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June 6, 2024
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For Latin America, the transition to a circular economy currently represents a unique opportunity and, at the same time, one of the most significant challenges. We are at an economic crossroads that requires a profound change in the models of extraction, production and consumption of our natural resources.
In this sense, thinking about circular economy strategies means thinking beyond the proper management of our waste. It's about rethinking business models, seeking to minimize the extraction of virgin resources, minimize the generation of waste in our processes, extend the life cycle of products and design them so that resources can be reused by our industries. Because of its characteristics, the region faces unique obstacles on its path to circularity, exacerbated by a high degree of informality across multiple economic sectors, as well as by social vulnerability exacerbated by the effects of climate change.
The reality is that Latin America responds to a primary economic model, predominantly linear and characterized by an intense extraction of virgin raw materials, which seeks to respond to a global demand for resources and therefore achieves export rates close to 40%. The region is one of the territories with the greatest geographical diversity and has natural resources that represent a key element for global economic development. Considering global resources, our region has the reserves of:
In addition, its countries are home to 8.3% of the world's population, and contribute to 11.2% of the world's extraction of raw materials. These data not only reflect the natural wealth of our region but also the responsibility we have in the responsible management of these resources. Change is also necessary beyond LAC, international collaboration and coordination are needed. As a resource-rich region, the growth of economies around the world drives the demand for material extraction in LAC.
Latin America has shared challenges among the countries of the region: Considering the mainly productive, extractive and export-oriented economic model, the region faces high and accelerated levels of natural resource depletion. In addition, the region has low material productivity, i.e. a low capacity to produce monetary value from each unit of material consumed. Finally, it has very unequal societies and a limited public sector capacity to provide public goods and support the economy.
So how can we improve the performance of extracting those resources to generate added value in our region? Or to put it another way, how can we decouple economic growth from resource extraction?
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By adopting circular practices, we not only protect our valuable natural resources, but we also open the doors to sustainable, inclusive and resilient economic development, Federico Manuel Gomez Guisoli
Let's design a tailor-made strategy
To face these regional challenges, an effective tool presented is the development of a regional Circular Economy roadmap, which consists of a strategic plan that defines a shared vision in the medium and long term and allows the establishment of strategic axes and lines of action. It can increase commitment between countries and alignment across the region by contemplating defined lines of action, delimited into 5 main categories:
The transition to a circular economy in Latin America is both a challenge and an opportunity. Our region has the resources, diversity and creative capacity to reinvent its economic models. However, as of today, its circularity metric is still less than 1%.
By adopting circular practices, we not only protect our valuable natural resources, but we also open the doors to sustainable, inclusive and resilient economic development. This transition requires the collaboration of countries, governments, organizations and individuals, as well as an in-depth educational process to make this information available and available to everyone.
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