PEMEX Emissions Jump 15.4% in 3Q25, Highest in Three Years

PEMEX reported a second consecutive quarterly increase in carbon emissions, reaching its highest pollution levels in nearly three years and renewing concerns over the company’s environmental performance and investment priorities.

According to its latest quarterly report, the state-owned oil company emitted 16.5 million metric tons of carbon dioxide equivalent (MMt CO₂e) between July and September 2025, up 15.4% year-on-year. The increase follows a 20.7% rise in the previous quarter, when emissions reached 17.5 million tons — confirming an upward trend not seen since 2021.

Analysts attribute the surge to long-standing structural challenges. Óscar Ocampo, Director of Economic Development, Mexican Institute for Competitiveness (IMCO), said that low investment in new fields and the decline of mature ones have undermined operational efficiency. “It’s alarming that PEMEX flares nearly 10% of the gas it produces,” he said, noting that the practice wastes valuable resources and reflects a lack of infrastructure for gas transport and processing.

The company’s heavy debt burden continues to absorb much of its capital, constraining progress on its Sustainability Plan 2023–2050, which aims to gradually cut greenhouse gas emissions and eliminate routine gas flaring. Ocampo noted that these financial pressures make environmental goals secondary. “PEMEX has a limited investment budget, and emissions reduction is not a priority,” he said. “The company is trapped in a cycle of scarce resources, balancing debt payments and production maintenance, leaving sustainability projects behind.”

Still, Ocampo acknowledged that PEMEX achieved short-term emission reductions in the second half of 2024 and early 2025. In its first annual sustainability report, released in August, the company reported a 5.5% drop in direct (Scope 1) GHG emissions, equivalent to 57.6 MMt CO₂e. The report attributed this decrease to greater gas use in exploration, production, and processing, as well as the integration of energy efficiency projects across operations.

Indirect (Scope 2) emissions—from electricity and steam purchased from third parties—rose slightly, from 1.98 MMt CO₂e in 2023 to 2.17 MMt CO₂e in 2024. Meanwhile, Scope 3 emissions from domestic fuel sales increased by 9.87 MMt CO₂e, though this was offset by a 33.47 MMt CO₂e decline in emissions linked to crude oil exports. Methane emissions fell 12.4% year-on-year, with PEMEX reaffirming its goal to cut methane emissions by 30% by 2030, relative to 2020 levels.

Nevertheless, the recent emissions rebound reverses part of that progress. Ocampo warned that sustained high emissions could further damage PEMEX’s international reputation and access to financing. “Burning gas is already a waste,” he said. “But it also harms PEMEX’s credibility with investors and limits its ability to secure partnerships or funding.”

In its latest assessment, Fitch Ratings described PEMEX’s environmental mitigation measures—such as compressor rehabilitation and gas recovery—as insufficient, citing ongoing ESG performance risks. The evaluation follows the Norwegian Government Pension Fund’s decision to exclude PEMEX from its investment portfolio earlier this year over concerns about the company’s sustainability commitments.