Outlook 2026: Mexico Environmental

1. New General Water Law and Reform of the National Water Law — Recent changes in water legislation will give rise to potential impacts on the investment landscape and opportunities for infrastructure and water efficiency initiatives. However, regulatory challenges may also arise, potentially affecting operating costs, increasing investment risks, or even impacting the viability of certain projects. This trend may reflect the growing recognition of access to water as a human right, prioritizing residential use over others, which might create challenges for adapting investments to the new regulatory framework.

2. Reactivation of Emission Reduction Certificate Trading Mechanisms and Equivalents — The recent reform of the General Law on Climate Change, as well as the latest agreements reached at the Conference of the Parties (COP) under the Paris Agreement, aims to strengthen national and regional carbon markets. Reviving these instruments may create opportunities