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Peru: Environment Minister says circular economy will generate US$3.832 billion by 2030
Monday, March 10, 2025 - 09:00
Fuente: Agencia Andina

Juan Carlos Castro said that it is expected to prevent the consumption of more than 75 million tons of materials, which would return to the production cycle, being transformed into other goods.

Peru's Ministry of the Environment (Minam) is promoting the circular economy by 2030, seeking to generate 14 billion soles (US$3.832 billion) in gross domestic product (GDP) and 300,000 jobs through the reuse of materials.

In an interview with the Official Gazette El Peruano , the head of Minam, Juan Carlos Castro, said that it is expected to prevent the consumption of more than 75 million tons of materials, which would return to the production cycle, being transformed into other products or by-products for reuse.

- How was the process of implementing the circular economy in Peru?

–The process of the circular economy in the country dates back to approximately 2016, when it was incorporated into our legislation. Initially, Peru focused the circular economy solely on the integrated management of solid waste, seeking to give added value to these materials.

This led to the formalization of recyclers to find value in waste, preventing everything from ending up in confinement centers.

In 2018, an important step was taken in recognising the contribution of the circular economy towards sustainable development, broadening its scope to encompass environmental, economic and social dimensions.

It was no longer just about recovering and reusing materials, but also a more comprehensive approach.

Subsequently, the circular economy was incorporated into the National Competitiveness and Productivity Policy, becoming part of our policies, plans and strategies as a country.

- Which sectors have made the most progress in implementing the circular economy?

–During this process we identified more than 60 standards that should incorporate the circular economy. Particularly noteworthy are the industrial, fishing, agricultural, water and sanitation sectors, which have already approved their roadmap.

The roadmap for the circular economy of the agricultural sector is currently about to be approved, which will be very important. The mining and transport sectors are still pending, and are advancing at a slower pace.

- How does Peru's progress in the circular economy compare with other countries?

–In Peru and Latin America we are still far behind European countries. The circularity rate in Latin America and the Caribbean is less than 1%, while Europe is almost two decades ahead of us in terms of the circular economy.

In 2023, the government of Dina Boluarte made the decision to develop a strategic framework that establishes a unified vision towards a “Circular Peru”.

This decision led us to develop circular economy policies, standards and practices across all sectors at a national level.

We held multiple workshops to raise awareness about this change in the economic and productive model. We held seven macro-regional workshops in Arequipa, La Libertad, Junín, San Martín, Lima and Cusco, which allowed us to build a broader and national vision.

- What commitments were made with the public and private sectors?

–A total of 33 subscribers to the Peruvian Pact for Circular Government have joined, including public and private entities from the industrial, mining and other sectors. The circular economy is really beginning to take shape in Peru following the approval of this roadmap.

- What are the expectations for 2030 in terms of economic impact?

–By 2030, we expect the circular economy to contribute around 14 billion soles (US$ 3.832 billion) to the GDP, which represents approximately 2.2% of Peru’s GDP. In addition, we project to generate more than 300,000 jobs related to circular economy activities.

We also hope to prevent the consumption of more than 75 million tons of materials, which would return to the production cycle, being transformed into other products or by-products for reuse. This will allow us to significantly reduce environmental pollution.

Additionally, nearly 3 billion soles (US$821 million) will be allocated for public and public-private investment in circular economy projects nationwide, especially focused on the recovery of solid waste.

- What specific measures does the roadmap include?

–This roadmap contains 27 climate change mitigation and adaptation measures. Currently, around 700 organisations are integrating the circular economy into their business models, gradually changing the way we conceive the economy and productivity.

Peru chairs the Latin American Coalition for Circular Economy, assuming regional leadership because we firmly believe that we can make progress.

The private sector is demonstrating this, especially in the industrial sector, which has been one of the main promoters of this circular model in the country since 2015.

- How is the Ministry of Environment (MINAM) addressing the challenges of implementing this roadmap?

–Since before the approval of the roadmap, we have been promoting biobusinesses that incorporate the circular economy. Minam, through economic incentives, has financed entrepreneurs from various regions, mainly in the Amazon, so that they can join circular recycling and reuse businesses.

For example, we have small companies formed with these credits and incentives that, in agreement with large companies, transform waste from workers' uniforms into new recycled uniforms. These companies buy these already recycled uniforms from small companies, creating a virtuous cycle.

Another example is the use of organic waste such as orange peels and other fruits, which are used to produce bio-leather, which is then transformed into wallets and purses.

We also have companies that collect used oils to transform them into soaps and cleaning products, preventing these pollutants from reaching rivers and seas.

HRNEC LAUNCH

The Minister of the Environment, Juan Carlos Castro, invited all Peruvians to the launch of the National Roadmap for Circular Economy (HRNEC), a momentous event that will take place on the 31st of this month.

On this occasion, the ambitious goals that Peru has set for itself by 2030 will be revealed, as well as the strategies that the Government will implement to promote sustainable economic growth, while protecting our valuable natural resources. It is worth noting that the presentation of this roadmap will be attended by Dina Boluarte.

DATA

Regional and local governments are important allies. For this reason, Minam coordinates with the governors themselves, implementing a strategy of business plans aimed especially at native communities and indigenous organizations.

49 business plans are financed with an investment of more than 50 million soles (US$ 13.6 million), channeled through the Inter-American Development Bank (IDB) and the World Bank (WB), in the regions of Loreto, San Martín, Madre de Dios and, soon, in Ucayali.

These business plans strengthen the chestnut, cocoa, coffee and aguaje chains, but also include the reuse of materials from sawmills and aquaculture industries to transform them into other products.

Regional governments support us with their entrepreneurs and with Procompite of the Ministry of Production (Produce).

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Agencia Andina