The North American Development Bank (NADBANK) is a perfect opportunity for bilateral green infrastructure development between the Joe Biden’s and Andres Manuel Lopez Obrador’s administrations, stated Geronimo Gutierrez Fernandez, former Managing Director of such institution.
Gutierrez Fernandez, who currently serves as senior advisor at Covington and Burling LLP, discussed the bank’s relevance in times of contrasting strategies upon energy in Mexico and the United States.
Firstly, he argued that the NADBANK was the first green bank that ever existed; consequently its role is precisely to help protect and preserve the development of environmental solutions among the border region. “What happens at the border resonates in American and Mexican public opinion,” he underlined.
Secondly; as the climate change crisis becomes a huge issue on the public and political agenda around the world, governments search for opportunities of green development. Nevertheless, the contrasting approaches between Mexico and the U.S., could spark some tensions between both presidents.
In this regard, NADBANK’s role would be precisely as a leverage or a handle for Mr. Biden and Mr. Lopez Obrador future agendas. Its 25 plus years of experience would enable the bank to play a positive and stabilizing role for the bilateral relationships.
Also recommended for you: LNG Canada to restart construction at B.C. after Public Health approval
NADBANK with low-price tag for taxpayers
In addition, the institution is “healthy financially, moderately leveraged, with room to grow its portfolio; and recently had a capital increase authorized by its shareholders: the U.S. and Mexican governments,” remarked Gutierrez.
It also possesses a broad government approach; since among its Board of Directors includes representatives from Treasury and State departments of both countries; including the EPA and also their Mexican counterparts; also, with civil society representatives. Moreover, “using the NADBANK comes with a relatively low-price tag for taxpayers.”
Gutierrez remarked that the bank has been a solid provider of clean energies for both countries, facilitating the development of nearly 3 GW of electricity, among 35 wind, solar and biogas projects.
Finally, the bank possesses a huge experience dealing with harsh political environments; it was emanated from a Democrat administration (Clinton’s) and also promoted by a Republican president (Bush). Moreover, “it has dealt with the hardships of making sound financial decisions for sustainable infrastructure projects.”
In conclusion, NADBANK is the perfect institution to expand and facilitate green energy developments; much needed in times like these, and with flawed approaches from the Mexican government; moreover, in the face of a very real climate threat.