Mexico Approves Circular Economy Law to Cut Waste

Mexico’s legislature has approved a new General Circular Economy Law that establishes a binding framework to reduce waste, extend product lifecycles and shift the country away from a linear consumption model. The legislation was first passed by the Chamber of Deputies, with 460 votes in favor and support from all parliamentary groups, before receiving final approval in the Senate. In parallel, lawmakers amended the General Law of Ecological Balance and Environmental Protection and the General Law for the Prevention and Comprehensive Management of Waste.

A central component of the reform is the introduction of extended producer responsibility, which will require companies to ensure their products are properly recycled, and where possible reused. The law also creates a national economic development system aimed at lowering environmental impacts and mandates the establishment of a National Circular Economy Program to guide public policy at the federal, state and municipal levels. Under the framework, the Ministry of Environment and Natural Resources (SEMARNAT) will oversee the authorization of a National Circular Economy Distinction, a label identifying products that comply with circularity principles. The federal executive will also be tasked with issuing economic instruments and incentives to promote circular production models.

Lawmakers supporting the reform said it responds to the scale of Mexico’s waste challenge, where more than 127,000 tons of garbage and urban solid waste are generated daily. Senator Armando Ayala Robles of Morena said the law introduces concrete instruments, including the National Circular Economy Program, to extend material lifecycles and reduce pressure on natural resources. Senator Maki Esther Ortiz Domínguez of the Green Party (PVEM) described the measure as a turning point that prioritizes prevention over disposal, noting that Mexico currently recycles only 9% to 10% of its waste, compared with rates of up to 80% in leading economies. Senator Geovanna Bañuelos de la Torre of the Labor Party (PT) said the reform provides an orderly transition away from the linear model, reduces health risks and supports industrial innovation through shared and extended producer responsibility and a phased implementation process. Senator Néstor Camarillo Medina of Citizens’ Movement (MC) called the law a historic shift, citing data showing Mexico recovers only 9% to 12% of its waste.

Other lawmakers voiced conditional support. Senator Francisco Javier Ramírez Acuña of the National Action Party (PAN) endorsed the creation of a national policy to organize reuse and recycling but cautioned that legislation alone will not resolve long-standing environmental and infrastructure deficiencies. He pointed to deteriorated water networks and inoperative treatment plants as major sources of waste and pollution. Senator Anabell Ávalos Zempoalteca of the Institutional Revolutionary Party (PRI) said the circular economy is essential to addressing resource scarcity but criticized broader federal economic management and projects she said have damaged environmentally sensitive areas.

Official figures cited during the debate indicate that Mexico has more than 2,250 final disposal sites, around 90% of which are open dumps. Legislators also noted that only about 25% of consumed materials are recycled and that roughly 1.3 billion tons of food produced annually for human consumption are lost.

Despite broad legislative backing, the law has faced opposition from environmental organizations. On Dec. 9, civil society groups protested outside Congress, accusing lawmakers of fast-tracking the bill without meaningful public consultation. Groups including Greenpeace México argued that the process violated the Escazú Agreement on access to information and public participation in environmental matters.

Critics also raised concerns that the law legitimizes waste-to-energy practices such as thermovalorization and pyrolysis, including the potential burning of plastics and the evaluation of tire incineration, which they say generate toxic compounds and pose health and safety risks. They warned that the framework prioritizes economic considerations over environmental and public health protections, weakens extended producer responsibility, and lacks transparency, health indicators and traceability for hazardous substances. Environmental groups reiterated calls for broader participation by communities, specialists and civil society, arguing that without these safeguards the new legal framework may fall short of addressing Mexico’s environmental and public health challenges.