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[BUSINESS] · Mexico · 3 sources

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Mexico environmental and climate mitigation budgets face significant cuts

Mexico is facing significant reductions in environmental and disaster prevention funding according to recent government reports and budget projections. Public investment for flood prevention and protection fell by 45% in 2025, dropping to approximately 1,627 million pesos. This marks the second consecutive year of cuts and the lowest level recorded since 2021, occurring as various regions face risks from heavy rains and infrastructure failures.

Furthermore, the 2027 Federal Expenditure Budget Project (PPEF) reveals a stark contrast between energy and environmental spending. While Pemex is projected to receive 678,662.7 million pesos, resources for climate change adaptation and mitigation are expected to decrease by 24.6%, falling from 212,569.8 million pesos in 2026 to 160,120.9 million pesos in 2027.

Experts suggest that these budgetary trends indicate a continued high dependency on fossil fuels. For every peso of projected public spending in 2027, only about 1.5 centavos are allocated to addressing climate change, while Pemex receives over four times that amount.

Entities

Claudia Sheinbaum · Grupo de Financiamiento Climático para Latinoamérica y el Caribe · Pemex · Secretaría de Hacienda y Crédito Público