Critics question oil and gas spending in Mexico’s proposed climate budget

Mexican President Claudia Sheinbaum's proposed 2027 budget increases the national energy transition strategy to 20.3 billion pesos, but critics note it bundles renewable energy research with 1.1 billion pesos for Pemex's oil, gas and petrochemical operations. Watchdog groups including the CCMSS and Fundar say the budget lacks detail on how the money will actually be spent and warn that shale gas, labeled a transition fuel, still expands fossil fuel extraction.

Roughly 8.8 billion pesos, more than 43% of the entire transition budget, goes to railway infrastructure, with critics questioning whether that spending belongs under climate policy at all. Meanwhile, total climate adaptation spending falls about 24%, from over 213 billion pesos in 2026 to roughly 160 billion pesos in 2027, even as the government's own projections warn of worsening droughts and water scarcity.

Sheinbaum called the package responsible and touted a large boost to water management funding, but critics worry that water will be directed toward industry rather than households or farms.

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