Mexico faces significant environmental challenges affecting almost every section of the country. Vast expanses of southern and southeastern tropical forests have been denuded for cattle-raising and agriculture. For example, tropical forests covered almost half of the state of Tabasco in 1940 but less than 10% by the late 1980s. During the same period, pastureland increased from 20 to 60% of the state's total area. Analysts reported similar conditions in other tropical sections of Mexico. Deforestation has contributed to serious levels of soil erosion nationwide. In 1985 the government classified almost 17% of all land as totally eroded, 31% in an accelerated state of erosion, and 38% demonstrating signs of incipient erosion. Mexico has developed a Biodiversity Action Plan to address issues of endangered species and habitats that merit protection.

Soil destruction is particularly pronounced in the north and northwest, with more than 60% of land considered in a total or accelerated state of erosion. Fragile because of its semiarid and arid character, the soil of the region has become increasingly damaged through excessive cattle-raising and irrigation with waters containing high levels of salinity. The result is a mounting problem of desertification throughout the region.

Mexico's vast coastline faces a different, but no less difficult, series of environmental problems. For example, inadequately regulated petroleum exploitation in the Coatzacoalcos-Minatitlán zone in the Gulf of Mexico has caused serious damage to the waters and fisheries of Río Coatzacoalcos. The deadly explosion that racked a working-class neighborhood in Guadalajara in April 1992 serves as an appropriate symbol of environmental damage in Mexico. More than 1,000 barrels of gasoline seeped from a corroded Mexican Petroleum (Petróleos Mexicanos—Pemex) pipeline into the municipal sewer system, where it combined with gases and industrial residuals to produce a massive explosion that killed 190 persons and injured nearly 1,500 others.

Mexico City confronts authorities with perhaps their most daunting environmental challenge. Geography and extreme population levels have combined to produce one of the world's most polluted urban areas. Mexico City sits in a valley surrounded on three sides by mountains, which serve to trap contaminants produced by the metropolitan area's 15 million residents. One government study in the late 1980s determined that nearly 5 million tons of contaminants were emitted annually in the atmosphere, a tenfold increase over the previous decade. Carbons and hydrocarbons from the region's more than 3 million vehicles account for approximately 80% of these contaminants, with another 15%, primarily of sulfur and nitrogen, coming from industrial plants. The resulting dangerous mix is responsible for a wide range of respiratory illnesses. One study of twelve urban areas worldwide in the mid-1980s concluded that the residents of Mexico City had the highest levels of lead and cadmium in their blood. The volume of pollutants from Mexico City has damaged the surrounding ecosystem as well. For example, wastewater from Mexico City that flows north and is used for irrigation in the state of Hidalgo has been linked to congenital birth defects and high levels of gastrointestinal diseases in that state.

Beginning in the mid-1980s, the government enacted numerous antipollution policies in Mexico City with varied degrees of success. Measures such as vehicle emissions inspections, the introduction of unleaded gasoline, and the installation of catalytic converters on new vehicles helped reduce pollution generated by trucks and buses. In contrast, one of the government's most prominent actions, the No Driving Day program, may have inadvertently contributed to higher pollution levels. Under the program, metropolitan area residents were prohibited from driving their vehicles one day each work week based on the last number of their license plate. However, those with the resources to do so purchased additional automobiles to use on the day their principal vehicle was prohibited from driving, thus adding to the region's vehicle stock. Thermal inversions reached such dangerous levels at various times in the mid-1990s that the government declared pollution emergencies, necessitating sharp temporary cutbacks in vehicle use and industrial production.