CONCANACO SERVYTUR Backs Circular Economy Law

The legislative advance toward a General Circular Economy Law represents an opportunity to turn sustainability into productivity, innovation and formal employment, with a focus on family-owned businesses that underpin Mexico’s day-to-day economy, according to the Confederation of National Chambers of Commerce, Services and Tourism (CONCANACO SERVYTUR).

The business group welcomed the work of the Mexican Congress in building what it described as a modern circular economy framework, approved unanimously in the lower house with 460 votes and ratified by the Senate with 111 votes. The bill has now been sent to the federal executive branch for the corresponding constitutional process.

CONCANACO SERVYTUR said the approval confirms that the agendas of commerce, services and tourism are being considered in public decisions that affect competitiveness and household economies, sectors that require solutions with a productive focus and tangible results at the local level.

The confederation noted that circular economy policy is already part of its institutional roadmap. Its Work Plan, Axis 6, “Sustained and Sustainable Development,” sets as a priority the creation of a circular economy roadmap, the promotion of economic incentives, and the advancement of a legal framework that makes the transition viable for the country’s economic units.

“The objective is clear: to protect the environment while protecting the family economy. The circular economy must be implemented with certainty, incentives and gradualism, so that formality and family businesses can comply, innovate and compete,” said Octavio de la Torre, President, CONCANACO SERVYTUR.

The organization stressed that circular economy policies require realistic execution, particularly across value chains that involve millions of commercial establishments and service providers. Mexico faces a significant challenge in the management of municipal solid waste, making it necessary to accelerate solutions for waste reduction, recovery and reuse, with the participation of local governments and productive sectors.

To ensure the transition is viable and does not become a bureaucratic burden, CONCANACO SERVYTUR proposed several measures, which include the creation of a technical implementation working group involving authorities, lawmakers, productive sectors and the recycling and recovery chain to define operational guidelines, timelines and verifiable criteria. The confederation also called for economic incentives and green financing, with gradual adoption and technical support for micro and small businesses, as well as regulatory simplification and legal certainty to avoid overlapping requirements and prioritize practical guidelines, training and measurable compliance mechanisms. A territorial approach is also needed, the group said, so circular economy practices function effectively in local markets, tourist destinations and regional supply chains.

Following Senate approval and the bill’s submission to the executive branch, CONCANACO SERVYTUR reiterated its call for a gradual, simple and supported implementation to reduce waste without slowing economic activity in commerce, services and tourism.

The confederation said it stands ready to collaborate during the implementation phase and to mobilize its national network of chambers so that the circular economy translates into sustainable prosperity, greater competitiveness and improved conditions for families whose livelihoods depend on commerce, services and tourism.

What Does the Approved Circular Economy Law Entail?

The General Circular Economy Law seeks to break with the linear model of “extract, produce and discard” and replace it with a framework that prioritizes reuse, repair and recycling. The legislation responds to a critical context: Mexico generates around 120,000-125,000t of solid waste every day, of which only about 10% is recycled, while thousands of open dumps pose environmental and public health risks. By incorporating core circular economy principles, the law aligns Mexico with global standards such as those of the European Union and the United Nations Sustainable Development Goals.

A central pillar of the law is extended producer responsibility (EPR), which requires manufacturers and importers to take responsibility for the full life cycle of their products, from durable design to final disposal. The legislation also creates a National Circular Economy Registry and a National Program to coordinate actions across federal, state and municipal governments, with participation from the private sector and society. It formally recognizes “inclusive recycling,” seeking to integrate informal waste pickers into the formal economy. Supporters argue that, if effectively implemented, the law could strengthen Mexico’s competitiveness by fostering sustainable manufacturing, green jobs and more resilient supply chains, particularly amid global trade pressures and nearshoring trends.

Critics, however, warn that the law places greater emphasis on managing waste after it is generated rather than preventing its creation in the first place. Environmental organizations such as Greenpeace argue that the framework prioritizes the economic valorization of waste, over stricter measures to reduce production and consumption. They also raise concerns about the gradual and flexible application of EPR, the lack of strong safeguards for public health and social impacts, and the risk of greenwashing through voluntary audits and environmental credits. As a result, the law’s ultimate impact will depend on how rigorously it is enforced and whether its implementation delivers a structural shift toward a truly circular and equitable economy.