of Latin America and the Caribbean. CAF will administer the fund and oversee the progress of approved projects, which can receive grants or, where feasible, repayable financing.

A significant priority for the fund is addressing the sargassum seaweed that plagues Mexico's Caribbean coast. Bárcena noted that approximately 9,000 tons of sargassum reach the shores daily during peak season, necessitating the collection of at least 6,000 tons per day before it impacts tourist areas. The government has set a 15-day deadline for federal authorities, the Quintana Roo state government, hoteliers, and businesses to develop a comprehensive strategy for sargassum capture at sea, beach cleanup, and processing.

Plans include the arrival of a new vessel from the Pacific within eight days to double the Navy's collection capacity. Private initiatives are also exploring the processing of sargassum into biofertilizers for export, though scaling these efforts remains a challenge. Other projects under the fund's umbrella include watershed sanitation, restoration of 100,000 hectares of mangroves, and investments in solar, wind, and geothermal energy.

“

The fund is ready, today we signed precisely so that the fund is structured and can begin immediately.