Peru leads the transition towards a circular economy in Latin America thanks to the support that the European Union (EU) has provided in the last 7 years, allocating 17 million euros to promote this new economic system that maximizes the value of resources and contributes to sustainable development.
To consolidate this leadership and promote the competitiveness of companies, particularly micro and small businesses, this October 15 and 16, the VII International Circular Economy Forum (FIEC) was held at the Lima Convention Center, where there were the participation of national and international experts, as well as representatives from various regions of the country, authorities and actors from the public and private sectors, academia and civil society.
At the VII FIEC, public policies and initiatives were highlighted, as well as business strategies and success stories that were implemented in recent years. Likewise, opportunities to accelerate this transition were identified and new commitments were announced.
“From the European Union, this forum has allowed us to evaluate how to enrich our intervention through the sustainable business program, which will strengthen our actions and support progress,” said Jonathan Hatwell, Ambassador of the European Union in Peru.
“We will continue to promote the improvement of public policies and the promotion of initiatives that incorporate circular practices in value chains. For this, financing is key, so we must develop instruments and mechanisms that facilitate the integration of these practices,” he assured.
For her part, Tatiana García, responsible for Environment and Climate Change of the European Union in Peru, highlighted the importance of ensuring and consolidating the transition to a circular economy through financing.
“That is why we have analyzed this process, based on what progress has been made with the sectoral and work roadmaps in the regions,” he stated.
Meanwhile, the representative of the United Nations Environment Program (UNEP), Beatriz Martins, highlighted that, by 2050, the linear economic model should be left behind and replaced by the circular one. “Today there are different financing models to encourage private investment towards a circular economy,” he noted.
César Carcelén, Senior Sustainable Business and MSMEs Officer at IDB Invest, emphasized the economic benefits of the circular economy. “It is a business that helps to be more resilient, reduce operating expenses and discover new opportunities to be more profitable,” he mentioned during the last 7 years during his presentation at the VII FIEC.
The event was organized by the European Union (EU), the Ministry of the Environment, the Ministry of Housing, Construction and Sanitation and the Ministry of Production. In its two days, more than a thousand people participated.
There was also the important collaboration of the National Circular Economy Coalition, the National Society of Industries, the Lima Chamber of Commerce, as well as the German Development Cooperation, the Swiss Cooperation and the German Chamber of Commerce.
Sustainable business
Unlike the linear economy, where resources are extracted, used and discarded, the circular economy promotes a continuous flow of materials and products through the recovery, retention or increase in the value of the products. Actions such as circular design, regeneration, optimization, reduction, maintenance, repair, reuse, remanufacturing, among others, are carried out.
For this reason, the European Union has been implementing the “Sustainable Business” program, its emblematic program in the circular economy, which seeks to generate enabling conditions, strengthen the capabilities of Peruvian companies, generate green employment and reduce the country’s environmental footprint. For the period 2024-2027, it has a budget of €17 million.
“In the last 7 years, we have provided special support to small and medium-sized companies so that they can develop circular value chains in strategic sectors such as textiles, Amazonian fruits and manufacturing,” stressed Ambassador Jonathan Hatwell.
In the coming years, this initiative will work in various macro-regions: North (Piura, Lambayeque, La Libertad, Cajamarca), Center (Lima), East (San Martín, Ucayali) and South (Arequipa and Cusco), and will allow companies to take advantage new business opportunities and contribute to more sustainable and inclusive economic growth.
Likewise, with the support of the European Union, the National Circular Economy Coalition “Perú País Circular” was created, which brings together 33 organizations committed to the transition towards this model that decouples resource consumption from economic growth. These organizations formally signed the Peruvian Pact for a Circular Economy in August 2023.
Economic benefits
Thanks to the circular economy, between 2025 and 2030, 75.3 million tons of consumption of organic and inorganic materials would be prevented, maintaining economic growth. Furthermore, in 2030, the circular economy would contribute 13,908 million soles to the GDP, representing 2% of the total.
It is estimated that, for that year, some 306,176 people would be employed in circular economy activities (1.6% of employment) and 4.13% of public and public-private investments would be in this area, for a value of S/ 2,876 million. Likewise, 758 companies would obtain a circular economy badge.
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