1. New General Water Law and Reform of the National Water Law — Recent changes in water legislation will give rise to potential impacts on the investment landscape and opportunities for infrastructure and water efficiency initiatives. However, regulatory challenges may also arise, potentially affecting operating costs, increasing investment risks, or even impacting the viability of certain projects. This trend may reflect the growing recognition of access to water as a human right, prioritizing residential use over others, which might create challenges for adapting investments to the new regulatory framework.
2. Reactivation of Emission Reduction Certificate Trading Mechanisms and Equivalents — The recent reform of the General Law on Climate Change, as well as the latest agreements reached at the Conference of the Parties (COP) under the Paris Agreement, aims to strengthen national and regional carbon markets. Reviving these instruments may create opportunities for sustainable financing, incentives for adopting clean technologies, and greater integration of Mexican companies into international carbon markets. However, it may also bring regulatory and oversight challenges, potentially affecting market efficiency and the certification mechanisms transparency.
3. Circular Economy and the Upcoming Concurrent Federal Law (2026) — The shift toward a circular economy model has emerged, including through regulatory initiatives aimed at reducing, reusing, and recycling resources. The potential approval of a federal, concurrent law in 2026 may seek to harmonize national and state policies, which might create opportunities for companies in process innovation, sustainable product design, and waste management, as entities need to prepare to meet stricter regulatory requirements.
4. Nationally Determined Contribution (NDC 3.0) and Climate Targets — Updating and implementing NDCs may have implications for the energy, industrial, and transport sectors, in coordination with the government’s sectoral and economic programs. Meeting these climate goals may require investments in clean energy, energy efficiency, and low-carbon technologies, as well as integrating sustainability criteria into corporate strategies. NDCs may also pose regulatory and financial risks for companies that fail to align with national and international commitments.
5. USMCA Renegotiation — The United States-Mexico-Canada Agreement (USMCA) renegotiation may present an opportunity to incorporate sustainability and environmental protection standards into trade and investment. Potential changes to rules of origin, environmental standards, green intellectual property, or sustainable labor regulation, including requirements and obligations among parties, may reshape export and investment opportunities, particularly in sectors such as renewable energy, sustainable agribusiness, and low-impact manufacturing. Companies should actively monitor these discussions in an effort to anticipate environmental regulatory changes. This may help ensure that their business strategies align with sustainable development goals and the treaty’s potential new provisions.