Financing the Future: Mendoza’s Green Fund for Climate Action

Mendoza is reshaping how cities fund climate action. Through its Green Fund for Environmental Sustainability (FOVE) and complementary programs such as the Youth and Climate Action Fund and Generation-Restoration Pilot, the city has established one of Argentina’s first local climate finance systems. These instruments bridge governance and innovation, enabling citizens, youth, and institutions to co-create projects that reduce emissions, restore ecosystems, and strengthen community resilience, all within a transparent and participatory framework.

Mendoza’s climate finance system operates on three complementary pillars:

1. Institutional Mechanism
The Fondo Verde para la Sostenibilidad Ambiental (FOVE) was embedded in the municipal budget, with transparent calls for proposals and evaluation by the Interdisciplinary Committee.This ensures financial accountability and alignment with the city’s Plan Local de Acción Climática (PLAC).

2. Financial and Programmatic Instruments

• FOVE: Supports large-scale municipal projects in renewable energy, green infrastructure, and low-carbon innovation.
• Youth and Climate Action Fund: Engages young citizens through small-scale, creative initiatives like recycled-material benches, composting in schools, biodiversity mapping, and awareness campaigns.
• Generation-Restoration Pilot (2024–2026): Co-financed by UNEP, focusing on urban ecosystem restoration and community stewardship.
• Green Bonds (Banco Galicia): Finance solar installations totaling 1,023 kW of renewable capacity and urban sustainability upgrades.

3. Monitoring and Capacity Building
All funded projects include baseline diagnostics, environmental indicators, and participatory reporting. Citizen workshops and restoration days strengthen local ownership, while a digital dashboard ensures transparent monitoring and evaluation.

The initiative’s success relies on diverse partnerships:

• Financial Partners: Banco Galicia, UNEP, Bloomberg Philanthropies      
• Governmental: Provincial Environmental Agency.
• Academic: CONICET, Universidad Nacional de Cuyo, Universidad de Congreso
• Civil Society: Youth and neighborhood associations.

Mendoza uses communication as a tool for transparency and engagement:

• Public calls and project showcases through the Gobierno Abierto Portal.
• Citizen events presenting results and celebrating funded initiatives.
• Social media campaigns highlighting youth climate action.
• Educational workshops on climate finance and circular economy practices.

The city combines local and international resources to ensure financial sustainability:

• USD 36,900 (2025) projected through FOVE.
• USD 70,000 for the Generation-Restoration Pilot (2024–2026).
• USD 150.000 for the Youth Climate Fund (2024-2025).

Mendoza’s approach has transformed climate finance from an abstract policy goal into a functioning governance system. The FOVE and related funds have created a new financial ecosystem that links city departments, local entrepreneurs, and communities in collective action. Over thirty-five projects have been funded since 2023, from renewable energy and waste management to green mobility and ecological restoration.

The funds have also fostered new social and environmental synergies: schools and youth groups now lead composting and upcycling projects; neighborhoods participate in planting and maintenance of green corridors; and businesses are investing in energy efficiency and circular practices.

The pilot restoration programs have already regenerated more than 20 hectares of urban ecosystems, while green bond financing has expanded solar capacity across the city. Beyond measurable environmental outcomes, Mendoza has cultivated civic trust, turning citizens into active partners in climate governance.

Despite its success, Mendoza faces ongoing challenges: securing stable capitalization for future fund cycles, expanding technical capacity for project evaluation, and ensuring equitable access to funds for smaller community organizations. Strengthening private-sector participation remains a key next step.

Mendoza’s experience shows that local climate governance and finance can reinforce one another. By creating its own financial instruments, the city moved beyond dependence on external grants, empowering local actors to innovate and scale solutions.

The model’s replicability lies in its simplicity and inclusiveness: any city can establish a climate fund that blends municipal budgets with private and international support, uses open calls for proposals, and requires measurable environmental results. The combination of transparency, participation, and long-term planning has made Mendoza a reference for municipal climate finance in Latin America.

Mendoza’s green finance architecture proves that climate action is not only a policy choice but also a governance innovation. By aligning money, people, and purpose, the city demonstrates that municipal leadership can mobilize climate resources where they matter most, close to the community.

• Green Fund for Climate Action - Municipality of Mendoza
• PLAC 2023 – Local Climate Action Plan
• Summary of the PLAC 2023
• RAMCC – Argentinan Network of Municipalities for Climate Change

Silvina Lopez
Environmental Planning and Management Coordinator
Municipality of Mendoza
ambienteciudadmendoza@gmail.com