Circular economy in Latin America and the Caribbean: Drivers, opportunities, barriers and strategies

Abstract

This study assesses for the first time the drivers, opportunities, barriers, and strategies for the transition to a circular economy in Latin America and the Caribbean through a comprehensive systematic review of the current academic literature. A total of 247 articles have been analysed through the lens of the PESTLE framework (Political, Economic, Social, Technological, Legal, and Environmental), coupled with the consideration of the most recognised circular economy strategies (narrowing, slowing, closing, and regenerating) and solutions (the ten R's strategies: refuse, rethink, reduce, reuse, repair, refurbish, remanufacture, repurpose, recycle, and recover). Key drivers identified in the literature include governmental policy shifts in the region towards circular and sustainable practices. These practices have focused on leveraging the abundance and diversity of natural resources and the region's climatic conditions that favour the development of bio-industries, renewable energies, and innovative sustainable materials, reflecting a clear adaptation of circular economy strategies to the specific needs and resources of Latin America and the Caribbean. Similarly, the technological and regulatory progress in pollution prevention and control, although still slow, has driven the implementation of circular economy strategies, making the role of new circular technologies fundamental for the region's sustainability. Barriers mentioned in the articles include limited governmental incentives, inadequate infrastructure for waste management, and the high costs associated with transitioning to circular economy practices, compounded by a lack of general public awareness and engagement. Regarding the circular economy strategies, the reviewed studies predominantly focus on recycling (“closing”) due to the immediate waste management needs of the region, with less emphasis on resource efficiency (“narrowing” and “slowing”) and minimal adoption of regenerative practices due to higher initial investment demands. Recycling and, to a lesser extent, recovery dominate the ten R's strategies discussed in the literature, indicating still a focus on end-of-life approaches in the region, while strategies like reduce, reuse, and repurpose are gaining representation; however, research on repair, refuse, remanufacture, and refurbishment should be the focus of future investigations. Finally, this article provides guidelines and recommendations for future research to facilitate the deployment and management of a sustainable circular economy in the region.