Countries › Mexico › Guide › 13. Regulation › Environmental liability in Mexico: repair duties, strict liability for hazardous materials, economic sanctions and contaminated land in acquisitions

Environmental liability in Mexico: repair duties, strict liability for hazardous materials, economic sanctions and contaminated land in acquisitions

Last verified: 2026-10-26 · Status: Stable

Under the Federal Environmental Liability Law of 2013 anyone who causes environmental damage must restore the affected environment to its baseline or, where that is impossible, compensate, and companies answer for damage caused by their managers and staff. Liability is fault based in general but strict for hazardous materials and waste, highly risky activities and coral reef vessel use; deliberate unlawful damage adds an economic sanction of up to 600,000 UMA for companies, cut to a third for companies with compliance systems, and claims can be brought for twelve years by neighbors, environmental NGOs and environmental prosecutors. Owners of contaminated land are jointly liable for remediation, and a site contaminated with hazardous waste cannot be sold without SEMARNAT authorization, which makes environmental due diligence a core step in buying Mexican plants and land.

USD conversions use MXN 18.6638 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 23 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Peso amounts set in UMA use the 2026 daily UMA of MXN 117.31, in force since 1 February 2026 (INEGI publication in the DOF of 9 January 2026, as cited in IMSS Technical Council agreement ACDO.AS2.HCT.270126/9.P.DIR). Conversions are for orientation only.

Key facts

Limitation period for environmental liability actions	12 yearsLFRA art. 29, as of 2026-10-26 · in force
Maximum economic sanction for companies (days of minimum wage read as UMA)	600000 UMALFRA art. 19, section II, as of 2026-10-26 · in force
Minimum economic sanction for companies	1000 UMALFRA art. 19, section II, as of 2026-10-26 · in force
Maximum economic sanction for individuals	50000 UMALFRA art. 19, section I, as of 2026-10-26 · in force
Minimum age of an environmental NGO to have standing	3 yearsLFRA art. 28, as of 2026-10-26 · in force

The rule

1. Duty to repair or compensate. Every person or company that, by act or omission, directly or indirectly damages the environment must repair the damage or, where repair is impossible, provide environmental compensation, and must act to stop the damage from growing. Repair means restoring habitats, ecosystems, natural resources, their chemical, physical or biological conditions and environmental services to their baseline, at the place where the damage occurred. Compensation is the exception: where repair is materially or technically impossible, or where an unlawful project that needed an impact or land use authorization is later evaluated as a whole and authorized, in which case the economic sanction applies without reductions and administrative and criminal proceedings start automatically. Owners or holders of affected property must allow repair works.
Cost to do it: Repair cost is the main exposure; it depends entirely on the damage and site.
Example: A mine whose tailings spill into a river must restore the river's baseline conditions at the site; paying money elsewhere is only allowed if repair is impossible. / Remediation is valued in each case; no statutory amount applies.Ley Federal de Responsabilidad Ambiental (LFRA), new law DOF 7 June 2013, last reform DOF 14 November 2025, Arts. 10, 13 and 14, 2013-06-07 official text · verified 2026-10-26

2. Fault and strict liability. Liability is subjective and arises from unlawful acts or omissions, meaning conduct that breaches laws, regulations, official standards or the authorizations, licenses, permits or concessions granted. It is strict (regardless of fault) when the damage derives from any act or omission related to hazardous materials or waste, use of vessels on coral reefs, highly risky activities, or the cases of art. 1913 of the Federal Civil Code. Companies are liable for damage caused by their representatives, administrators, managers, directors, employees and those with functional control of their operations acting in their functions or for the company's benefit; whoever hires a third party to carry out the harmful conduct is jointly liable, except for authorized hazardous waste confinement services. Act of God or force majeure as the sole cause excludes liability; omissions count where there was a legal or contractual duty to act.
Cost to do it: Insurance and supplier controls (licensed waste carriers, contracts) are the usual mitigation.
Example: A chemical plant whose contractor dumps solvents illegally is jointly liable with the contractor, unless the contractor was an authorized confinement company. / Strict liability means a leak of hazardous material is the company's responsibility even with no negligence.Ley Federal de Responsabilidad Ambiental, Arts. 11, 12, 24 and 25, 2013-06-07 official text · verified 2026-10-26

3. Economic sanction. Where damage is caused by a deliberate unlawful act, the court adds an economic sanction, accessory to repair: 300 to 50,000 days of minimum wage for individuals and 1,000 to 600,000 days for companies, read as UMA under the 2016 deindexation reform, set by the damage caused. For companies, the minimum and maximum are reduced to a third if at least three of the following are proven: no prior sentence or repeat offence; no staff convicted of environmental crimes committed for the company; an internal control body verifying environmental compliance and an environmental management and training system for at least three years before the conduct; any required financial guarantee; and an environmental audit certificate under LGEEPA art. 38 BIS.
Cost to do it: Company range MXN 117,310 to MXN 70,386,000 (about USD 6,285 to USD 3.77 million); a third of that with three mitigating factors: up to MXN 23,462,000.
Example: A company with a certified environmental audit, a three year compliance system and a clean record faces a cap of MXN 23,462,000 instead of MXN 70,386,000. / About USD 1.26 million instead of USD 3.77 million.Ley Federal de Responsabilidad Ambiental, arts. 19 and 20; decree on deindexation of the minimum wage, DOF 27 January 2016, transitory Third, LFRA arts. 11, 19 and 20, 2013-06-07 official text · verified 2026-10-26

4. Who can sue and for how long. Standing to claim environmental liability, repair, compensation and the economic sanction belongs to individuals living in the community next to the damage; Mexican private non profit organizations whose purpose is environmental protection, constituted at least three years before the claim and acting for a local resident; the Federation through the environmental prosecutor (PROFEPA); and state environmental prosecutors jointly with PROFEPA. Claims follow the National Code of Civil and Family Procedures. The action lapses twelve years after the damage and its effects occur, and as a rule no party is ordered to pay costs.
Cost to do it: Litigation cost on both sides; costs are generally not shifted (art. 29).
Example: An NGO registered in 2020 can sue in 2026 for damage to a lagoon on behalf of a fisher living nearby. / Damage occurring in 2026 can be claimed until 2038.Ley Federal de Responsabilidad Ambiental, arts. 27 and 28 reformed DOF 14 November 2025, art. 29, Arts. 27, 28 and 29, 2025-11-14 official text · verified 2026-10-26 · changed: Decree DOF 14 November 2025 replaced references to the federal civil procedure code with the National Code of Civil and Family Procedures.

5. Contaminated land. Whoever contaminates a site, or causes damage through hazardous materials or waste, must repair it and carry out remediation. Owners or holders of private land and holders of concessions with contaminated soil are jointly liable for remediation, with a right to recover from the polluter. A site contaminated with hazardous waste cannot be transferred without SEMARNAT's express authorization, and anyone transferring property contaminated by activities carried out on it must tell the buyer or tenant.
Cost to do it: Phase I and II environmental site assessments before an acquisition; remediation programs if contamination is found.
Example: A buyer of an industrial site that turns out to have hydrocarbon contamination becomes jointly liable for remediation and must sue the former operator to recover. / Sale of a contaminated plant without SEMARNAT authorization breaches LGPGIR art. 71; build this into the closing conditions.Ley General para la Prevención y Gestión Integral de los Residuos (LGPGIR), DOF 8 October 2003, last reform DOF 19 January 2026, Arts. 68 to 71, 2013-06-07 official text · verified 2026-10-26

Responsible party	Range in UMA	MXN 2026	About USD	With three art. 20 mitigating factors
Individual	300 to 50,000	MXN 35,193 to MXN 5,865,500	USD 1,886 to USD 314,271
Company	1,000 to 600,000	MXN 117,310 to MXN 70,386,000	USD 6,285 to USD 3.77 million	MXN 39,103.33 to MXN 23,462,000

Economic sanction under LFRA art. 19 (2026 UMA MXN 117.31; USD at MXN 18.6638)

Worked example

A US manufacturer buys a Mexican foundry. A site assessment finds heavy metals in the soil from past operations. Under LGPGIR art. 70 the buyer, as new owner, would be jointly liable for remediation, so the deal includes remediation by the seller before closing, a SEMARNAT authorization for the transfer (art. 71) and an indemnity. If the seller had deliberately buried waste, the LFRA economic sanction could reach MXN 70,386,000 (about USD 3.77 million) on top of repair.

Step by step

1. Run environmental due diligence (permits, waste registrations, soil and groundwater testing) before buying land or plants.
2. If contamination appears, require remediation and SEMARNAT authorization before the transfer (LGPGIR art. 71).
3. Use only authorized waste carriers and confinement companies and keep manifests (LFRA art. 24).
4. Keep an internal environmental control body, a management and training system and pursue an environmental audit certificate, which cut the economic sanction to a third (LFRA art. 20).
5. Track the twelve year limitation window for legacy sites (LFRA art. 29).

Common traps

Buying the land, inheriting the problem: owners are jointly liable for remediation (LGPGIR art. 70).
Relying on the contractor: companies that hire third parties for the harmful conduct are jointly liable (LFRA art. 24).
Assuming no negligence means no liability: liability is strict for hazardous materials and highly risky activities (LFRA art. 12).
Treating compliance programs as optional: three mitigating factors, including a three year control system and audit certificate, reduce the sanction to a third (LFRA art. 20).

Sources

← Environmental impact authorization in Mexico: which projects need SEMARNAT approval, MIA modalities, review terms, public consultation and 2026 feesHazardous waste and the circular economy law in Mexico: generator categories, registration, six month storage limit, SEMARNAT authorizations and extended producer responsibility →