NGO says credit for steel mill could worsen air pollution in Mexico

From Mexico City, ABC Color reports on concerns raised by the NGO BankTrack and the Fair Steel Coalition regarding a significant loan for a steel plant in Nuevo León. The analysis highlights a critical tension between the pursuit of economic development and the urgent need for environmental protection, particularly in a region already struggling with severe air pollution.

The report details how a $1.25 billion loan, designated as 'sustainable,' is financing a gas-fired steel plant. While the company, Ternium, claims the plant is cleaner than coal-based alternatives, the NGOs argue that relying on natural gas will still result in substantial carbon dioxide emissions and perpetuate the use of fossil fuels for decades to come. This perspective is particularly relevant in Mexico, where the current administration has pledged to combat air pollution, making projects like this a point of contention.

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De construirse, esta planta contribuiría a la contaminación atmosférica existente en Monterrey, que la administración de (la presidenta mexicana Claudia) Sheinbaum se ha comprometido recientemente a combatir

BankTrack's 'Dodgy Deal' profile specifically calls out the international banks involved, including major players from Europe and the United States, for financing projects with high emission levels under the guise of sustainability. The analysis underscores the environmental crisis in Monterrey, where industrial emissions are a major contributor to poor air quality and associated health problems. The NGOs' warning serves as a crucial reminder that financial institutions must exercise greater scrutiny and responsibility when funding projects that have long-term environmental consequences, especially in areas already facing ecological challenges.

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