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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

Impact on increased knowledge and understanding as a result of the case study

Increase Awareness

Direct and indirect reduction in economic costs

Cost Savings

Reduced green house gas emissions released into the biosphere

Reduce Emissions (SDG13)

Minimise waste through diversion: Instead of sending waste to landfill, it is redirected into other industrial processes for handling, treatment, recycling, recovery, or reuse in various forms. 

Minimise waste through design: At the outset of a process of project, plan and design such that there is zero waste or minimal waste during production, use, and at end of life. 

Minimise Waste (SDG12)

Reduced use of fossil fuel energy sources and/or increased use of renewable energy

Reduce Energy Consumption

Collecting waste from households and businesses by means of refuse bins, wheeled bins, containers, etc., and providing treatment, incineration, materials recovery and reclamation, and disposal of hazardous and non-hazardous waste

Waste Management

Producing basic and specialty chemicals, inks, agricultural chemical such as fertilisers and pesticides, plastics including packaging, and rubber

Chemical and Plastic

Refining and processing ores and producing ferrous and non-ferrous metal and glass products, including packaging

Metal and Glass

Extracting and gathering wood through forestry and producing wood and paper products

Wood and Paper

Use digital, online platforms and technologies that provide insights to track and optimise resource use, strengthen connections between supply chain actors, and enable the implementation of circular models



Incorporate digital technology

Collection programmes that process products and parts for reuse or recycling within the same industry

Closed loop collection

Transforming waste products into materials and lower value products within the same industry

Closed loop downcycling

Collection programmes that process products and parts for reuse or recycling within other industries

Open loop collection

Transforming waste products into materials and lower value products within other industries

Open loop downcycling

Specific programmes or initiatives to help customers become more circular 

Customer programmes

Implementation of strategies to collect recyclable waste in order to make it accessible and available to be used as an input in industrial processes (big or small). These are door-to-door collection (higher recovery rates but more costly intensive), drop-off schemes (cheaper but less effective, more common in cities with high housing density), or a combination of the two, and their corresponding incentive schemes. 

Collect recyclables

Infrastructure for citizens or cities to sort waste and extract recyclables, including incentives and pay-as-you-throw policies, as well as clear and targeted communications campaigns.

Sort recyclables

Grow countries globally account for 55% of all raw material extraction and 52% of the material footprint, while housing around 37% of the global population.

These are larger Southeast Asian countries and countries in Latin America and Northern Africa, as well as those with an economy in transition in Eastern Europe, the Caucasus, and Central Asia.

Examples include :
- China
- Indonesia
- Brazil
- Mexico
- Vietnam
- Myanmar
- Egypt, ...

Large contribution to the overshoot of planetary boundaries—largely due to the consumptions of local materials in higher-
income (Shift) countries: these countries contribute 50% of climate change, 62% of nitrogen, 60% of phosphorus, 53% of freshwater use and 42% of land use change.

To find out what country profile your country belongs to, explore [this interactive story](https://circularity-gap.world) and search for your country on the final map.

Grow

Business

Impacts

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Industries

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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

Urban Opportunities

Whilst no two countries are the same, there are still obvious similarities between some of them, with discernible development patterns and parallels in evidence. Common problems and shared solutions help place unique country identities and individual issues in context.

Whilst this classification is far from clear-cut and exhibits some overlap, it does underline how the discourse on transitioning to a circular economy needs to account for both differences and commonalities, if we are to arrive at a more strategic and instructive analysis. It also allows to highlight a set of key themes that are likely to be central to the countries that fall under the respective profiles. 

Country profiles (Build, Grow, Shift)

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A framework to distinguish between different country profiles and their circular transition needs.

Browse case studies by type of implementing stakeholder.

Implementing stakeholders

Peru

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated $79 billion in net revenue in 2021, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

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Pepsico

PepsiCo is launching a project—’Recycling with Purpose’—by beginning to offer ‘ecoins’ in Peru. Ecoins are a virtual currency that financially incentivise users to recycle their waste, involve consumers in education about waste management and partner with civil society organisations to encourage inclusive recycling. On the digital platform, consumers can use ecoins to get discounts on products like food and drinks, as well as services—and the more your recycle, the more ecoins you can earn. Users bring clean, dry and segregated waste to collection centers to obtain the coins. Following the success of the launch in Peru, PepsiCo aims to expand the programme to ten countries throughout Latin America, between 2019 and 2021. It is estimated that 300,000 consumers will have ecoin accounts by the end of 2019.

'Recycling with Purpose' project

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This collection features a selection of inspiring examples of the circular economy, compiled in the context of the Switch to Circular Economy Value Chains programme (SWITCH).

Launched in 2020, SWITCH is a five-year initiative that assists EU multinational companies and their suppliers from developing countries to switch to more circular economy approaches and practices in three selected value chains: [Plastic Packaging](https://knowledge-hub.circle-lab.com/switchtocircular/search?collections=832%3D0&framework_elements__5=111), [Textile & Garments](https://knowledge-hub.circle-lab.com/switchtocircular/search?collections=832%3D0&framework_elements__5=99), and ICT and Electronics.

The overall objective of SWITCH is to support the “transformation towards a circular economy”, and to contribute to sustainable growth, low carbon and climate resilient development, decent jobs creation, and a safer, healthier and pollution-free environment.

SWITCH is co-funded by the European Union and the Government of Finland, and implemented by UNIDO, in collaboration with Chatham House, Circle Economy, and the European Investment Bank.
Learn more at www.switchtocircular.eu

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Switch to Circular Economy Value Chains

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Providing goods on the Internet, through mail order, or television, or providing goods in stores, including apparel, electronics, furniture, food and drug, etc.

Retail

Using bio-based materials such as bioplastics, mushroom-based materials, etc.

Alternative bio-based materials and inputs

Transforming waste products, materials for reuse within other industries

Open loop upcycling

Using waste materials that have been processed and recycled to produce new products within other industries

Using open loop recycled materials

Working together with stakeholders and parties in other unrelated industries to implement circular economy strategies and opportunities

Cross-industry projects, pilots

Working together with the community and engaging them in the company operations

Joint product development

  



 The NaturALL Bottle Alliance is a research consortium formed in 2017 by Danone, Nestlé Waters and bio-based materials development company Origin Materials to accelerate the development of innovative packaging solutions made with 100% sustainable and renewable resources. Today it announced that PepsiCo, Inc. has joined the Alliance to advance the shared goal of creating beverage containers with a significantly reduced carbon footprint. The Alliance also provided a progress report in its goal of developing and launching a PET plastic bottle made from bio-based material. Launched in March 2017, the Alliance uses biomass feedstocks, such as previously used cardboard and sawdust, so it does not divert resources or land from food production for human or animal consumption. The technology being explored by the Alliance represents a scientific breakthrough for the sector, and the Alliance aims to make it available to the entire food and beverage industry. Read the full press release  

The NaturALL Bottle Alliance is a research consortium formed in 2017 by Danone, Nestlé Waters, and bio-based materials development company Origin Materials  to accelerate the development of innovative packaging solutions made with 100% sustainable and renewable resources. On Sept. 11, NaturALL announced that PepsiCo, Inc. has joined the alliance to advance the shared goal of creating beverage containers with a significantly reduced carbon footprint. The alliance also provided a progress report in its goal of developing and launching a PET bottle made from bio-based material. Launched a year ago in March, the alliance uses biomass feedstocks, such as previously used cardboard and sawdust, so it does not divert resources or land from food production for human or animal consumption. The alliance says the technology it is exploring represents a scientific breakthrough for the sector, which it aims to make available to the entire food and beverage industry. “Creating more sustainable packaging requires innovation through the value chain. Producing PET from sustainable bio-based sources that do not diminish food resources and are fully recyclable is a great example of such innovation and an important contributor to PepsiCo’s sustainable packaging program,” says Mehmood Khan, PepsiCo Vice Chairman and Chief Scientific Officer. “Through our Performance with Purpose agenda, PepsiCo is committed to reducing the carbon impact of packaging in line with our goal to reduce absolute emissions of greenhouse gases by 20 percent by 2030; bio-based PET has the potential to reduce significantly the carbon footprint of our PET bottles, a huge contribution to our efforts in this area. We are excited to add PepsiCo’s R&D capabilities to the alliance and look forward to seeing what the combined efforts of the alliance members can achieve.” “PepsiCo is a welcome addition to the alliance because we share the goal of making renewable plastic a reality,” says Origin Materials CEO John Bissell. “Through the combined efforts of its members, the NaturALL Bottle Alliance is setting the bar for sustainability for an entire industry.” Commentes Frédéric Jouin, Head of Research and Development for plastic materials at Danone, “We are very enthusiastic about PepsiCo joining the alliance. By bringing together major players and pooling our complementary expertise and resources, we can make 100-percent renewable and recyclable PET plastic at commercial scale a reality. We also expect to see additional opportunities for this breakthrough technology.” Massimo Casella, Nestlé Waters’ Head of Research and Development, adds, “We are pleased to welcome PepsiCo into the NaturALL Bottle Alliance. Their addition is further proof of the importance of this disruptive technology. The alliance has taken an important step in working together to tackle the challenges around plastic packaging. Developing 100-percent bio-based PET is one way Nestlé is working to use more materials from sustainably managed renewable resources.” Progress report After producing samples of 80% bio-based PET at pilot scale in 2017, the alliance has made further progress toward its goal of bringing its technology to full commercial scale. It has selected a site in Sarnia, Ontario, Canada, with the assistance of Bioindustrial Innovation Canada, and has begun construction of its demonstration-scale plant. The major process equipment has been fabricated, and modules are under construction for this plant, which is expected to have a capacity of 18,000 tons of biomass and be fully operational by 2020. Following that milestone, the alliance plans to increase production to 95% bio-based PET and achieve full commercial-scale soon after. Alliance members plan to continue their joint R&D efforts to increase the level of bio-based content, with the ultimate objective of reaching 100%.

 WHERE WE ARE TODAY
Today, we systematically look to collaborate with public authorities and private companies to optimize formal Extended Producer Responsibility (EPR) and Deposit Return Scheme (DRS) systems. In fact, Danone helped pioneer the concept of EPR in France with the founding of Eco-Emballages (today known as CITEO).
In countries where collection systems for recycling are informal, we work with local communities governments and partners like the Inter-American Development Bank to improve standards for waste collection and invest in recycling infrastructure. Danone and the Danone Ecosystem Fund have launched projects to support waste pickers in 7 countries, including by ensuring they work in a safe environment, are paid appropriate wages and afforded greater social protection. As of 2018, close to 6,000 waste pickers have been professionally empowered, and more than 45,000 tons of waste are recycled each year through these projects.
Finally, our brands have been working to engage consumers in the circular economy and support cutting edge research innovation.  For instance, evian® is taking part in a research mission with The Ocean Cleanup, a Dutch non-profit start up that has developed scalable advanced technologies to help rid the oceans of plastic, while Danone AQUA has pledged to recover more plastic than it uses in Indonesia, including through interception of marine littering. 

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Danone S.A. is a French multinational food-products corporation based in Paris. It was founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of the company's products are branded Dannon in the United States.

Danone

Nestlé S.A. is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other metrics, since 2014. 

Nestle 

Origin is the world's leading carbon negative materials company. The Origin platform turns the carbon found in biomass into useful materials, while eliminating the need for fossil resources and capturing carbon in the process.

Origin Materials

The NaturALL Bottle Alliance is a research consortium formed in 2017 by Danone, Nestlé Waters and bio-based materials development company Origin Materials to accelerate the development of innovative packaging solutions made with 100% sustainable and renewable resources. PepsiCo, Inc. has joined the Alliance to advance the shared goal of creating beverage containers with a significantly reduced carbon footprint.

NaturALL Bottle Alliance - Danone, Nestle and PepsiCo partner with Origin Materials to develop an innovative packaging solution

This collection is being created to regroup all case studies related to the packaging industry (CAT purpose)

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Packaging collection

Operating networks and software that enable the exchange and broadcasting of information, such as entertainment and internet software, television, cable, satellite or radio broadcasting systems, and cellular, wireless and/or fixed-line telecommunications services

Software and Communications

Designing products to remove any barriers to recycling and enable easy recyclability

Design for recycling

Working together with industry peers to engage in business activities or exploratory projects that advance the circular economy

Joint industry ventures, projects, pilots

Installing sensors to gather data from products and services to identify, enable and/or implement circular strategies (eg. effective resource use & logistics planning, circular business models & design)

Sensors, monitoring systems

We’re a charity committed to creating a circular economy, which is designed to eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. It’s an economic system that delivers better outcomes for people, and the environment.

Ellen MacArthur Foundation

The Procter & Gamble Company is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. 

Procter & Gamble 

Unilever plc is a British multinational consumer goods company with headquarters in London, England.

 Unilever

The Alliance is a community of pioneering CEOs dedicated to building a circular economy for plastic. Our membership is growing rapidly. We have convened some 70 companies from across the plastics value chain including brand owners, resin producers, converters, waste managers, recyclers and technology providers. Working together, we are shaping and investing into pathways to a sustainable future.

Alliance to End Plastic Waste

AIM (Association des Industries de Marque) is the European Brands Association, representing manufacturers of branded consumer goods in Europe on key issues which affect their ability to design, distribute and market their brands.

AIM - European Brands Association 

Digimarc is a global leader in product digitization, providing unique identities and cloud-based solutions that collaborate with applications and machines to deliver business value.

Digimarc

The Digital Watermarks Initiative HolyGrail 2.0 – driven by&nbsp;AIM - European Brands Association&nbsp;and powered by the&nbsp;Alliance to End Plastic Waste&nbsp;– is a pilot project with the objective to prove the&nbsp;technical viability&nbsp;of digital watermarks for accurate sorting of packaging waste as well as the&nbsp;economic viability&nbsp;of the business case at large scale. HolyGrail 2.0 emerged from the pioneering HolyGrail project, which was funded by the Ellen MacArthur Foundation from 2016 to 2019 and examined a number of approaches to improve recycling along the packaging value chain.&nbsp;Digital watermarks; hidden in the colour print on packaging, are invisible to the human eye and work in the same way as a barcode to facilitate waste sorting and maximize recycling rates.