With the new General Law on Circular Economy and various environmental reforms, Mexico consolidates a new regulatory framework for the transition to circularity

On January 19, 2026, the General Law on Circular Economy was published in the Official Gazette of the Federation, accompanied by reforms and additions to the General Law of Ecological Balance and Environmental Protection (LGEEPA) and the General Law for the Prevention and Integral Management of Waste (LGPGIR).

This new legislation establishes the legal framework for the promotion, implementation and regulation of the circular economy in Mexico, with the aim of conserving raw materials, reducing waste, extending the shelf life of products, fostering technological innovation and strengthening environmental management and extended producer responsibility (EPR).

I. Purpose

The law is of public order, social interest and general observance throughout the national territory. Its purpose is to care for and conserve the environment through circular economy policies and mechanisms, increasing the useful life of products, minimizing, recovering, taking advantage of and valuing waste, and establishing the concurrence of attributions between the three levels of government.

II. Guiding principles and criteria

The law incorporates circular economy principles and criteria, among which the following stand out:

• Timelessness, circularity, gradualness, innovation, integrality, hierarchization, modularity, progressiveness, repairability, extended producer responsibility, sustainability, transversality and traceability.
• Promotion of the use of secondary raw materials over virgin materials, when feasible.
• Promotion of circular business models, responsible consumption and prevention of planned obsolescence.

III. National Circular Economy System

The National Circular Economy System is created, chaired by the Ministry of Environment and Natural Resources and made up of various federal agencies and representatives of the states.

The system coordinates national policy and the implementation of the circular economy, establishing rules of operation and convening the public, social and private sectors.

The competencies are distributed among the Federation, states and municipalities, which must align their policies, programs and actions with the principles and objectives of the law, including the promotion of education, training and a culture of circularity.

IV. Public policies and circularity mechanisms

The law establishes public policy instruments such as the National Circular Economy Program, local and municipal programs, the registration of Circular Management, voluntary environmental audits, the National Circular Economy Badge, and economic instruments (including fiscal incentives).

Circular management is mandatory for producers and importers of products subject to general EPR implementation agreements, and must be registered in the Circular Economy Registry and meet goals and indicators defined by the authority.

V. Extended Producer Responsibility (EPR) and Business Obligations

The EPR is strengthened, forcing the productive sectors to develop products with a circular design and implement circularity schemes, organizing and financing the recovery and recovery of waste.

Through agreements published in the DOF, the sectors, products and/or waste that must comply with the circularity obligations will be delimited, anticipating plastics, glass and electronic items.

Compliance can be direct (own mechanisms) or indirect (through third parties, sustainable chaining or environmental compensation).

Environmental compensation can include ecological restoration, conservation of natural areas, reparation of environmental damage, reforestation, emission reduction, and acquisition of certified financial instruments (green bonds, carbon credits, etc.).

VI. Social participation and responsible consumption

The law promotes social co-responsibility, establishing obligations for consumers in terms of responsible consumption, waste separation and circular use. The use of false information about the environmental characteristics of products and the improper use of the National Circular Economy Badge are prohibited.

VII. Sanctions and gradualness

Violations of the law will be sanctioned in accordance with the LGEEPA, without prejudice to liability for environmental damage and the application of penalties when the acts constitute crimes. The possibility of alternative dispute resolution mechanisms is envisaged.

The law contemplates the gradual fulfillment of obligations, especially for micro, small and medium-sized enterprises, through differentiated goals and concertation agreements.

IX. Transitional provisions

• The decree will enter into force the day after its publication.
• The Federal Executive must issue the regulations of the law within 180 days and the local legislatures must harmonize their legislation within the same period.
• The progressive conversion of landfills is planned for their integration into the national circular economy model within five years.

Conclusion

The General Law of Circular Economy represents a structural change in Mexico's environmental and productive policy, establishing obligations and mechanisms for the transition to a sustainable, restorative and regenerative economic model.

Companies will have to review and adapt their processes, products and business models to comply with the new provisions, prioritizing circularity, innovation and environmental co-responsibility throughout the value chain.

The proper implementation of compliance, environmental auditing, and circular management policies will be key to mitigating risks and taking advantage of the opportunities offered by this new regulatory framework.