Mexico Shifts 2026 Budget From Environment to Energy

October 2, 2025

This week in sustainability news: Mexico’s 2026 budget includes steep cuts for SEMARNAT, CONANP, and PROFEPA, while increasing funding for PEMEX and SENER. Queretaro officials reported progress on the state’s Circular Economy System, which has generated savings of over MX$1 billion (US$54.5 million). Meanwhile, Canada and Mexico agreed on a 2025–2028 action plan committing both countries to enhanced sustainability cooperation.

More news below:

Mexico 2026 Budget Cuts Green Programs, Boosts Fossil Fuels

According to the proposed Federal Expenditure Budget Project (PPEF 2026), PEMEX will receive US$28.2 billion in federal funds, while the Ministry of Energy (SENER) will see its budget rise 86.8% to US$14.5 billion. By contrast, the Ministry of Environment and Natural Resources (SEMARNAT) will receive just over US$103 million, with the National Commission of Natural Protected Areas (CONANP) receiving roughly US$52 million, and the Federal Attorney for Environmental Protection (PROFEPA) being allocated only US$1.5 million.

Queretaro Reports More than 400 Circular Economy Initiatives

Queretaro officials reported progress on the state’s Circular Economy System (SECQ), launched in 2021. Marco Antonio Del Prete, Minister of Sustainable Development (SEDESU) of Queretaro, noted that over the past five years, 39 circular economy mechanisms have been established, with 330 local companies and 55 institutions participating in 437 circular economy initiatives, generating savings of more than MX$1 billion (US$54.5 million). Resource savings include 3 million m3 of water, equivalent to the annual consumption of 14,000 households; 30,000GWh of energy, equivalent to the consumption of 15,000 households; and a reduction of nearly 1Mt of CO2, equal to the emissions of 202,275 cars per year.

Canada-Mexico 2025-2028 Plan Commits to Sustainability Cooperation

Canadian Prime Minister Mark Carney and President Claudia Sheinbaum signed a joint “Canada-Mexico Action Plan: 2025–2028,” which commits to cooperation on sustainable management of natural protected areas, renewable energy, and water management. In addition, Carney agreed to review Canadian mining companies’ environmental compliance, after complaints from Mexican rights groups and Sheinbaum herself. 

Over Half of Mexicans Skeptical of ESG Reporting, UN Says

A new study by the UN Global Compact Network Mexico and GlobeScan found that 55% of Mexicans are skeptical of companies’ environmental, social, and governance (ESG) reporting, reflecting a credibility challenge for the private sector. “The findings show clearly that consumers in Mexico expect companies to take far more decisive steps on environmental issues,” said Mauricio Bonilla, executive director of UN Global Compact Mexico.

Sonora Launches First Environmental Health Directorate in Mexico

Sonora’s government, through the Ministry of Public Health, launched a new Environmental Health Directorate aimed at preventing and controlling environmental factors that affect human health. The directorate’s mission is to promote a healthy environment through monitoring risks related to air, water, and soil.

 

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