The objective of the Coastal Watersheds Conservation in the Context of Climate Change Project for Mexico is to promote integrated environmental management of selected coastal watersheds as a means to conserve biodiversity, contribute to climate change mitigation, and enhance sustainable land use. The project has five components. (1) Creation and consolidation of protected areas component will support the creation of new protected areas and strengthen management effectiveness of new and existing protected areas through the financing of biodiversity conservation activities included in the annual operating plans. (2) Promoting sustainability within watersheds component will carry out the capitalization of the Biodiversity Fund as to generate sufficient income to finance the provision of PES. (3) Enabling adaptive management by strengthening monitoring capacities component will strengthen monitoring systems in selected watersheds including: (i) the development of models of watersheds and their ecosystems services with the aim of establishing priority sites for project implementation and producing integrated watersheds and/or subwatersheds land management actions plans; and (ii) the carrying out, within selected protected areas and priority sites within the watersheds. (4) Innovative mechanisms for inter-institutional collaboration and promoting social participation component will carrying out of inter-institutional coordination and synergy activities at the regional and local levels, involving state and municipal governments, civil society, and academic institutions, to promote cross-sectorial coordination, participation in, and oversight of integrated watersheds and/or sub-watersheds land management actions plans. (5) Project management component will provide support to the Technical Project Committee, the Fund for the Gulf of Mexico, and the Fund for the Northwest for t