"Hopes are dim for a global agreement to help developing nations cut carbon emissions, so Mexico is relying on an imperfect blend of grants, loans and ingenuity to meet self-imposed limits on greenhouse gases.

Mexico, which will host world delegates at a climate change conference in late November, aims to become a laboratory for cutting carbon, which scientists say contributes to devastating global warming, without hindering economic growth.

But funding Mexico's ambitious environmental goals is a big challenge as the country recovers from its worst recession since the 1930s. Lack of money is a problem faced by many developing nations who say rich countries should help pay for expensive environmental initiatives.

Mexico has pledged to slash 50 million tonnes of carbon per year by preserving forests and cleaning up the state-run oil industry. It says the strategy will bear fruit by 2012."

Caroline Stauffer reports for Reuters October 20, 2010. [2]