Mexico – Implementing a national strategy to mitigate methane emissions from the livestock sector

Overview

This project responds to a request made by the Government of Mexico (GoM), through the National Institute of Ecology and Climate Change (INECC, acronym in Spanish) and the Ministry of Agriculture and Rural Development (SADER, acronym in Spanish) to support the validation and implementation of a national strategy to mitigate methane emissions from the livestock sector.  

The current administration, which took office in October 2024, is carrying out a baseline study and developing a roadmap for methane mitigation in the livestock sector to be completed in Q3 2025. This project will build upon these outputs and help bridge the gap between planning and large-scale deployment of the activities identified in the roadmap.

According to Mexico’s National Emissions Inventory, the livestock sector (particularly cattle) accounted for 15.7% of CO2e emissions in 2021, rising to 20.2% in 2022. Methane emissions from livestock represented 52.5% and 55.2% of total methane emissions in those same years. With this evidence, INECC and SADER have coordinated efforts to reduce methane emissions from the sector (INECC, 2018) and its contribution in terms of CO2e to global warming, thereby contributing to Mexico's international commitments. While biodigesters for manure management and improved livestock practices have been identified as key mitigation measures, the latter lacked detailed specificity.

In 2020, a collaborative effort led to the development of a Nationally Appropriate Mitigation Actions (NAMA) for extensive livestock production. This outlined a suite of sustainable, low-emission production practices, including feed optimization, genetic and reproductive improvements, soil conservation, pasture management and production system diversification (IICA, 2020). This NAMA is currently under revision to specify more precisely the low-emission technologies.  

Sustainable cattle farming with low emissions is a priority in Mexico’s updated Nationally Determined Contribution (NDC) and a strategic line of action for SADER. In this line, SADER is finalizing the 2025 livestock methane estimated baseline and the mitigation roadmap, which will be essential inputs for the project and the national strategy to be deployed. The national strategy will focus on reducing deforestation and emissions while enhancing productivity through a new financial mechanism that provides low-interest loans and technical assistance.

This project complements the ongoing activities since it focuses on strengthening the technical capacity of livestock producers, demonstrating sustainable practices and leveraging innovative financial instruments to scale low-emissions livestock systems. The project is structured around three core components:  

• Strengthening technical capacities through Farmer Field Schools (ECAs, acronym in Spanish) to promote the adoption of sustainable practices aimed at reducing methane emissions;  
• Establishing and maintaining demonstration pilots which showcase sustainable livestock production practices; and  
• Designing financial mechanisms to support the transition to sustainable cattle production.

Project activities in these components include stakeholder’s engagement and technical support, data mapping, integration of information, validation of successful national and international practices, feasibility and sustainability studies, design of monitoring, reporting and validation (MRV) systems, and identification of additional financing sources.

In 2025, SADER is supporting small farmers and producers with low-interest loans and technical assistance paired with business development and financial literacy support. Loans will be provided by the largest network of financial intermediaries of the national rural development bank (FIRA, acronym in Spanish), with support of the GoM. Technical, financial y business support will be provided through the ECAs. The project’s outputs and outcomes would be integrated and scaled up through SADER actions at the federal level. The project will contribute to Mexico’s transition from extensive livestock (cattle, beef) production to low emission livestock. 

Who to involve

• Ministry of Welfare (BIENESTAR): to contribute to the capacity building strategy.  
• Ministry of Finance and Public Credit (SHCP) and FIRA: to support the design and roll out of financial mechanisms.
• Subnational governments (States and Municipalities): to facilitate coordination and implementation between the federal and local levels.
• National Confederation of Livestock Organizations (CNOG): to act as liaison with livestock associations and producers.
• Local Non-Governmental Organizations: to implement pilots: to implement demonstration pilots and support field-level activities.  

Expected results

Outcome 1: Approximately 300 small- and medium- scale cattle producers will have enhanced capacities to implement sustainable livestock practices aimed at reducing methane emissions by the end of the project or soon after.

Indicator: Number of non-government entities with a demonstrated improved capacity for SLCP action  

• Output 1.1: A needs assessment to identify technical and financial capacity gaps among small- and medium-scale livestock producers in regard to the adoption of sustainable and low-emission productive practices.
• Output 1.2: A kick-off meeting with farmer field schools (ECAs) technicians to secure their involvement in designing the training and consultation processes.
• Output 1.3: A training programme targeting small- and medium-scale livestock producers on sustainable and low emissions practices.
• Output 1.4: Implementation of training programme for small- and average-scale livestock producers through ECAs.

Outcome 2: Small- and medium- scale livestock producers in selected regions in Mexico are trained and implementing measures to reduce methane emissions intensity from the livestock sector (e.g. silvopastoral systems, grassland restoration, dietary adjustments, etc., according to the roadmap) by the end of the project.

Indicator: Number of SLCP mitigation tools, technologies, or practices adopted  

• Output 2.1: Selection of sites for demonstration pilots based on selected criteria, including (but not
• limited to): beef cow herd size, number of livestock production units, bioregion, deforestation rates, and presence of ECAs.
• Output 2.2: Implementation of 2-3 demonstration pilots.
• Output 2.3: Sustainability impact assessment of pilots.
• Output 2.4: Mapping of financing sources to support scaling of interventions.
• Output 2.5: Feasibility studies for broader replication and scaling-up.
• Output 2.6: Delivery of seminars and activities to share results and promote adoption in the field.

Outcome 3: The Mexican Government adopts a financial scheme to scale-up support for methane mitigation in the livestock sector beyond the life of the project

Indicator: Amount of funding (“catalysed funding”) for SLCP actions

• Output 3.1: Development of a financial strategy draft containing:
  • Financial and economic analysis of selected farms identifying specific entry points to mitigate enteric methane and enhance productivity;
  • Cost-benefit and impact analysis of methane mitigation actions in the cattle sector;
  • Review of the funding status of priority actions and identification of financing options;
  • Identification of opportunities to mainstream climate change priorities into the national budgetary/planning process and ongoing budget programs;
  • Information on co-benefits of cross-sectoral priorities;
  • Evaluation of potential private sector commitments and investments; and
  • Monitoring, reporting, and verification (MRV) for finance tracking.
• Output 3.2: Peer to peer exchange workshop with up to 10 countries to share experiences, lessons learned and opportunities on financial mechanisms for scaling low emissions livestock practices.  
• Output 3.3: Recommendations developed for improving access to low-interest loans for small-scale producers adopting sustainable practices.
• Output 3.4:  Consultation meetings with funders and public programmes to inform the preparation of potential bankable projects.

APPLICATION PROCESs

Eligibility requirements

To be eligible for consideration, project proposals must meet the following requirements:

• Complete and submitted before the deadline
• Submitted by a non-governmental organization (NGO), intergovernmental organization (IGO), or other not-for-profit entity.
• Requested funding is within the estimated budget amount, or includes a clear justification for additional expenses
• Project duration is less than 24 months
• Budget criteria are met and spending caps on expenses are respected.
• Please note that entities will be required to provide the last three (3) audited financial statements to be eligible for CCAC funding. These statements may be provided along with the application for funding or at the request of the CCAC Secretariat during the evaluation process.

For-profit entities may only participate in the project as stakeholders, co-funders, or end users. Applicants are encouraged to include for-profit entities in the development of the project proposal and/or during project implementation if their ownership of the proposed solution is key to the project’s success.  

How to apply

Eligible applicants are invited to apply using the Application Form and Excel Budget Form. Specific instructions on completing these forms are available in both documents.

Applicants may choose to follow the cost range proposed above OR propose a different budget supported by a clear justification. However, applicants should note that cost efficiency will play a significant role in the selection process.

The completed Application Form and Excel Budget Form should be submitted to secretariat [at] ccacoalition.org.

Evaluation criteria

Proposals will be evaluated against the following criteria:

• Presents a clear plan to achieve the required outcomes during the lifetime of the project or soon after
• Includes a plan or activities to enable the scaling up of, replication of, or sustained use of project results over time
• Sets out a clear approach for enabling or contributing to SLCP emissions reductions and resulting co-benefits
• Involves relevant stakeholders
• Approach is grounded in a strong understanding of relevant risks
• Complements other relevant initiatives, funding mechanisms, and existing policy processes
• Applicant demonstrates necessary capacity and experience to perform the work
• A realistic, cost-effective, and clearly justified budget and approach is proposed
• Project meets the minimum requirements for the OECD DAC gender equality marker Score 1
   
  Selection process
• A preliminary review of proposals submitted by the deadline will be conducted by members of the CCAC Secretariat, Funding Task Team, and Board, in consultation with relevant CCAC Partners.
• Shortlisted applicants will be invited to present their proposals in further detail and to respond to follow-up questions about their application.
• Successful applicants will be invited to develop a Project Implementation Plan and Detailed Budget in consultation with the CCAC Secretariat and relevant CCAC Partners.
• The selection process may take up to 6 months after the closing date of the call for proposals. Due to the high volume of requests, the CCAC will not respond to requests for updates or feedback during this time.

Due diligence and procurement

Due diligence  

CCAC implementers with UNEP contractual agreements must meet with the following requirements:   

• Have adequate financial resources to perform the contract and meet all existing commitments (financial health)
• Be able to provide proof of registration, proof of not-for-profit status and audited financial statements for the last three completed fiscal years  
• Have a record of satisfactory performance with UNEP/CCAC, when applicable; and  - Not have been suspended or debarred by UNEP/CCAC or another UN agency. UNEP/CCAC also considers entities included in the Security Council Resolution Lists to be ineligible for UNEP/CCAC agreements. 
  * (inter)governmental entities/ United Nations are exempt from this requirement

Contract requirements

If selected for funding, your project will be contracted through the United Nations. Organisation(s) selected to implement the project must meet the following due diligence and procurement rules.

Procurement

As a general rule, Implementation Agreements allow for incidental procurement only.