Low Carbon MX

Selection Process

The selection of the most promising CPAs in term of robustness, carbon reduction, social and economic impact has been done with the following process.

  1. In August 2017 an independent committee of international evaluators in low carbon projects has been established for the identification of the most promising CPAs.
  2. The 93 available CPAs has been ranked per merit considering criteria as implementation strategy, feasibility, robustness, alignment with low carbon objectives, technology readiness, impact on the local technological framework, volume of local investments, potential future CO2, other environmental co-benefits, job creation and other social co-benefits.
  3. The final outputs are a final consensus score and ranking resume for each CPA. The analysis of final scores highlights an average global score of 62.7 with a standard deviation of 12.0. CPAs average global scores range from 29.8 to 89.3. The 4th quartile ranges from 71.2 to 89.3 showing very high evaluations. Also the 3rd quartile is very well positioned (with scores higher than 65.2). These two best quartiles include 46 CPAs that are characterised by medium-high quality projects, which deserve to be considered as eligible for the LCBA TA. Also the 2nd quartile includes CPAs that could be considered for eligibility. These are CPAs with global scores not less than 60.

On this basis, only the first 62 CPAs present quality levels to be eligible.

The general understanding of the evaluators about the 93 CPAs is as follow:

  1. 81 CPAs concern acquisitions of European plants or equipment to be paid at delivery.
  2. 6 CPAs concern possible joint-ventures.
  3. 6 cases refer to research or experimental studies that might generate a plant purchase in the future.
  4. The most important added value of CPAs is that the proposed technologies represent a very important challenge for Mexican companies. This is highlighted by the relationship between the investment value and the expected increase in the turnover by the Mexican companies.
  5. CPAs request LCBAM support for covering costs for technical feasibility analysis in 78% of the cases. The rest is for supporting economic, legal and social impact feasibility analysis. None of the CPAs require support for credit access. For funding their investment Mexican companies will use its own resources or loans of their own banks.