Emerging Carbon Reporting Regulations in Mexico: What Companies Need to Know

Mexico is entering a new era of climate governance. As global momentum builds toward standardized sustainability disclosure and net-zero alignment, the country is strengthening its climate, carbon reporting, and ESG frameworks.
Over the next few years, Mexico is expected to move from a patchwork of environmental policies toward a more integrated climate disclosure regime that links carbon accounting with financial reporting, and lays the groundwork for a future compliance Emissions Trading System (ETS).. These reforms position Mexico as one of the first emerging economies in Latin America to advance torward IFRS-aligned sustainability standards and to prepare the transition of its political ETS into an operational market.

For companies operating in or sourcing from Mexico, these developments represent more than regulatory change—they signal a structural shift in how emissions are measured, verified, and disclosed. From the expansion of the National Emissions Registry (RENE) to the launch of a federal carbon market and mandatory ESG reporting, organizations will face new compliance obligations but also opportunities to enhance transparency, efficiency, and competitiveness in a decarbonizing global economy.

Here’s a breakdown of what’s already mandatory, what’s on the horizon, and how companies can prepare to stay ahead of Mexico’s rapidly evolving carbon disclosure landscape.

‍1. National Emissions Registry (RENE)

Under the General Law on Climate Change (LGCC), companies emitting more than 25,000 tons of CO₂e per year must report annually to the National Emissions Registry (RENE). Failure to report or falsifying data can result in penalties of 3,000 to 10,000 days of minimum wage. For context, this can represent over 2 millions of pesos under current wage levels. In force since 2014, this requirement applies to large industrial emitters such as factories and power plants.

‍Why it matters:

• Facilities above this threshold are legally required to provide verifiable and auditable emission data.
• Carbon data is now a regulatory obligation, not a voluntary sustainability metric.
• Early compliance builds readiness for upcoming market-based and ESG disclosure rules.
  
  

2. Federal Carbon Tax on Fossil Fuels

Mexico introduced a federal carbon tax in 2014, applied to fuels including gasoline, diesel, coal, and natural gas. The average rate is roughly US $3–4 per ton of CO₂,varying by fuel type and carbon content, incentivizing cleaner energy sources and fuel efficiency. Companies may use offset credits (e.g., CDM projects) to reduce tax liability, although offset eligibility rules remains limited and narrowly defined
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Key takeaways:

• Even companies outside carbon markets face indirect cost pressures through taxed inputs.
• Measuring and managing emissions can identify efficiency opportunities that lower both tax and operational costs.
• The carbon tax also lays the groundwork for future market mechanisms and emissions trading.
  
  

3. Emissions Trading System (ETS) — Expected by 2026

Mexico has been developing a national Emissions Trading System (ETS), following pilot phases between 2020 and 2021. According to the International Carbon Action Partnership (ICAP), the system covers large emitters (≥ 100,000 tCO₂/year) in industries such as power generation, cement, and steel — together representing roughly 40 % of Mexico’s GHG emissions. Final regulations are antecipated, with full operation possible as early as 2026, subject to formal rulemaking.
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Why this matters:

• Covered entities will need to hold or trade emission allowances once the system is operational.
• Strong monitoring, reporting, and verification (MRV) systems will be crucial.
• Companies that prepare now can reduce compliance costs and gain competitive advantage in a future carbon market.
  
  

4. Mandatory ESG Reporting for Publicly Listed Companies

Starting January 2025, all publicly traded companies in Mexico must submit annual sustainability reports to the National Banking and Securities Commission (CNBV).
These reports must align with IFRS S1 and S2 standards, covering climate governance, risks, metrics, and targets — including Scope 1, 2, and 3 emissions. A staged assurance model is anticipated, with disclosure first, followed by limited and then reasonable assurance in subsequent years.

‍Why it matters:

• Even private suppliers to listed companies may be required to provide emission and sustainability data.
• Strong ESG disclosure systems will soon be a prerequisite for access to capital markets and major supply chains.
• The regulation aligns Mexico’s financial markets with global standards, boosting transparency and investor confidence.
  
  

5. Mexican Sustainability Standards (NIF/NIS)

In May 2024, the CINIF (Mexican Council for Financial Reporting Standards) released the Normas de Información Financiera y Sostenibilidad (NIS) — mandatory from January 2025 for companies reporting under Mexican GAAP. Firms must disclose around 30 core sustainability indicators, including GHG emissions, energy, water, and waste. Scope 3 and sustainable investment indicators may be deferred until 2026. The NIS are designed to align gradually with IFRS and ISSB sustainability disclosure frameworks.‍

Why it matters:

• Sustainability metrics now hold the same regulatory status as financial data.
• Companies must integrate environmental and financial reporting systems.
• This convergence strengthens transparency and drives consistent carbon accounting practices.
  
  

What’s Next (2025 – 2030)

1. Full ETS Implementation (from 2026):
Mexico’s ETS is expected to expand to additional sectors and progressively tighten emission caps, potentially increasing carbon prices and compliance pressure.

2. Broader ESG Disclosure:
By 2028, sustainability reporting is likely to extend to large private firms and state-owned enterprises. Financial institutions may be required to conduct climate risk stress tests, further accelerating corporate climate transparency.

3. National Climate Ambition:
Mexico’s current goal — a 50 % emissions reduction by 2050 — may evolve into a formal net-zero 2050 target, driven by alignment pressures from trading partners including the United States, Canada, and the EU.

Bottom line:
By the end of this decade, carbon accounting and climate disclosure will be core business functions in Mexico. Companies that act early — measuring emissions, investing in clean energy, and preparing for ETS participation — will gain both compliance stability and a long-term competitive edge.

How SINAI Can Help

At SINAI Technologies, our platform and expertise in carbon accounting, compliance, and decarbonization empower companies to:

• Build accurate Scope 1, 2, and 3 emission inventories aligned with global standards.
• Integrate required disclosures (RENE, NIS, ESG) into centralized data and reporting workflows.
• Simulate carbon costs under tax and trading regimes to inform investment and reduction strategies.
• Manage supplier engagement and transparency across complex value chains.
• Deliver robust, audit-ready data and dashboards for compliance and investor communication.
  
  

Conclusion

Mexico is entering a new era of climate governance. Carbon accounting and ESG disclosure are becoming regulatory imperatives rather than voluntary efforts. Companies that prepare now — by building verifiable MRV systems, aligning with IFRS S1/S2 standards, and integrating sustainability with financial reporting — will not only ensure compliance but also strengthen resilience and competitiveness in a rapidly evolving low-carbon economy.

→ SINAI can help your business stay compliant with global regulations. Book a meeting and our team will guide you on this journey.

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