Peru's path towards a circular economy

Peru has made significant efforts in recent years to transition to a circular economy that preserves its natural resources and biodiversity, while combating poverty and inequality, regional disparities and improving the competitiveness of productive sectors. The Fact Sheet Peru’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 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 from Peru's transition process: 

For Peru, it has been essential that the circular economy is integrated into the regulatory framework and public policies. The roadmaps developed for the sectors of industry, agriculture and artisanal fisheries and aquaculture are key instruments to articulate circular economy at the sectoral level. These roadmaps must complete their implementation and be updated with the new needs that arise in each sector.

Investments are needed to enable infrastructures for circular economy, such as those related to water, energy, and waste management, which bring together national and territorial approaches more effectively and efficiently to facilitate their implementation.

Existing incentives and financial instruments in Peru are not sufficiently adapted to the needs of companies and productive units when they wish to incorporate circular economy into their production processes. In addition, the capabilities of companies, especially MSMEs, to access credit are very limited, with very high financing costs and scarce supply. This hampers both innovation and the introduction of cutting-edge technology.

Support to innovation in Peru, through programmes such as ProInnóvate, has been fundamental for the development and incorporation of new products, new business models and/or adaptation of existing businesses, but there is still a need for greater active collaboration between academia and research centres with the productive sectors.

Promoting mechanisms to integrate SMEs into value chains. Through productive partnerships such as cooperatives, these small producers can take advantage of economies of scale that increase production volume, marketing capacity, access to credit and financial instruments, and acquisition of new technologies, while incorporating innovation and circularity into their processes and products.

Ensuring the involvement and articulation of a variety of actors of the business ecosystem has been key in the development and implementation of the circular economy in the country, as reflected in the Peruvian Pact for a Circular Economy and the launch of the ‘Peru Circular’ Platform. Business and sector associations contribute to awareness-raising and training activities, provide services, and promote innovation and the sustainable transition of the different value chains, both at national and territorial level. 

Dissemination, awareness and sensibilization

Many efforts have been made to disseminate and raise awareness of the concept of circular economy, so that it is assimilated by all actors in both the public and private sectors, mainly by companies, academia, and civil society. The Circular Economy Forums have proven to be a good instrument for this and have helped facilitate a learning process and exchange of experiences between actors.

For more information download the full fact sheet or read below.