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Lexology In-Depth - Environment and Climate Change Law - Environment and Climate Change Law_ Mexico

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IN-DEPTH

Environment And Climate Change Law MEXICO


Environment and Climate Change Law EDITION 10 Contributing Editor Tallat Hussain Reed Smith LLP

In-Depth: Environment and Climate Change Law (formerly The Environment and Climate Change Law Review) provides a global overview of environmental protection laws and regulations, as well as legislative and policy initiatives to combat climate change. It analyses the essential features of the legal and enforcement frameworks in major jurisdictions worldwide, while also examining the most consequential recent developments and offering an outlook for future changes.

Generated: April 9, 2026 The information contained in this report is indicative only. Law Business Research is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this report and in no event shall be liable for any damages resulting from reliance on or use of this information. Copyright 2006 - 2026 Law Business Research

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Mexico Lucía Manzo Flores, Carlos A Escoto and Mariana Herrero Galicia Abogados SC Summary INTRODUCTION YEAR IN REVIEW LEGISLATIVE FRAMEWORK REGULATORY OVERSIGHT ENFORCEMENT REPORTING AND DISCLOSURE ENVIRONMENTAL PROTECTION CLIMATE CHANGE SPECIAL CONSIDERATIONS OUTLOOK AND CONCLUSIONS ACKNOWLEDGEMENTS

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Introduction Environmental and climate change regulation in Mexico is primarily grounded in the Mexican Federal Constitution, which recognises the right of every person to a healthy environment and establishes the Federal State’s duty to ensure sustainable development and the rational use of natural resources. The Constitution also provides the legal framework governing the ownership and exploitation of strategic resources such as water, minerals and hydrocarbons, while recognising the rights of Indigenous communities to use natural resources within their traditional territories. Environmental governance is shared among federal, state and municipal authorities. While the federal government retains jurisdiction over certain matters, state and municipal authorities regulate and enforce environmental obligations within their respective jurisdictions. At the federal level, environmental policy is primarily administered by the Ministry of Environment and Natural Resources (SEMARNAT), supported by specialised agencies including the Federal Attorney for Environmental Protection (PROFEPA), the National Water Commission (CONAGUA), the National Institute of Ecology and Climate Change (INECC) and the National Agency for Industrial Safety and Environmental Protection of the Hydrocarbons Sector (ASEA). Over the past decade, Mexico has strengthened its legal framework to address climate change. The enactment of the General Climate Change Law (LGCC) in 2012 established institutional mechanisms and policy instruments aimed at reducing greenhouse gas emissions and promoting climate change adaptation. Mexico has also undertaken international commitments through the United Nations Framework Convention on Climate Change, the Kyoto Protocol and the Paris Agreement, and has adopted domestic measures to align national policy with these obligations. A key component of Mexico’s climate policy is the development of a national carbon market. Amendments to the LGCC created the legal basis for the Mexican Emissions Trading System (SCE), intended to operate as a cap-and-trade mechanism for major emitting sectors. Although the pilot and transition phases have been completed, the regulatory guidelines governing the system’s operational stage are still pending issuance, leaving the timeline and structure of the full legal carbon market uncertain. Recent policy initiatives have focused on advancing the energy transition and strengthening environmental governance. These include legislation promoting renewable energy and biofuels, updated emission-reduction targets under Mexico’s Nationally Determined Contributions (NDCs) pursuant to the Paris Agreement, and recent reforms addressing resource management and sustainability. In particular, recent reforms to the National Water Law (LAN) aim to strengthen water management and improve regulatory oversight of water use, while the enactment of a General Law on Circular Economy (LGEC) in 2026 seeks to promote waste reduction, resource e5ciency and extended producer responsibility across production chains. Despite these developments, the environmental and climate policy landscape remains complex, reqecting the need to balance economic development, energy security and environmental protection. While the regulatory framework continues to evolve,

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implementation challenges and increasing environmental litigation highlight the growing role of regulators, courts and civil society in shaping environmental governance in Mexico.

Year in review The past year has seen signiBcant legislative developments in Mexico’s environmental framework. One of the most important reforms was the publication, on 11 December 202z, of the new General Waters Law (LGA) together with amendments to the LAN. These reforms establish a comprehensive legal framework governing the use, exploitation, management and preservation of national waters, and introduce new concepts such as water responsibility and strengthened regulatory mechanisms for water management, concessions and oversight. The reforms also re;uire the issuance or update of implementing regulations and technical standards to support their enforcement. Another relevant development was the enactment in 2026 of the LGEC, which introduces new principles, obligations and deBnitions aimed at promoting resource e5ciency, waste reduction and sustainable production and consumption patterns. The law establishes an extended responsibility framework for producers and importers, including the obligation to develop circular management plans and to register in the Circular Economy Registry. The legislation is accompanied by reforms to existing environmental laws to harmonise deBnitions and facilitate the implementation of circular economy policies. In the climate and energy sectors, Mexico also adopted measures aimed at advancing the energy transition and strengthening climate commitments. These include the publication of a new Energy Sector Law intended to promote renewable energy development and reduce polluting emissions, the enactment of a Jiofuels Law to regulate and promote the sustainable production of biofuels and the update of Mexico’s NDCs under the Paris Agreement, establishing new emission-reduction targets across key economic sectors. In addition, although the pilot and transition phases of Mexico’s Emissions Trading System have been completed, the regulatory rules governing the operational stage of the carbon market remain pending issuance.

Legislative framework The main sources of environmental law in Mexico include federal statutes, implementing regulations, Mexican O5cial Standards (NOMs) and international treaties to which Mexico is a party. The Mexican Constitution provides the overarching legal basis for environmental protection, including the recognition of the right to a healthy environment and the State’s obligation to ensure the sustainable use of natural resources. At the statutory level, the principal framework law is the General Law of Ecological E;uilibrium and Environmental Protection (LGEEPA), which establishes the foundations of environmental policy and regulation in Mexico. The LGEEPA regulates environmental planning, environmental impact assessment procedures, ecological –oning, natural protected areas, pollution prevention and control and environmental enforcement

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mechanisms. The law also establishes the allocation of environmental powers among federal, state and municipal authorities. Climate change policy is primarily governed by the LGCC, which establishes Mexico’s national climate policy, including mechanisms for greenhouse gas mitigation and climate change adaptation. The law created the institutional framework for climate governance, including the National Climate Change System and provides the legal basis for instruments such as the National Climate Change Strategy, the Special Climate Change Program and the Mexican Emissions Trading System. In addition to these framework laws, several sectoral statutes regulate speciBc environmental matters, including the LAN governing the use and management of national watersV the General Law for the Prevention and Integral Management of Waste (LGPGIR), which regulates the generation, handling and disposal of ha–ardous and other types of wasteV and the General Sustainable Forestry Development Law, which regulate forest management. Environmental obligations are further detailed through implementing regulations and Mexican O5cial Standards (NOMs), which establish speciBc environmental re;uirements, limits and procedures. Mexico’s environmental and climate policy framework is also shaped by international commitments. Mexico is a party to several multilateral environmental agreements, including the United Nations Framework Convention on Climate Change, the Kyoto Protocol and the Paris Agreement, under which Mexico has adopted Nationally Determined Contributions (NDCs) setting national greenhouse gas reduction targets. Mexico is also a party to other international environmental treaties addressing biodiversity, ha–ardous waste and the protection of the o–one layer, among others. These international obligations have signiBcantly inquenced the development of domestic environmental legislation and policy instruments.

Regulatory oversight Environmental regulation in Mexico is primarily enforced by federal authorities, with state and municipal governments exercising regulatory powers within their respective jurisdictions. At the federal level, the main authority responsible for environmental policy and regulation is SEMARNAT. SEMARNAT is responsible for formulating and implementing national environmental policy, issuing environmental regulations and permits, administering environmental impact assessment procedures and coordinating climate change policy. It also oversees several decentralised agencies that perform technical, supervisory and enforcement functions. One of the principal enforcement authorities is the PROFEPA, which acts as the federal environmental enforcement agency. PROFEPA is responsible for verifying compliance with environmental laws and permits through inspections and audits, investigating violations and imposing administrative sanctions. Its powers include conducting site inspections, ordering corrective or urgent safety measures, temporarily or permanently closure of facilities, conBscating e;uipment or wildlife and imposing administrative Bnes.

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Environmental water resources are regulated by the CONAGUA, which administers national waters and oversees compliance with regulations relating to water use, wastewater discharges into national waters and water concessions. CONAGUA may also conduct inspections and impose sanctions for violations of water-related regulations. Climate change policy and coordination are primarily carried out by the INECC, which provides technical and scientiBc support to the federal government, develops climate change research and assists in the design and evaluation of climate policies and programmes. At the subnational level, state and municipal governments may also enact and enforce environmental regulations within the scope of their authority, particularly with respect to land use planning, local environmental protection, waste management (special handling and solid waste) and environmental impact assessments for activities within its jurisdiction. The acts and resolutions of federal, state and municipal authorities may be challenged through administrative review procedures and before administrative courts. With respect to judicial oversight, environmental disputes and challenges to administrative acts may be resolved, depending on the nature of the act involved, either by the Federal Court of Administrative 8ustice (TF8A) or by the federal judiciary. The TF8A reviews the legality of administrative resolutions issued by environmental authorities, including the imposition of Bnes and other administrative sanctions. In parallel, the organs of the Federal 8udiciary may hear constitutional claims (amparo proceedings) concerning the constitutionality of acts carried out by environmental authorities, such as closure orders. In this context, the Federal 8udiciary 4 including District Courts, Courts of Appeal and, ultimately, the 8ustice Supreme Court 4 may also examine the constitutionality of environmental statutes, regulations and decrees when their application is alleged to violate constitutional rights.

Enforcement 3iolations of environmental laws in Mexico may give rise to administrative, civil and criminal liability. Proceedings may be initiated by environmental authorities or, in certain cases, by private parties or affected communities. Administrative enforcement is the most common mechanism and is typically initiated through inspections or citi–en complaints. Where violations are identiBed, authorities may impose sanctions including Bnes, suspension or revocation of permits, temporary or permanent closure of facilities, conBscation of materials or e;uipment and corrective measures to restore environmental conditions. Civil liability for environmental damage is governed primarily by the Federal Environmental Liability Law, which establishes an objective liability regime under which responsibility may arise regardless of fault when activities cause harm to ecosystems or natural resources. Civil actions may seek environmental restoration, remediation measures or, where restoration is not possible, economic compensation. Claims may be brought by PROFEPA, environmental protection o5ces or institutions that exercise environmental

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protection functions within the federative entities, affected communities or ;ualiBed non-governmental organisations. Criminal liability may arise where environmental violations constitute offences under the Federal Criminal Code, including the illegal removal of forest vegetation, handling of ha–ardous waste, unlawful exploitation of natural resources, among others. Criminal proceedings are generally initiated by the Federal Public Prosecutor’s following complaints or referrals from environmental authorities. Recent amendments to the LAN also introduced a speciBc chapter establishing criminal liability for conduct unlawfully activities with respect to national waters. Joth government entities and private parties may participate in environmental litigation. Authorities may initiate administrative proceedings or civil actions, while individuals and civil society organisations may submit citi–en complaints or pursue civil claims when environmental harm affects collective interests. Available defences vary depending on the type of action but may include lack of causation, force majeure, acts of third parties or compliance with applicable permits and regulatory re;uirements. In criminal cases, general criminal law defences such as lack of intent may also apply.

Reporting and disclosure Mexican environmental legislation establishes reporting and disclosure obligations for operators whose activities may generate environmental impacts or involve the use of natural resources. Permit holders are typically re;uired to submit periodic compliance reports to the relevant environmental authorities. For example, facilities generating ha–ardous waste must report annually on waste generation and management, while certain industrial facilities must submit pollutant release information through the Annual Operation Report. Entities authorised to discharge wastewater must also comply with monitoring and reporting obligations. Failure to comply with these re;uirements may result in the imposition of safety measures, such as the temporary or partial closure of facilities, as well as administrative sanctions, including Bnes and, in severe cases, the revocation of the corresponding permit. Operators are also re;uired to notify authorities of environmental incidents, contamination events or regulatory non-compliance and to implement containment and remediation measures where environmental damage occurs. With respect to soil contamination, the LGPGIR provides that persons transferring to third parties’ real property that has been contaminated by ha–ardous materials or ha–ardous waste must disclose such contamination to the parties’ ac;uiring ownership or possession of the property. Finally, individuals may report environmental violations through citi–en complaints Bled with environmental authorities such as PROFEPA. While this mechanism allows the public to report environmental harm, Mexico does not currently have a comprehensive whistle-blower protection regime speciBc to environmental matters.

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Environmental protection Air ;uality Air ;uality standards in Mexico are established through Mexican O5cial Standards (NOMs) issued by the SEMARNAT. These NOMs establish the maximum permissible levels of emission for speciBc contaminants, which apply to all Bxed sources that generate those types of contaminants. In certain cases, NOMs also regulate emissions of particular contaminants from speciBc industrial processes. Some examples include NOM-09z-SEMARNAT-2011 (air emission of CO, NOx, Suspended Particles, SO2 from fossil fuel combustion) NOM-07X-SEMARNAT-1%%X (solid particles). There are industry speciBc NOM that for example establish limits of 3olatile Organic Compounds from the production of paint (NOM-12X-SEMARNAT-1%%9), the emission of particles and NOx from glass manufacturing processes (NOM-0%‑-SEMARNAT-1%%z), solid particles and sulphur from the production of cellulose (10z-SEMARNAT-1%%6), among others. There are also NOMs that regulate air emissions from mobile sources, including passenger cars and other type of freight vehicles that use fossil fuels. Some of these NOMs have not been updated for more than 20 years in certain cases, rather than every Bve to six years as re;uired by the relevant regulations. As a result, some cities and regions, including the Mexico City 3alley and the Monterrey area, often experience elevated levels of air pollution. Joth these regions receive emissions from nearby reBneries operated by PEME:, the Mexican oil utility (Tula and Cadereyta respectively), and although SEMARNAT and the Ministry of Health have powers to impose more stringent re;uirements or even order the temporary suspension of operations, this rarely occurs. Additionally, there are other NOMs issued jointly between the Ministry of Health and SEMARNAT that establish limits of certain contaminants like o–one, particles and carbon monoxide in the ambient air. These types of NOMs do not establish limits of emission but rather obligations for the government to monitor the air ;uality to prevent environmental and health ha–ards. Conversely, Bxed sources of emissions under federal jurisdiction are re;uired to obtain an operating licence known as the Comprehensive Environmental Licence from SEMARNAT, and must also install emission control e;uipment when necessary to comply with the maximum permissible emission levels established in the relevant NOM. Other obligations for Bxed sources of emission include the obligation to conduct the emissions through stacks and monitor the emissions through ports and platforms that are re;uired to conform to certain technical re;uirements set forth in Mexican standards (NM:). Annual emission reporting is re;uired through an Emissions Inventory. Fixed sources under local jurisdiction, which are those to expressly reserved to the federal government, are of course regulated under state environmental regulations. While there are some speciBc regulations in speciBc states, the obligations and permitting re;uirements generally follow the scheme established at the federal level.

Water ;uality

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Mexico’s water ;uality regulatory regime is built on federal standards that govern wastewater discharges into national water bodies, soils and municipal drainage systems. Although the country has comprehensive and detailed water ;uality norms, the deterioration of its water resources is largely attributable to insu5cient treatment infrastructure and weak enforcement rather than a lack of ;uality standards. According to CONAGUA, only 76-7‑• of all wastewater generated in Mexico receives treatment prior to discharge into receiving bodies, which highlights the gap between regulatory re;uirements and real-world compliance. Wastewater that is discharged into national water bodies or directly onto the soil re;uire a federal discharge permit issued by CONAGUA. These discharges include releases into rivers, lakes, reservoirs, marine environments and inBltration –ones considered national property. Discharges into municipal or urban drainage systems fall under the responsibility of state or municipal water utilities, which apply separate rules governing the entry of wastewater into public sewerage networks. Mexico originally used an industry/based approach for setting water ;uality standards, but in 1%%6, this shifted to a system based on the type of receiving body. Under this system, three principal NOMs were adoptedQ “ NOM/001/SEMARNAT/2021 governs discharges into national water bodies or soilV “ NOM/002/SEMARNAT/1%%6 regulates discharges into municipal drainage systemsV and “ NOM/00X/SEMARNAT/1%%‑ establishes ;uality re;uirements for treated wastewater intended for reuse. NOM/001/SEMARNAT/2021, which replaced the 1%%6 version, introduced stricter permissible limits and added new parameters reqecting updated scientiBc and environmental considerations. The NOMs set maximum permissible contaminant levels for various parameters, which are grouped into categories such as organic load, solids and nutrients, microbiological indicators, metals and toxic substances, and physical/chemical characteristics. The 2021 update to NOM/001 introduced additional parameters including Total Organic Carbon, Toxicity and True Color, while also tightening limits for several categories. In addition to general standards, CONAGUA may impose particular discharge conditions for speciBc users or for all dischargers into a given body of water. These conditions may include additional parameters or more stringent limits and must be supported by a Declaratory of ClassiBcation of the Jody of Water, which deBnes the permissible limits that apply to all dischargers. Particular discharge conditions incorporated into a permit may be revised every Bve years. All entities that discharge wastewater must comply with three types of e”uent limitsQ daily average, monthly average and instantaneous value. These limits vary depending on the classiBcation and characteristics of the receiving body, whether it is freshwater, marine water, irrigation soil or another category. Under the National Waters Law, wastewater generators must treat their e”uents to meet the applicable ;uality standards before they are discharged.

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Discharges into national water bodies or soils are subject to ;uarterly government fees under the Federal Law of Duties. These payments are made through CONAGUA’s electronic platform, Declaragua. The applicable tariff per cubic metre depends on the type of discharge and the classiBcation of the receiving body. Entities that demonstrate full compliance with the permissible limits established in the Federal Law of Duties, which mirror the NOM/001 standards, may be exempt from paying these fees. Monitoring and analysis obligations are also established by the National Waters Law and the Federal Law of Duties. Wastewater ;uality analyses must be conducted by laboratories accredited by the Mexican Accreditation Entity (EMA) and@or authorised by CONAGUA. These laboratories must upload all analysis results into SIRALAJ, CONAGUA’s electronic reporting system. Declaragua and SIRALAJ are interconnected, enabling CONAGUA to automatically verify compliance and calculate discharge fees. Taken together, the discharge permit re;uirements, the NOM/based ;uality limits, the particular discharge conditions, the treatment obligations, the monitoring and reporting through accredited laboratories and the fee structure function as a comprehensive water pollution control regime. While no general nationwide pollution prevention plan is mandated, these legally enforceable measures operate collectively as a system designed to minimise the environmental impacts of wastewater discharges across a range of industries and activities in Mexico.

Chemicals Chemicals in Mexico are regulated under a multi-sectoral approach, encompassing the sanitary, environmental and agricultural sectors. Responsibility for supervision and enforcement is distributed among several agencies at the federal level, depending on the intended use of the chemical, emphasising the protection of public and environmental health, occupational safety, through a risk-prevention approach. In this context, chemicals are strictly overseen by the federation and regulated under a diverse legal framework, which includes laws, regulations, technical standards (NOMs), circulars, guidelines and similar general-application provisions, which encompass every aspect of the chemical’s life cycle, from import and production, to commercialisation, use, export, storage, transport and Bnal disposal. Environmental regulation and supervision of chemicals From an environmental standpoint, chemicals governance is set forth primarily in the LGEEPA and the LGPGIR, with management, supervision and enforcement falling under the jurisdiction of SEMARNAT. To be sure, LGEEPA provides the obligation to undertake risk assessments and draft accident prevention programmes, when a facility manages (ie, produces, uses, stores, transports and disposes) chemicals over the applicable thresholds outlined in the Agreements of Highly Ha–ardous Activities, published in the Federal O5cial Ga–ette on 29 March 1%%0 (for toxic substances) and 7 May 1%%2 (for qammable and explosive substances), respectively.

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On the other hand, as will be addressed in the next section, LGPGIR primarily addresses the classiBcation, handling, transportation and disposal of ha–ardous chemical waste and contaminated sites. Finally, the technical re;uirements for the handling of chemicals are set forth in NOMs -which incorporate the Globally Harmoni–ed System of ClassiBcation and Labelling of Chemicals (GHS), which governQ “ chemical classiBcation and ha–ard communicationV “ labeling re;uirementsV “ safe handling, storage, and transportationV “ permissible exposure limits in occupational settingsV “ testing methodologiesV and “ manufacturing and ;uality control procedures. Enforcement of the legal framework governing chemicals from an environmental perspective falls on PROFEPA, which can undertake site visits, re;uest testing and sampling of pollutants and concentrations on materials and wastes and order facilities’ shut down in the case that an environmental risk is detected, deriving from noncompliance with the applicable framework. Sanitary regulation and supervision of chemicals The main legislative framework governing chemicals that may affect public health is the General Law on Health, which provides the Federal authority to regulate substances that pose risks to human health, including toxic chemicals, pharmaceuticals, pesticides and food additives. In this regard, the General Law on Health and its Regulations providesQ (1) the re;uirements for pre-market authorisation for certain substancesV (2) regulations for the production, importation, storage, distribution and sale of chemicalsV (X) the drafting and reporting of toxicological and safety documentation of chemicals (usually through material safety datasheets)V and (7) restrictions on substances that pose unacceptable health risks. The main regulatory agency in this front is the Federal Commission for the Protection against Sanitary Risks (COFEPRIS), which is an autonomous administrative body ascribed to the Ministry of Health. COFEPRIS is conse;uently the responsible o5ce for the sanitary regulation and risk management of products and substances that may affect human health, including pharmaceuticals and active ingredients, pesticides and agricultural chemicals, fertilisers and plant nutrients, toxic industrial substances, food additives and cosmetics and personal care products. In the exercise of its regulatory and enforcement capabilities, COFEPRIS issues product registration and authorisations, sanitary inspections and compliance monitoring, issuance of technical guidelines and enforcement actions, such as product recalls, sanctions or facility closures when non-compliance with the applicable regulatory framework is grossly non-complied with.

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Agricultural regulation and supervision of chemicals The legal framework governing the production, import, use, storage, commercialisation, etc, of fertilisers, plant nutrients and pesticides used in agricultural production is set forth in the General Law on Health, its Regulations on the Sanitary Control of Products and Services and the Federal Law on 3egetal Sanitation and Fitosanitary NOMs. Regulation and enforcement falls on the National Service for Agrifood Health, Safety and uality (SENASICA), which operates under the Ministry of Agriculture and Rural Development. SENASICA evaluates the agronomic effectiveness of pesticides, environmental and agricultural impacts of chemicals, fertilisers and plant nutrients, and the safety thereof for crop production systems. For certain chemical categories (namely, pesticides) COFEPRIS, SENASICA and SEMARNAT coordinate to conduct joint risk assessments and approvals. Control of Chemical Precursors and Sensitive Substances It is worth noting that Mexico also maintains regulatory controls over chemical precursors and essential chemicals that may be diverted for illicit drug manufacturing. Monitoring and compliance activities are conducted by health authorities and law enforcement agencies. Companies that manufacture, import, distribute or use such substances may be re;uired to register with government monitoring systems, maintain detailed transaction records and report suspicious activities or large shipments. These measures support national and international efforts to prevent the diversion of chemical inputs used in illicit drug production and noncompliance thereto entails criminal risk for representatives of the companies, in addition to the usual administrative risks of facility closure and economic penalties. Finally, Mexico’s chemical regulatory system is also shaped by its participation in international environmental agreements, including the Stockholm Convention on Persistent Organic Pollutants, the Rotterdam Convention and the Jasel Convention. These treaties re;uire the implementation of national controls on certain ha–ardous chemicals and waste streams, thereby inquencing domestic regulatory policy.

Solid and ha–ardous waste In Mexico, waste is regulated under a residual formula following the three different categories of waste set forth by the LGPGIRQ (1) ha–ardousV (2) special handlingV and (X) urban solid, which are overseen by the federal, state and municipal governments, respectively. Ha–ardous Waste

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Ha–ardous waste is waste possessing any of the characteristics of corrosiveness, reactivity, explosiveness, toxicity and qammability, or contain infectious agents that render them ha–ardous, as well as packaging, containers and soils that have been contaminated when transferred to another site. Overseen by SEMARNAT, ha–ardous waste regulatory framework is provided in the LGPGIR, its Regulations and NOMs, which place the primary liability for ade;uate 4 and legal 4 waste management on the entity that produces this strand of waste. Thus, ha–ardous waste generators are obliged toQ “ register before SEMARNAT as ha–ardous waste generatorsV “ implement appropriate storage, maintain records and logbooks on the ;uantity and characteristics of wastes produced, period of storage and third parties providing handling servicesV “ ensure that wastes are transported, treated or disposed of only by SEMARNAT-authorised service providersV “ keep track of the handling made to its ha–ardous waste through manifestsV “ submit annual reports (through the COA)V and “ large ha–ardous waste generators (ie, those generating more than 10 annual tons of ha–ardous waste per year) must draft and secure approval of a management plan for this strand of waste. Finally, it is worth noting that ha–ardous waste generators and services providers are obliged to keep su5cient insurance to cover for any civil or environmental liability stemming from any accident or mishandling of these wastes. Special handling waste Special handling waste is waste generated in production processes that do not meet the characteristics to be considered ha–ardous or municipal solid waste, or that are produced by large ;uantity generators of municipal solid waste. To be sure, article 1% of the LGPGIR provides a catalogue of wastes considered under this category, namelyQ “ rock and mineral residuesV “ non-infectious health service wasteV “ waste from primary productive activitiesQ “ agriculturaV “ forestry and silviculturaV “ livestock and poultry farmingV and “ Bsheries and a;uacultureV “ waste from transport servicesV “ PortsV

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“ AirportsV “ railway terminalsV “ customs facilitiesV “ sludge from wastewater treatmentV “ waste generated in large volumes by department stores and shopping centresV “ construction and demolition wasteV “ technological waste (including products re;uiring speciBc management at the end of their life cycle)V “ batteries that contain the following substances (only when they do not meet ha–ardous waste thresholds)Q “ lithiumV “ nickelV “ mercuryV “ cadmiumV “ manganeseV “ leadV “ –incV and “ used tires. This strand of waste is governed at the state level by the state’s environmental ministries and usually follow the same re;uirements outlined above, at the federal level, for ha–ardous waste. Finally, additional detailed lists are later deBned through regulations at the state level, albeit the NOM-161-SEMARNAT-2011 speciBes which special handling wastes re;uire management plans. Urban solid waste Urban solid waste is the waste generated in residential homes, resulting from the disposal of materials used in their domestic activities, the products they consume and their packaging. It also includes waste originating from any other activity within establishments or in public areas that generates waste with domestic characteristics, and waste resulting from the cleaning of streets and public places. Regulated at the municipal level, this strand of waste poses the least liability for its generator, which usually lies at the home or commercial sectors, and entails due separation to ensure recycling, re-use, secondary markets and valorisation activities.

Contaminated land When dealing with site contamination, the LGPGIR and its regulations adopt a risk-based approach, in order to determine if a site must be remediated. To be sure, the LGPGIR deBnes

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contaminated site as place, space, soil, body of water, facility or any combination thereof which has been contaminated with materials or wastes which, due to its ;uantities or characteristics, can represent a risk for human health, living organisms and the use of goods or property . In addition to the risk-based approach for all contaminants, there are speciBc remediation standards for hydrocarbons and heavy metals. Therefore, the threshold providing the concentration of contaminants present in soil for making it a contaminated site is as followsQ “ the concentration of the contaminants detected at the site exceed the maximum permissible levels of hydrocarbons or heavy metals set forth in Mexican o5cial standards NOM-1X9-SEMARNAT@SSA1-2012 or NOM-17‑-SEMARNAT@SSA1-2007 respectively, as the case may beV or “ where maximum permissible levels for a speciBc contaminant are not available under Mexican regulations or standards, a risk study to determine if such contaminants pose a ha–ard to the environment and human health is necessary. This is the case for any contaminant different from hydrocarbons and heavy metals, which are the only two groups of contaminants regulated for soils. As a general rule, a contaminated site must be remediated byQ (1) the party responsible for the contaminationV or (2) where the party responsible for the contamination cannot be determined or found, the owner or possessor of the contaminated site, irrespective of any recourse or other actions such owners and@or possessors may have against the contaminating party. Remediation of contaminated sites must be undertaken through the drafting and implementation of a remediation programme that must be approved by the competent o5ce in SEMARNAT and comprises of the following componentsQ “ characterisation studiesV “ environmental risk studiesV “ historic investigationsV and “ remediation proposal. Once the remediation programme has been concluded, the responsible party must Ble the pertaining notice evidence before SEMARNAT, which after assessing all information, shall issue a resolution declaring the remediation activities as successful and the site free from contamination.

Climate change Mexico has established a regulatory framework to monitor, report and reduce greenhouse gas (GHG) emissions, primarily under the LGCC and its regulations. The regime focuses on emissions monitoring, reporting obligations and the gradual development of market-based mechanisms to control emissions.

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One of the main regulatory instruments is the National Emissions Registry (RENE), which re;uires facilities in certain sectors to report their annual GHG emissions. Reporting obligations generally apply to facilities whose emissions exceed the thresholds established by the applicable regulations and typically include sectors such as energy, oil and gas, electricity generation, manufacturing, transportation and waste management. Operators subject to the registry must measure and report their emissions using approved methodologies and submit veriBed information to the environmental authorities. Mexico has also developed an emissions trading framework through the SCE, established under amendments to the LGCC. However, the regulatory guidelines governing the operational stage of the carbon market are still pending issuance, and the timeline for the full implementation of the system remains uncertain. In addition to reporting and market mechanisms, certain air emission permits and environmental authorisations incorporate obligations relevant to climate change. For example, facilities subject to environmental impact assessments or operating licences may be re;uired to implement emission control measures, energy e5ciency practices or monitoring systems to reduce air pollutants and greenhouse gas emissions. Last, in Mexico, several states have introduced environmental taxes speciBcally targeting greenhouse gas emissions. These taxes apply to activities that emit signiBcant amounts of CO and other GHGs. Rates and enforcement mechanisms vary by state, and in some cases, revenues are allocated to climate change mitigation projects, renewable energy incentives, and programmes to improve air ;uality. The objective is to encourage emission reductions and promote cleaner technologies at the state level. Several Mexican states have implemented incentives to limit greenhouse gas emissions and promote cleaner energy. Some states encourage voluntary carbon offset programmes, allowing companies to invest in projects that se;uester carbon in exchange for compliance credits. Collectively, these incentives aim to reduce emissions, support the transition to low-carbon economies and foster sustainable development at the subnational level. While several Mexican states have adopted carbon pricing mechanisms and ecological levies on GHG emissions, these instruments remain modest in scale relative to overall emissions and federal targets. For example, voluntary reports indicate that subnational carbon taxes have absorbed roughly X76,172 tonnes of CO and generated over a billion pesos in revenues across participating states, signaling some measurable mitigation impact. However, state/by/state outcomes vary considerablyQ some jurisdictions have adjusted or softened tax rates to protect competitiveness, highlighting the tension between environmental ambition and economic pressures, while others are still implementing or calibrating their policies. At the national level, Mexico’s updated climate strategy sets ambitious emission reduction commitments into 20X0 4 such as reducing 170 million tonnes of CO from baseline emissions and advancing renewable energy deployment 4 yet critics argue that existing Bscal instruments alone are insu5cient to close the gap without stronger enforcement and broader federal integration. Key legal developments include a Supreme Court ruling upholding states’ authority to impose environmental taxes, reinforcing the polluter pays principle and emerging rights/based climate litigation re;uiring enforcement of emission controls and transparency.

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Overall, the regime demonstrates progress in mitigation and legal accountability but scaling up enforcement and aligning state and federal efforts will be critical to meet long-term climate goals.

Special considerations Please note that when an activity is undertaken without applicable environmental permits (or in excess of the authorisations, terms and conditions set forth therein), or when contamination results in environmental liability due to the damage to natural resources or the ecosystem, pursuant to the Federal Law on Environmental Liability (LFRA), the offending party is obliged to restore the damage caused to the affected environmental receptors, until the original environmental conditions or baseline are met, or, if this is not possible, then compensation will be applicable.

Outlook and conclusions Several major pieces of legislation adopted in recent years are still awaiting the issuance of implementing regulations and operational rules that will determine their practical effect. The LGA and the amended LAN both established comprehensive principles for water use, management and conservation, but key aspects of their implementation remain unresolved due to the absence of detailed regulatory and technical standards. These instruments re;uire secondary regulations. Similarly, the LGEC sets out extended producer responsibility obligations, resource e5ciency targets and waste management frameworks, but the implementing regulations and administrative mechanisms needed to operationalise circular economy policies have yet to be Bnalised. Another signiBcant pending development concerns the SCE, established under the LGCC. While the pilot and transition phases of the system have concluded, the operational rules and regulatory guidelines for the full functioning of the carbon market have not yet been issued. These outstanding regulatory instruments are widely anticipated because they will determine how the legislative frameworks on water, circular economy and carbon markets are enforced and integrated into Mexico’s broader environmental and climate policies.

Acknowledgements The authors wish to thank Lucia Man–o, Mariana Herrero and Carlos Escoto for their assistance in the preparation of this chapter.

Environment and Climate Change Law | Mexico

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Lucía Manzo Flores Carlos A Escoto Mariana Herrero

lman–o galicia.com.mx cescoto galicia.com.mx mherrero galicia.com.mx

Galicia Abogados SC Read more from this rm on Lexology

Environment and Climate Change Law | Mexico

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