Sustainable Production and Consumption 51 (2024) 118–136

Contents lists available at ScienceDirect

Sustainable Production and Consumption

journal homepage: www.elsevier.com/locate/spc

Review Article

Circular economy in Latin America and the Caribbean: Drivers,

opportunities, barriers and strategies
Alejandro Gallego-Schmid a,* , Camila López-Eccher b, Edmundo Muñoz c, Rodrigo Salvador d ,
Natalia A. Cano-Londoño e, Murillo Vetroni Barros f, Daniel Choconta Bernal a ,
Joan Manuel F. Mendoza g,h , Ana Nadal i , Ana Belén Guerrero j,k
a
Tyndall Centre for Climate Change Research, School of Engineering, The University of Manchester, M13 9PL, UK
b
Doctorado en Ingeniería, Universidad de La Frontera, Av. Francisco Salazar 01145, Temuco, Chile
c
Centre for Sustainability Research, Andres Bello University, República 440, Santiago, Chile
d
Technical University of Denmark (DTU), Department of Engineering Technology and Didactics, Lautrupvang 15, Building Ballerup, Room E2.12, DK-2750, Ballerup,
Denmark
e
University of Twente, Faculty of Behavioural, Management and Social Sciences, 7522NH Enschede, the Netherlands
f
Universidade Estadual do Paraná, Colegiado de Engenharia de Produção, Paranaguá, Paraná, Brazil
g
Mondragon Unibertsitatea, Faculty of Engineering, Mechanics and Industrial Production, Loramendi 4, Mondragon 20500, Gipuzkoa, Spain
h
IKERBASQUE, Basque Foundation for Science, Plaza Euskadi 5, 48009 Bilbao, Spain
i
Health Department, El Colegio de la Frontera Sur (ECOSUR), Carretera Panamericana y Periférico Sur s/n C.P. 29290, Barrio de María Auxiliadora, San Cristóbal de
las Casas, Chiapas, Mexico
j
Instituto de Investigación en Ciencias Naturales y Tecnología (IARNA), Universidad Rafael Landívar. Vista Hermosa III, zona 16 Ciudad de Guatemala, Guatemala
k
Trisquel Consulting Group. Quito, Ecuador

A R T I C L E I N F O A B S T R A C T

Editor: Prof. Konstantinos Tsagarakis 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
Keywords: academic literature. A total of 247 articles have been analysed through the lens of the PESTLE framework
Narrowing (Political, Economic, Social, Technological, Legal, and Environmental), coupled with the consideration of the
Closing
most recognised circular economy strategies (narrowing, slowing, closing, and regenerating) and solutions (the
Regenerating
ten R's strategies: refuse, rethink, reduce, reuse, repair, refurbish, remanufacture, repurpose, recycle, and
Slowing
PESTLE framework (political, economic, social, recover). Key drivers identified in the literature include governmental policy shifts in the region towards circular
technological, legal, and environmental) and sustainable practices. These practices have focused on leveraging the abundance and diversity of natural
Global south 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 stra-
tegies, 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 man-
agement, 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 sus-
tainable circular economy in the region.

* Corresponding author.
E-mail address: alejandro.gallegoschmid@manchester.ac.uk (A. Gallego-Schmid).

https://doi.org/10.1016/j.spc.2024.09.006
Received 21 June 2024; Received in revised form 6 September 2024; Accepted 11 September 2024
Available online 16 September 2024
2352-5509/© 2024 The Authors. Published by Elsevier Ltd on behalf of Institution of Chemical Engineers. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/by/4.0/).
A. Gallego-Schmid et al. Sustainable Production and Consumption 51 (2024) 118–136

1. Introduction of the CE with Industry 4.0 technologies, which necessitates consider-

ations of training costs and technological adaptation (Rodríguez-
The necessity to transition from a linear to a circular economy (CE) González et al., 2022). The impact of a CE on biodiversity remains un-
has gained significant traction worldwide, echoing the pressing need for certain, particularly in a region as geographically and biologically
a more sustainable approach to production and consumption (Achinas diverse as LAC, which is highly dependent on natural resource extrac-
and Willem Euverink, 2020; Cruz et al., 2021). This paradigm shift is tion and commodity exports (Schröder et al., 2020). Balancing economic
underscored by international organisations, such as the Ellen MacArthur objectives with environmental sustainability is essential, especially in
Foundation (2015) and the European Commission (2020) which rec- areas rich in primary forests and mineral resources (Dewick et al., 2022;
ognised the limitations of the conventional linear production system. Schröder et al., 2020). Higher urbanisation rates in LAC further
Achinas and Willem Euverink (2020) and Cruz et al. (2021) outline that complicate waste management, with daily municipal waste generation
this transformation is contingent upon multifaceted factors, encom- at about 541,000 t, expected to increase by 25 % by 2050, coupled with
passing new policies, financial structures, technological developments, significant food loss and untreated wastewater (Schröder et al., 2020).
educational and upskilling programs, and widespread awareness among Consumer behaviour, influenced by socio-economic factors, poses
the general public. The intricate interplay between CE initiatives and additional hurdles to CE adoption, necessitating tailored strategies
governmental policies becomes evident in the work of (Chiappetta (Ospina-Mateus et al., 2023; Uriarte-Ruiz, 2022). Overcoming specific
Jabbour et al., 2020), which highlights how CE practices can be inte- challenges such as deforestation and energy supply issues requires
grated into processes, technologies, and products, but only if there is nuanced policy formulation addressing infrastructure, finance, and ed-
supportive governmental action. However, this symbiotic relationship ucation (Ospina-Mateus et al., 2023; Souza Piao et al., 2023). Therefore,
faces challenges in emerging economies, where palpable governmental it is imperative to address these diverse factors to develop comprehen-
and financial support for CE practices is often lacking (Silva et al., 2019; sive CE strategies tailored to the unique characteristics and challenges of
Chiappetta Jabbour et al., 2020). Nevertheless, the significance of the LAC and the Global South.
CE in achieving the Sustainable Development Goals (United Nations, The existing body of scientific literature on the territorial deploy-
2015) has been repeatedly emphasised, positioning it as an essential ment of CE strategies predominantly draws on results from Asia, Europe,
element for addressing global resource, environmental and socio- and North America, often neglecting a comprehensive examination of
economic challenges through active collaboration between countries low- and middle-income countries (Ddiba et al., 2020). For instance,
from both the Global South and North (Geissdoerfer et al., 2017; Kirchherr and van Santen (2019) scrutinised 160 CE papers, revealing
Rodríguez-González et al., 2022). that only 5 % focused on emerging economies. Notably, LAC is sub-
The significance of embracing CE principles in Latin America and the stantially lacking empirical evidence in this regard (Aguilar et al., 2022).
Caribbean (LAC) arises from a confluence of environmental, economic, Nevertheless, some literature reviews have started to concentrate on the
and social challenges. As highlighted in the report of the Circle Economy intersection of the CE and LAC in recent years. Salvador et al. (2022)
Foundation (2023), LAC's share of global material extraction is sub- provide a status on CE, as well as practice gaps, and make recommen-
stantial at 11.2 %, despite comprising only 8.3 % of the global popula- dations to accelerate it in LAC, but address specifically the bioeconomy
tion. Between 2004 and 2017, over 43 M hectares were deforested due to of the region, being the remaining sectors out of the scope of their
agriculture, livestock production, mining, transportation and fires research. Betancourt Morales and Zartha Sossa (2020) identified key
(ibid). Moreover, there has been a 90 % decline in biodiversity as well as barriers, including limited awareness, lack of supportive policies, and
14 % of soil degradation (> 40 % in some countries) (ibid). Likewise, the financial constraints, while also highlighting opportunities such as job
region is suffering a 1.7 % annual loss in Gross Domestic Product (GDP) creation and innovation. The authors, similarly to Ospina-Mateus et al.
as a result of climate change (expected to increase up to 10 % of the (2023) focus on bibliometric analysis and conceptual comparisons be-
region's GDP by 2050 = $22B/yr) despite accounting for only 10 % of tween Europe and LAC. However, according to Betancourt Morales and
global greenhouse gas (GHG) emissions (Schröder et al., 2020). Zartha Sossa (2020), there is a lack of recent academic literature up-
While the region is self-sufficient in the extraction, processing, and dates, and a limited representation of LAC sources, as only 5 % of the
use of raw materials, the minimal material ‘cycling’ (defined as the articles in the review originate from this region. Tonon Ordóñez and
process of converting waste materials into new materials and objects), Andrade Carrasco (2023) specifically examined barriers in waste man-
with <1 % of circularity in the region (Circle Economy Foundation, agement and recycling, cultural factors, and the prevalence of linear
2023), represents a missed opportunity for sustainable resource uti- economic models while emphasising some potential generic benefits of
lisation. Likewise, the environmental burden (e.g., land use, biodiversity circular practices in LAC (e.g., job creation). Despite its insights, the
loss) related to material extraction and processing in LAC is exacerbated article lacks a critical analysis of the literature through the lens of CE
by the exponential rise in global material demand, also leading to social frameworks. The significance of embracing CE principles in Latin
issues (e.g., inequalities, human health problems) (ibid). The pressing America and the Caribbean (LAC) arises from a confluence of environ-
issue of food waste in countries like Brazil, where approximately 20 % of mental, economic, and social challenges, which are influenced by micro
food is wasted, further emphasises the need for CE interventions (e.g., access to technology for innovation), meso (e.g., collaborations
(Sehnem et al., 2022). Inefficiencies in conventional waste management among stakeholders in the value chains), and macro-level (public pol-
practices across LAC, where over two-thirds of waste is disposed of in icies, incentives, and financial mechanisms related to the adoption of CE
landfills, also contribute to negative environmental impacts (Lara- practices) factors (Van Hoof et al., 2023). Meanwhile, Soto-Rios et al.
Topete et al., 2022). However, the adoption of CE practices by small and (2023) explored circular pathways in LAC but only concentrated on the
medium-sized enterprises (SMEs) in developing economies, including water and wastewater sectors. Similarly, Matus et al. (2023) conducted
LAC, which represents 20 % of the GDP (Lardizabal and Zhang, 2022), is the first evaluation of the economic and environmental impacts of in-
still at a nascent stage, highlighting the importance of establishing vestments in circular technologies for wastewater plants across a broad
strong strategies and collaborations between businesses, customers, and range of countries in LAC. The study found that implementing CE
regulatory bodies (Hutner et al., 2017; Preston and Lehne, 2017). technologies yields an approximate benefit/cost ratio of 1.36 and re-
Transitioning to a CE in LAC involves environmental and economic duces emissions by 88 %. However, the authors also highlighted that
considerations and an integration of social aspects. CE solutions can most existing CE implementation cases are located in Europe or Asia,
address income inequality, promote social justice, foster inclusiveness, indicating a need for further research in LAC countries. Besides the ac-
including the formalisation of informal sectors, and enhance employ- ademic literature, other publications, such as factsheets, have captured
ment quality through upskilling (Circle Economy Foundation, 2023; elements of CE in LAC, but also focused on specific sectors and countries,
Dewick et al., 2022). Additionally, it is crucial to analyse the intersection such as Flores Montalvo and Loutfi Olivares (2020), by providing

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insights into how single-use plastic waste in Mexico can be reduced AND Latin American and Caribbean countries (Table S1 in Supporting
through circular economy initiatives. Therefore, an updated and Information (SI)). The 37 keywords related to “CE solutions” included:
comprehensive review of academic literature on the CE in LAC, to remanufacturing, durability, refurbishment, servitisation, sharing,
analyse key challenges and opportunities, as well as areas for practical “closed-loop”, “product service systems”, “material circularity”, reuse,
intervention and innovation, using specific CE and sustainability maintenance, repair, upgrade, upcycling, upgrading, “reverse supply
frameworks as lenses for analysis, is still lacking, which is addressed in chains”, refuse, rethink, reduce, refurbish, narrowing, closing, slowing,
this study. regenerating, nano, micro, macro, meso, “circular supplies”, “reverse
Consequently, this study provides a novel examination of the key logistics”, cascading, “take back systems”, “industrial symbiosis”, “by-
drivers, opportunities, and barriers in LAC concerning the transition to a product exchange”, repurpose, recover, “extended producer re-
CE drawing on current academic literature. The comprehensive analysis sponsibility” and cycling. These CE keywords were extracted from
is approached for the first time through the lens of the PESTLE frame- pertinent articles on the CE, including Kirchherr et al. (2017), Velasco-
work (Political, Economic, Social, Technological, Legal, and Environ- Muñoz et al. (2021), and Gallego-Schmid et al. (2020), where these
mental) (Fig. 1) coupled with CE strategies (narrowing, slowing closing, concepts are explored.
and regenerating) and the ten R's strategies (refuse, rethink, reduce, To narrow down the literature search to papers specifically centred
reuse, repair, refurbish, remanufacture, repurpose, recycle and recover). around the ongoing and emerging research on the CE, broader terms,
Results aim to be useful for researchers, policymakers, economists, and such as material or resource efficiency, eco-design, or sustainability
industry professionals, providing a research agenda that can stimulate were excluded. For LAC countries, the following terms were used “Latin
future investigations and influence and boost the deployment of a sus- America”, “South America”, “Central America”, Caribbean, South-
tainable CE not only in LAC but in the whole Global South. america, Argentina, Brasil, Brazil, Colombia, Guyana, Surinam,
Venezuela, Bolivia, Chile, Ecuador, Peru, Uruguay, Paraguay, Belice,
2. Methodology Belize, “Costa Rica”, “El Salvador”, Guatemala, Honduras, Nicaragua,
Panama, Antigua, Barbuda, Bahamas, Barbados, Cuba, Dominica,
A systematic literature review was conducted following the Granada, Haiti, Jamaica, “Republica Dominicana”, Dominican, “Saint
‘Preferred Reporting Items for Systematic Reviews and Meta-Analysis’ Kitts”, “Nevis”, “Santa Lucia”, “San Vicente y las Granadinas”, “Grena-
(PRISMA) guidelines (Page et al., 2021). PRISMA is an evidence-based dines”, Trinidad, Tobago, and Mexico. The keywords were searched in
checklist developed to guide systematic reviews (Nadaraja et al., the title, abstract, or list of keywords using the advanced search field
2021). The PRISMA 2020 statement provides updated reporting guid- code of Scopus and ScienceDirect.
ance that incorporates advancements in methods for identifying, As illustrated in Fig. 2, a total of 1831 documents were identified,
selecting, appraising, and synthesizing studies, thus enhancing clarity, which were filtered using the following inclusion criteria:
transparency, and integrity in systematic review reports while ensuring
methodological rigour (Nadaraja et al., 2021; Page et al., 2021; Siddique • All types of documents written in English, such as reviews, articles,
et al., 2024). The search encompassed articles published up to December conference papers, abstracts, mini-reviews, book chapters, editorials,
2023 in the Scopus and ScienceDirect databases, with the starting point encyclopedias, short communications, discussions and case reports
for the review set in 2008 to focus on more recent conceptual CE ap- were considered.
proaches, which have been primarily driven since that year through the • During the search process, the initial matches were screened by
activity carried out by the Ellen MacArthur Foundation. The search directly reviewing the titles and abstracts. Articles were excluded if
string included “circular*” AND “CE solution” (37 different keywords)

Fig. 1. Components of the PESTLE analysis. Adapted from Mihailova, M. (2020).

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Fig. 2. Methodology for the systematic literature review. Adapted from Page et al. (2021).

the CE was not the primary focus of the research (e.g., not explicitly strategies (subsection 3.4) addressed in the reviewed studies.
mentioned), reducing the selection to 1219.
• Since several articles referenced more than one of the search engine
3.1. Drivers and opportunities
keywords, some articles appeared multiple times across different
searches. Consequently, duplicate articles (518) were removed. The
Table 1 shows various drivers and opportunities for CE imple-
remaining papers (701) were examined to select the ultimate sample.
mentation in LAC that have been identified and analysed from a polit-
Articles that included the term circular economy, but did not focus
ical, economic, social, technological, legal and environmental (PESTLE)
on it and/or LAC were eliminated (245) and the remaining (451)
perspective (see Table S3 in SI for the literature references). Drivers
were fully screened.
represent factors known to contribute to facilitating and/or accelerating
• Once a document was selected for review, a ‘snowball’ method was
the implementation of CE strategies (Salvador et al., 2022). These fac-
employed to search for additional relevant papers by looking at the
tors may include environmental conditions, prior knowledge, business
document reference list or citations (Wohlin, 2014). However, the
awareness (Piispanen et al., 2022), policies, or technological advance-
articles identified through the ‘snowball’ method (Wohlin, 2014)
ments (Salvador et al., 2022). Generally, opportunities arise from
were the same as those found in the initial search, so the total
changes in the environment in which an individual or organisation
number of articles did not change.
operates. These changes create an imbalance that can potentially be
• Consequently, 247 studies were finally selected for review (see
exploited, such as technological, policy, and regulatory opportunities, as
Table S2 in SI).
well as social and demographic shifts (Mary George et al., 2016). Rec-
ognising these opportunities can create positive and favourable cir-
From a geographical perspective, the countries with more CE studies
cumstances that lead to business actions (Mary George et al., 2016). In
were Brazil (58 % of the articles), Mexico (12 %), Bolivia (6 %) and Chile
this context, a policy, for example, can serve as a driver for the devel-
(5 %) and from a sector perspective, waste treatment (32 %), manu-
opment of a CE, as well as generate opportunities for new businesses or
facture (11 %), energy transformation (11 %), and agriculture (8 %).
job creation. Due to the close relationship between these concepts, they
Concerning the scales of the CE implementation, almost half of the ar-
have been jointly identified in this research (Table 1).
ticles analysed focused on the macro scale (49 %) (city, country and
region), followed by the nano (19 %) (products and services), micro (18
3.1.1. Political
%) (companies and business models), and meso (14 %) (industrial areas,
The CE presents significant opportunities to create new policies and
neighbourhoods) scales.
legislation aimed at promoting sustainability in LAC. One example is the
Brazilian National Policy on Solid Waste (Presidência da República,
3. Results and discussion
2010), which mandates comprehensive recycling and collection pro-
cesses, highlighting the governmental commitment to environmental
This section analyses the key drivers and opportunities (subsection
management (Barquete et al., 2022; Fidelis et al., 2020; Fuss et al.,
3.1), barriers (subsection 3.2), CE strategies (subsection 3.3), and R's
2018). The new policy framework associated with waste management

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Table 1 bodies (Dziedzic et al., 2022). Also related to the bioeconomy, the
Drivers and opportunities of the circular economy for Latin America and the production of bioenergy from agricultural waste has significantly
Caribbean. advanced due to regional policy initiatives, such as energy recovery
Dimension Drivers and opportunities from açaí seeds (Maciel-Silva et al., 2021). In Brazil, anaerobic digestion
Development of new policies aimed at promoting sustainability
(AD) has been promoted to combat eutrophication from livestock ac-
Prioritisation of the implementation of currently available waste tivities, and supported by specific state biogas policies (Barquete et al.,
Political management and recycling policies 2022; Nadaleti et al., 2021b). In the construction sector, recent
Increasing environmental and economic benefits from the governmental regulations and technical standards have started to
development of policies supporting bioenergy
include the mandatory use of Building Information Modeling (BIM),
Opportunities to diversify income sources across various economic
sectors recycled waste and prefabricated modules in new public buildings
Economic Reduction of production costs through the use of waste (Barquete et al., 2022).
Creation of new and more sustainable business and employment
opportunities. 3.1.2. Economic
Opportunities to foster community development
Significant progress in social inclusion and service improvement
The potential economic benefits associated with increasing circu-
Social larity in the bioeconomy is one of the main drivers in LAC (Weber et al.,
Greater public engagement and education
Creation of new jobs and businesses 2020). The Argentinian citrus industry exemplifies how waste and by-
Resource extraction reduction products can be valorised, reducing environmental impacts while
Technological advances to increase production efficiency
maintaining profitable production (Machin Ferrero et al., 2022). Simi-
Biomass availability and use as a renewable energy source
Opportunities for the development of new sustainable materials larly, the energy recovery through AD from livestock waste can help to
Technological reduce costs in the meat sector in Brazil, because the produced biogas
and products
Increasing the use of recycled and recovered materials can reduce about 60 % of the energy costs (Hollas et al., 2022; Nadaleti
Innovation and development of new technologies to improve the and Lourenço, 2021). Furthermore, the efficient use of urea and the
environmental, social, and economic performance
application of industrial waste as a nutrient source in agricultural soils
New waste management and recycling legislation
New legislation for sustainable energy generation have proven to help improve sustainability and reduce production costs
Minimisation of environmental impact and improvement of (Fink et al., 2021). This is crucial in LAC, where soil fertility challenges
Legal
natural resource management through legislation require sustainable nutrient management to ensure crop yields without
High potential to address social and inclusion aspects through
escalating costs (Santos et al., 2020). Valorising agricultural waste for
legislation
Environmental benefits of recycling and waste management food packaging materials can help extend the shelf life of foods while
Reduction of greenhouse gas emissions also addressing environmental concerns related to non-biodegradable
Environmental Reduction of other environmental impacts packaging (Orqueda et al., 2022). Finally, biorefineries can create
Environmental benefits of bioenergy new, more sustainable business and employment opportunities, add
Environmental benefits of energy recovery and efficiency
value to regional raw materials, and use waste as a renewable resource
(Weber et al., 2020).
not only emphasises material recycling but also recognises the vital role Beyond the bioeconomy, CE practices also show potential economic
that informal waste collectors in LAC have played before the develop- benefits in other key sectors from LAC. For instance, CE strategies have
ment of waste management policies (Fidelis et al., 2023). For example, shown significant financial returns of investments in the automotive
informal collectors in Brazil are responsible for 89 % of municipal solid industry in Mexico through the reuse and recycling of components and
waste (MSW) management with recyclable potential that returns to in- materials in new and second-hand vehicles (Rodríguez-González et al.,
dustries as raw materials (ibid). By providing access to financial support 2022). The reverse remanufacturing of Electrical and Electronic
programs, these policies facilitate the inclusion of informal waste Equipment (EEE) and Waste Electrical and Electronic Equipment
pickers in the formal waste management sector (Fidelis et al., 2023, (WEEE) is a market with significant potential in LAC, as it can generate
Fidelis et al., 2020). Policies that facilitate, for example, the reintro- new employment and income opportunities (Brito et al., 2022). In
duction of packaging waste back into the production cycle, yield envi- developing countries, where MSW and construction and demolition
ronmental benefits and support waste collectors' socioeconomic waste (CDW) are deposited in open landfills, recycling offers a viable
advancement, underscoring the fundamental role of reverse logistics in strategy to reduce costs and environmental impacts associated with
facilitating the transition to a CE (Guarnieri et al., 2020). Moreover, decreased landfill use and raw material consumption (Ferronato et al.,
several authors emphasise the importance of the participation of all key 2023c; Torres de Sande et al., 2021).
public and private stakeholders in the development of sector-specific
policies (Da Silva, 2018; Ellen MacArthur Foundation, 2015; Guarnieri 3.1.3. Social
et al., 2020). An example is the Chilean Extended Producer Re- Transitioning towards a CE in LAC paves the way to foster commu-
sponsibility and Recycling Promotion Law (Gobierno de Chile, 2016), nity development (Aguiñaga et al., 2018). Initiatives in several LAC
enacted in 2016, where producers, importers, municipalities, genera- countries have shown significant progress regarding social inclusion
tors, consumers, and informal waste collectors were involved from the within the context of the CE and waste management, particularly trying
initial stages. to integrate resource recovery into urban planning (Basnak and Giesen,
Governmental support and political influence serve as crucial drivers 2023). For example, Colombian local initiatives and educational efforts
for promoting advances in recycling technologies and waste manage- have shown how resource recovery from organic waste can be integrated
ment approaches in LAC (Ibelli-Bianco et al., 2022; Korsunova et al., into urban planning (Aguilar et al., 2022). Moreover, general public
2022; Sala-Garrido et al., 2023). For example, adopting and enforcing engagement and education play a fundamental role in improving waste
water resource regulations for achieving sustainable agricultural water management and supporting a CE (Aguilar et al., 2022; Duarte Castro
use are crucial in LAC, where the bioeconomy is key (Dziedzic et al., et al., 2022; Ferronato et al., 2020a). In Mexico City, the total amount of
2022). The circular economy strategies have been implemented to val- waste diverted increased by 65 % from 357.94 t in 2014 to 591.50 t in
orise the expanded polystyrene household waste (Hidalgo-Crespo et al., 2019 due to extensive citizen participation and educational campaigns
2020), sugarcane waste in Brazil (Rossetto et al., 2022) and to recycle (Kutralam-Muniasamy et al., 2023). More specifically, including
batteries (Levänen et al., 2018). Treating wastewater for agricultural use informal recycling sectors and empowering waste collectors through
is a CE practice that reduces costs and minimises discharges into water education and training are crucial for the successful implementation of
CE models (Ferronato et al., 2022a; Ibelli-Bianco et al., 2022). Finally,

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the advancement of CE models in LAC also plays a fundamental role in treat waste or particulate matter pollution associated with heating,
creating new jobs and promoting socially inclusive business opportu- and help to capitalise on specific characteristics of LCA, like the rich
nities in traditional sectors such as the bioeconomy (e.g., biorefineries, biodiversity (de Moraes et al., 2023).
use of biomass or transforming waste into valuable bioproducts) or the
treatment of WEEE (Aguiñaga et al., 2018; Gutberlet et al., 2020; Reis 3.1.5. Legal
Neto, 2021), but also in emerging sectors such as lithium-ion battery Legislation is one of the main drivers for waste management and
(LIB) and expanded polystyrene (EPS) recycling (Brito et al., 2022; Costa recycling in LAC and, therefore, a necessary instrument for environ-
et al., 2022; de Oliveira et al., 2019; Weber et al., 2020). mental management. For example, Brazil has been a pioneer in banning
uncontrolled landfill disposal, requiring municipalities to establish
3.1.4. Technological specific recycling targets, and promoting the inclusion of informal waste
Technological advancement enables the reduction of resource pickers (Fidelis et al., 2023). In La Paz (Bolivia), introducing national
extraction through the optimisation of raw materials and inputs, as well regulations and city-level commitments has paved the way for improved
as, the valorisation of industrial waste (Santos et al., 2020). For example, MSW management plans, aiming to increase recycling rates (Ferronato,
in Brazil, sugar cane production can achieve a high level of circularity 2021).
through the generation of bioethanol and the improvement of agricul- Legislative initiatives have also been crucial in supporting sustain-
tural practices by: i) maximising the use of waste and nutrient recovery; able energy generation, addressing energy demand, managing waste,
ii) reducing the use of machinery through GPS-based traffic control, iii) and reducing GHG emissions (Oliveira Pavan et al., 2021) in the region.
and increasing manual harvesting. This sector has integrated economic, Brazil's National Policy on biogas and biomethane (Palácio do Governo,
environmental, and social sustainability goals and contributed to bio- 2018) has set a precedent for legal frameworks supporting the biogas
energy generation and to mitigate GHG emissions (Rossetto et al., 2022). value chain (Hollas et al., 2022; Magnusson et al., 2022). The intro-
Water resource management also plays a critical role in agricultural duction of specific laws in Colombia has provided incentives for waste-
efficiency, where applying CE principles can significantly reduce water to-energy (WtE) in line with the country's strategy to reduce the amount
scarcity (Dziedzic et al., 2022). of waste sent to landfills and promote the energy recovery of MSW
The availability of biomass and the region's favourable climatic (Gutiérrez et al., 2021). Mexico's Energy Reform (Gobierno de México,
conditions have made renewable energies economically viable and 2015) promotes electricity generation from renewable sources, partic-
competitive against fossil fuels (Del Borghi et al., 2022; Reis Neto, ularly solar energy (Santoyo-Castelazo et al., 2021).
2021). For example, the pyrolysis of Brazil nut waste represents a viable Environmental legislation enables the minimisation of environ-
way to convert biomass into energy and produce briquettes, which helps mental impacts and improves the management of natural resources. For
reduce deforestation in the Amazon (Colpani et al., 2022). Similarly, AD example, water resource legislation in some LAC countries has signifi-
in Brazil has proven its capacity to combat eutrophication and promote cantly influenced the reduction of water use in agriculture (Dziedzic
the circular bioeconomy through the production of energy, fertilisers, et al., 2022). Moreover, the legal framework associated with Brazil's
and other bioproducts (Magnusson et al., 2022; Mühl and de Oliveira, National Policy on Food Security and Nutrition has played a crucial role
2022). Exploring second-generation biodiesel demonstrates the poten- in reducing food loss and waste (Berardi et al., 2020). This legislation
tial for environmental conservation and the production of alternative has improved resource efficiency, addressed hunger and minimised the
fuels. This approach does not compete with food resources and offers a need for production and resource extraction (Berardi et al., 2020). CE-
solution for sustainable agricultural production in areas unsuitable for based laws also foster social equity, enhance legal compliance, and
conventional crops (Prucca et al., 2023). Finally, the potential to use create sustainable communities in LAC (Dziedzic et al., 2022). In Brazil
renewable energy for hydrogen production positions countries in the and Chile, integrating waste collectors into the waste management
region as strategic competitors in clean energy generation on the global system through legislation has been crucial for advancing material
stage, highlighting their potential to boost regional GDP while reducing collection and sorting (Guzzo et al., 2022).
energy dependency (Nadaleti et al., 2020).
The availability of biomass in LAC countries not only generates op- 3.1.6. Environmental
portunities for renewable energy generation but also for innovation and Table 1 outlines the most extensively addressed environmental
the development of sustainable materials and products (Braz and de sustainability-related drivers and opportunities in the analysed litera-
Mello, 2023). The abundant agro-industrial waste in the region has high ture. Notable examples in LAC include the mitigation of deforestation in
potential as a source of bioactive compounds. Extracting value-added the Amazon due to the energy valorisation of nut waste (Colpani et al.,
products from waste adds value to the food, nutraceutical, pharmaceu- 2022); the improvement of soil fertility through the use of biosolids
tical, and cosmetic industries (de Souza Silva et al., 2021). In the forestry (Amorim Júnior et al., 2021; Fink et al., 2021; Mühl and de Oliveira,
industry, the potential substitution of coniferous biomass with non- 2022); the use of byproducts from the fishing industry and insects for
coniferous is expected to change the competitiveness of forest indus- biodiesel production in substitution of fossil fuels (Aguilar-Murguía
trial regions in South America, Asia, and Africa due to factors like short et al., 2022; Monsiváis-Alonso et al., 2020); and the mitigation of
rotation forestry and globalisation (Lauri et al., 2021). Moreover, the climate change thanks to the reduction of methane emissions through
development of the CE has notably increased the use of recycled the composting of MSW (Carvalho Machado and Kindl Da Cunha, 2022;
biomass, affecting industries such as paper and cardboard by increasing Ferronato et al., 2023c); and the adoption of first, second, and third-
the proportion of recycled pulp (Lauri et al., 2021). generation biofuel technologies (Ramos et al., 2022; Weber et al., 2020).
CE-related innovation and technological development are also Recycling and waste management are key pillars of the environ-
important drivers and can help improve environmental, social, and mental dimension of the CE in LAC because they can significantly reduce
economic outcomes (Lopes de Sousa et al., 2022). Tax incentives, access emissions and environmental impacts compared to landfill disposal,
to financing, and a culture favourable to innovation and entrepreneur- which is predominantly used in the region (Li et al., 2022). Additionally,
ship are key factors for these developments (de Moraes et al., 2023). recycling helps to minimise the extraction of virgin materials, thus
Examples of CE innovations in LAC include the development of green conserving natural resources (Li et al., 2022; Molina and Pascua, 2022),
polyvinyl chloride (PVC) (Correa et al., 2019), alternative protein which can be complemented by energy savings and the production of
products (de Moraes et al., 2023), new thermal insulation materials from energy from residual materials (Maria et al., 2023). For example, in
biomass waste (Cano et al., 2020; Diniz et al., 2021), and the recycling of Brazil, using wood waste from the timber industry for construction
end-of-life tyres (Martínez, 2021). These innovations provide solutions purposes can promote a CE through “cascading wood” (Caldas et al.,
to particular problems of the region, like the management of hard-to- 2021). The use of residual wood significantly reduces life-cycle GHG

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emissions, especially when used instead of virgin materials (Caldas Table 2

et al., 2021). Going even further, biological and innovative recycling Barriers to achieving a circular economy in Latin America and the Caribbean.
technologies can improve energy efficiency and support economic re- Dimension Barrier
covery. For example, in Mexico, biodiesel production from black soldier
Lack of governmental incentives and support to increase resource
fly larvae could dramatically reduce CO2 emissions by 86 % (Aguilar- efficiency
Murguía et al., 2022). Finally, the energy recovery of MSW can optimise Limited support to waste pickers
Political
transport logistics and extend the lifespan of landfills (Devendran et al., Lack of enforcement, monitoring control, and impunity for non-
2023) and also contribute to broader economic and social aspects, like compliance with environmental regulation
Excess of bureaucracy
enhancing energy security (Caldas et al., 2021; Cervantes, 2021), waste Lack of techno-economic analysis
incineration and methane capture (Pablo Emilio et al., 2022) and Economic growth linked to increased consumption and waste
bioelectricity from sugarcane (Oliveira Pavan et al., 2021). Absence of formal valorisation markets
Low value and no demand for secondary materials
High costs of recycling processes and technology improvements
3.2. Barriers
Scaling challenges
Economic
Difficulty in measuring financial benefits and profitability of the
While the opportunities and drivers for adopting a CE in LAC are circular economy
compelling, addressing the significant barriers that make this transition Industry resistance to eco-friendly practices due to cost concerns
Lack of market presence and consumer demand
difficult is essential. Despite the promising prospects, various chal-
Lack of economic instruments to discourage final disposal and
lenges, such as regulatory hurdles, financial constraints, and techno- promote waste recovery
logical gaps, pose substantial obstacles. Understanding these barriers is Lack of awareness about the concept and benefits of the circular
crucial for developing effective strategies and policies that can facilitate economy
a smoother and more efficient shift towards a circular economy. The Lack of environmental education initiatives and skilled
professionals, alongside the significant expenses associated with
main barriers, which mostly encompass weaknesses and threats, are
personnel training
summarised in Table 2 (see Table S4 in SI for the literature references) Social
Insufficient stakeholder cooperation schemes
and further discussed in the subsections hereafter. The undervaluation of informal workers involved in sorting and
collection tasks
Inefficient communication
3.2.1. Political
The circular economy is still in the early stages in the region
Underdeveloped sorting and collection systems are among the Lack of understanding of circular economy technical practices
biggest political challenges for a CE in LAC. Politically motivated bar- Underdeveloped sorting and collection systems
riers include urban planning aspects (Deus et al., 2022) and suboptimal Lack of circular design
location of collection and sorting centres (de Oliveira et al., 2019; Lack of adequate infrastructure and information
Technological
Low level of readiness of locally available technology and
Kutralam-Muniasamy et al., 2023). The slow development is influenced
dependence on imports
by high costs for small collection amounts (Barquete et al., 2022; Fer- Lack of interconnection with other technological tools
ronato et al., 2022b; Neto et al., 2023) (see section 3.2.2), as well as the Lack of data and indicators to monitor performance
lack of consumer awareness on waste management (Duarte Castro et al., Lack of regulation and regulatory frameworks for solid waste,
2022; Ferronato et al., 2023b; Parodi et al., 2022) (see section 3.2.3), all electrical and electronic waste, and mining-environmental
practices
of which can derive from a lack of political engagement. The informality Inefficient handling of end-of-life products in the black market,
(and illegality of some activities) of the sector (Brito et al., 2022), along leading to illegal activities
Legal
with the lack of regulation (Duarte Castro et al., 2021), also contribute to Recent and insufficiently implemented regulations and actions
its suboptimality and lagged development compared to other regions in towards recycling
Lack of laws incentivising circularity and specific details on
the world (e.g., the European Union). Similarly, insufficient govern-
circular economy strategies
mental incentives for companies to transition to more circular opera- Import and export barriers for resource cycling
tions (Cortez et al., 2022; Maria et al., 2023; Oliveira Silva and Morais, High rate of waste generation and low recycling rates
2021) permeate the establishment of operational activities that can Lack of monitoring of the level of contamination of natural
support the transition to a CE, such as waste collection and management resources
Environmental
Risks of environmental contamination by the informal recycling
(Deus et al., 2022; Parodi et al., 2022), and reverse logistics (de Lorena sector
Diniz Chaves et al., 2021). However, the lack of incentives also reaches Mishandling and mismanagement of hazardous wastes
coordination actions (Oliveira et al., 2018), sectoral agreements (de
Lorena Diniz Chaves et al., 2021), as well as research, development, and
innovation (Nadaleti et al., 2020), and education for behavioural change willingness to recognise waste pickers as well as the challenging eco-
(Gutberlet and Uddin, 2017; Lima et al., 2021). There is a deficiency in nomic conditions in some LAC countries. Also, formal recyclers do not
robust political frameworks that would incentivise circularity, coupled usually work with hand pickers (Botelho Junior et al., 2024), even
with a lack of specific details on CE strategies and procedural gover- though waste sorting is commonly done by the informal sector
nance issues, particularly concerning landscapes and resource use (Ferronato et al., 2023b; Gutierrez-Galicia et al., 2022). This limited
(Bastos Lima, 2022; Chiappetta Jabbour et al., 2020). One example is the governmental support and lack of regulation, on top of incentivising
lack of support for industrial symbiosis, exploring technical solutions informality (Guarnieri et al., 2020), leads to low-quality operations
and legal compliance. Unsurprisingly, there is also a lack of disincen- (Fuss et al., 2021).
tives for harmful practices (Aguiñaga et al., 2018; Chaves et al., 2022), When it comes to the standardisation of activities and ensuring
which is coupled with the absence of financial incentives, subsidies, and compliance with environmentally safe operations, there is a lack of
educational programs (see section 3.2.3). enforcement of rules and procedures as environmental protection is not
The informal waste sector in LAC is large (Martínez, 2021) and un- seen as a policy priority. Poor monitoring capabilities can result in a lack
structured (Ferronato et al., 2018), with scarce numbers of waste picker of control of industry performance (Aguilar et al., 2022) and an absence
associations (Fidelis et al., 2023). There is low support both from the of punitive measures for any harm caused (Aguiñaga et al., 2018), such
government (Ferronato et al., 2019a; Korsunova et al., 2022) and the as inadequate handling of waste with the consequent environmental
private sector (Guarnieri et al., 2020) to acknowledge the crucial role of contamination (Ferronato et al., 2019a). This is underpinned by a lack of
waste pickers in a CE (Xavier et al., 2021). The high informality can be infrastructure for such monitoring (López-Pacheco et al., 2021) (see
attributed to the above-mentioned limited support and lack of political section 3.2.4), driven by a lack of economic power and political

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willingness to acquire more technologically advanced and efficient The combination of high costs associated with the implementation of
equipment, and a lack of adequate knowledge leading to ill implemented new CE practices and technology improvements (Rodríguez-González
initiatives (Guarnieri et al., 2020). Moreover, when illegal activities take et al., 2022) and the lack of economic instruments to discourage final
place, such as setting up illegal dumpsites (Segura-Salazar and Tavares, disposal and promote waste recovery (Barquete et al., 2022) constraint
2021) as well as dismantling sites (Soares et al., 2023), there is an the development of CE solutions in the region. These elevated costs
absence of legal-administrative penalties that can be implemented by include research and development investment and acquiring new
the government to be borne by the responsible parties (Dias et al., 2022). equipment and infrastructure, which in most cases is imported (Cezarino
The establishment of reverse logistics and other necessary activities et al., 2019; Ferronato et al., 2022b; Tabelin et al., 2021), for instance,
(e.g., sectoral agreements, technology availability, etc.), to both oper- electrical and electronic equipment (Leitão et al., 2023). Finally, insuf-
ationalise CE strategies (Oliveira Silva and Morais, 2021) and to define ficient data for informed decision-making (see section 3.2.4.) also ac-
responsibilities (Guarnieri et al., 2020), are costly and difficult to pursue centuates the economic challenges (Basnak and Giesen, 2023; de
without governmental support. Thus, there are scarce public initiatives Andrade Junior et al., 2017; Fidelis et al., 2023), mainly in informal
to create disincentives to linear practices and final disposal (Rondón activities (Gutberlet and Uddin, 2017) which causes an industry resis-
Toro et al., 2023) and to incentivise the recovery of materials (de Lorena tance to adopt eco-friendly practices (Rodríguez-González et al., 2022).
Diniz Chaves et al., 2021; Del Borghi et al., 2022). This lack of initia- This is accentuated by the lack of comprehensive techno-economic
tives, coupled with the incipient regulation, makes illegal activities analysis to evaluate the cost-benefits of deploying CE strategies in LAC
common (Brito et al., 2022). (López-Sánchez et al., 2023; Rodríguez-González et al., 2022; Tedesco
Therefore, the absence of clear political willingness results in a lack et al., 2022). Accordingly, the effective application of CE strategies is
of legislation, enforcement, and integration of informal activities, scarce (Bijos et al., 2022; Guarnieri et al., 2023), especially among SMEs
making the transition to a CE difficult in the region. When regulations (Rodríguez-Espíndola et al., 2022). This is true not only in terms of
exist, and there are standards to be followed, such as the National Policy economic aspects but also in operational activities and partnerships
on Solid Waste (PNRS) in Brazil, insufficient cooperation schemes (Faria et al., 2023), awareness, commitments, and regulations, which
among the public and private stakeholders hinder reaping greater ben- are non-existent or under formulation (Dziedzic et al., 2022).
efits, which often relates to barriers on a social dimension (see section
3.2.3). In LAC, the pitfalls around collaboration also often stem from the 3.2.3. Social
excess of bureaucracy. Overwhelming bureaucracy harms the imple- One of the main obstacles to the transition to a CE in LAC is that the
mentation of new initiatives and challenges interested parties' willing- general public has scarce or no knowledge, or scepticism, about the real
ness (Fuss et al., 2021). Bureaucracy also limits transparency and access benefits behind the implementation of CE solutions, including selective
to information on environmental performance (Aguilar et al., 2022) (see waste collection and recycling (Lara-Topete et al., 2022). The general
section 3.2.6), slows innovation and technological development (de public lacks awareness regarding the fate of waste and the individuals
Moraes et al., 2023), disrupts the obtention of resources (causing delays) involved in its management. For example, in a recycling context, a large
(Ferrari et al., 2023), and weakens the possibility of implementing portion of Brazilian society (59 %) is unaware of the usefulness of
public policies (Bijos et al., 2022). recycling processes and the individuals involved in it (de Oliveira et al.,
2019). Moreover, approximately 81 % of Brazilians have little to no
3.2.2. Economic knowledge about the existence of recyclable waste collector associations
The transition to a CE in LAC faces significant economic challenges. (de Oliveira et al., 2019). As a result, people prefer not to “waste their
A primary challenge stems from the entrenched connection between time” by separating their wastes if “everything is going to end up together in
economic growth and increased material consumption, which fuels the the same truck or landfill” (Ferronato et al., 2022a). This attitude barrier
region's waste generation cycle. As economies expand, so does consumer is a consequence of the population's lack of environmental communi-
demand, leading to higher production rates and, consequently, more cation and education. Without active participation from the population
waste (Botelho Junior et al., 2024; Fidelis et al., 2023). in waste separation, efforts to recycle and recover valuable materials are
Another major problem is that the region lacks formal markets for much less effective, even if the infrastructure exists.
material recovery (Ferronato et al., 2023b; Guarnieri et al., 2020; Lara- Another social barrier is the environmental education deficiency due
Topete et al., 2023). The main challenge is the economic structures to inadequate practical curricula, caused mainly by a lack of economic
prevalent in the region, which prioritise for-profit growth over envi- resources (Ferronato et al., 2022b). The low quality of basic education is
ronmental or social sustainability considerations (Rondón Toro et al., reflected in the population's limited understanding of sustainability and
2023). One example is the low value and no demand for recovered its advantages (Barquete et al., 2022). Yet, there is an uncovered de-
materials (such as steel, plastics, and aluminium) (Brito et al., 2022; mand for professionals with the knowledge to integrate CE principles
Carvalho Machado and Kindl Da Cunha, 2022). The scarcity of a skilled into production processes, considering developing countries' specific
workforce for new waste management models also represents a relevant needs and circumstances (Ferronato et al., 2022b). Even though there is
barrier (see section 3.2.3.). De Moraes et al. (2023) state that human a demand for these types of sustainability-minded professionals, the
capital, specifically technical and soft skills, matters only when there is high cost of training personnel is still a barrier (de Moraes et al., 2023;
access to financial resources. Magnusson et al., 2022; Rodríguez-González et al., 2022). These two
Another barrier that nurtures the lack of circular markets is the high barriers (lack of education and unmet demand for professionals) keep
costs of secondary materials, which are attributed to several factors, the population, including the industry sector, in a vicious cycle of not
such as the poor culture in using recycled components, the elevated costs practising a CE due to the lack of knowledge. Until society is sensitised,
of formal recycling processes (Rodrigues et al., 2021; Silva et al., 2022), it will be very challenging for the CE to become mainstream (Da Silva,
and the challenges in the process upscaling (Fuss et al., 2021; Ribeiro 2018).
et al., 2016) at the region (Reis Neto, 2021) and national level (Guarnieri The analysed studies stress the need for trusted and productive
et al., 2020). In addition, the lack of environmental education (see partnerships in LAC, and the involvement of all supply chain members
section 3.2.3.) is translated into low sales of recycled products due to for the effective implementation of a CE. This implies public, private,
negative perceptions of quality and durability. For example, during the formal and informal sectors, non-governmental organisations (NGOs),
initial stages of an ecological tiles business in Brazil, manufacturers academia and the general public. However, there is a crucial link in the
faced challenges in entering the tile market because recycled products chain that needs to be considered in LAC, which is waste pickers, who
were perceived as “low quality” and “non-durable” (Barquete et al., play a crucial role in waste management by recovering recyclable ma-
2022). terials and promoting sustainable practices (Fuss et al., 2021; Moraes

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et al., 2023). For example, approximately 20 million people in Mexico et al., 2018). This data can be difficult to integrate into different systems
are engaged in informal waste collection activities, collecting 70 % of because it might have been produced with different purposes and under
the total solid waste and providing their services to areas lacking formal different methodologies (Bijos et al., 2022). Notwithstanding, in the
waste management services (Fidelis et al., 2023). Despite their impor- efforts to initiate proper monitoring and reporting, this lack of data
tance, waste pickers have been marginalised in society due to a lack of might lead to the use of average data (e.g., to make assumptions or for
recognition of their labour, precarious working conditions, social reporting) that is not locally relevant (Duarte Castro et al., 2021).
stigma, and institutional exclusion (Duarte Castro et al., 2022). Many
waste pickers face challenges entering the formal labour market, often 3.2.5. Legal
due to low education levels. This impacts directly on workers' income Legal barriers highlighted by scholars are legal uncertainties and
and operational efficiency. To address these challenges, it is necessary to ambiguities in interpreting legislation stemming from a lack of strong
ensure working conditions by integrating them into formal labour political frameworks (e.g., section 3.2.1) (de Lorena Diniz Chaves et al.,
structures. 2021; Sellitto and Almeida, 2020). Additionally, there is a noticeable
Finally, improved communication and understanding of the CE absence or minimal integration of CE principles within existing stan-
among supply chain actors is needed. For example, a lack of coordina- dards and legislation, such as in the area of mining waste (Lemos et al.,
tion is identified as a major obstacle to promoting CE strategies in the 2023). Furthermore, most of the existing CE regulations in the region are
agricultural sector in Argentina, specifically the poor communication of not fully implemented and are technically insufficient, leading to a
the public administration with the rest of the stakeholders (Rótolo et al., confusing regulatory landscape (Deus et al., 2022; Mühl and de Oliveira,
2022). In Colombia, the lack of coordination and fragmentation among 2022). When regulations do exist, they lack clear strategies (Coelho and
stakeholders throughout the value chain made the development of cir- Diaz-Chavez, 2020), are new and evolving (Ferronato et al., 2023a), or
cular strategies very challenging in the construction sector in Valle del need to be customised for the LAC context (Soares et al., 2023). This
Cauca (Maury-Ramírez et al., 2022). These cooperation problems occur leads to low recycling rates and negative consequences on both the
between international, national, and/or local actors (Ferronato et al., formal and the informal sectors (Ceglia et al., 2016; Rondón Toro et al.,
2022a; Ribeiro Siman et al., 2020), who have different levels of 2023). Lack of or inadequate regulation also triggers informality
commitment. This outlines the low engagement (Ferronato et al., 2020a; (Ferronato et al., 2019b), which contributes to imbalances in socioeco-
Oliveira Silva and Morais, 2021) of both governmental and private nomic aspects, such as income, work safety, and quality of life of
stakeholders in LAC (de Lorena Diniz Chaves et al., 2021) (see section informal workers (Fidelis et al., 2023; Lara-Topete et al., 2022).
3.2.1.), which is often a barrier to maintaining the continuity of indus- Another legal challenge is the lack of comprehensive regulations and
trial and territorial projects (Faria et al., 2023). Through clear regulatory frameworks specifically tailored to manage key types of
communication, actors can align their efforts, optimise resource uti- waste in LAC (e.g., MSW, WEEE, mining) (Cruz Reina et al., 2023); for
lisation, and foster innovation for sustainable and circular business instance, mining waste (Li et al., 2022; Méndez et al., 2022), WEEE
models (Aguiñaga et al., 2018). (Neto et al., 2023), municipal solid waste (Rondón Toro et al., 2023).
Moreover, the lack of legislation on the import and export for resource
3.2.4. Technological cycling (Braz and de Mello, 2023) creates a shifting burden between
The bottom line of many of the technological barriers to a successful countries in terms of transferring the environmental impacts between
CE in LAC is related to a lack of understanding of CE practices. A limited countries' trade. The absence of clear guidelines and legal provisions for
understanding of these practices, in terms of what they entail and the these key areas creates uncertainty. It hinders the adoption of sustain-
benefits they might bring, coupled with a low level of technological able practices, allowing for the illegal handling of end-of-life products,
readiness contribute to lagged technological advancement in the region. such as dismantling cars in the black market (Neto et al., 2023; Soares
The lack of adequate infrastructure to support circular practices is et al., 2023).
mostly hampering efficient waste management and recycling systems
(Bijos et al., 2022). The underdeveloped sorting and collection systems 3.2.6. Environmental
underpin the low recycling rates observed in LAC (Deus et al., 2022; Environmental impacts (e.g., climate change, ozone layer depletion,
Maria et al., 2023), which are influenced by: i) high transportation atmospheric pollution, extinction of natural species, acid rain, deserti-
distances (Molinos-Senante et al., 2022); ii) limited infrastructure fication and runoff of leachates) (Díaz-Peña and Tinoco-Castrejón, 2019)
(Pimentel Pincelli et al., 2021); iii) stakeholders not having their role are on the rise in LAC due to a shortage of financial resources, regula-
specifically included in laws and discussions(Bernardes et al., 2024); iv) tions, appropriate technologies, political will, public awareness, and
no targets for recycling (Duarte Castro et al., 2021); and v) poor know-how (Ferronato, 2021). These barriers prevent the implementa-
compensation of both the formal (Bernardes et al., 2024) and informal tion of CE strategies, and combined with the high rate of waste gener-
(Ferronato et al., 2022b) employees working on recycling. Once the ation and low recycling rates (Pegels et al., 2022; Sulis et al., 2021;
infrastructure is available, another barrier is the lack of technological Xavier et al., 2021), lead to a large amount of waste going to landfills or
knowledge to, for instance, replace single components in a product that open dumps and contributing to environmental risks and impacts
needs repair or recovery of the different materials in alloys (Bijos et al., (Chiappetta Jabbour et al., 2020; Lima et al., 2021).
2022; Duarte Castro et al., 2021). In addition to the technological challenges (see section 3.2.4), there
The implementation of circularity indicators is also crucial to the is a high uncertainty in LAC countries regarding the environmental
transition to a CE because only what is measured can be managed sustainability of emerging waste treatment technologies. While the goal
(Barros et al., 2023). In this regard, some key data for the CE transition is to manage waste, there is no evaluation of these technologies' energy,
in LAC are missing (Ferronato et al., 2019a; Molinos-Senante et al., resource efficiency, emissions, and long-term environmental impact.
2022) including: i) information on waste management costs (Ferronato This limitation is accompanied by the general lack of track of pollution
et al., 2023a); ii) qualitative and quantitative data on pollution (Soares levels and control of compliance with environmental standards (Duarte
et al., 2023), iii) quality specifications of recoverable materials (Lara- Castro et al., 2021; Guarnieri et al., 2020; Lara-Topete et al., 2022).
Topete et al., 2022); and iv) data on the demand for resources (Soares de Finally, one of the causes of environmental contamination in the
Carvalho et al., 2022). The limitation on data availability also embeds region is the informal recycling sector because, although they contribute
the lack of technologies enabling data transmission, such as those with to material recycling, their mishandling and mismanagement of haz-
monitoring purposes (Guarnieri et al., 2020). Furthermore, available ardous wastes can lead to environmental impacts (Ferronato, 2021;
data from waste generation, collection and recycling is not widely Ferronato et al., 2020b; Hernandez-Jimenez et al., 2022). There is a
shared (Aguilar et al., 2022) or even reliable (Dias et al., 2022; Ferronato need to formalise the informal sectors involved in waste collection and

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sorting in developing countries (Ferronato et al., 2023b) (see sections increasing efficiency and savings in energy consumption in a dairy
3.2.1. and 3.2.3) and implement CE strategies such as repair markets, factory (Font Prieur and López Bastida, 2023). Another driver for these
refurbishing, trade of second-hand products, and recycling chains. Easy, types of strategies is finding solutions to the management of particularly
cheap, and profitable end-of-life routes must be adopted to overcome challenging waste in the region, like EEE (Leitão et al., 2023; Uriarte-
environmental risks such as the overloading of water and soil ecosystem Ruiz, 2022), or textile products (Jarpa et al., 2021; Rossi et al., 2020).
(Piedra-Jimenez et al., 2022; Segura-Salazar and Tavares, 2021; Vega- The least utilised strategy is “regenerating”. The implementation of
Quezada et al., 2017). regeneration strategies requires significant efforts at financial, human,
and technological levels (e.g., Aguiñaga et al., 2018; de Moraes et al.,
3.3. Circular economy strategies 2023; de Souza and Pacca, 2021). Therefore, in the LAC context of
limited resources, studies opt for more pragmatic and cost-effective
In the last few decades, different CE strategies have been imple- strategies and focus on technical and operational aspects of waste
mented depending on the waste feedstock resources, the final product management (e.g., recycling efficiency and selective collection) and
and coproducts, and the technology used. The four key strategies within minimising environmental impacts. Finally, this trend may evolve in the
the CE framework are often described as closing, slowing, narrowing, future as awareness, understanding, and resource availability change in
and regenerating. Closing focuses on creating closed-loop systems where the region.
products and materials are recycled and reused creating new value,
thereby minimising the amount of waste sent to landfills (Velasco- 3.4. R's strategies
Muñoz et al., 2021). Narrowing focuses on using fewer resources per
product to improve efficiency and reduce waste (Bocken et al., 2015). A common approach to summarising CE strategies is the R's strate-
Slowing aims to extend the utilisation period of products through the gies. The ten R's (Kirchherr et al., 2017; Potting et al., 2017; RLI, 2015)
design of long-life goods and product-life extension strategies such as are aligned with CE strategies defined in section 3.3 and encompass:
maintenance and repair to slow down the flow of resources (Bocken smarter product use and manufacture (narrowing; refuse, rethink,
et al., 2015). Regenerating, in turn, goes beyond simply minimising reduce), expand product lifespan and its parts (slowing; reuse, repair,
negative impacts, it includes all actions to preserve and enhance natural refurbish, remanufacture, repurpose) and useful application of materials
capital (Velasco-Muñoz et al., 2021). (closing; recycle and recover). The prominence of each of these strate-
Due to the extensive scope of this literature review, not all articles gies in the reviewed studies is illustrated in Fig. 3 and discussed here-
were eligible to be assigned a CE strategy; this depended on the after (see Table S5 in SI for the literature references).
approach of each article. Therefore, 205 out of 247 articles analysed in
this review were considered for this section. It is worth noting that 3.4.1. Smarter product use and manufacture: Refuse, rethink and reduce
several articles were also assigned more than one strategy. Considering Refusing comprises making a product redundant by abandoning its
the frequency of categories assigned to articles in terms of their relation function or by offering the same function with a radically different
with the CE, closing was the most utilised strategy (53 %), followed by product (Kirchherr et al., 2017; Potting et al., 2017). Refuse strategies
slowing (26 %), narrowing (15 %), and regenerating (6 %). were mentioned in eight articles. An example of the implementation of
Most studies seemed to emphasise the importance of closing material this strategy in LAC is fossil fuels being replaced with refuse-derived fuel
and energy cycles to achieve a more circular system chasing an efficient (RDF) (Chaves et al., 2022; de Lorena Diniz Chaves et al., 2021), which
use of resources (e.g., Barquete et al., 2022; Brito et al., 2022; Montoro is the combustible fraction of MSW and is mainly consumed in the
et al., 2019) and cleaner production (e.g., Amorim Júnior et al., 2021; cement industry (Ferronato et al., 2019b; Guimarães Filho et al., 2023).
Nadaleti et al., 2021a; Santos et al., 2020). Considering that CE in LAC is In this sense, de Lorena Diniz Chaves et al. (2021) show that RDF has
in its infancy, it is reasonable that the main strategy used is closing, since high calorific power, lower levels of hazardous components, and is a
it is the “easier” strategy to pursue (Bocken et al., 2022). The prevalence more homogeneous material compared to the original option (fossil
of the closing strategy in this analysis can be attributed to several region- fuels). The potential implementation of reverse logistics systems is
specific factors, such as significant challenges in waste management, essential for the use of waste in the production of RDF.
with issues of open landfills and the need to adopt more sustainable Rethinking involves a thorough reevaluation of values and actions
practices (e.g., Aguilar et al., 2022; Deus et al., 2022; Devendran et al., taken to make more intense use of resources for instance, by sharing
2023). Adopting closing strategies, such as recycling and reuse, reflects products (Kirchherr et al., 2017; Potting et al., 2017). Rethinking im-
the urgency to address these problems. Furthermore, LAC often faces plies that some practices may go under reconsideration, potentially
constraints in terms of economic and technological resources (sections causing changes in individual behaviours or within the system itself.
3.2.2 and 3.2.4, respectively). Through material recovery and reuse, Some studies in LAC (18 articles in the portfolio) suggest that it is
closing cycles can represent a practical and economically viable solution necessary to rethink habits, practices and systems to promote more
to maximise available resources. In addition, increasing environmental significant changes towards CE (e.g., Aguilar-Murguía et al., 2022;
awareness, combined with implementing regulations in some countries Nadaleti et al., 2021a; Sehnem et al., 2019). Rethinking and advocating
in the region, has led to an increase in the adoption of CE practices to for changing habits in LAC leads to benefits such as reduction of waste
meet environmental and sustainability standards (section 3.1.6). and CO2 emissions (see, e.g., Del Borghi et al., 2022; Maciel-Silva et al.,
Finally, implementing closing strategies not only addresses environ- 2021; Sehnem et al., 2022).
mental issues but can also have economic and social benefits in the re- Reducing involves increasing efficiency by, for example, minimising
gion such as the creation of business opportunities (Faria et al., 2023; the consumption of raw materials and/or decreasing waste generation
Sant’ Ana et al., 2023; Vargas-Terranova et al., 2022) and jobs (e.g., (Kirchherr et al., 2017; Potting et al., 2017). Reduce can also involve
Brito et al., 2022; Galatti and Baruque-Ramos, 2022; Mohammadi et al., increasing efficiency in product manufacture or use by consuming fewer
2021). natural resources. This strategy is one of the most prevalent and
The next two strategies considered in the analysed studies were frequently addressed in the reviewed studies (46 articles). An important
slowing and narrowing. Several studies focused on the optimisation of example in LAC is sugarcane, which can become a solution to reduce
limited resources since LAC faces significant challenges in terms of GHG emissions in several countries of the region (Vandenberghe et al.,
financial, technological, and infrastructure resources (sections 3.2.2 and 2022). Ethanol produced from sugar cane can be used as biofuel in ve-
3.2.4). Under these conditions, actions that allow doing more with less hicles, partially or completely replacing gasoline. Additionally, sugar-
are useful, such as the valorisation of wastes from agriculture and fishing cane plantations can capture atmospheric carbon during their growth
activities (Cornejo-Ponce et al., 2020; Rojas Herrera et al., 2023) or cycle, helping to remove CO2 from the atmosphere and store it in plant

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Fig. 3. Prominence of ten R's strategies in Latin America and the Caribbean. The font size of the R's is proportional to the number (in parenthesis) of articles for each
R. The total number is 325 because several of the 247 articles consider two or more R's.

biomass and soil. Furthermore, sugar cane can also be used in the pro- inefficient in promoting reuse and other R's like reducing. This conclu-
duction of bioplastics and other renewable materials, replacing mate- sion reinforces the lack of waste treatment regulations in many LAC
rials of fossil origin. Another example is the application of organic waste countries that implement CE principles before the end of life (landfilling
materials to agricultural soils, which can enhance nutrient cycling and or incineration) or recycling (section 3.2.5.).
soil fertility, reduce reliance on synthetic fertilisers, and alleviate agri- Repairing entails conducting corrective operations to repair or fix a
cultural costs (Fink et al., 2021). In another example related to the agri- product to restore it so it can perform its intended function once again
food sector, the negative impacts on the production of Cumanayagua (Kirchherr et al., 2017; Potting et al., 2017). This strategy is among the
cheese in Cuba were reduced after the application of CE practices in less studied in LAC (only eight articles), probably because repair still is
terms of energy consumption, extending the useful life of products, and an activity mainly handled by the informal sector in LAC (Camargo,
reusing waste (Font Prieur and López Bastida, 2023). In the textile 2012) and formal companies still need to improve on their handling of
sector, “fast fashion” has critically increased the amount of clothing end-of-life products to be able to realise strategies such as repair
produced and discarded (European Parliament, 2020) and has become ((Rodríguez-González et al., 2022). According to the reviewed studies,
an increasing environmental concern in the region, with areas like the repair research in LAC has focused on industry 4.0 technologies to
Atacama Desert (Chile) becoming open dumps for discarded clothes produce highly mechanised and automated goods (Lasi et al., 2014;
(Sánchez De Jaegher, 2024). Embracing circular fashion practices can Lopes de Sousa et al., 2022) and on the EEE sector (Leitão et al., 2023),
lead to cleaner production methods and reduce textile waste (de Aguiar particularly mobile phones (Uriarte-Ruiz, 2022). The relationship be-
Hugo et al., 2023). tween repair and Industry 4.0 is mainly linked to the way technology is
being integrated into industrial repair and maintenance processes,
3.4.2. Expand product lifespan and its part: Reuse, repair, refurbish, where, for example, products are upgraded and maintenance services
remanufacture, repurpose are offered (Lopes de Sousa et al., 2022), especially in the case of EEE.
Reusing addresses the use of a resource or product once again, ful- Repair in the textile industry has also been studied in LAC, more spe-
filling its original function, and giving it a new cycle (Kirchherr et al., cifically, Jarpa et al. (2021) highlight the positive effects of companies
2017; Potting et al., 2017). It also encompasses the reuse of a discarded offering clients the option to repair old textile products or free clothing
product, which is still in good condition and fulfils its original function, repair services to extend the product life in Chile.
by another consumer, thereby contributing to slowing the loop by Refurbishing is updating or restoring a product and bringing it up to
extending the product's lifespan. For example, Uriarte-Ruiz (2022) date, especially with regard to its aesthetic characteristics (Kirchherr
explored the potential incentives to create a CE of mobile phone et al., 2017; Potting et al., 2017). Even though only five articles
replacement and reuse in Greater Mexico City, including i) establishing addressed refurbishing in LAC, this strategy is commonly used within
safe public transport; ii) increasing the incentives to recycle, repair, or the construction sector with the refurbishment of urban buildings (Del
exchange phones; iii) providing affordable mobile contracts and insur- Borghi et al., 2022). The construction sector is crucial in LAC, one of the
ance and longer replacement cycles for contract users; and iv) facili- most urbanised regions of the world (UN-DESA, 2018). Refurbishing is
tating regularised markets for second phones and software updates for also observed in the energy industry, in the updating of photovoltaic
older devices. One of the potential benefits of waste reuse is that it will systems and modules in Mexico, being the solar sector key for the
avoid end-of-life impacts, which is crucial because waste treatment is transition to a low-carbon energy mix in the whole region (Santoyo-
one of the main environmental and health challenges in LAC. Finally, the Castelazo et al., 2021). Another prominent sector where refurbishing is
urban solid waste management (USWM)-index, an index to evaluate observed is mobile phones (Uriarte-Ruiz, 2022), where refurbishing can
waste management in urban areas was applied in four cities in Brazil help extend the life of such devices of highly-paced use in Mexico.
(Moraes et al., 2023). Despite complying with national solid waste Remanufacturing (also named reverse manufacturing) entails
policy requirements, the management systems of these four cities were reprocessing parts (or the whole) of a recovered product to make a new

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one (Kirchherr et al., 2017; Potting et al., 2017). This approach uses products (Molina and Pascua, 2022), as an alternative to the common
parts of discarded products in a new product with the same function. landfilling of textiles in the region (Espinoza Pérez et al., 2022). More-
Only seven articles have addressed this strategy. Remanufacturing has over, attention has also been given to several initiatives in the region for
been investigated more intensively within the WEEE sector, which is key the recycling of different MSW fractions, like paper, plastic, and metal
for LAC, as 1.5 million tons of such waste are produced annually only in (de Andrade Junior et al., 2017; Díaz-Peña and Tinoco-Castrejón, 2019;
Brazil (Ottoni et al., 2020). This waste generation leads to losses related Ferronato et al., 2018), as well as the establishment of policies for their
to opportunity costs, for instance, within the electric vehicle (ELV) recycling (Da Silva, 2018). Other outreaches of recycling within LAC
management system, as new markets for remanufactured products could include the recycling of steel (de Souza and Pacca, 2021), and copper (Li
instead provide financial gains (Soares et al., 2023). In this sense, reg- et al., 2022). Finally, Valenzuela-Levi (2019) remarks on the factors that
ulations, such as the National Policy of Solid Waste in Brazil, have influence municipal recycling in Chile, which can be extended to LAC.
started to stimulate remanufacturing from WEEE (Brito et al., 2022). Factors with a positive influence on recycling include the existence of
Another industry where remanufacturing has been an active strategy in kerbside collection and per capita expenditure on waste management (in
the whole region is the automobile sector (Rodríguez-González et al., the case of Chile); whereas the largest negative factor seems to be the
2022). Significant efforts have been directed at decreasing costs related frequency of collection of waste, which discourages sorting and
to remanufacturing in this industry in LAC, by, for instance, making use recycling.
of sustainable supply chain management (SSCM) practices to investigate Recover entails using resources for energy purposes (Kirchherr et al.,
new alternatives in the remanufacturing of lithium-ion batteries (Duarte 2017; Potting et al., 2017); thus, it can generally be understood as en-
Castro et al., 2021; Rodríguez-González et al., 2022). ergy recovery. This is also a common strategy within LAC (46 articles).
Repurposing refers to using parts of discarded products in a new In a Brazilian context, Farrapo et al. (2023) highlight the use of bri-
product with a different function (Kirchherr et al., 2017; Potting et al., quettes from biomass waste for energy production. These briquettes are
2017). Repurposing is quite a common strategy in LAC (35 articles) and an alternative use of available biomass waste and can replace fossil/non-
can be observed in many industries. In the case of the bioeconomy, renewable fuels.
biomass waste has been repurposed, for example, for the removal of
toxic metals from a range of mediums (Ribeiro et al., 2021; Valdés- 3.5. Guidelines, limitations and future research
Rodríguez et al., 2022), as a soil amendment (Parodi et al., 2022), fer-
tiliser (Amorim Júnior et al., 2021), and biofuel (Gutiérrez et al., 2021; This study has provided a comprehensive systematic literature re-
Mühl and de Oliveira, 2022; Ramos et al., 2022); for instance from food view on the key drivers, barriers, opportunities and strategies for
waste (Weber et al., 2020) and forest waste (Piedra-Jimenez et al., implementing circular economy initiatives in LAC. The following
2022), or packaging material (Ribeiro et al., 2021). Other biomass guidelines and recommendations are based on the main outcomes of the
materials that are not waste have also been repurposed to produce research and facilitate the deployment and management of a sustainable
phenolic antioxidants (de Souza Silva et al., 2021), health-enhancing CE in LAC:
products (pharmaceuticals and functional foods) (Benvenutti et al.,
2021), and ingredients for food products (Rodríguez-Ramos et al., • Reinforce the development of regulations that promote CE practices
2022). Moreover, biosolids from anaerobic sewage sludge (Cristina beyond recycling and help businesses (e.g., through the development
et al., 2020), aquaculture systems (Cornejo-Ponce et al., 2020), and of new sectorial policies, incentives – especially for SMEs, assessment
wastewater treatment systems (Avellán et al., 2022) have been repur- tools and metrics) to integrate CE solutions into their operations and
posed for use in fertilisation. Other potential repurposing strategies can innovation processes to narrowing, slowing, closing and regenerat-
be observed when establishing symbiosis among agricultural and live- ing resource loops. These new regulations should include the
stock processes, such as composting or AD of animal waste or the sale of deployment of carbon pricing, landfill taxes and/or extended pro-
recently dead sheep for recovery of the skin for tanning (Cervantes, ducer responsibility schemes, as well as, simplifying bureaucratic
2021). Biomass streams have also been repurposed to replace traditional processes to facilitate the implementation of CE initiatives while
materials, such as agave derivatives to replace polymers (Martínez- improving transparency on monetary resource allocation. The
Herrera et al., 2021), straw products to replace insulation panels (Rojas alignment and harmonisation of national and local policies with in-
Herrera et al., 2023), and biomass ash to replace cement (Rocha et al., ternational CE standards and regulations can also facilitate the
2022). Besides biomass, the repurposing of polyethylene terephthalate integration of LAC economies into future global circular supply
(PET) has been studied to produce ecological tiles (Lizarzaburu-Agui- chains, improving the competitiveness of the region.
naga et al., 2023), and the use of mining tailings has been investigated as • Foster close collaboration and active partnerships across value
a substitute for sand in the manufacturing of concrete blocks (Méndez chains within the same sector and from different economic sectors,
et al., 2022), providing solutions to two of the most critical environ- including societal actors, to enhance circular practices (e.g., indus-
mental problems (plastic and mining waste) in LAC. trial symbiosis and reverse logistics). This includes supporting the
formalisation and inclusion of informal waste workers in different
3.4.3. Useful application of materials: Recycle and recover value chains.
Recycling encompasses processing materials (that have already been • Invest in the deployment and life cycle management of green tech-
through one or more life cycles) into new ones with either higher or nologies, renewable energy sources and bio-based materials. Nar-
lower quality (Kirchherr et al., 2017; Potting et al., 2017), thus rowing, slowing and closing resource loops is crucial but
contributing to closing the loop by reintegrating these materials into the sustainability benefits would be limited in the long term if economic
production cycle. Recycling spans a range of industries and materials in systems still run on fossil-based energy and materials. The abun-
LAC (Rojas Herrera et al., 2023), being the R most represented in the dance and diversity of natural resources within LAC, along with
reviewed studies (112 articles). Once again, the bioeconomy plays a favourable climatic conditions, represent an opportunity for the
crucial role, as in LAC, organic waste is recycled into construction ma- development of bio-industries, renewable energies, and innovative
terials for the built environment (Del Borghi et al., 2022), and used for sustainable materials.
fertilisation (Cornejo-Ponce et al., 2020) and energy purposes (Cortez • Invest in the necessary infrastructure (e.g., facilities and logistics) for
et al., 2022). As observed with other R's, the textile sector is also a main waste collection, sorting, and recycling to facilitate the transition to a
focus of the existing research. The recycling of textiles can be achieved territorial sustainable CE.
by enabling and optimising the separation of different materials for • Launch public awareness campaigns and educational programs on
subsequent reutilisation in the production of new garments or other sustainable CE practices to increase understanding and support from

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the general public. These campaigns should include the promotion of could provide global insights and foster international collaboration for
community-led initiatives that support local circular practices and better implementation of CE strategies.
encourage consumers to adopt sustainable consumption practices. Another potential limitation of the study is that it relies primarily on
• Train professionals on CE practices to build a skilled workforce scientific literature and does not include an in-depth analysis of the
capable of implementing and managing successful solutions. Here, existing grey literature (e.g., industry reports) on CE and policy regu-
the role of schools, professional training centres and higher educa- lations in LAC countries, which could be extended further. Although
tion institutions is pivotal to assist industry professionals, policy- many of the reviewed studies are grounded in each country's national CE
makers, and the general society in building human, material and legislation, this research does not explicitly examine how these regula-
economic capital. tory frameworks align with or influence the progress of CE practices in
• The support of research and development (R&D) initiatives in LAC is the region. Future research could build on this work by incorporating a
crucial. By fostering innovation in the above topics between LAC comprehensive review of current CE legislation and business case
countries, tailored solutions that address and solve specific territorial studies in LAC, exploring its impact on the implementation and success
challenges can be developed. of CE strategies. Such an analysis would provide a more holistic un-
• Developing regional platforms for knowledge and best practices (e. derstanding of the factors driving or hindering the transition to a cir-
g., technologies, policy approaches, experiences, etc) sharing and cular economy and could inform both policy development and academic
transfer, as well as, for collaboration on CE initiatives can help research in this rapidly evolving field.
accelerate the transition across LAC countries. In this process,
engaging communities in the design, planning and development of 4. Conclusions
CE projects can ensure that solutions are culturally relevant and
socially acceptable, increasing their chances of success. The concept A thorough systematic review of 247 articles has been conducted to
of Ethical Circular Hubs, which focuses on stakeholder collaboration, comprehensively analyse the key drivers, opportunities, and challenges
ethical value chains, and social equity, can be adapted to LAC. These that shape the circular economy approach in Latin America and the
hubs promote innovative business models and ethical practices, Caribbean. This has been done by applying the PESTLE framework,
addressing regional disparities and fostering inclusive growth providing a structured approach to understanding the multifaceted as-
(Garrido and Nunes, 2023). pects of CE implementation in the region.
• Finally, defining clear indicators and metrics (covering different CE Focusing on drivers and opportunities, the results demonstrate that
and sustainability aspects) to monitor progress towards a sustainable the transition to a CE in LAC is being driven by various aspects, including
CE is also essential. However, the lack of crucial data for the the launching of local sustainability policies, the development of tech-
assessment and monitoring of CE strategies represents a significant nological innovations to improve energy and material, the reduction of
limitation, as also highlighted by the Circularity Gap Report of LAC production and consumption costs through waste reuse and recycling, as
(Circle Economy Foundation, 2024). well as, the need to address relevant environmental threats in the region,
such as deforestation, biodiversity loss, and high waste generation. The
In any case, further research should be performed to further analyse need to facilitate social inclusion and community development also
how CE policy frameworks and industry strategies, including public- represent key drivers for the deployment of CE strategies in LAC. From a
private partnerships, can be implemented in different economic sec- political perspective, enhanced government initiatives recently devel-
tors from LAC, beyond waste management. Further studies should also oped in some countries have provided a new political context that
focus on understanding how the development and adoption of new supports circular practices by relying on European and Global North
technologies can support the transition to a sustainable CE, especially in standards as references. Nevertheless, LAC presents unique character-
the context of the bioeconomy, digitalisation, Industry 4.0 and the istics and opportunities due to its socio-economic and environmental
sustainable renewable energy transition. These future studies should context.
include how the CE deployment can contribute to improving job crea- Economically, the region's abundance and diversity of natural re-
tion, social inclusion and the formalisation of informal sectors. Likewise, sources offer significant opportunities for developing bio-industries and
comparative studies between LAC and other regions (both in the Global promoting the adoption of circular practices that leverage local biodi-
South and Global North) can provide insights into the adoption and/or versity. For instance, the valorisation of agricultural and agro-industrial
adaptation of best practices. waste and the mitigation of deforestation in the Amazon are notable
The interpretation of this study's results should take into account particularities of LAC and priority intervention areas for the future
several potential limitations. Notably, the majority of the literature fo- deployment of CE initiatives. The growing public awareness in certain
cuses on Brazil, followed by Mexico, while many countries in LAC lack population sectors (particularly young and with university studies) and
sufficient studies (both theoretical and practical). This could result in a the advocacy for sustainability drive the demand for a CE. This trend has
biased representation of the situation in other countries in the region, been accentuated by a weak regulatory framework associated with
where socioeconomic and political contexts may differ significantly. waste management in LAC and, consequently, the low technological
Cultural, regulatory, and infrastructural differences across the region advancement for pollution prevention and control. The need to solve
also impact the adoption of Circular Economy policies, which are not these urgent challenges has driven the implementation of CE strategies,
uniformly implemented. Consequently, the findings of this study might creating opportunities to minimise environmental impacts, improve
not be universally applicable throughout the region. Therefore, future community relationships, and increase employment in LAC. Due to the
research lines in the region have to focus on increasing geographical near absence of segregation and recycling of MSW, which mostly ends
diversity (e.g., there are few articles from Central America and the up in landfills, new legislation has only focused on improving recycling
Caribbean countries), but also sector variability (e.g., there is too much efforts, without considering other more circular strategies like, for
focus on technological aspects, particularly waste treatment) and on example, reduce, reuse or repair. These recycling efforts are carried out
meso, micro and nano scales. Future efforts should also aim to integrate almost exclusively by informal recyclers, who urgently need their for-
more comprehensive regenerative practices that extend beyond imme- malisation through laws associated with the CE. Finally, the environ-
diate recycling and waste reduction to fully exploit the benefits of a CE, mental imperatives of the CE, including the reduction of resource
fostering a more sustainable and resilient regional development. More extraction and carbon emissions, align with the region's goals for envi-
research is also needed on repair, refuse, remanufacture, and refur- ronmental conservation and resilience against the impacts of climate
bishment, because fewer than ten articles have been found for each of change.
these R's. Finally, the comparison with similar studies of other regions However, according to the articles reviewed, the path to a robust CE

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is fraught with substantial barriers. Politically, the region still suffers and were not involved in the editorial review or the decision to publish
from a lack of support for the informal waste management sector and this article.
limited governmental incentives and policy inconsistencies in most
countries, that hinder the effective implementation and continuity of CE Acknowledgements
initiatives. Economically, financial constraints and the high initial costs
associated with transitioning to circular models pose significant chal- This work was supported by the UKRI Research England Interna-
lenges in the region, particularly for small and medium enterprises. tional Science Partnerships Fund Institutional Support Grant (ODA) for
Socially, there is a generally low level of public awareness and cultural 2023 to 2024, the University of Manchester School of Engineering
resistance to new practices, mainly associated with a lack of environ- Research Pump Priming funding for 2023, and ANID FONDECYT
mental education and communication from the governments. These 1211208 of Chile. The authors would like to thank Dr. Raphael Tarpani
social aspects affect general consumer behaviour and the demand for for his contributions to the early stages of the study and Dr. Claudia
recycled and sustainable products. Technologically, the region often Henninger for her proofreading of the final version of the article.
lacks the necessary infrastructure for efficient material recycling and
relies on outdated technologies that are not conducive to circular Appendix A. Supplementary data
practices. Legally, weak enforcement of existing regulations and the
absence of comprehensive legislation that supports all aspects of a CE Supplementary data to this article can be found online at https://doi.
impede progress. Environmentally, the lack of monitoring of industrial org/10.1016/j.spc.2024.09.006.
environmental performance and the ongoing degradation complicates
the stability of circular initiatives. References
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