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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

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

Producing building materials and providing services to create residential and non-residential infrastructure and real estate


Construction and Infrastructure

Providing electricity and gas services, including traditional and renewable energy generation, natural and manufactured gas and operating gas networks

Energy Utilities and Independent Power Producers

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

Participating in government programmes that support and advance the circular economy

Government programmes

Roadmaps and strategies and targets

Advocate for circular change

Impacts

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Industries

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A framework of policy instruments that enabled and encourage the transition to the circular economy

Policy Instruments

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A framework of policy instruments that enable and stimulate the transition to the circular economy

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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     Articles     by  Rudi Bressa    Renewable Matter # 29-30 / September-December        

Colombia

Government of Colombia

Government of Columbia

Atres CNA (Cooperativa No Agropecuaria) based in the Province of Matanzas, Cuba, recovers plastic waste from the environment to develop products made of 'Ecomadera' (eco-wood in English), lumber wood made of plastic. Ecomadera is made from a mix of different kinds of plastics, reducing the need for virgin plastic resin, while providing clear advantages over other materials thanks to its good physico-chemical properties. The raw materials are provided by the national waste management company, who found in CNA Atres a valuable final destination to large volumes of diverted plastic, and by self-employed workers that are dedicated to the collection of solid waste. Products vary from trash cans, picnic tables, chairs, fences, stairs, and other home furniture. The Cooperative has achieved great visibility in Cuba and the high demand for its products has required the opening of new production facilities in the provinces of Havana, Mayabeque, Pinar del Río and Cienfuegos. As of 2019, the Cooperative has recycled approximately 250 tonnes of plastic.&nbsp;

Cooperative in Cuba turns plastic waste into lumber

UTT works to improve food sovereignty and agro-ecological practices in food production by bringing together and empowering farmer families in Argentina. One of their main objectives is to reduce the use of pesticides, herbicides and synthetic fertilisers, plastics and genetically modified seeds on farms. The activities of UTT range from advocating for improved legislation and secure access to land for farmers, the provision of micro- and soft loan schemes for smallholders, training and capacity-building.

Union of Land Workers (UTT) transforming Argentina’s agricultural landscape through agroecology

Policy case

A system of decentralised composting locations allows São Paulo to divert large amounts of organic waste from landfills and produce compost.

São Paulo: Decentralised composting yards collecting and composting organic waste from street markets and households

'This paper defines São Paulo’s strategy for organic waste diversion, including collection treatment and recycling and their challenges for São Paulo. It builds on an assessment of São Paulo’s waste management by the City Assistance Project under the Climate and Clean Air Coalition Municipal Solid Waste Initiative, and a 2014-2033 Action Plan for organic waste in line with the city’s goals for integrated solid waste management.'

São Paulo's organic waste diversion strategy


"The city of Curitiba started the first recycling program in Brazil’s large cities in 1984, which turned out to be one of the most successful in the world and a leading example of a low cost but effective waste management program." Text by Oscar Ricardo Schmeiske in https://www.resourcepanel.org/file/323/download?token=oYh3a-SH

Incentivised recycling in Curitiba, Brazil

Sigora's “micro-utility” energy systems are helping building back a better Haiti after Hurricane Matthew. By clustering several micro-grids together in this system, the company is able to provide clean, reliable, and fairly-priced energy to Haiti’s most remote regions. Private ownership and decentralization of the grids contributes to the resilience of the overall system. Decentralization means that the entire network is not interrupted when one weak point fails.&nbsp;Whereas private ownership means that there is a local trained workforce on hand to restore power more quickly when disaster strikes.

Building Better: Decentralized Energy System in Haiti

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BASF developed a new approach about the recycling process, which involves a series of badges that will help recyclers with mechanical sorting of collected plastics because the badges can be scanned. This is done by blockchain which is used to share data form the digital badges amongst market participants securely.

reciChain - BASF uses blockchain for plastic recycling 

Bringing together governments and relevant networks and organisations, the Global Alliance on Circular Economy and Resource Efficiency (GACERE) aims to provide a global impetus for initiatives related to the circular economy transition, resource efficiency, and sustainable consumption and production. Eleven countries (Canada, Chile, Colombia, Japan, Kenya, New Zealand, Nigeria, Norway, Peru, Rwanda, and South Africa) and the EU have joined the Alliance to date. Participants will address the need for a green recovery in a post-pandemic world and will look in particular at how sustainable development can tackle the unsustainable patterns that have driven environmental degradation and led to these crises.

Global Alliance on Circular Economy Plans to Advance Circular Transition 

Costa Rica has developed a Decarbonization Plan (2018-2050), which entails national strategies for green growth and lower emissions. The plan discusses transportation and sustainable mobility, energy and green building, waste management and agriculture and land use. The actions are presented in 10 sectoral focus areas with policy packages in three periods: beginning (2018-2022), inflection (2023-2030) and massive deployment (2031-2050), and also 8 cross-cutting strategies to enhance change.

Decarbonization Plan in Costa Rica

The National Strategy of Circular Economy (ENEC, by its acronym in Spanish) in Colombia establishes 6 lines of actions for a more circular future of the country, in the following areas: industrial materials and products; packaging materials; biomass optimization; water management; energy sources; material consumption in urban areas.

Colombia's National Strategy of Circular Economy

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Circle Economy and ICLEI have partnered up to initiate the go to knowledge hub of case studies about the circular economy in cities. The Cities Collection is a repository of case studies that demonstrate the role of cities in the circular transition, and includes policies, business cases and research articles. Cases in the Collection flow into an ecosystem of digital products which support users in transitioning cities to circularity, for example [Ganbatte](https://ganbatte.world/cities/) and <a href="https://circulars.iclei.org/" target="_blank">ICLEI Circulars</a>, both part of the <a href="https://circulars.iclei.org/circle-lab-for-cities/" target = _blank">Circle Lab for Cities Programme.</a>

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Circular Cities

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Starter Kit collection

Impact on the availability of resources as well as their effect on living organisms, ecosystems, and components of the environment.

Ecological Impact

Impacts on the social fabric of the community and well-being of the individuals and families.

Social Impact

Impacts on the financial condition of a company, as well as the the economicconditions of its stakeholders and on economic systems at local, national, andglobal levels.

Economic Impact

Impact on the health and happiness of human populations

Well-being

Direct and indirect reduction in economic costs

Cost Savings

Reduced use and withdrawal of water and rate of recycling and reuse of water

Save Water (SDG6)

Contributing to the improvement of biodiversity including species diversity, total number of protected species, and ecosystem health

Biodiversity

Producing agricultural products and processing them into food and beverageproducts for consumption

Agri/Food

Societal Services

Providing water and sewage services, including water collection and distribution, water treatment systems and sewage treatment facilities

Water and Sewage

Producing and gathering crop and animal products from land and water through farming, hunting, and fishing

Agriculture

While resources are in-use, maintain, repair and upgrade them to maximise their lifetime and give them a second life through take back strategies when applicable

Stretch the lifetime

Ensure that biological products are properly managed and preserved

Maximise lifetime of biological products

Managing and enriching biological products such as soil, land, etc.

Management, enrichment

'Manage' influences the use and function of physical and material elements within the urban environment. 

Manage

Infrastructure

'Mobilise' sets the direction of and builds momentum towards long-term change, while also determining how this direction is determined and governed.

Mobilise

Visions and Ambitions

Govern the Transition

Institutional design to enable circularity

'Incentivise' sends market signals and support to businesses, citizens and governments to promote certain activities.

Incentivise

Public-private partnerships

Develop infrastructure to support resource cycling

Economic Frameworks

Redesign systems to lay the foundation for circular activities and enable the transition to a circular economy 

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Rethink

Use longer and more often by extending and intensifying use of existing resources, products, spaces and infrastructure

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Reuse

Do better with less by using and supporting infrastructure, processes and products that are designed to minimize material, water and energy use and waste generation from production to end of use


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Reduce

Eliminate waste by maximizing the recovery of resources at the end of the use phase so that they can be reintroduced into production processes


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Recover

Facilitate cross-collaboration by engaging city departments, industries and businesses on ambitious, closed-loop circular projects.

Support closed-loop systems and cross-sectoral synergies

Maintain and repair city-owned spaces and infrastructure to increase longevity, and support opportunities for residents to do the same for privately owned items and property

Support reuse, repair, remanufacturing, maintenance of existing resources, products, spaces & infrastructure

Ensure that infrastructure and built assets in the city are designed and upgraded to be as resource-efficient as possible.

Design infrastructure and the built environment for resource efficiency

Process waste into valuable industrial inputs or consumer products; distribute processed waste to users.

Process waste and ensure its re-entry into industry at its highest value

The food system nourishes populations and employs 50% of the global workforce, but:
- it currently drives a quarter of the overshoot on the climate change planetary boundary due to its greenhouse gas (GHG) production, 
- animal farming alone uses over one-quarter of all land, equivalent to the size of the Americas,
- nearly a quarter of freshwater resources are lost due to rampant food waste, and
- it is the single largest driver of biodiversity loss.

A circular food system must address the whole value chain, from production to consumption to waste management. The four key solutions for the food system are:
- Put healthier, satiating foods first: Prioritise satiating and healthy foods with a lower environmental impact—ideally shifting calories from meat, fish, and dairy towards cereals, fruits, vegetables, and nuts.
- Go local, seasonal, and organic: Prioritise the production and consumption of local, seasonal, and organic produce (sometimes in combination with GMO to reduce pests and disease loss on crops), which can lead to a significantly reduced need for chemical inputs, fuels, and processing services that contribute to environmental impacts.
- Mainstream regenerative agriculture: Scale up agricultural practices that regenerate ecosystems, recirculate nutrients and sequester carbon by design. 
- End avoidable food waste: Minimise food loss and valorise waste following the food waste hierarchy along the supply chain and at the consumer level through better management of transport and storage, more refrigeration and smart planning, and technology at the consumer and food service levels.



🍏 Food Systems

Cities consume about 75% of global energy and emit between 50% and 60% of global greenhouse gases (UN-Habitat). To reduce the negative impact of their energy consumption, cities need to shift away from fossil fuels and move towards renewable energy sources. Such a shift will help cities work towards their climate change mitigation and adaptation action plans. Renewable energy technologies such as wind, water, solar, and geothermal can also help improve access to energy in vulnerable and marginalised neighbourhoods through, for example, decentralised, off-grid solutions.

Renewable energy technologies can harvest the energy in nature’s processes, such as wind, and solar radiation and geothermal heat, that can be replenished within a human lifespan. In contrast, fossil fuels are materials that are not replenished within a human lifespan and are combusted for energy, losing the fuel material and resulting in emissions.

Local governments can develop sustainable energy plans, considering different energy resources and requirements, to develop a robust strategy for the development of renewable energy technologies and infrastructure throughout the city. They can also institute specific legislation and tax systems to regulate energy production and consumption, incentivise research and development of cleaner, more efficient technologies. Via Power Purchase Agreements cities can buy renewable energy from green energy providers and fix the price in order to provide security to financial institutions to finance renewable energy infrastructure. Furthermore, increasing awareness and facilitating capacity-building on planning urban sustainable energy projects can help the uptake of clean energy across the city by different stakeholders—from citizens to businesses and institutions. Facilitating collaboration, then, will be crucial, since private companies operate most of the world’s energy systems.


⚡ Energy Systems

Businesses

Governments

Water system refers to the water supply network for storing and supplying water for use by the community.

One of the greatest challenges of a city is to provide its inhabitants with safe, clean water from a limited fresh water supply. Improving the city’s water infrastructure efficiency, such as minimising leakages, reduces the strain put on the limited supply, which in turn, helps to ensure inhabitants gain access to clean and affordable water.

The water infrastructure of a city typically consists of components such as surface water diversions, wells, pumps, transmission pipes and canals, treatment and storage facilities, and distribution network elements (Burian et al.). Options for improving the efficiency of the system include investing in water loss reduction systems, creating and following a regular maintenance program, and better matching water supply and demand (Global Water Partnership).

Cities can improve the efficiency of their water system infrastructure by conducting a water audit, in which all water flows are traced and losses in the system are identified to map where the most efficiency improvements can be gained. Alongside this, asset management can be used to create a short-term and long-term strategy of investing in new equipment, refurbishing existing equipment and developing maintenance programmes to ensure infrastructure is as efficient as possible, and leaks are minimised. Such management programmes create financial transparency amongst all stakeholders and provide useful long-term planning for larger infrastructure changes (US EPA)

💧 Water Systems

Water is not only at the core of different public services cities provide, including application and sanitation, water also acts as a carrier of nutrients and energy which can benefit other urban systems. However, Global demand for freshwater will exceed viable resources by 40% by 2030, if we continue with business as usual ([ARUP](https://www.arup.com/-/media/arup/files/publications/w/water_and_circular_economy_whitepaper.pdf)). Exploring the synergistic link between water, food and energy in urban systems becomes central to sustainable development and the sustainable management of water. Urban changemakers in all three areas should start taking a more holistic approach to water management—from water resource management, to ecosystem protection and water supply and sanitation ([UN Water](https://www.unwater.org/water-facts/water-food-and-energy/)).

Bringing circularity within the food-water-energy nexus means recognising all urban water flows—drinking water, stormwater, wastewater and source water—as potential resources for use across these three sectors. Circular water systems can maximise synergies between food water and energy systems by protecting water availability to maintain agricultural production in water scarce regions, or by recovering energy from wastewater treatment, replacing fossil fuels used for cooking or heating. Solid organic matter, or biosolids, recovered from a sewage treatment can also be used as a fertiliser, preventing harmful chemicals from polluting water streams so that water sources are clean and safe to drink.

Local governments can govern the food-water-energy nexus by looking holistically at the city’s infrastructure. They can update city plans to integrate Green Blue Infrastructure (GBI) which can provide tangible benefits to each dimension of the food-water-energy nexus. Parks, green walls, waterways and greenways can, for example, provide food, water, fibre and fuel to support the urban ecosystem. Moreover, bringing different actors together, from the department of water resources, food safety, as well as energy and planning, is at the heart of any form of integrated planning. To spur cross-sectoral collaboration, for instance, cities can convene different actors on dedicated platforms and facilitate effective communication between different city departments and public organisations. Embedding a nexus strategy in municipal policy may lay a foundation for cross departmental budgeting and program implementation.


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💧 🍏 ⚡  Supporting solutions that maximise synergies between food water and energy systems

One of the greatest challenges of a city is to provide its inhabitants with safe, clean water from a limited fresh water supply. Improving the city’s water infrastructure efficiency, such as minimising leakages, reduces the strain put on the limited supply, which in turn, helps to ensure inhabitants gain access to clean and affordable water.

The water infrastructure of a city typically consists of components such as surface water diversions, wells, pumps, transmission pipes and canals, treatment and storage facilities, and distribution network elements ([Burian et al.](https://www.sciencedirect.com/science/article/pii/B9780123847034005098)). Options for improving the efficiency of the system include investing in water loss reduction systems, creating and following a regular maintenance program, and better matching water supply and demand ([Global Water Partnership](http://www.cawater-info.net/policybriefs/pdf/tec_brief_4_water_efficiency.pdf)).

Cities can improve the efficiency of their water system infrastructure by conducting a water audit, in which all water flows are traced and losses in the system are identified to map where the most efficiency improvements can be gained. Alongside this, asset management can be used to create a short-term and long-term strategy of investing in new equipment, refurbishing existing equipment and developing maintenance programmes to ensure infrastructure is as efficient as possible, and leaks are minimised. Such management programmes create financial transparency amongst all stakeholders and provide useful long-term planning for larger infrastructure changes ([US EPA](https://www.epa.gov/sustainable-water-infrastructure/things-local-officials-should-do-sustainable-water-infrastructure)).

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💧  Improving water infrastructure efficiency

The Bogotá river has been severely contaminated due to uncontrolled wastewater discharges from domestic, industrial sources, urban runoff and illegal dumping of solid waste. Most of the initiatives so far have thus been focusing on valuing waste streams resulting from water treatment processes and ecosystem regeneration.