— The circular economy has gained prominence in Latin America and the

Caribbean (LAC) in recent years as an approach to sustainable development.

Countries in the region have either implemented or are planning new circular

economy policies, public initiatives and roadmaps.

— The COVID-19 pandemic has revealed significant shortcomings in the linear

economy – the vulnerability of global value chains, the depletion of natural

resources and the exacerbation of social inequalities. The circular economy

offers an alternative framework for a more resilient and inclusive economic

model in LAC countries.

— A successful transition towards the circular economy in LAC will depend on the

widespread adoption of Industry 4.0 technologies. Industry 4.0 is a key enabler

of the circular economy, allowing new business models to be profitable while

reducing environmental impacts. LAC governments need to support a circular

economy transition through a technology lens, to guarantee both added value

and sustainability.

— LAC countries must invest more in research and development in order

to take full advantage of Industry 4.0 technologies and apply them to a circular

economy transition. Investment in science and technology is still comparatively

low, equating on average to just 0.66 per cent of GDP across the region, with

enterprises (public and private) financing only about 36 per cent of that share.