Promoting Circular Economy in Latin America and the Caribbean

Context

Economic development in Latin America and the Caribbean is shaped by raw material extraction, agriculture and agricultural exports. This can often put a strain on the population and the environment. Global demand for resources is increasing and with it the pressure to make the region’s current development model more socially acceptable and environmentally friendly.

According to Circle Economy (2023), less than one per cent of materials used in the local economy of the region are reused or recycled. Forerunners such as Brazil, Chile, Colombia, Peru and Uruguay have national action plans or circular economy strategies in place. However, these are isolated solutions. At the national level, there is little focus on approaches for regional and municipal challenges and social aspects. The fundamental difficulties that countries face include limited capacities to develop integral circular economy strategies, a lack of knowledge about steering and incentive instruments and innovative approaches to solutions, and limited data availability.

Objective

The Economic Commission for Latin America and the Caribbean, ECLAC (Comisión Económica para América Latina y el Caribe) and selected member states have the necessary technical and institutional conditions to successfully implement inclusive, climate-friendly and resource-efficient circular economy models.

Approach

The project supports ECLAC in assisting its member states in transitioning from a linear to a circular economy and in implementing circular economy strategies that align with the countries’ demands. ECLAC also provides technical assistance and guidance on defining metrics and on monitoring processes to integrate environmental, social and economic factors in the strategies. Additionally, the project supports the knowledge development regarding financing, incentive and regulatory instruments. Finally, actors from public institutions and the private sector exchange ideas on inclusive, climate-friendly and resource-efficient circular economy solutions for selected value chains and productive clusters, which provide companies with international and intraregional networks.

Last update: November 2024