Colima Expects MX$51.9 Million in 2026 Ecological Tax Revenue

The government of Colima is projecting revenue of MX$51.9 million (US$2.94 million) in 2026 from its ecological tax, according to its income forecast under the environmental contributions category for the upcoming fiscal year. 

The Tax on the Emission of Greenhouse Gases and Compounds to the Atmosphere, approved in late 2024 and in force since Jan. 1, 2025, applies to greenhouse gases and compounds released into the atmosphere from fixed sources located in Colima. Taxable emissions include carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. Under the law, emissions are defined as the direct release of these gases that affect air quality and contribute to environmental degradation and global warming.

To determine the taxable base, companies must quantify their emissions in metric tons and convert them into carbon dioxide equivalent (CO₂e) using equivalence factors established in the legislation. For gases not explicitly listed, taxpayers are required to apply conversion factors referenced in the supplementary materials of the Intergovernmental Panel on Climate Change’s Sixth Assessment Report.

The law provides exemptions for certain entities. Companies participating in Mexico’s federal cap-and-trade system that are already in the operational phase are exempt from the state-level tax. An exemption also applies to taxpayers that can demonstrate carbon neutrality. In addition, the legislation establishes tax incentives linked to compliance with the emissions tax, although the specific benefits will be defined through subsequent regulatory guidance.

According to Colima authorities, the measure is intended to internalize the environmental costs associated with greenhouse gas emissions, encourage more sustainable practices among regulated entities and strengthen public policy on environmental impact mitigation. By assigning a price to emissions, the government aims to influence corporate behavior while creating a dedicated funding stream for environmental initiatives.

Based on current estimates, revenue from the tax may be allocated to programs related to environmental protection, sustainability and compensation for environmental damage. The precise use of funds will be determined through applicable budgetary provisions during the fiscal year.

Colima Takes Lead in Climate Policy

On Dec. 26, 2025, Colima introduced a new regulatory framework to further incentivize private-sector greenhouse gas mitigation, launching the Low-Carbon Seal of the State of Colima and a State Emissions Compensation System. The regulations were published in the Official State Gazette on the same date and entered into force immediately.

The Low-Carbon Seal of the State of Colima (SBC-COL) is a voluntary certification available to companies, facilities and organizations operating in the state that can demonstrate verified emissions reductions or compensation. Once awarded, entities may apply for reductions in taxes owed under Colima’s ecological tax regime. The seal is valid for one year and specifies the volume of emissions reduced or compensated, expressed in metric tons of CO₂ equivalent (mtCO₂e).

The State Emissions Compensation System establishes the rules for generating, registering and using emissions offsets to compensate for greenhouse gas emissions produced within the state. The system will be administered by the Institute for the Environment and Sustainable Development of Colima (IMADES), which will maintain a public registry of approved emissions reduction and removal projects eligible to generate compensation certificates. Projects must be certified under recognized national or international standards, including the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), Gold Standard, Climate Action Reserve or other registries approved by IMADES. Certification must demonstrate additionality, permanence and robust monitoring, reporting and verification procedures.

For emissions generated in 2025, organizations may use offsets from projects located in Mexico or elsewhere in Latin America and the Caribbean. Beginning in 2026, at least 50% of offsets used must originate in Mexico. This national sourcing requirement will increase to 70% by 2030, reflecting the state’s objective of strengthening domestic carbon markets and expanding local mitigation capacity.