Mexico’s 2024 Eco Losses Hit MX$1.3 Trillion, Equal to 4.1% GDP

Mexico’s natural resource depletion and environmental degradation cost the country more than MX$1.38 trillion (US$75.87 billion) in 2024—equivalent to 4.1% of national GDP—according to new data from the National Institute of Statistics and Geography (INEGI). The figures, published in INEGI’s 2024 Economic and Ecological Accounts of Mexico (CEEM), quantify the financial impact of emissions, soil degradation, waste, untreated wastewater, and the extraction of hydrocarbons, forest resources and groundwater.

Released annually, the CEEM measures the economic consequences of environmental deterioration and the public-sector investments intended to address it. The results also feed into Mexico’s Environmentally Adjusted Net Domestic Product (PINE), an indicator that subtracts both capital depreciation and environmental costs from GDP to provide a measure of economic performance that does not overstate growth at the expense of natural assets.

INEGI reported that the PINE reached MX$25.7 trillion (US$1.41 trillion) in 2024, equivalent to 76.6% of GDP at market prices. The PINE’s share of GDP underscores the persistent gap between conventional economic output and the environmental costs associated with generating it.

Environmental degradation cost MX$1.238 trillion (US$68.08 billion) in 2024, or 3.7% of GDP—far exceeding the MX$144 billion (US$7.92 billion) in natural resource depletion, which represented 0.4% of GDP. Air emissions were the largest single driver of environmental degradation, with an economic impact equivalent to 2.5% of GDP. Soil degradation accounted for 0.6%, followed by urban solid waste at 0.4% and untreated wastewater at 0.2%.

On the depletion side, hydrocarbon extraction generated the highest cost at MX$66.3 billion (US$3.65 billion), followed by timber-related forest resource depletion at MX$40.8 billion (US$2.24 billion) and groundwater extraction at MX$36.8 billion (US$2.02 billion). INEGI noted that total environmental costs as a share of GDP have fallen from 6% in 2003 to 4.1% in 2024, reflecting a gradual decoupling between economic activity and environmental deterioration. Although production and consumption continue to drive environmental impacts, the data indicates that environmental costs are growing more slowly than the overall economy.

Public spending on environmental protection reached MX$232.9 billion (US$12.81 billion) in 2024, equivalent to 0.7% of GDP and in line with the previous year. INEGI said Mexico’s environmental protection spending as a share of GDP is comparable to countries such as Switzerland and Spain. Spending was classified according to UN environmental activity categories: 32.2% went to air protection, 20.8% to water resource management and 11% to wastewater management. The remaining 36% covered waste management, biodiversity conservation, soil and water protection, mineral and energy resource management and cross-cutting activities such as research, development, environmental education and administrative functions.

The CEEM also tracks long-term trends in the relationship between GDP and environmental costs. Between 2003 and 2024, GDP rose steadily, while the environmental cost index increased at a slower pace. This divergence—shown in the report’s decoupling analysis—suggests gradual improvements in efficiency and pollution control, though INEGI notes that economic activity and environmental pressure remain closely linked.

INEGI emphasized that the CEEM serves as a satellite accounting system to the National Accounts, providing policymakers with tools to gauge the environmental sustainability of economic growth. The accounts include data on pollutant emissions, soil degradation, waste generation, water use and natural resource depletion, as well as the monetary valuation of these impacts. They also track material flows throughout the economy and present water accounts at national and regional levels.

The 2024 report includes data from 2003 to 2024, using 2018 as the base year, and incorporates information from environmental monitoring systems, economic surveys and administrative records. The methodology aligns with international standards for environmental accounting and supports Mexico’s commitment to transparent, comprehensive environmental reporting.