Key milestones in Uruguay's transition to a circular Economy

Uruguay is a country particularly vulnerable to the impacts of climate change, so climate change adaptation and mitigation is a national priority. Adopting a circular economy model as a long-term strategic instrument is and has been a key factor in addressing the challenges of climate change and complying with the international commitments assumed with the ratification of the Paris Agreement, and the Nationally Determined Contributions. Uruguay’s public entities consider circular economy as a climate change mitigation strategy. The transition to a circular economy entails numerous environmental benefits for the country, including optimising and reducing the use of resources, energy and CO2 emissions, stimulating competitiveness, innovation, economic growth and creating employment. 

Uruguay has been a pioneer in introducing circular economy in its national policies, and has developed over the years a set of policies, legislative frameworks and good practices that are constantly evolving to facilitate the green transition, supporting innovative business initiatives and re-evaluating existing measures. This has been reinforced by awareness-raising, both at the business level and in society itself, which is an important key to the success of a circular approach

The Fact Sheet Uruguay's path to a circular Economy summarises interviews with stakeholders including the EU Delegation, the national government, the private sector and civil society. It provides analysis of the vision and motivation of local stakholders in the circular economy transition process, the key challenges met and the milestones achieved. Lessons learnt and success factors were gathered to enable a better understanding of the “recipes” for replication.

The Fact Sheet summarises a number of lessons learnt: 

An open and enabling dialogue between the different levels of decision-makers and stakeholders such as public bodies, the private sector and civil society, facilitates the implementation of concrete actions for the transition towards a circular economy. The Circular Economy Action Plan was achieved through social dialogue and public-private collaboration with a participatory approach, which is maintained in the implementation and monitoring of the objectives and actions planned for the transition to circular economy.

Increasing sustainable investment through funds or bond issuances, coupled with tax schemes and incentives for the transition to circularity, have encouraged local and foreign investors to reorient their businesses and to bet on greener and more sustainable projects.

Innovation can be understood, valued and implemented in all its dimensions to ensure that sustainable, inclusive, and circular growth remains a success in Uruguay. The promotion of best practices and business models with low carbon emissions, incorporating technological innovation and implementing the principles of circular economy along the value chain and in the different productive sectors of the country, fosters the preservation of the country’s natural resources, increasing green employment opportunities, and integrating national and local realities into an inclusive circular economy.

The existence of a financial support system is key for entrepreneurs, companies and organisations linked to the promotion of circular economy that develop activities focused on raising awareness, designing, incubating, implementing, or consolidating circular projects. Uruguay has shown an inspiring strategy by increasing sustainable investment through funds or bond issuances. Additionally, a series of actions with tax schemes and incentives for the transition to circularity were introduced, encouraging local and foreign investors to reorient their businesses and betting on greener and more sustainable projects.

To now more, download the full fact sheet.