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Rampant material extraction is pushing the ecosystems of Latin America and the Caribbean (LAC) to their limits. Over 11% of global raw materials are extracted within the region, yet it represents only about 8% of the world's population.

[*The Circularity Gap Report* (CGR) Latin America and the Caribbean](https://www.circularity-gap.world/lac), a first of its kind, demonstrates how the region can leverage the circular economy to tackle systemic inefficiencies in satisfying societal needs, conserve its unique natural wealth, and improve its people’s well-being.

To devise pathways for a circular transition, the report analysed the sectors where circular interventions could yield the most positive impact—environmentally, economically, and socially. This entails shifting to a circular food system, building a circular built environment, advancing circular manufacturing, transforming the energy system, reducing waste generation, and improve waste cycling.

[Circle Economy](https://www.circle-economy.com/) is a global impact organisation with an international team of passionate experts based in Amsterdam. We empower industries, cities, and nations with practical and scalable solutions to put the circular economy into action. Our vision is an economic system that ensures the planet and all people can thrive. To avoid climate breakdown, our goal is to double global circularity by 2032. Through the Circularity Gap Reporting Initiative, our mission is to deliver Circularity Metrics that measure the state of the global and national economy and identify key levers to transition to circularity. 

Latin America Collection

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Business case

Converting fossil fuel based operations to electric

Electrification

Enacting measures that optimise energy use

Energy efficiency

Using renewable energy like solar, wind, etc. or renewable fuels like biomass, etc.

Renewable energy, fuels

The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

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Circle Economy's framework of strategies and activities that define the circular economy

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Based on the work of [Bocken et al. (2016)](https://www.researchgate.net/publication/309699661_Product_design_and_business_model_strategies_for_a_circular_economy), the Four Flows Framework serves as a simple framework for managing resource flows in a circular economy by using less (Narrow), using for longer (Slow), using again (Cycle), and using clean, regenerative materials and energy (Regenerate).

These different principles of circular economy can be applied to our socioeconomic metabolism: we can design stocks like buildings, infrastructure, machinery, and vehicles to be rich resource mines for the future, and design manufactured goods and consumables to be cycled and made regenerative. Furthermore, the focus must also centre on getting more value out of fewer materials. Achieving the aims of a circular economy—minimising material use, regenerating the Earth, and preventing material losses—can be done through these four key strategies mentioned above.

Source: Circle Economy. (2023). *[The circularity gap report 2023](https://www.circularity-gap.world/2023)* (p.22). Amsterdam: Circle Economy. 

Four Flows Framework

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Uruguay

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Uruguay’s Renewable Energy Innovation Fund

Every month "Bioestibas" prevents the cutting down of more than 775 trees and the emission of 1,260 tons of greenhouse gases. Besides, it helps over 1,100 farmers properly dispose of thousands of hydrangea stems, using 250 tons of hydrangea waste per month. And creating a superior product that saves over 75% in storage and transportation costs.

Reducing deforestation practices of the stowage industry by producing ecological stowage from floriculture residues.

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Nucycles collects textiles from local industrial waste in Mexico to create multi-purpose products and accessories. 57% of the fabric's composition used for Nucycle's products is made of collected discarded cotton, since that is the only material that they keep.&nbsp;

Nucycles: collecting discarded textiles to create new products

Article / Report

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Yarn producer Inca Tops has developed an innovative solution that generates renewable energy and biofertilizers from waste from their current fiber production.&nbsp;

Making biogas and biofertilizers from solid waste of alpaca and sheep wool in Arequipa.

Through different collecting textiles campaigns in Mexico, both from citizens and companies, Industrias Marve managed to established solid businesses based on those collected textiles. Industrias Marve is the largest textile recycler in Latin American.

Collecting and sorting textiles for reuse and recycle by Industrias Marves in Mexico

Fibretex is a company dedicated to the recovery of textile fibers generated from surpluses from cutting and making garments. They process fibers for mattress filling, wicks, and felts or non-woven fabrics for industrial use.&nbsp;

Fibretex- recovery of textiles for the manufacture of fillings for mattresses, thick yarns, and non-woven fabrics in Colombia

The Chilean upcycling brand 12NA has been working for 20 years using unused garments to make its collections. Its proposal not only seeks to reduce the environmental impact, but also generates educational activities through community events and workshops to raise awareness and spread upcycling techniques.

12NA: Garment to garment upcycling with social impact


Fruta Imperfeita is a Brazilian start-up that aims to reduce food waste by selling ‘ugly’ fruits and vegetables that would otherwise be discarded. The company works with small-scale farmers to purchase produce that doesn't meet supermarkets’ aesthetic standards and sells it at a discount to consumers. Buen Provecho is an Uruguayan digital platform that tackles food waste in the retail industry. It connects stores that have surplus food with people interested in buying it at a discount. This initiative has a triple positive impact: economic (shops recover costs), social (access to quality food is extended) and environmental (reduced GHG emissions due to less waste).

Digital solutions can reduce food loss and waste


Launched in Bogotá, Colombia, in 2021, this partnership between HABI (a real estate platform), Green Factory (a sustainability construction and certifications company) and Banco de Bogotá (a financial institution), promotes the purchase of refurbished apartments that integrate circular economy principles, provide certified resource efficiency benefits and offer lower loan rates. Properties are adapted to maximise the use of existing resources and minimise the usage of essential services. This enables cutting energy consumption by up to 30% and water usage by as much as 40%.

Circular housing partnerships can integrate both environmental and social considerations.

Policy case

Uruguay’s Renewable Energy Innovation Fund (REIF), supported by the Joint SDG Fund and several UN agencies, aims to advance the country’s second energy transition (2ET). Uruguay now generates nearly all of its electricity from renewable sources. However, it is facing challenges in reducing its reliance on fossil fuels: to fully decarbonise its economy, it needs to transform the transport sector and progressively phase out other non-renewable energy uses within the industrial, residential and commercial sectors. With this in mind, the REIF is devoted to mobilising large-scale funding for innovative and emerging technology projects that facilitate the 2ET. Promoting the energy transition also presents a chance to speed up Uruguay's economic and social advancement, specifically gender equality and women's economic empowerment.&nbsp;