Mexico City's Circular Economy Law enters into force

Administrative Alert Mexico

On March 1st 2023, Mexico City's Circular Economy Law came into force, which aims to encourage and promote responsible production and consumption habits through reuse, remanufacturing, and recycling.

Three instruments created by this law aim to promote the implementation of sustainability policies in companies: (i) the circularity assessment procedure, (ii) the circularity label, and (iii) the circular economy public information system.

The circularity assessment procedure

This is a voluntary procedure for any interested company to submit its processes, products and services developed or marketed in Mexico City to an evaluation of compliance with certain circularity criteria.

The agency in charge of evaluating this procedure will be Mexico City's Secretariat for the Environment (SEDEMA), which is empowered to review the information provided by interested companies to report on the degree of compliance obtained based on the circularity criteria it will develop in coordination with Mexico City's Secretariat for Economic Development (SEDECO).

The circularity label

Companies that have undergone the circularity assessment procedure and that meet the established levels of compliance will be able to use the circularity label on their assessed processes, products and services. Each circularity label will have a registration number so that the level of compliance can be easily identified by potential consumers or users. The circularity label will be valid for three years with the possibility of renewal.

The circular economy public information system

The Digital Agency for Public Innovation of Mexico City will be in charge of developing this system that will aim to register, organise, update and disseminate information on the circular economy in Mexico City. It will also include basic information on circular economy strategies and business models, as well as guides and manuals to implement and replicate sustainable projects.

So far, the requirements and formalities to undergo a Circularity Assessment procedure have not been detailed. More details are expected to be released in the coming months when the Regulation of this law will be enacted and SEDEMA, in collaboration with SEDECO publish the circularity criteria.