Mexico enacts Circular Economy Law: Extended Producer Responsibility and Product Design, guiding principles

General law on circular economy

The LGEC establishes the foundations for transitioning from a linear economic model to one based on circular production and consumption, incorporating principles such as hierarchization, traceability, reparability, gradual implementation, and extended producer responsibility.

The new framework is structured around three main operational pillars:

a. REP as a central public policy instrument

b. Mandatory Circular Management, subject to registration in a national Registry, for the sectors and products determined by the authority.

c. Gradual implementation by sector or product category, through general agreements issued by the Ministry of Environment and Natural Resources (“SEMARNAT”).

Express obligation of circular design

One of the most relevant changes for industry is the incorporation of a substantive design obligation.

Article 36 of the LGEC provides that productive sectors must:

a. Design or develop products under Circular Design criteria, when environmentally, technically, and economically feasible; and

b. Implement the policies, bases, and principles of Circular Economy under an Extended Producer Responsibility scheme, in accordance with: (i) the general EPR implementation agreements issued by SEMARNAT; and (ii) where applicable, any coordination or concertation agreements entered into.

This means that compliance is no longer limited to waste management at the end of a product’s useful life, but now extends to the conception, design, and configuration stages, including aspects such as reparability, modularity, product lifespan, use of recycled or recyclable materials, and reduction of environmental footprint.

EPR implementation through general agreements

Specific obligations for each sector or product will not apply automatically, but will instead be triggered once SEMARNAT publishes the relevant general EPR implementation agreements. These agreements will define, among other aspects:

a. The productive sectors or product categories subject to EPR.

b. The applicable direct and indirect circularity mechanisms.

c. Targets, indicators, and methodologies to measure compliance.

d. The deadlines to prepare and register the Circular Management plan.

Once the relevant agreement is published, producers and importers will be required to prepare a Circular Management plan and request its registration in the Circular Economy Registry.

Amendment to the LGEEPA: sustainable use in economic activities

The Decree also introduces a structural amendment to the LGEEPA, adding Title Three, Chapter II Bis: “Sustainable Use in Economic Activities.” This new chapter provides that:

a. The use of virgin materials intended for economic activities and productive processes must comply with circular economy principles and obligations.

b. Where feasible, the progressive integration of secondary raw materials must be prioritized, reducing reliance on virgin materials.

c. Economic activities must promote the maximum useful life of products, the valorization of waste, and the lowest possible environmental footprint.

As a result, circular economy ceases to be a merely programmatic concept and becomes a binding legal criterion for the development of productive activities.

Relevant changes in waste regulation

The amendments to the General Law for the Prevention and Integral Management of Waste align waste regulation with the LGEC by expressly incorporating the principles of circularity, hierarchization, and traceability, and by linking non-compliance with EPR implementation agreements to the environmental sanctions regime.

Next steps and implementation timeline

The Decree provides for a progressive implementation. In particular:

a. Entry into force: January 20, 2026.

b. LGEC Regulations: must be issued within 180 calendar days.

c. National Circular Economy Program: to be published within 180 calendar days following the publication of the Regulations, identifying priority sectors (including plastics).

d. State-level harmonization: local legislatures have 180 calendar days to align their legislation.

e. Landfills: must begin a progressive conversion process within a period of up to five years.

Until the Regulations and the first EPR implementation agreements are issued, no sector-specific obligations are triggered, although the new framework already establishes clear regulatory expectations for industry.

Authored by Mauricio Llamas and Sofia de Llano.