New General Circular Economy Law

On December 10, 2025, the Senate of the Republic approved the bill for the General Circular Economy Law (“LGEC,” for its Spanish acronym). This new legal instrument marks a milestone in Mexico’s environmental policy, shifting from a linear “production-consumption-disposal” model toward a regenerative circular system.

This Flash provides an executive analysis of the five fundamental pillars of this new legislation and its direct impact on corporate governance and regulatory compliance.

New Shared Responsibility Framework and Obligated Parties

The LGEC establishes a shared responsibility regime involving the Federal Government, the states, municipalities, the private sector and citizens.

Corporate Impact: Companies will no longer be responsible solely for the internal management of their waste; they will also assume obligations regarding product design and the integration of circularity criteria throughout their entire value chain.