In May 20, 2026, the President of Mexico submitted to the Senate a bill proposing the repeal of the current General Law of Ecological Balance and Environmental Protection (“LGEEPA”) and the enactment of a new law governing environmental matters (the “Bill”).
Unlike previous amendments, the Bill does not merely modify specific provisions of the current legislation. Rather, it proposes a comprehensive restructuring of Mexico’s federal environmental legal framework through the incorporation of new environmental principles, environmental management and assessment instruments, environmental enforcement mechanisms, and a strengthened inspection and sanctions regime.
If enacted in its current form, the Bill could have significant implications for companies whose projects or operations are subject to federal environmental authorizations, particularly in sectors such as infrastructure, energy, mining, manufacturing, transportation, real estate and industrial development.
I. Analysis
I.1 New Environmental Principles and Instruments
The Bill significantly expands the principles that will guide the actions of environmental authorities and the interpretation of environmental legislation.
Among others, it expressly incorporates the principles of Precaution, Environmental Justice, Best Interests of the Environment, Maximum Disclosure and Circular Economy, which may influence project assessments, permitting decisions and the resolution of administrative proceedings.
The Bill also introduces legal concepts that are not currently developed to the same extent under the existing LGEEPA, including environmental compensation, economic valuation of environmental damage, commutation of sanctions, preventive measures and Strategic Environmental Assessment.
Finally, the Bill transforms the National Commission for the Knowledge and Use of Biodiversity (“CONABIO”), which currently operates as an inter-ministerial commission, into a decentralized public entity with its own legal personality and assets.
II.2 Strategic Environmental Assessment
The Bill introduces Strategic Environmental Assessment as a new environmental planning and management tool intended to identify and assess, from the earliest planning stages, significant, cumulative, synergistic and residual environmental impacts associated with certain national infrastructure plans, programs or strategic projects promoted by public entities.
Its purpose is to incorporate prevention, mitigation, compensation and, where appropriate, environmental restoration measures. The assessment must be submitted to SEMARNAT by the governmental agency, public entity or state-owned enterprise responsible for the relevant plan, program or project during the initial stages of its formulation or development.
SEMARNAT may, although it is not required to do so, request the opinion of other governmental agencies, academic institutions, civil society organizations, professional associations or expert groups. Only opinions issued by governmental agencies or public entities will be binding with respect to the environmental measures to be incorporated.
II.3 Relevant Changes to the Environmental Impact Assessment Regime
The Bill amends the environmental impact assessment regime by expanding the minimum content required for Environmental Impact Statements (“MIAs”) and strengthening the prevention, mitigation and environmental compensation measures that must be proposed for projects subject to authorization.
Among the principal changes are the express incorporation of direct and indirect environmental compensation measures, additional requirements for the preparation of MIAs, and enhanced public participation and access-to-information mechanisms within environmental assessment procedures.
The Bill would also allow applicants to request that entire environmental files remain confidential based on industrial property rights or commercial confidentiality. Unlike the current regime, which protects specific information, this provision could reduce transparency and limit public scrutiny of projects with potential environmental impacts.
II.4 Regularization of Projects or Activities
The Bill introduces a mechanism to regularize projects or activities that have commenced, or have even been completed, without obtaining the required environmental impact authorization. In such cases, the project sponsor must submit an environmental damage assessment including compensation and restoration measures, as well as implementation and compliance mechanisms.
The filing of such request does not limit or suspend the environmental authority’s inspection, investigation or enforcement powers.
II.5 Environmental Notice
The Bill introduces the Environmental Notice mechanism for certain projects or activities that, due to their location, size, characteristics or scope, do not generate significant environmental impacts or ecological imbalance and therefore are not subject to the environmental impact assessment process.
The mechanism is also extended to certain environmental restoration projects and activities carried out by authorities, private parties or organizations, which will be subject to specific monitoring and reporting obligations.
II.6 Highly Hazardous Activities
The Bill introduces a new mechanism for determining highly hazardous activities, requiring consideration of the hazardous nature of the substances or materials involved, the risks associated with their handling, and their potential impacts on the environment, ecosystems and human health.
II.7 Elimination of Affirmative Administrative Silence
The Bill eliminates affirmative administrative silence in environmental matters, except where expressly provided otherwise. It also allows authorities to dismiss incomplete applications, strengthens the use of electronic means, and establishes consequences for the submission of false or inaccurate information.
Additionally, certain resolution periods are reduced and authorized projects must commence within a maximum period of five years.
II.8. Strengthening of Investigation and Enforcement Procedures
The Bill creates an Administrative Investigation Procedure separate from the Infringement Procedure.
It expands the catalogue of administrative sanctions
- To include annotation of resolutions in the Public Property Registry,
- Cancellation of environmental certifications and seals
- Demolition of works or facilities where appropriate
- Formal administrative warnings
The Bill also significantly increases the maximum administrative fines applicable to environmental violations, from a maximum equivalent to 50,000 minimum-wage units under the current LGEEPA to 7.5 million UMA units.
While the current LGEEPA allows fines to be replaced through environmental investments, the Bill establishes specific procedures for the modification and commutation of fines.
II.9. Investigation of Environmental Violations
The Bill incorporates specific procedures for investigating environmental violations and introduces mechanisms aimed at preventing, correcting and remedying environmental harm, including voluntary acknowledgment of facts, alternative dispute resolution mechanisms and procedures for determining environmental damage.
II.10. Environmental Offenders Registry
The Bill creates an Environmental Offenders Registry in which individuals and legal entities sanctioned for environmental violations may be registered. Registration could have reputational consequences and may be considered by authorities in future authorization, supervision or regulatory-benefit procedures.
The newly renamed Federal Environmental Justice Prosecutor’s Office will have up to two years to implement the Registry.
II.11. Protected Natural Areas, Biodiversity and Environmental Restoration
The Bill strengthens biodiversity conservation through new environmental protection instruments. It expressly recognizes biological corridors, introduces new conservation categories, strengthens environmental restoration programs, and expands the protection of genetic resources, biocultural heritage and pollinators.
It also institutionalizes the National Biodiversity Strategy and State Biodiversity Strategies as environmental policy instruments.
II.12. Strengthening of Self-Regulation Mechanisms
The Bill expands environmental self-regulation programs through voluntary environmental audits and authorizes environmental authorities to issue compliance certificates, environmental benefit certificates, recognitions, distinctions and environmental quality seals.
II.13. Change of Land Use in Forest Areas
The Bill provides that authorizations for changes of land use in forest areas relating to national infrastructure projects may be granted without the environmental authority making any determination regarding ownership or possession of the affected land, potentially expediting approvals for strategic projects.
II. Transitional Regime
Administrative proceedings, authorizations, permits, licenses and other procedures initiated prior to the entry into force of the new law will continue to be governed by the legislation in effect when they commenced, unless the applicant elects to be governed by the new regime where applicable.
It will be important to monitor the issuance of secondary legislation necessary for implementation of the new law.
III. Implications for Businesses
Although the Bill must still be discussed and approved by Congress, it reflects a clear trend toward strengthening environmental regulatory, supervisory and enforcement powers.
Companies should assess the impact of these changes on environmental permitting, regulatory compliance, environmental risk management, and inspection and enforcement proceedings.
If you have any questions concerning the scope or implementation of this article, please contact us.
Bernardo Mendoza
Partner
bmendoza@k-g.com.mx
Dorothy Lerch
Counsel
dlerch@k-g.com.mx
Karla P. de la Torre
Associate
kdelatorre@k-g.com.mx
Gerardo H. Estrada
Attorney
gestrada@k-g.com.mx