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MEXICO CITY'S CIRCULAR ECONOMY LAW APPROVED

Mexico City, February 21, 2023.

On February 14, 2023, the Plenary of Mexico's City Congress unanimously approved the new Circular Economy Law of Mexico City (the "Law"). The Law aims to promote a transition towards a circular and sustainable economic model, establishing conditions compatible with the development of businesses.

This new economic model is based on three principles: eliminating waste and pollution, keeping products and materials in use for as long as possible, and regenerating natural systems.

The Law introduces instruments for individuals and companies to reconvert, validate and promote their products, activities, or services and contribute to restorative and regenerative development, generating economic growth and green jobs while reducing negative environmental impacts. The design, operation, execution, and follow-up of public policy instruments are the responsibility of the Ministry of the Environment of Mexico City ("SEDEMA") in coordination with the Ministry of Economic Development ("SEDECO").

The policy instruments for the development of the circular economy are:

      Circularity Evaluation

The Circularity Evaluation is a procedure for voluntary compliance with the circularity criteria for products and services produced, developed, distributed, or marketed in Mexico City always to maintain their maximum utility and value, reduce their impact on the environment and generate economic growth and green jobs.

Once the Circularity Evaluation request has been submitted through a Circularity Manifesto, in accordance with the bases, requirements, formalities, procedures, and mechanisms issued for such purposes, the interested company will be informed of the degree of compliance obtained based on the Circularity Criteria, from which they may be candidates to use the Circularity Label and/or obtain any of the incentives established in the applicable regulations.

The SEDEMA may follow up on the information declared by the interested companies regarding compliance with the Circularity Criteria by the processes, products, and services they develop, distribute, or commercialize in the territory of Mexico City.

    2.- Circularity label

Circularity labels refer to the distinctive linked to the Circularity Evaluation that allows society in general and potential consumers to differentiate in a visible and evident way those products, services, or activities with circularity criteria.

   3.- Circular Economy Program of Mexico City

The Circular Economy Program is a strategic planning instrument that integrates, coordinates, and promotes public policies, programs, projects, and activities, under the principles and design approaches of this Law to move towards a circular economy. It will be prepared jointly by SEDEMA, SEDECO, the Ministry of Labor and Employment Promotion, and the Ministry of Education, Science, Technology and Innovation and approved by the Head of Government of Mexico City every six years.

Finally, the Law indicates different actions that the productive sectors should promote, to the extent possible, to reduce the ecological footprint, increase efficiency to produce more with fewer resources, promote the generation of green jobs, and promote a model of responsible and sustainable consumption, among others.

The Law will enter into force the day after its publication in the Official Gazette of Mexico City. Within 180 calendar days, the Head of the Government of Mexico City must issue the Regulation.

The lawyers of the environmental area of the firm remain at your service to attend any matter related to the above.

Juan Carlos Serra

serra@basham.com.mx

 

Jesús Colunga

jcolunga@basham.com.mx

 

Carolina Nogal

cnogal@basham.com.mx