Knowing our Circularity Metric allows us to understand key leverage points for accelerating the transition to a circular economy, through circular management models that guarantee triple impact. For example, Latin America and the Caribbean export a large portion of their raw materials to developed countries. The impact of this—including carbon emissions, biodiversity loss and waste generation—are rarely analysed, leading to continued material extraction, processing, and value loss. We need to change the way we do business, preserve our natural capital, and increase the efficiency of our procedures and processes. This report lays out the way forward, and highlights where more understanding is needed between countries and among business leaders, academia, civil society and public entities to help LAC countries advance with conviction towards a more circular economy.

The transition to a circular economy can boost economic development and regenerate and restore the environment, while creating opportunities for inclusion. This is an agenda IDB Invest promotes with the private sector in Latin America and the Caribbean. This first Circularity Gap Report Latin America and the Caribbean provides a circularity baseline for our countries, as well as an insightful analysis of the potential impact this transition can have on climate action and the creation of circular job opportunities.

One of Latin America and the Caribbean’s main sustainability challenges is finding a balance between satisfying international demand for natural resources and reducing our economic dependence on it, given extractive activities’ environmental impact. Maintaining materials’ value and maximising secondary material use is another great challenge. Research, such as that provided by this Circularity Gap Report, both provides a greater understanding of our economies and consumption patterns and helps shape regional harmony. Through this, we can develop public policies for a sustainable planet across nations.