Mexico is one of the world's megadiverse countries, home to an estimated 10–12% of global species and exceptionally high levels of endemism. Its forests, wetlands, coastal and marine ecosystems and other natural landscapes provide essential services that support livelihoods, food and water security and economic development. Much of the country's biodiversity-rich territory is managed by Indigenous Peoples, local communities and ejidos, making community governance and sustainable livelihoods central to biodiversity conservation.
Despite its extraordinary natural wealth, Mexico faces significant pressures from land-use change, ecosystem degradation, unsustainable production and climate change. Mobilizing sufficient resources for biodiversity cannot be achieved through public budgets alone. It requires improving the effectiveness of existing expenditure, addressing financial flows that negatively affect nature and mobilizing additional resources from the private and financial sectors.
UNDP BIOFIN works with the Government of Mexico, subnational authorities, financial institutions, businesses and other partners to strengthen the country's biodiversity finance architecture. The programme supports solutions ranging from Payments for Environmental Services and sustainable finance for protected areas to bioeconomy investment, subnational finance, Nature-based Solutions and the integration of biodiversity-related risks and opportunities into financial decision-making.
Through these efforts, Mexico has mobilized nearly US$22 million for biodiversity finance and developed a growing portfolio of mechanisms to align public and private financial flows with nature. UNDP BIOFIN is also helping strengthen biodiversity finance at the subnational level and deepen engagement with the financial sector, supporting Mexico's transition from identifying the biodiversity finance gap to implementing and scaling solutions that deliver benefits for nature, communities and the economy.
1. Greening Financial Flows and Public Policies
UNDP BIOFIN supports the integration of biodiversity into public policies, budgets and financial flows across key economic sectors, including agriculture, livestock, forestry, fisheries and tourism. The solution focuses on improving the effectiveness of public expenditure, incorporating biodiversity criteria into sectoral policies and programmes, identifying opportunities to reform incentives that may negatively affect biodiversity, and strengthening biodiversity expenditure tracking at federal and subnational levels.
The approach has contributed to institutionalizing biodiversity expenditure analysis and strengthening the evidence available to decision-makers to better align public resources with Mexico's biodiversity priorities.
2. Climate and Biodiversity Finance
UNDP BIOFIN works to strengthen synergies between climate and biodiversity finance by promoting financial mechanisms that can simultaneously support ecosystem conservation, restoration and climate resilience. This includes Nature-based Solutions, carbon finance and emerging nature-market mechanisms, as well as efforts to connect biodiversity-positive projects with appropriate public and private sources of finance.
More recently, UNDP BIOFIN has supported capacity development on biodiversity credits, environmental compensation and habitat banking, helping stakeholders assess the financial, technical and regulatory conditions required to develop credible nature-finance mechanisms in Mexico.
3. Strengthening Biodiversity Finance at the Subnational Level
UNDP BIOFIN supports state and local governments to develop and implement biodiversity finance solutions tailored to their priorities. Beginning with Mexico City and subsequently expanding to states including Jalisco, Guanajuato and Yucatán, the programme has supported Biodiversity Finance Solutions Plans, strengthened public environmental funds, promoted more efficient expenditure and helped establish mechanisms such as Green Investment Offices.
This work is helping subnational governments diversify financing sources, strengthen institutional capacity and integrate biodiversity finance into public planning and investment.
4. Bioeconomy and Nature-Positive Businesses
UNDP BIOFIN supports businesses and entrepreneurs whose activities depend on the sustainable use of biodiversity or generate positive outcomes for ecosystems and communities. The approach combines business development, technical assistance and access to finance to help build a stronger pipeline of investable biodiversity-positive enterprises.
Through the Bioeconomy Acceleration Fund, more than 190 businesses and projects applied for support, with 10 selected to receive financing and technical assistance. The solution demonstrates how private investment and entrepreneurship can complement public finance while generating economic, social and biodiversity benefits.
5. Greening the Financial Sector
UNDP BIOFIN works with financial institutions, regulators, development banks and other partners to integrate biodiversity-related risks, dependencies and opportunities into financial decision-making. The programme has supported research and recommendations on biodiversity-related financial risks and helped strengthen the enabling environment for directing more public and private capital toward nature-positive investments.
This work has expanded significantly in recent years. In 2026, UNDP BIOFIN co-launched the TNFD Consultation Group Mexico, bringing together financial, business and public-sector actors to advance the identification, management and disclosure of nature-related risks and opportunities. UNDP BIOFIN is also supporting financial institutions to move from awareness to investment through capacity development on Nature-based Solutions and connections with investable projects.
Cross-cutting: Biodiversity Finance Roundtable
Across these five finance solutions, UNDP BIOFIN, KfW and WRI Mexico coordinate the Biodiversity Finance Roundtable, which brings together public institutions, development banks, international cooperation agencies, civil society organizations and financial intermediaries. The platform identifies opportunities to mobilize repayable finance and other financial instruments for projects with positive biodiversity impacts and helps address barriers between biodiversity projects and potential sources of capital.
Mobilizing Finance for Protected Areas
UNDP BIOFIN supported Mexico’s National Commission of Natural Protected Areas in strengthening the use of protected-area entrance fees for conservation, helping leverage approximately US$2 million in additional resources. The initiative demonstrates how existing revenue mechanisms can be improved to strengthen the financial sustainability of Mexico’s protected areas.
Mobilizing Finance through Payments for Environmental Services
UNDP BIOFIN helped mobilize approximately US$294,000 from irrigation districts through matching funds for Payments for Environmental Services. The mechanism contributed to the conservation of approximately 7,300 hectares, demonstrating how beneficiaries of ecosystem services can contribute directly to financing their conservation.
Financing Biodiversity-Positive Businesses
UNDP BIOFIN supported the creation of the Bioeconomy Acceleration Fund to connect finance and technical assistance with businesses generating positive outcomes for biodiversity and communities. The initiative received more than 190 applications, with 10 projects selected for financing and technical assistance, helping demonstrate viable business models based on the sustainable use of biodiversity.
Developing a Sustainable Fund for Biodiversity
UNDP BIOFIN supported the design of a Sustainable Fund as a financial mechanism capable of channeling international and national, public and private resources toward biodiversity priorities. The initiative contributes to diversifying Mexico’s biodiversity finance architecture and creating mechanisms capable of attracting additional sources of investment for nature.
Scaling Biodiversity Finance at the Subnational Level
UNDP BIOFIN has supported the development of Biodiversity Finance Solutions Plans and implementation of finance mechanisms at the subnational level. This work has contributed to strengthening public environmental funds, establishing Green Investment Offices, improving expenditure efficiency and aligning public policies and financial flows with biodiversity priorities in states including Guanajuato, Jalisco and Yucatán, as well as Mexico City. UNDP BIOFIN Mexico
Institutionalizing Biodiversity Expenditure Tracking
UNDP BIOFIN supported the integration of the Biodiversity Expenditure Review methodology into Mexico’s national statistical system, strengthening the country's capacity to systematically track public expenditure related to biodiversity. This provides government institutions with stronger evidence for planning, budgeting and biodiversity finance decisions.
Bringing Biodiversity into the Financial Sector
UNDP BIOFIN has developed recommendations for integrating biodiversity into financial-sector policies, principles and standards and is working with financial institutions, regulators and development banks to strengthen nature-related financial practices. This work is helping create an enabling environment for financial institutions to better assess biodiversity-related risks and opportunities and direct more capital toward nature-positive activities.
Strengthening Collaboration on Biodiversity Finance
UNDP BIOFIN has helped bring together government institutions, development banks, international cooperation agencies, financial institutions, civil society and other partners to identify opportunities for scaling biodiversity finance. Through initiatives such as the Biodiversity Finance Roundtable, partners are exploring financial instruments and investment pathways that can mobilize additional public and private resources for biodiversity.
Advancing Private-Sector Action for Biodiversity
UNDP BIOFIN and partners are supporting implementation of Mexico’s National Biodiversity Target 15, strengthening the enabling environment for businesses and financial institutions to integrate biodiversity into their strategies and decision-making. This work contributes to aligning private financial flows with Mexico’s national biodiversity priorities and the Kunming–Montreal Global Biodiversity Framework.
