Mexico & Brazil

Mexico

SEMARNAT estimates about 120,000 tonnes of municipal solid waste per day, much of it going to open dumps. In a presentation to the Senate, CANACEM estimated that about 192 million tires would be discarded over roughly 3.8 years. The 2023/24 sugar harvest milled about 46.7 million tonnes of cane, generating large volumes of bagasse.

Regulatory framework

The rules that shape the business

LGPGIR (art. 19, fr. X: neumáticos usados) 2003 In force

Ley General para la Prevención y Gestión Integral de los Residuos (LGPGIR)

Classifies used tires as special-handling waste (clause added in 2014), subject to management plans and state-level regulation.

View regulation · mley.mx
NOM-161-SEMARNAT-2011 (DOF 01-02-2013) 2013 In force

NOM-161-SEMARNAT-2011: residuos de manejo especial sujetos a plan de manejo

Lists the special-handling wastes that require a management plan, including used tires, and sets the criteria and procedure for preparing those plans.

View regulation · gob.mx
LGEC (DOF 19-01-2026) 2026 In force desde 20-01-2026

Ley General de Economía Circular (LGEC)

Creates EPR through sector-specific implementation agreements and circular management plans registered on a national platform, and amends the LGPGIR and LGEEPA; it mentions recovering the energy content of materials.

View regulation · diputados.gob.mx
NOM-098-SEMARNAT-2002 (DOF 01-10-2004) 2004 In force

NOM-098-SEMARNAT-2002: incineración de residuos, especificaciones de operación y límites de emisión

Sets operating specifications and emission limits for waste incineration facilities; it is the emissions reference for thermal treatment.

View regulation · mley.mx
Ley de Biocombustibles (aprobada en marzo de 2025; fecha DOF no verificada) 2025 In force

Ley de Biocombustibles

Replaces the Bioenergy Promotion and Development Law and promotes biofuels from organic waste and biomass grown on marginal land.

View regulation · garrigues.com
Ley del ISR, art. 34, fr. XIII 2014 In force

Deducción inmediata del 100% de equipos de energía renovable

Allows 100% deduction of machinery and equipment for renewable generation, including biomass and waste, if kept in operation for at least 5 years.

View regulation · mley.mx
Ley del IEPS, art. 2, fr. I, inciso H 2014 In force

IEPS a combustibles fósiles por contenido de carbono

Federal tax on the carbon content of fossil fuels that can optionally be paid with carbon credits.

View regulation · secciones.hacienda.gob.mx

Context

The residue, in figures

≈120.000 t/day

Municipal solid waste generated

2025 · unotv.com

≈192 million de unidades

Tires to be discarded over ≈3.8 years (CANACEM estimate)

2020 · comisiones.senado.gob.mx

46.666.070 t

Cane milled, 2023/24 harvest (1st estimate)

2024 · gob.mx

Incentives

Immediate 100% deduction (Income Tax Law art. 34-XIII) for biomass and waste generation equipment. Carbon IEPS tax, payable with carbon credits. Emissions Trading System in its operational phase since 2025, covering about 300 entities. The LGEC allows EPR compliance through environmental compensation, including carbon credits. Free zones: not verified.

Recommended solution

Which technology fits Mexico

Priority feedstock
Scrap tires (NOM-161 management plans) in pyrolysis; sugarcane bagasse and agro-industrial residues in gasification.
Why
Tires already require mandatory management plans and the new LGEC adds EPR, while the 100% income-tax deduction for biomass and waste energy equipment improves the economics of bagasse gasification.

Sources consulted

Reference information compiled from public sources as of October 2026. It is not legal advice; confirm each regulation is current before making decisions.

Verification level: Medium

  1. mley.mx
  2. gob.mx
  3. diputados.gob.mx
  4. mexicobusiness.news
  5. garrigues.com
  6. mley.mx
  7. garrigues.com
  8. mley.mx
  9. secciones.hacienda.gob.mx
  10. carbonpricingdashboard.worldbank.org
  11. unotv.com
  12. comisiones.senado.gob.mx
  13. gob.mx

Other countries in the region

Projects and proposals

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