With CTF assistance, the government of Mexico has launched the Special Climate Change Program to reduce greenhouse gas emissions by more than 40 percent a year by 2030 without sacrificing economic development. The strategy encompasses a sweeping transformation of the domestic home appliance markets to increase energy efficiency and offset the projected 4.8 percent annual increase in electricity demand. 

Some 1.7 million aging refrigerators and air conditioners are also being replaced with modern, energy-efficient models. To phase out the inefficient appliances, CTF concessional financing will support a credit line for low-interest consumer loans, complementing a World Bank loan that will support a rebate program. The financing scheme will be offered through some of the country’s largest retail markets. 

To ensure a seamless transition, the government is setting up recycling facilities for old lighting systems, disposal centers for out-of-date refrigerators and air-conditioning units, and local testing facilities for new appliances. Local manufacturers and distributors are receiving support to shift to the new technologies, and public awareness campaigns are alerting consumers to the advantages of an energy-efficient lifestyle. 

Expected Results: Mexican appliance manufacturers are producing more energy-efficient models in response to the increased consumer demand resulting from a CTF-funded energy efficiency program.