Mexico
Image credit - Jezael Melgoza, Unsplash
Turning over a new leaf
As Mexico emerged from 80 years of one-party rule at the turn of the 21st century, the country underwent a political and economic transformation, with a concerted effort to liberalise, privatise and globalise the domestic economy. However, while Mexico has the 13th largest economy in the world, the country continues to face stagnant wages, has under-performed in inclusion and poverty reduction, and suffers high rates of violent (largely organised) crime, plaguing the country with ongoing armed conflict between the Mexican government and various drug trafficking syndicates.
In 2025, Claudia Sheinbaum Prado came into power as Mexico’s first female president. An energy and climate change scientist who has contributed to the Intergovernmental Panel on Climate Change, President Prado could represent the change Mexico needs. In January 2025 Prado presented “Plan Mexico,” a vision for national development with 13 goals to reduce poverty and inequality including ensuring environmental sustainability of businesses and industry by encouraging policies for reuse, clean energy and waste processing as well as a goal to increase energy generation with renewable's, solar, and wind energy. However, achieving these ambitions will require navigating the structural economic and energy dependencies that shape Mexico’s current energy system.
Mexico is profoundly dependent on trade with the United States - with the US receiving over 80% of Mexico’s exports and serving as its primary economic partner. Meanwhile, Mexico relies on the US for nearly 75% of its natural gas, with imports hitting record highs in 2025. This has resulted in the Mexican economy being significantly affected by (and volatile to) heightened global uncertainty and changes in US trade policies. Despite its ongoing heavy reliance on fossil fuels - with over 75% of its total primary energy supply coming from fossil fuels - at COP29 Mexico pledged to achieve net-zero emissions by 2050. A pledge made even more significant given the volatility of its energy market and external dependencies. This ambition will, however, require unlocking its considerable renewable energy potential and in 2026, there still remains a disconnect between Mexico’s vast renewable energy potential and its failure to meet its legal clean energy goals, even as wind and solar costs have plummeted. With the primary barriers not being technological or economic, but institutional, regulatory, and infrastructural. Mexico continues to lack a comprehensive planning body with real authority and a cohesive roadmap across sectors. However, several local and State governments are moving to fill the gap left by federal initiatives, such as the advancement of green innovation by the city of Mérida, launching the first nationally 100% electric bus rapid transit system (Ie‑Tram) in 2023.
Where notable achievements are being seen are in Mexico’s efforts to protect nature and manage key ecosystems such as forests and wetlands. National strategies now align with global targets like 30x30 (30% of land protected by 2030), and protected areas are increasingly supported through sustainable financing and international partnerships. The country is also developing natural capital accounts to track the value of forests, water and ecosystems in economic planning.
Mexico’s transition to a green economy is therefore marked both ambition and constraint. While the government has articulated clear goals for decarbonisation, and the country has made steps in the right direction in green finance and monetary policy, structural dependence on fossil fuels and underdeveloped social protection continues to stagnate progress. With the current administration and vast renewable potential, Mexico now has the potential to stake out a green future for itself.
Image credit - Jezael Melgoza, Unsplash
Policy Scores
Last updated 18 Dec 2025
Governance
National Green Economy Planning
Mexico's climate–economic planning is anchored in the General Law on Climate Change (LGCC) (2012), the Updated Nationally Determined Contribution (NDC) (2022), and the Updated National Climate Change Strategy (ENCC) (2024–2025). The most recent ENCC sets a refreshed medium- and long-term roadmap and interfaces with sectoral plans, including an indicative pipeline for clean-energy expansion and mitigation goals for 2030. However, the Mid-Century Strategy (2016) remains the latest long-term submission under the UNFCCC and has not yet been formally superseded. While the 2022 NDC strengthened headline ambition, it lacks full sectoral transparency.
Mexico's climate–economic planning is anchored in the General Law on Climate Change (LGCC) (2012), the Updated Nationally Determined Contribution (NDC) (2022), and the Updated National Climate Change Strategy (ENCC) (2024–2025). The most recent ENCC sets a refreshed medium- and long-term roadmap and interfaces with sectoral plans, including an indicative pipeline for clean-energy expansion and mitigation goals for 2030. However, the Mid-Century Strategy (2016) remains the latest long-term submission under the UNFCCC and has not yet been formally superseded. While the 2022 NDC strengthened headline ambition, it lacks full sectoral transparency.
Inclusive Corporate Governance
Mexico has institutional mechanisms for participation in sustainability policymaking, including the National Council for the 2030 Agenda for Sustainable Development, which brings together government, private sector, academia, and civil society. In corporate governance, however, employee representation on boards is not mandated. The National Banking and Securities Commission (CNBV) encourages ESG disclosure through voluntary guidelines, but reporting is not compulsory. Gender diversity has gained some momentum: the National Institute for Women (INMUJERES) promotes voluntary gender-parity measures in business, and in 2023 the government committed to strengthening women’s participation on boards, but no binding quota exists.
Mexico has institutional mechanisms for participation in sustainability policymaking, including the National Council for the 2030 Agenda for Sustainable Development, which brings together government, private sector, academia, and civil society. In corporate governance, however, employee representation on boards is not mandated. The National Banking and Securities Commission (CNBV) encourages ESG disclosure through voluntary guidelines, but reporting is not compulsory. Gender diversity has gained some momentum: the National Institute for Women (INMUJERES) promotes voluntary gender-parity measures in business, and in 2023 the government committed to strengthening women’s participation on boards, but no binding quota exists.
Participatory Policymaking
Mexico provides for public participation in environmental decision-making through the LGCC and environmental impact assessment procedures. Recent national climate processes (NDC 2022 and the ENCC update) incorporated multi-stakeholder consultations and sector dialogues convened by federal entities. Subnationally, various states and municipalities utilize participatory budgeting practices. However, there is no single, uniform legal requirement that mandates comprehensive social-impact assessments covering all marginalized groups across all federal policies and legislation. The quality of implementation varies significantly by sector and region.
Mexico provides for public participation in environmental decision-making through the LGCC and environmental impact assessment procedures. Recent national climate processes (NDC 2022 and the ENCC update) incorporated multi-stakeholder consultations and sector dialogues convened by federal entities. Subnationally, various states and municipalities utilize participatory budgeting practices. However, there is no single, uniform legal requirement that mandates comprehensive social-impact assessments covering all marginalized groups across all federal policies and legislation. The quality of implementation varies significantly by sector and region.
Beyond GDP
Mexico applies the System of Environmental-Economic Accounting (SEEA) via INEGI’s robust environmental accounts (e.g., water, energy, and emissions) and maintains the Satellite Account of Unpaid Household Work, alongside SDG indicator reporting. Strategic planning (e.g., ENCC and national development instruments) increasingly references wellbeing and sustainability goals. However, a single, government-adopted multi-capital comprehensive-wealth framework embedded in fiscal rules and project appraisal is not yet in force.
Mexico applies the System of Environmental-Economic Accounting (SEEA) via INEGI’s robust environmental accounts (e.g., water, energy, and emissions) and maintains the Satellite Account of Unpaid Household Work, alongside SDG indicator reporting. Strategic planning (e.g., ENCC and national development instruments) increasingly references wellbeing and sustainability goals. However, a single, government-adopted multi-capital comprehensive-wealth framework embedded in fiscal rules and project appraisal is not yet in force.
Finance
Green Finance & Banking
Mexico has introduced several instruments for green finance. The Mexican Stock Exchange (BMV) lists sustainable bonds, including green, social, and sustainability-linked instruments. The Ministry of Finance and Public Credit (SHCP) issued sovereign sustainable bonds in both domestic and international markets. The Sustainable Taxonomy of Mexico (2023) provides a framework to classify sustainable activities, developed with UNDP support. The Bank of Mexico is a member of the Network for Greening the Financial System (NGFS) and is working on climate-related financial risk assessments, but mandatory climate stress testing is not yet in place.
Mexico has introduced several instruments for green finance. The Mexican Stock Exchange (BMV) lists sustainable bonds, including green, social, and sustainability-linked instruments. The Ministry of Finance and Public Credit (SHCP) issued sovereign sustainable bonds in both domestic and international markets. The Sustainable Taxonomy of Mexico (2023) provides a framework to classify sustainable activities, developed with UNDP support. The Bank of Mexico is a member of the Network for Greening the Financial System (NGFS) and is working on climate-related financial risk assessments, but mandatory climate stress testing is not yet in place.
Greening Fiscal & Monetary Policy
Mexico’s Sustainable Finance Strategy (2023), led by the Ministry of Finance, now aligns 84.5% of the 2025 federal budget with the Sustainable Development Goals via sustainability bonds like the BONDES G, which reached its tenth issuance in 2025 totaling approximately US $1.56 billion in nominal value.
In 2023, Mexico published its first Sustainable Finance Taxonomy, expanding ESG criteria to include climate change, gender equality, and sustainable cities; a pilot report released in 2025 outlines how to embed the taxonomy in financial system operations. The Sustainable Finance Committee, established in 2020, now plays a more active role in overseeing climate and ESG risk integration by the central bank following Mexico’s membership in the NGFS (Network for Greening the Financial System); it continues domestic efforts on taxonomy implementation, risk disclosure, and capital flow prioritisation.
Environmentally harmful subsidies (particularly fossil fuel support) remain largely untouched, and fiscal reviews are still not systematically linked to binding green targets. A comprehensive, mandatory stress testing is not yet in place.
Mexico’s Sustainable Finance Strategy (2023), led by the Ministry of Finance, now aligns 84.5% of the 2025 federal budget with the Sustainable Development Goals via sustainability bonds like the BONDES G, which reached its tenth issuance in 2025 totaling approximately US $1.56 billion in nominal value.
In 2023, Mexico published its first Sustainable Finance Taxonomy, expanding ESG criteria to include climate change, gender equality, and sustainable cities; a pilot report released in 2025 outlines how to embed the taxonomy in financial system operations. The Sustainable Finance Committee, established in 2020, now plays a more active role in overseeing climate and ESG risk integration by the central bank following Mexico’s membership in the NGFS (Network for Greening the Financial System); it continues domestic efforts on taxonomy implementation, risk disclosure, and capital flow prioritisation.
Environmentally harmful subsidies (particularly fossil fuel support) remain largely untouched, and fiscal reviews are still not systematically linked to binding green targets. A comprehensive, mandatory stress testing is not yet in place.
Green Trade Practices
Mexico embeds sustainable-development provisions in key trade agreements. The modernised EU–Mexico Global Agreement, politically concluded in January 2025, contains a comprehensive Trade and Sustainable Development chapter that strengthens climate and environmental cooperation, promotes responsible business conduct, and replaces traditional investor–state dispute settlement with an Investment Court System. It also references cooperation on critical raw-material supply chains important for green transitions. Mexico is a party to the USMCA/T-MEC and the CPTPP, both of which include enforceable environmental obligations, but neither creates dedicated tariff liberalisation for environmental goods and services or interoperability of green taxonomies and carbon pricing regimes. Domestically, Mexico maintains a federal carbon tax (IEPS, 2014-present) and a national Sustainable Taxonomy (first edition March 2023), and operates a national Emissions Trading System moving from pilot to operational phase. There is no evidence of UNFCCC/CBDR-linked market-access exemptions or formal carbon-pricing/taxonomy linkage with trading partners.
Mexico embeds sustainable-development provisions in key trade agreements. The modernised EU–Mexico Global Agreement, politically concluded in January 2025, contains a comprehensive Trade and Sustainable Development chapter that strengthens climate and environmental cooperation, promotes responsible business conduct, and replaces traditional investor–state dispute settlement with an Investment Court System. It also references cooperation on critical raw-material supply chains important for green transitions. Mexico is a party to the USMCA/T-MEC and the CPTPP, both of which include enforceable environmental obligations, but neither creates dedicated tariff liberalisation for environmental goods and services or interoperability of green taxonomies and carbon pricing regimes. Domestically, Mexico maintains a federal carbon tax (IEPS, 2014-present) and a national Sustainable Taxonomy (first edition March 2023), and operates a national Emissions Trading System moving from pilot to operational phase. There is no evidence of UNFCCC/CBDR-linked market-access exemptions or formal carbon-pricing/taxonomy linkage with trading partners.
Pricing Carbon
Mexico has a carbon tax (since 2014) applied to fossil fuels based on carbon content, though the rate is low (below USD 4/tCO₂ on average, per OECD data). The country has also implemented a pilot emissions trading system (ETS) covering the power and industrial sectors, which began its test phase in 2020 and is expected to transition to a mandatory ETS in 2025. The 2022–2030 NDC update commits to further expansion of market-based instruments. No binding carbon budgeting framework is in place.
Mexico has a carbon tax (since 2014) applied to fossil fuels based on carbon content, though the rate is low (below USD 4/tCO₂ on average, per OECD data). The country has also implemented a pilot emissions trading system (ETS) covering the power and industrial sectors, which began its test phase in 2020 and is expected to transition to a mandatory ETS in 2025. The 2022–2030 NDC update commits to further expansion of market-based instruments. No binding carbon budgeting framework is in place.
Sectors
Cross-Sectoral Planning
Mexico continues to lack a comprehensive planning body with real authority and a cohesive roadmap across sectors. At the subnational level, some cities are advancing green innovation, such as Mérida's first nationally 100% electric bus rapid transit system (Ie‑Tram) in 2023. Multisectoral integration—for sectors like energy, industry, transport, buildings, and agri-food—remains fragmented. Environmental protection expenditure has fallen by nearly 50% in 2025.
Mexico continues to lack a comprehensive planning body with real authority and a cohesive roadmap across sectors. At the subnational level, some cities are advancing green innovation, such as Mérida's first nationally 100% electric bus rapid transit system (Ie‑Tram) in 2023. Multisectoral integration—for sectors like energy, industry, transport, buildings, and agri-food—remains fragmented. Environmental protection expenditure has fallen by nearly 50% in 2025.
Circular Economy
The Government’s National Development Plan 2025–2030 incorporates circular-economy objectives, including waste-management and wastewater-treatment improvements, and highlights challenges around informal recycling. SEMARNAT issued in August 2024 a diagnostic basis for a National Circular Economy Strategy, and in July 2025 the Presidency created fiscal incentives for “Polos de Desarrollo de Economía Circular para el Bienestar.” Mexico City adopted a local Circular Economy Law in 2023. Despite these measures, only about 0.4 % of materials entering the economy are recycled or reused (SEMARNAT, 2025), and no federal roadmap sets a quantified Circular Material Use Rate (CMUR) or integrated national targets.
The Government’s National Development Plan 2025–2030 incorporates circular-economy objectives, including waste-management and wastewater-treatment improvements, and highlights challenges around informal recycling. SEMARNAT issued in August 2024 a diagnostic basis for a National Circular Economy Strategy, and in July 2025 the Presidency created fiscal incentives for “Polos de Desarrollo de Economía Circular para el Bienestar.” Mexico City adopted a local Circular Economy Law in 2023. Despite these measures, only about 0.4 % of materials entering the economy are recycled or reused (SEMARNAT, 2025), and no federal roadmap sets a quantified Circular Material Use Rate (CMUR) or integrated national targets.
Green Transport & Mobility
Mexico has updated its national light-duty vehicle CO₂ standard (NOM-163-SEMARNAT-SCFI-2023) and maintains the General Law on Mobility and Road Safety (2022, reformed 2023) with sustainability principles. Sub-national initiatives lead electrification: Mexico City continues large-scale trolleybus and BRT e-bus deployment; the State of Mexico signed a June 2025 MoU with the Global Green Growth Institute to accelerate e-mobility projects; and the Plan Colibrí strategy promotes sustainable commuting. More than 170 electric buses have been deployed in Mexico City and Nuevo León with GGGI support since 2020. However, there is still no federal framework with 2030 targets for full electrification of public, private, and freight transport or a nationwide EV-incentive programme of significant scale.
Mexico has updated its national light-duty vehicle CO₂ standard (NOM-163-SEMARNAT-SCFI-2023) and maintains the General Law on Mobility and Road Safety (2022, reformed 2023) with sustainability principles. Sub-national initiatives lead electrification: Mexico City continues large-scale trolleybus and BRT e-bus deployment; the State of Mexico signed a June 2025 MoU with the Global Green Growth Institute to accelerate e-mobility projects; and the Plan Colibrí strategy promotes sustainable commuting. More than 170 electric buses have been deployed in Mexico City and Nuevo León with GGGI support since 2020. However, there is still no federal framework with 2030 targets for full electrification of public, private, and freight transport or a nationwide EV-incentive programme of significant scale.
Clean Energy
President Claudia Sheinbaum’s administration has elevated ambition by publicly targeting 45% renewable electricity by 2030, a significant increase over previous aspirations (which was 35% of electricity generation from clean energy sources by 2024, as established in the 2015 Energy Transition Law).
This aligns with infrastructure goals to add 22.7 GW of new generation capacity between 2025 and 2030—of which 4.7 GW will be solar, supplemented by 6.4 GW in private projects. A 2025 grid-code update mandates energy storage systems equal to at least 30% of capacity for new solar and wind projects, and the incoming Electricity Sector Law (2025) directs the Ministry of Energy to publish an annual development plan for power infrastructure through 2026. These efforts reflect clearer policy direction and growing enforcement mechanisms.
But structural barriers remain: the energy sector is increasingly being re-centralized under the CFE (Federal Electricity Commission), which may limit private-sector-led expansion of renewables.
President Claudia Sheinbaum’s administration has elevated ambition by publicly targeting 45% renewable electricity by 2030, a significant increase over previous aspirations (which was 35% of electricity generation from clean energy sources by 2024, as established in the 2015 Energy Transition Law).
This aligns with infrastructure goals to add 22.7 GW of new generation capacity between 2025 and 2030—of which 4.7 GW will be solar, supplemented by 6.4 GW in private projects. A 2025 grid-code update mandates energy storage systems equal to at least 30% of capacity for new solar and wind projects, and the incoming Electricity Sector Law (2025) directs the Ministry of Energy to publish an annual development plan for power infrastructure through 2026. These efforts reflect clearer policy direction and growing enforcement mechanisms.
But structural barriers remain: the energy sector is increasingly being re-centralized under the CFE (Federal Electricity Commission), which may limit private-sector-led expansion of renewables.
Just Transition
Green Job Creation
Lack of a cohesive, nationwide strategy. President Sheinbaum has introduced policies with strong green economy components, but these have not yet fully translated into a coordinated green jobs framework.
On the Sembrando Vida program, still in operation, reports from 2025 state that the program, despite its social goals, leads to deforestation. This disconnect between the program’s social objectives and its environmental impact undermines its "green" credentials and prevents it from being a clear success story for green jobs.
However, the government has introduced tax incentives in its 2025–2030 National Development Plan to promote investment in sectors like power generation. This NDP foregrounds sustainable development in its fourth pillar, positioning green job creation as a central component of economic policy, especially through investments in renewable energy, low-carbon transport, and community-led initiatives. Additionally, a new decree was published in 2025 to create Circular Economy Development Poles for Well-being (PODECIBI), designed to act as catalytic centers for sustainable development, creating jobs and promoting regional economic growth through circular economy projects.
Lack of a cohesive, nationwide strategy. President Sheinbaum has introduced policies with strong green economy components, but these have not yet fully translated into a coordinated green jobs framework.
On the Sembrando Vida program, still in operation, reports from 2025 state that the program, despite its social goals, leads to deforestation. This disconnect between the program’s social objectives and its environmental impact undermines its "green" credentials and prevents it from being a clear success story for green jobs.
However, the government has introduced tax incentives in its 2025–2030 National Development Plan to promote investment in sectors like power generation. This NDP foregrounds sustainable development in its fourth pillar, positioning green job creation as a central component of economic policy, especially through investments in renewable energy, low-carbon transport, and community-led initiatives. Additionally, a new decree was published in 2025 to create Circular Economy Development Poles for Well-being (PODECIBI), designed to act as catalytic centers for sustainable development, creating jobs and promoting regional economic growth through circular economy projects.
Just Transition Frameworks
Mexico is implementing programmatic just-transition work through the “Supporting the Just Transition in Mexico” project (2024–2028), led by GIZ in coordination with the Ministry of Economy. This project focuses on inclusive decarbonization in selected industries, capacity-building for workers and enterprises, and alignment with recognized just-transition principles. Broader federal strategies (e.g., Sustainable Finance Mobilization Strategy) incorporate social and gender considerations for classifying sustainable investments. Mexico has not enacted a single national just-transition law that codifies sector-specific benefit-sharing, worker-retraining guarantees, or implementation mandates across all emitting sectors.
Mexico is implementing programmatic just-transition work through the “Supporting the Just Transition in Mexico” project (2024–2028), led by GIZ in coordination with the Ministry of Economy. This project focuses on inclusive decarbonization in selected industries, capacity-building for workers and enterprises, and alignment with recognized just-transition principles. Broader federal strategies (e.g., Sustainable Finance Mobilization Strategy) incorporate social and gender considerations for classifying sustainable investments. Mexico has not enacted a single national just-transition law that codifies sector-specific benefit-sharing, worker-retraining guarantees, or implementation mandates across all emitting sectors.
Greening MSMEs & Social Enterprise
Support for MSMEs is coordinated by the Secretariat of Economy and National Institute of Entrepreneurs (INADEM), with programmes targeting innovation, productivity, and financing. Some funds include support for green technologies and renewable-energy adoption. However, there is no specific legal form for social enterprises in Mexico. Initiatives such as the Green MSME Programme (PRODIAT Verde) and partnerships with development banks (NAFIN, BANCOMEXT) provide concessional loans for clean technologies, but coverage is uneven.
Support for MSMEs is coordinated by the Secretariat of Economy and National Institute of Entrepreneurs (INADEM), with programmes targeting innovation, productivity, and financing. Some funds include support for green technologies and renewable-energy adoption. However, there is no specific legal form for social enterprises in Mexico. Initiatives such as the Green MSME Programme (PRODIAT Verde) and partnerships with development banks (NAFIN, BANCOMEXT) provide concessional loans for clean technologies, but coverage is uneven.
Inclusive Social Protection
Mexico has introduced a few climate-linked social protection initiatives, but a national-level strategy remains absent. One example: FONDEN, the National Fund for Natural Disasters, operates as a risk-informed mechanism that blends disaster risk finance with social protection efforts. It’s recognized in international reports (like from the World Bank) as an innovative model allowing post-disaster assistance through pre-allocated liquidity.
Mexico has introduced a few climate-linked social protection initiatives, but a national-level strategy remains absent. One example: FONDEN, the National Fund for Natural Disasters, operates as a risk-informed mechanism that blends disaster risk finance with social protection efforts. It’s recognized in international reports (like from the World Bank) as an innovative model allowing post-disaster assistance through pre-allocated liquidity.
Nature
Ocean & Land Conservation
Mexico’s National Biodiversity Strategy and Action Plan (ENBioMex) 2016–2030 sets six strategic pillars and 160 actions for conservation, sustainable use, and governance. In 2024–2025, Mexico launched MEx30x30, a national initiative to contribute to the global 30×30 target. MEx30x30 is oriented toward the effective management and sustainable financing of the 232 federal protected areas (ANPs) and associated conservation lands, coordinated by CONANP with international partners. Adaptation of national reporting is underway to align ENBioMex implementation with the Kunming–Montreal Global Biodiversity Framework (GBF).
Mexico’s National Biodiversity Strategy and Action Plan (ENBioMex) 2016–2030 sets six strategic pillars and 160 actions for conservation, sustainable use, and governance. In 2024–2025, Mexico launched MEx30x30, a national initiative to contribute to the global 30×30 target. MEx30x30 is oriented toward the effective management and sustainable financing of the 232 federal protected areas (ANPs) and associated conservation lands, coordinated by CONANP with international partners. Adaptation of national reporting is underway to align ENBioMex implementation with the Kunming–Montreal Global Biodiversity Framework (GBF).
Natural Capital Accounting
Mexico participates in the Natural Capital Accounting and Valuation of Ecosystem Services (NCAVES) project and is developing SEEA-compliant accounts for forests, water, and ecosystems. The National Institute of Statistics and Geography (INEGI) publishes annual environmental-economic accounts. However, while some data is integrated into planning (e.g., through SEMARNAT), there is no permanent independent body with statutory powers to advise on natural capital in fiscal or infrastructure policy.
Mexico participates in the Natural Capital Accounting and Valuation of Ecosystem Services (NCAVES) project and is developing SEEA-compliant accounts for forests, water, and ecosystems. The National Institute of Statistics and Geography (INEGI) publishes annual environmental-economic accounts. However, while some data is integrated into planning (e.g., through SEMARNAT), there is no permanent independent body with statutory powers to advise on natural capital in fiscal or infrastructure policy.
Sustainable Agriculture & Food Systems
Mexico enacted the General Law on Adequate and Sustainable Food (LGAAS) in April 2024, establishing coordination for the right to adequate food and sustainable production. The Ministry of Agriculture and Rural Development (SADER) has adopted sectoral strategies, including the National Strategy for Sustainable Soil Management (ENASAS), the Pollinator Strategy (ENCUSP), and the Climate Change Strategic Plan for the Agri-Food Sector (PLECCA), training over 100 000 farmers in sustainable practices and promoting carbon sequestration and water efficiency. School-food standards jointly issued by SEP and the Health Secretariat entered into force in March 2025. While these instruments advance sustainable agriculture and nutrition, Mexico lacks an overarching food-systems strategy with quantified ecological-footprint targets or time-bound subsidy-reform commitments.
Mexico enacted the General Law on Adequate and Sustainable Food (LGAAS) in April 2024, establishing coordination for the right to adequate food and sustainable production. The Ministry of Agriculture and Rural Development (SADER) has adopted sectoral strategies, including the National Strategy for Sustainable Soil Management (ENASAS), the Pollinator Strategy (ENCUSP), and the Climate Change Strategic Plan for the Agri-Food Sector (PLECCA), training over 100 000 farmers in sustainable practices and promoting carbon sequestration and water efficiency. School-food standards jointly issued by SEP and the Health Secretariat entered into force in March 2025. While these instruments advance sustainable agriculture and nutrition, Mexico lacks an overarching food-systems strategy with quantified ecological-footprint targets or time-bound subsidy-reform commitments.
Nature Finance
Mexico advances biodiversity and nature-related finance through multiple instruments: the BIOFIN–UNDP country program, protected-area financing mechanisms linked to MEx30x30, and the federal Sustainable Taxonomy of Mexico (TSM), finalized in 2023 by SHCP, which integrates environmental, social, and gender objectives. Other initiatives (climate risk insurance pilots and adaptation funds) expand instruments. However, large-scale nature-linked sovereign financing or comprehensive environmental tax reform remains limited.
Mexico advances biodiversity and nature-related finance through multiple instruments: the BIOFIN–UNDP country program, protected-area financing mechanisms linked to MEx30x30, and the federal Sustainable Taxonomy of Mexico (TSM), finalized in 2023 by SHCP, which integrates environmental, social, and gender objectives. Other initiatives (climate risk insurance pilots and adaptation funds) expand instruments. However, large-scale nature-linked sovereign financing or comprehensive environmental tax reform remains limited.
Green Recovery
Green Recovery Measures
Green investment is embedded within Mexico’s broader development and climate framework, rather than constituting a discrete, conditional stimulus package. The ENCC (2024–2025) and sectoral dialogues guide clean-energy expansion and resilience measures. The government has announced multi-GW capacity expansion plans through 2030 and mobilizes sustainable finance via federal sustainable/SDG bond programs and the Sustainable Finance Mobilization Strategy (2023). Federal recovery measures generally lack explicit green conditionality attached to economy-wide fiscal support, and implementation varies across regions and sectors.
Green investment is embedded within Mexico’s broader development and climate framework, rather than constituting a discrete, conditional stimulus package. The ENCC (2024–2025) and sectoral dialogues guide clean-energy expansion and resilience measures. The government has announced multi-GW capacity expansion plans through 2030 and mobilizes sustainable finance via federal sustainable/SDG bond programs and the Sustainable Finance Mobilization Strategy (2023). Federal recovery measures generally lack explicit green conditionality attached to economy-wide fiscal support, and implementation varies across regions and sectors.