LSE-NAFIN Fellowship programme

Financial Instruments and Mechanisms for Green Financing applied to NAFIN

The LSE Latin America and Caribbean Centre (LACC) has partnered with Nacional Financiera (NAFIN), a Mexican development banking institution, to establish a new visiting fellowship programme in the Centre. 

NAFIN aims to promote the overall development and modernisation of Mexico’s industrial sector with a regional approach, stimulate the development of financial markets, and act as financial agent of the federal government in the negotiation, contracting, and management of credits from abroad. 

Initially established for three years, the programme sees NAFIN staff spend a term at LSE to work alongside academics and participate in programme lectures and events. It is anticipated that NAFIN will then be able to apply the research findings to their own practices. 

In association with the Grantham Research Institute on Climate Change and the Environment, LACC appointed Emilio Garmendia as the first NAFIN Visiting Fellow. Emilio is International Treasury Trader at NAFIN and in 2015 was part of the team which helped to create Mexico’s first green bond, making NAFIN the first development bank in Latin America to issue this type of certified debt. 

Starting in September 2016 (Michaelmas term), Emilio conducted research into financial instruments and mechanisms for green financing with the aim to show the advantages and disadvantages of various financial instruments and mechanisms currently used in different countries for climate financing, and help inform strategies for NAFIN to take forward. The analysis included green bonds, credit lines for sustainable projects, syndicated loans, structured financing, and capital investment. During his time at LSE, Emilio wassupervised by researchers in the Grantham Research Institute. 

The final report entitled 'How can national development banks address key challenges associated with raising climate finance to increase investment flows for projects in their countries? Case study: the role of NAFIN in enabling climate finance flows into Mexico' was published in March 2017.