Economic activities affected by the Decree (among others) include construction, manufacturing, the energy sector, waste management, as well as any other activity that has a significant impact on local ecosystems.
The new Environmental Law for Mexico City (“ELMC”) updates the citizen participation schemes to make them compatible with the Escazú Agreement (“Regional Agreement on Access to Information, Public Participation and Justice in Environmental Matters”), which aims to implement the “rights of environmental democracy” in Latin America and the Caribbean.
Innovations
1.- Improved Instruments and Procedures: The ELMC includes specific authorizations and strict requirements for projects that may cause environmental damage. In addition, economic compensation mechanisms are implemented for the restoration of affected areas, ensuring that resources are used in an efficient and transparent manner.
2.- Protection and Management of Areas of Environmental Value: The ELMC establishes specific categories such as: i) Urban Forests; ii) Green Belts; iii) Ravines; and iv) Water Bodies. Each of these categories has defined procedures for their declaration and management, which facilitates their conservation and sustainable use. This specification contrasts with the Abrogated Law, which did not distinguish so clearly between different types of green areas. Stricter restrictions are established for activities in these zones, with authorization procedures that include more rigorous evaluations and deadlines for compliance.
3.- Citizen Participation and Transparency: Citizen participation in environmental management is strengthened, promoting the inclusion of society in decision-making and ensuring that information on environmental projects and policies is available to the general public.
4.- Environmental Fund: The ELMC’s Environmental Fund is intended to finance restoration, conservation, and sustainable natural resource management projects. This fund is fed by contributions from companies whose activities impact the environment, administrative sanctions, and other sources established by law. Industries are now required to contribute financially to the Environmental Fund. This implies a new operating cost for companies, as they must allocate resources to comply with this obligation. The contribution to the fund is proportional to the environmental impact of their activities.
5.- Social Impact Assessment: The ELMC now requires a mandatory analysis to evaluate the social impacts of proposed projects, ensuring that local communities and other affected groups are considered and protected. Companies must conduct this assessment as part of the environmental assessment process. This represents a new obligation that may involve additional costs and require the hiring of specialists to carry out the analysis. In addition, the findings of the assessment may result in restrictions or modifications to projects to mitigate negative social impacts.
6.- Water: These include the implementation of stricter water quality standards and the obligation to treat wastewater prior to discharge, using advanced technologies. In addition, the reuse of treated water is promoted, which may require adjustments to industrial processes. It also prohibits the privatization of water under any modality.
7.- Environmental Responsibility Law for Mexico City: This new legal framework is in charge of regulating the responsibilities derived from damages to the environment and human health. Previously, environmental responsibility was dispersed in several articles of the Environmental Law for the Protection of Land of Mexico City (such statute was abrogated). The new law establishes clear procedures for the compensation and restoration of affected areas, as well as specific penalties for violators, and seeks not only to repair damages already caused, but also, to prevent future environmental damage.
Conclusion
Mexico City’s new environmental laws introduce new obligations and restrictions for companies to develop more sustainable and responsible practices on real estate development. The key for developers and constructors will be to adapt quickly to the new requirements and collaborate with the authorities to ensure compliance and protection of the environment.
