CAF at COP 27 - Circular Economy for a Greener Latin America and Caribbean

Within the framework of COP27, CAF invites you to this online event where we will address the need to implement a circular economy as an essential step to achieving the climate goals set in the Paris Agreement and the main challenges and opportunities offered by this new economic model.

The circular economy can be understood as a production and consumption model in which the product cycle is extended (European Parliament, 2022). In practice, it involves minimizing waste: When a product reaches the end of its lifecycle, its materials are kept within the economy whenever possible. In other words, the output becomes input for a new output, thus creating more value. As opposed to the current linear economy, which is based on a take-make-use-dispose pattern, the circular economy involves sharing, leasing, reusing, repairing, restoring and recycling existing materials and products for as long as possible (European Parliament, 2022).

The reasons behind implementing a circular economy worldwide are plenty.

1. The world’s population is growing rapidly and, with it, the demand for raw materials. But the supply of these is limited, and their extraction and use are damaging the environment while increasing greenhouse gas (GHG) emissions (European Parliament, 2022).

2. Aiming for a circular economy is financially smart. Immediate but critical economic action will require significant investment and coordination from the global business community, governments and the non-profit sector. Even so, inaction has a higher future cost, as confirmed by data (Deloitte, 2022).

3. Last but not least, with the likelihood of global warming reaching +3°C by 2100 and, considering existing policies, the cost in human lives will be significant. In fact, the asymmetric consequences of climate change will further affect the most vulnerable regions, especially in the global south, such as Latin America and the Caribbean.

Countries should focus on a long-term economic strategy to improve their living conditions while reducing GHG emissions. Due to their vulnerability to climate change and their limited resources to address the negative consequences, countries in Latin America and the Caribbean need to work on circular economy strategies to implement in the short term.