Mexico’s Bioeconomy Acceleration Fund announces the winners of the second call

Maize, cacao, fish, vanilla, and mezcal are the bioeconomy products BIOFIN is supporting for their potential to positively impact ecosystems 

In its second call, the first one open to the general public, Mexico’s Bioeconomy Acceleration Fund (FAB, its Spanish acronym) received over 150 applications from more than 20 states. Thus, demonstrating that there is a real demand and a project portfolio of these type of projects and initiatives. Around 36% of the received applications were applying to the acceleration category, whilst 64% applied to the incubation category . This is also a great indicator regarding the maturity of the initiatives throughout the country.  

With a one-year experience operation, the FAB is a key instrument to close the market gap to finance projects and companies in these stages. The investment that FAB provides, allows to reduce the risk and attract investment from private sector towards these projects and companies. Additionally, the FAB is contributing to the biodiversity impact investment system; to identify project portfolio (both existent and potential) so other organizations can support them; and to develop information regarding the obstacles these initiatives face, in order to offer options to solve them. 

The second call ended in the second trimester, and after a very competitive process, as well as several sessions with the impact and investment Committee of the Fund, five initiatives were selected.

The three selected projects in the acceleration category, that will receive technical assistance and funds are:

•    Chasseurs de Saveurs, to create a revolving stockpiling fund and ensure a premium price for organic certified vanilla producers that adopt agroecological practices.
•    Cal y Maíz, to invest in infrastructure and machinery to increase production and launch a new business line wit proved increasing demand: tlacoyos milperos with diversified genetic maize.  
•    Sociedad Cooperativa de Producción Pesquera 29 de Agosto, for a processing plant to fulfill a premium demand, this will add value to their artisan & sustainable fishery and will strengthen no-take zones in the Mexican North Pacific.

The two selected projects in the incubation category that will receive technical assistance and funds are:

•    Guardianas del mezcal, for equipment & infrastructure to build nurseries for genetic diversity and ecosystem restoration of agaves.
•    Familias Productoras Agroecológicas de Cacao del Soconusco, to create a revolving stockpiling fund,improve their cacao’s business model and foster agroecological practices. 

With these actions, BIOFIN and Nuup promote biodiversity conservation through impact and social investment and build capacities directly in communities that safeguard our natural capital. 

A third call with innovative financial elements will be launched in the first quarter of 2022. The finance and governance structure of the FAB allows the possibility of co-investments and co-finance of all kinds of sources. To know more about the FAB and its characteristics, visit the page (in Spanish): https://nuup.co/fab/