This document discusses opportunities for circular economy development in Latin America and the Caribbean. It notes that the region has significant potential to increase recycling rates from an average of 4% to levels closer to 20% in OECD countries. Developing the waste management and recycling sector could create over 450,000 jobs and increase regional GDP by 0.35% by achieving recycling rates equivalent to Germany. Several countries in the region have adopted policies and strategies to promote circular economy practices in industries like plastics, electronics, and food. Transitioning to a circular economy requires investment in cleaner production and could have net positive impacts on GDP, employment, and greenhouse gas emissions reduction across the economies of Latin America.

1. Circular economy in Latin America
and the Caribbean -
An opportunity for a transformative
recovery
Carlos de Miguel
Head, Policies for Sustainable Development Unit
Sustainable Development and Human Settlements Division

2. ANALYSIS FRAMEWORK FOR THE CIRCULAR ECONOMY IN PRODUCTION CHAINS

3. LESS WASTE AND ORGANIC, BUT RECYCLING: REGIONAL AVERAGE 4%, IN OECD COUNTRIES 20%. WASTE
MANAGEMENT, USE AND FINAL DISPOSAL INFRASTRUCTURE DOES NOT REACH THE SPEED OF WASTE CREATION
Sudáfrica
Indonesia
India
Rusia
Colombia
Ecuador
Bolivia
Cuba
Barbados
Rep. Dominicana
Uruguay
Argentina
México
Perú
Brasil Costa Rica
Guyana
Corea
Islandia
Alemania
Eslovenia
Australia
Estados Unidos
Bélgica
Irlanda
Suecia Suiza
Luxemburgo
Finlandia
Dinamarca
Reino Unido
Polonia
Noruega
Hungría
Italia Austria
Rep. Checa
Israel
Estonia
Países Bajos
Francia
Canadá
Grecia
España
Portugal
Resp. Eslovaca
Japón
0
10
20
30
40
50
60
0 20 40 60 80 100
GDP per capita Thousands
Percentage of total waste recycled by country and GDP per capita-2016- OECD countries and 14 LAC countries
(in percent and thousands of current dollars)
Source: Own elaboration based on World Bank (2018)- What a waste 2.0,

4. THE DIMENSIONS OF SUSTAINABLE DEVELOPMENT
ARE EXPRESSED IN THREE GROWTH RATES: CLOSING THE THREE GAPS REQUIRES A SECTORAL
REBALANCING AND COHERENT POLICIES IN THE THREE PILLARS
REDISTRIBUTION
Growth limit consistent
with Paris Agreement
Minimum target for growth with no poverty and advance on equality in 2022
Growth limit consistent
with external equilibrium
World growth: 3%
2.1%
0.9%
4%
-0.3%
TECHNICAL
PROGRESS

5. MODELING THE MACROECONOMIC AND ENVIRONMENTAL EFFECTS
OF THE TRANSITION TO THE CIRCULAR ECONOMY
• Transition to Circular Economy and cleaner
production imposes economic costs for certain
sectors, the net effect on GDP, Employment, GHG
Emissions and Imports is favorable for the
economies as a whole.
• It is required that the savings from reducing the
purchase of raw materials be used to cover the
costs of the increase in the amount of labor
required, as well as the technological investment
required to make these savings viable and lasting.
• The results obtained for the countries modeled in
Latin America in terms of GDP and employment are
positive and growing, in line with those found in
Europe, although their magnitude is generally a
little lower.
• The effects in reducing emissions are
heterogeneous, depending on the energy matrix of
each country, the emission factors, the goals for
reducing fuel use and the size of the effect on GDP.
Latin America (4 countries): effects of achieving circular economy
targets, 2030
(Percentage variation compared to the baseline scenario)
Source: O. Rodríguez and others, “Modelamiento de los efectos macroeconómicos de la transición a la
economía circular para América Latina: casos de Chile, Colombia, México y el Perú”, Project Documents,
Santiago, Economic Commission for Latin America and the Caribbean (ECLAC), 2022, forthcoming.
Scenarios to achieve between 2022 and 2030: Plastics (8%),
Metal materials (5%), Building materials (5%), Petroleum
derived fuels (5%) and

6. POTENTIAL OF THE WASTE MANAGEMENT AND RECYCLING SECTOR: AN INCREASE IN THE LEVEL OF
ACTIVITY OF THE SECTOR COULD HAVE DIRECT POSITIVE EFFECTS ON THE DISTRIBUTION OF INCOME
Selected countries: intermediate consumption of the waste sector
(In percentages of the gross value of production)
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of the United States Bureau of Economic Analysis; National Statistics Center, Portal Site of Official
Statistics of Japan (e-Stat) [online] https://www.e-stat.go.jp/en; Federal Statistical Office of Germany and Central Bank of Chile.
Intermediate
consumption
Waste
management and
remediation
services
(United States,
2019)
Wastewater
management,
waste disposal
and material
recovery
(Germany, 2017)
Reuse and
recycling
(Japan, 2015)
Waste
management
and recycling
(Chile, 2017)
Wastewater
management,
waste disposal and
material recovery
(Colombia, 2015)
Waste and waste
management, and
remediation services
(Mexico, 2013)
Domestic
(weighted
average/simple
average of all sectors)
45
(43/47)
45
(41/41)
67
(41/46)
39
(38/43)
41
(41/43)
34
(29/34)
Imported
(weighted
average/simple
average of all sectors)
5
(4/5)
9
(10/12)
0.7
(7/10)
3
(8/12)
4
(7/9)
11
(14/12)

7. IF THE WASTE AND RECYCLING SECTOR DEVELOPED IN LAC SO THAT IT HAD A RECYCLING RATE
EQUIVALENT TO THAT OF GERMANY, 450,000 STABLE JOBS WOULD BE CREATED AND THE
REGION'S GDP WOULD INCREASE BY 0.35%
Selected countries: direct and indirect linkages in the waste management and recycling sector
Source: ECLAC, on the basis of US Bureau of Economic Analysis; National Statistics Center, Portal Site of Official Statistics of Japan (e-Stat) [online] https://www.e-stat.go.jp/en; Federal
Statistical Office of Germany and Central Bank of Chile.
a Indicates the multiple by which the output of the economy increases if the output of a sector increases by one unit (including the direct and indirect effects of purchases associated with the
increased output of the sector).
b Indicates the multiple by which the output of the economy increases if the sales of a sector in the country increase by one unit (including the direct and indirect effects of sales entering the
production chain of the whole economy).
Waste
management and
remediation
services
(United States,
2019)
Wastewater
management,
waste disposal and
material recovery
(Germany, 2017)
Reuse and
recycling (Japan,
2015)
Waste
management and
recycling (Chile,
2017)
Wastewater
management,
waste disposal and
material recovery
(Colombia, 2015)
Waste and waste
management, and
remediation
services (Mexico,
2013)
Output
multipliera
(average of all
sectors)
1,87
(1,92)
1,76
(1,73)
1,96
(1,80)
1,61
(1,71)
1,84
(2,02)
1,49
(1,49)
Demand
multiplierb
(average of all
sectors)
1,41
(1,92)
2,00
(1,73)
1,45
(1,80)
1,41
(1,71)
1,36
(2,02)
1,03
(1,49)
Classification Independent
sector
Key sector Driving sector Independent
sector
Independent
sector
Driving sector

8. México
Nov 2021
Aprobación Ley General de
Economía Circular
Costa Rica
Sept 2021
Lanzamiento “Guía Paso a Paso para
Facilitar la Transición hacia una Economía
Circular desde los Gobiernos Locales
Agosto 2020
Estrategia Nacional de Bioeconomía
Colombia
Nov 2018
Estrategia Nacional de Economía
Circular
Uruguay
2019
Plan de Acción de Economía
Circular
Proyecto PAGE
Argentina
2019
En preparación estrategia de economía
circular
Proyecto PAGE
Brasil
2019
Ruta de la Economía Circular
Perú
2020
Hoja de Ruta hacía una Economía
Circular en el Sector Industria
Proyecto PAGE
Ecuador
2021
Libro blanco de la Economía
Circular
Panamá
2021
Programa reduce tu huella
Circular Economy requires Policy Actions
2022 - UNEA-5.2 se aprueba resolución histórica (175 países) para
forjar un acuerdo internacional jurídicamente vinculante para 2024
que aborde todo el ciclo de vida del plástico,.
2022- Declaración de ciudades
circulares (9 ciudades ALC)
2019-Alizanza del Pacífico
aprueba Hoja de Ruta hacia una
Gestión Sostenible de Plásticos
2021- Inter-Parliamentary Union Resolution ”Mainstreaming
digitalization and the circular economy to achieve the SDGs,
particularly responsible consumption and production”
2021-Coalición de Economía circular (plásticos, ciudades,
electrónicos, alimentación, simbiosis industrial y turismo)
2021- PACE Agenda de Acción de Economía Circular (textiles, capital,
alimentos y electrónicos)

9. Nationally Determined Contribuciones: waste management is
included in new and updates
Fuente: J. Samaniego y otros, “Panorama de las actualizaciones de las contribuciones determinadas a nivel nacional de cara a la COP 26”, Documentos de Proyectos(LC/TS.2021/190), Santiago, Comisión
Económica para América Latina y el Caribe (CEPAL), 2022.

10. País Pilas-Baterías RAEE Envases Vehículos Neumáticos Aceites
lubricantes
Otros productos
ARG Proyecto de ley 2561/2014
Proyecto de ley 1874-D-2019
Proyecto de ley 0934/2010
Proyecto de ley 2048/2014
Proyecto de ley 3421/2015
Ley 27279/2016(i j)
Proyecto de Ley 3279/16
Proyecto de ley - Presupuestos
mínimos de protección
ambiental para la gestión
integral de envases y reciclado
inclusivo (2021)
Resolución 523/2013
Proyecto de ley 1874-D-2019
Proyecto de ley -Presupuestos
Mínimos de Protección
Ambiental para la Gestión
Integral de los Neumáticos
Fuera de Uso. Establecimiento.
(47-S.-2021.)
Proyecto de ley 1874-D-2019 Proyecto de ley 1874-D-2019
BOL Ley 755/2015 Decreto supremo 2954/2016 Ley 755/2015 Ley 755/2015 Ley 755/2015
BRA Ley 12305/2010(i) Ley 12305/2010(i) Ley 12305/2010(i)
Decreto 10240/2020(i)
Ley 12305/2010(i) Ley 12305/2010(i) Ley 12305/2010(i)
CHL Ley 20920/2016(i)
Resolución 142/2021
Ley 20920/2016(i) Ley 20920/2016(i)
Decreto 12/2021
Ley 21.368, (2021)
Ley 20920/2016(i)
Decreto 8/2021
Ley 20920/2016(i)
Resolución 129/2020
Ley 20920/2016(i)
Resoluciones 425 y 483 de
2017
COL Resolución 372/2009(a)
Resolución 1297/2010(b)
Resolución 1512/2010
Ley 1672/2013
Decreto 1076/2015
Decreto 284/2018
Resolución 1675/2013
Resolución 1407/2018
Proyecto de Ley 106/2017
Resolución 1342 (2020)
Resolución 1457/2010
Resolución 1326/2017
Proyecto de Ley 106/2017 Decreto 4741/2005
Resolución 371/2009
Resolución 1511/2010
CRI Decreto 38272-S/2014 (c) Decreto 35933-S/2010
Decreto 38272-S/2014
Ley 8839/2010
Decreto 38272-S/2014
Decreto 33745-S/2007
Decreto 38272-S/2014
Decreto 38272-S/2014 Ley 8839/2010
Decreto 38272/2014
ECU Acuerdo Ministerial 022/2013(d) Acuerdo Ministerial 190/2013
Acuerdo Ministerial 191/2013(e)
Ley 583/2011
Acuerdo Ministerial 121/2016
Acuerdo Ministerial 098/2015 Acuerdo Ministerial 042/2019 Acuerdo Ministerial 021/2013
Acuerdo Ministerial 191/2013
Código Orgánico del Ambiente
2017
SLV Decreto 527/2020 Decreto 527/2020 Decreto 527/2020
Decreto 41/2000 y su
actualización 2018
GTM Proyecto de Ley 5202/2016 Proyecto de Ley 5202/2016 Proyecto de Ley 5202/2016 Proyecto de Ley 5202/2016 Proyecto de Ley 5202/2016 Proyecto de Ley 5202/2016
HND Acuerdo Ejecutivo 1567/2010 Acuerdo Ejecutivo 1567/2010
MEX Acuerdo de 2014 que modifica
la NOM-161/2011 (f i)
NOM 052/2005 SEMARNAT (k)
Ley LGPGIR/2003(i) Ley LGPGIR/2003(I) NOM 161/2011(i) Ley LGPGIR/2003(*) Ley LGPGIR/2003(i) Ley LGPGIR/2003(i)
-NOM-052-SEMARNAT-2005.
PAN Anteproyecto de ley 089/2019 Proyecto de Ley 607/2018
PRY Ley 5882/2017(g) Ley 5414-2015 promoción de la
disminución del uso de plástico
polietileno (2021)
Resolución 627/2016
PER Decreto Supremo 009-2019
Decreto Supremo 014-2019-EM
Ley 30884/2018
Decreto Supremo 014/2017
DOM Ley 225-20 Ley 225-20 Ley 225-20 Ley 225-20 Ley 225-20 Ley 225-20
URY Decreto 373/2003 (h)
Ley 19829/2019
Ley 19829/2019 Ley 19829/2019
Ley 17849/2004
Ley 19829/2019 Ley 19829/2019
Decreto 358/015
Ley 19829/2019 Ley 19829/2019
LATIN AMERICA: EXTENDED PRODUCER RESPONSIBILITY

11. ELECTROMOBILITY IN LAC: RETROFIT, POLICIES AND REGULATION
Source: ECLAC, based on National Plans and Strategies for electromobility and climate
change of the countries
Retrofit: economic and environmental considerations
Commitments and goals in 10 Latin American countries
Argentina
From January 2, 2041 no
more combustion engines
will be sold
Mexico
The replacement of
conventional buses with
electric ones is
estimated for around
2050
Chile
100% public transport by
2050
Ecuador
60 - 70% electric
buses by 2040
Brazil
With a National Electric
Mobility Platform. Bus
Working Group to
increase electric buses
Colombia
100% electric buses
by 2035
Costa Rica
70% electric buses by
2035; 100% by 2050
Panama
15 - 35% electric
buses by 2030
Dominican Republic
30% electric buses by
2030; 100% by 2050
Uruguay
CO2 neutrality by
2050; by 2035
passenger vehicles
Mexico Uruguay
Retrofitted bus cost, close to
50% lower than a new electric
bus. (Carrillo, De los Santos y
Briones, 2020).
A factory capable of producing
10,000 vehicles per year is
projected, which means about
5,000 direct and indirect jobs.
(Claudia Sheinbaum, twitter, 2022)
An electric vehicle from the
factory is equivalent to 3
retrofits, in terms of production
cost. About 2.5 tons of CO2 can
be reduced annually per
converted vehicle (Gabriel González,
Aso. Lat. Retrofit, 2022).
.
Chile
… five local jobs for each retrofit
bus per month and the sum of
the operating, maintenance and
leasing costs of a retrofit bus
would be less than that of a new
electric bus or a diesel fuel bus
(Reborn Electric, 2020).
Region
There are about 150
companies that work
collaboratively on technical and
legislative issues, among
others.
(Gabriel González, Aso. Lat. Retrofit,
2022).

12. Batteries: Analysis of alternatives for electromobility by type of batteries

13. Closing messages
1. Closes 3 gaps: local production chains, dynamism, employment and lesser environmental footprint.
a) Employment multipliers and spillover effects: If the waste and recycling sector in Latin America and the
Caribbean were developed into a key sector and had a municipal waste recycling rate equivalent to that of
Germany, it could contribute to the green economic revival: almost 450,000 stable jobs would be created and
the region’s GDP would increase by 0.35%.
2. In recent years, in LAC countries, public policies pro circular economy have been implemented, although the main
focus is waste management and its recovery and recycling.
a) Roadmaps and national circular economy strategies, waste management policies, extended producer
responsibility (REP) laws, initiatives to promote the efficiency of material resources and recycling goals are
highlighted.
b) Fiscal policies (taxes, incentives and elimination of subsidies) and certain policies on products (ecological
design, prohibition of non-reusable products and extension of the useful life of products) are added.
3. Incentives are needed for the development of circular economy initiatives, formal funding for its infrastructure.
4. That requires an enabling regulatory framework nationally and at a regional scale (interoperability for converted
vehicles and waste reduction and processing, design of buildings, mutual recognition of homologation tests
results, harmonizing permits, creating passports for material transit).