Executive Summary
- A minute was approved to incorporate for the first time the definition of renewable hydrogen in the General Law on Climate Change (LGCC).
- The reform does not create immediate obligations, but establishes the legal basis for their future regulation.
- Renewable hydrogen is positioned as a key decarbonization tool in industrial and transportation sectors.
- Currently, there is no specific regulation in Mexico, so projects operate under international standards.
- The development of secondary regulation by various authorities is anticipated, although competencies are not yet clearly defined.
I. Background
On April 29, 2026, the Chamber of Deputies approved a draft decree that proposes to amend the General Law on Climate Change (LGCC) to incorporate a legal definition of renewable hydrogen.
Although the decree must still be ratified by the Senate and published in the Official Journal of the Federation, its approval represents a significant step forward in the construction of a legal framework for emerging technologies in the energy transition.
II. Proposed legal definition
The draft proposes the addition of section XXIII Bis to article 3 of the LGCC, establishing the following definition:
“Renewable Hydrogen: That produced through the use of renewable energy or electricity produced from renewable sources.”
This approach is in line with international regulatory criteria, where the key element for classifying hydrogen as renewable is the origin of the energy used in its production. In other words, it is not enough to produce hydrogen: it is necessary to prove that the electricity used comes from clean sources.
III. What is hydrogen and why is it relevant to decarbonization?
Hydrogen is the most abundant chemical element in the universe, but on Earth it is not found in isolation, so it must be produced from other substances (such as water or natural gas).
Is it a fuel?
Yes. Hydrogen can be used as a fuel and, in doing so, releases energy without emitting carbon dioxide (CO₂), but mainly water vapor.
How does it work in terms of energy?
Hydrogen is not a primary source of energy (like the sun or wind), but a means of storing and transporting energy.
This involves a three-step process:
- Energy is generated (e.g., renewable electricity).
- That energy is used to produce hydrogen.
- The hydrogen is stored, transported and then used to generate energy again.
In simple terms, it functions as a “chemical battery” that allows energy to be used at times or places other than where it was generated.
What is electrolysis?
Electrolysis is the process by which electricity is used to separate water (H₂O) into hydrogen and oxygen.
When the electricity comes from renewable sources (solar, wind), the result is renewable hydrogen.
What is direct electrification and why is it not always feasible?
Direct electrification consists of replacing fossil fuels with electricity (e.g., electric vehicles).
However, there are sectors where this is not technically feasible or efficient, such as:
- Very high temperature industrial processes
- Long distance heavy haulage
In these cases, hydrogen can function as an alternative, allowing energy to be generated without relying on batteries.
Types of hydrogen according to their environmental impact
- Gray hydrogen: produced with natural gas; generates high emissions.
- Blue hydrogen: similar to gray hydrogen, but with partial carbon capture.
- Renewable (green) hydrogen: produced with clean energies; no relevant emissions.
Only the latter fully contributes to decarbonization objectives.
If it is so promising, why is it not widely used?
Despite its potential, renewable hydrogen faces significant obstacles:
- High costs: its production (especially by electrolysis) is still more expensive than fossil fuels.
- High energy demand: producing hydrogen requires large amounts of electricity.
- Limited infrastructure: there are few storage, transportation and distribution systems.
- Lack of clear regulation: the absence of regulatory frameworks generates uncertainty for investors.
- Energy efficiency: the entire process (producing, storing and reconverting energy) involves losses.
For this reason, its current adoption is concentrated in pilot projects or in specific sectors.
IV. Recognition as a climate mitigation tool
The inclusion of renewable hydrogen in the LGCC implies its recognition as an instrument for mitigating greenhouse gas emissions.
This allows:
- Its incorporation in public climate policies.
- Its use as a basis for decarbonization projects.
- Their integration into ESG strategies and sustainable financing.
The reform does not impose immediate obligations, but establishes a normative starting point.
V. Regulatory analysis: why in the LGCC and not in the Biofuels Law?
If renewable hydrogen can be used as a fuel, a relevant question arises:
why regulate it in the GLCC and not in the Biofuels Law?
The answer lies in its nature:
- It does not come from biomass, unlike biofuels.
- It has cross-cutting applications in multiple sectors.
- Its main value is as a climate tool, not only as an energy product.
Its inclusion in the LGCC allows regulating it from an emissions mitigation logic and not limiting it to a specific sector.
VI. Current framework: regulation and practice in Mexico
Currently, Mexico does not have a comprehensive regulatory framework specific to renewable hydrogen.
However, there are already pilot projects and development proposals, mainly related to renewable energies and export potential.
In practice, these projects operate under:
- Environmental and industrial safety regulations
- Regulations applicable to energy installations
- International standards
Among the latter, the following stand out:
- ISO 19870-1 (updated in 2026), on emissions accounting in the hydrogen life cycle.
- NFPA 2 (2023 edition), related to hydrogen technology safety.
… VII. Future regulatory implications
The decree would constitute the first step towards the issuance of secondary regulations.
It is foreseeable that different authorities will participate according to their competencies, among them:
- Energy sector authorities (such as the National Energy Commission, CNE)
- Agency for Safety, Energy and Environment (ASEA)
- Other units by application sector
However, there is still no express assignment of specific regulatory competencies for hydrogen, which will have to be defined at a later stage.
VIII. Recommendations for companies
- Regulatory monitoring: follow up on the legislative and regulatory process.
- Opportunity assessment: identify potential applications in energy-intensive operations.
- Use of international standards: as a technical and compliance reference.
At Vega Guerrero & Asociados we have a team specialized in environmental, energy and regulatory law, with experience in the integral accompaniment of projects related to the energy transition. Our team is in a position to advise on the identification of regulatory risks and opportunities, as well as on the legal structuring of projects related to renewable hydrogen and other sustainable technologies. If you have any questions, please contact us.
