Mexico - July 2026
Environmental challenges loom large
On the eve of World Environment Day on 5 June, the International Chamber of Commerce (ICC) in Mexico warned that the country is falling dangerously short of its environmental commitments. In a statement timed to mark the occasion, the ICC called on the Mexican government to accelerate the implementation of public policies to prevent “further deterioration” of natural resources, highlighting deforestation, water scarcity, and carbon emissions as urgent concerns.
Mexico is among the world’s most biodiverse nations, with ecosystems that host over 10% of the world’s species. It is also a signatory to the 2015 Paris Agreement, a legally binding international treaty on climate change, and a vocal proponent of multilateral environmental governance, while President Claudia Sheinbaum is a climate scientist by training [SSR-25-11].
Yet Mexico is the second-largest emitter of CO₂ in Latin America after Brazil, emitting 476m tonnes in 2024 according to World Bank data cited by the ICC. As the ICC argues, Mexico’s actions are falling short of its climate goals. Following a trip to Mexico in March, Marcos Orellana, the United Nations (UN) special rapporteur on toxic substances and human rights, praised Mexico’s international leadership on environmental issues while warning of a persistent gap between that global positioning and conditions on the ground.
On water, the ICC noted that 114 of Mexico’s 653 national aquifers are currently overexploited, according to data from the national water commission (Conagua), which affects water availability for millions of people, degrades water quality, and harms ecosystems. Agriculture is the primary source of aquifer depletion. It accounts for roughly 76% of total water allocation by volume, according to Conagua, and much of it is lost due to outdated and inefficient irrigation infrastructure. The problem is especially severe in the arid north and centre of the country, where groundwater is the only reliable source of supply and natural recharge rates cannot keep pace with extraction.
In terms of deforestation, the ICC highlighted an annual loss of more than 203,000 hectares (ha) of forest cover, an area larger than Mexico City itself. Last year, the national forestry commission (Conafor) recorded 7,016 forest fires across the country, affecting a total of 1.23m ha. Although this is down from a total of 8,002 fires affecting 1.67m ha in 2024, one of the highest tolls since national record-keeping began in 1998, Conafor warned that fires continue to grow in intensity and severity, requiring greater physical, cultural, and legal prevention measures, as well as the resources and personnel needed to respond effectively. As well as fires, illegal logging, agro-industrial expansion, and infrastructure projects are also among the main drivers of deforestation.
The ICC also stressed that Mexico is still largely dependent on hydrocarbons. Despite updated climate commitments presented at the UN climate change conference (COP30) in the Brazilian city of Belém in late 2025, which included more ambitious 2035 targets, analysts from the climate-focused coalition México Resiliente have noted that the updated plan contains no concrete financing mechanisms and no clear roadmap away from fossil fuels. Mexico’s state oil company Pemex continues to focus mainly on fossil fuel generation, despite plans to branch out more into renewable energy sources. Meanwhile, the government is planning to explore fracking to boost energy self-sufficiency, a practice that would extend reliance on fossil fuels and has received much pushback from environmental groups.
Water stress
The US-based non-profit organisation World Resources Institute (WRI)’s Aqueduct water risk atlas has listed Mexico among the 30 most water-stressed nations, with demand consistently outpacing availability in many regions.