Critics question oil and gas spending in Mexico’s proposed 2027 climate budget

The energy transition line lists roughly 11.4 billion pesos for "strategic renewable energy projects" and investments in energy efficiency and technological innovation. Another 8.8 billion pesos is allotted to strengthen energy self-sufficiency, sovereignty and security, and to "sustainable development." Within these categories the budget names specific recipients and uses, including small sums for environmental certification and community adaptation work.

Pemex: The budget designates about 1.1 billion pesos to Petróleos Mexicanos (Pemex) under the energy transition heading for production, distribution and marketing of oil, gas and petrochemicals. The budget text also signals funding for Pemex's research into renewable sources and methane reduction measures, while noting continued work to expand natural gas availability, including shale gas.

Railways: Around 8.8 billion pesos — roughly 43% of the energy transition budget — is earmarked for railway infrastructure for freight and passenger transport. That includes ongoing support for the Tren Maya and other rail projects that the Sheinbaum administration has maintained or expanded.

Watchdogs and civil-society groups say the budget bundles items that do not clearly qualify as climate mitigation or adaptation. The Mexican Civil Council for Sustainable Forestry (CCMSS) warned that listing a program under climate adaptation does not mean its entire budget can be treated as climate spending. Fundar, an NGO focused on budget transparency in the oil and gas sector, criticized inclusion of shale gas and other fossil-fuel activity in a "transition" plan.

• Cuts to adaptation programs were reported alongside increases in transition spending, prompting calls to rebalance toward conservation, water management, protected areas and disaster prevention.

The budget text frames some Pemex activities as research into renewable and low-emissions technologies and lists methane-reduction measures. It also positions rail investment as part of a broader mobility and emissions strategy. The government presents the budget as improving energy self-sufficiency and pursuing sustainable development objectives.

The draft budget must go to Congress for review and approval. Watchdogs are urging lawmakers to insist on greater transparency and to reallocate funds toward clear adaptation measures and proven nature-based solutions. Debate in Congress will determine whether line items tied to fossil-fuel companies or large infrastructure projects remain classified as climate spending or are reclassified.

The 2027 draft increases funding labeled for energy transition, but the presence of Pemex and large railway allocations inside that envelope has prompted calls for clearer criteria, line-item detail, and a shift of resources to forest protection, water security and disaster prevention.