Mexico 2026 Budget Cuts Green Programs, Boosts Fossil Fuels

Despite President Claudia Sheinbaum’s public commitment to sustainability, 2026 allocations in her first federal budget reveal significant cuts to key environmental institutions and programs. At the same time, the budget channels increased resources to Mexico’s fossil fuel sector and grants the military greater control over sustainability initiatives.

According to the proposed Federal Expenditure Budget Project (PPEF 2026), the Ministry of Environment and Natural Resources (SEMARNAT) will receive just over US$103 million, a 4% decline in real terms from 2025. Funding for the National Commission of Natural Protected Areas (CONANP), which manages parks and reserves covering nearly 11% of Mexico’s territory, will drop to about US$52 million — its lowest level in 21 years. Meanwhile, the Federal Attorney for Environmental Protection (PROFEPA), responsible for monitoring compliance in protected areas, faces a 3.3% reduction, leaving only US$1.5 million for operations.

Fisheries programs will also be affected. Oceana Mexico reports that the National Commission for Aquaculture and Fisheries (CONAPESCA) and the Mexican Institute for Sustainable Fisheries and Aquaculture Research (IMIPAS) will see cuts of nearly 5.8%. IMIPAS conducts research on climate change impacts on fisheries, a sector crucial to millions of livelihoods and national food security.

By contrast, PEMEX, the state oil company, will receive US$28.2 billion, a 7.7% increase from 2025. The Ministry of Energy (SENER) will see its budget rise 86.8%, to US$14.5 billion, making it the largest beneficiary of fiscal expansion in 2026. Of this, just 1.4% (US$94.3 million) is allocated to clean energy,  while 98.6% (US$14.3 billion) is dedicated to hydrocarbons.

Within the clean energy allocation, MX$1.15 billion (US$62.8 million) goes to the General Directorate of Renewable Energies, and MX$427 million (US$23.3 million) to the National Institute of Electricity and Clean Energies. Both allocations primarily cover operational and personnel costs, leaving little funding for new renewable projects.

A coalition of organizations—including Engenera, the Mexican Center for Environmental Law (CEMDA), Greenpeace, Oceana, and Fundar—noted that while the climate adaptation and mitigation budget shows only a 1.24% reduction overall, 93% of funds are directed to programs with little or no measurable impact on emissions reduction.

Of the 47 programs listed in Annex 16 of the budget, five account for most of the resources. The Army is the largest beneficiary, receiving over 41% for projects such as expanding renewable energy capacity within military facilities. Rail infrastructure development, hydrocarbon mitigation, and the Sembrando Vida reforestation program also receive sizable shares, though civil society groups argue these initiatives lack measurable outcomes in reducing greenhouse gas emissions.

The PPEF 2026 proposal will undergo debate and potential amendments in Congress before final approval. Environmental advocates and business groups are closely watching whether sustainability funding will be rebalanced to support conservation, clean energy, and climate resilience.