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Urban waste management in Latin America and the Caribbean (LAC) is a critical challenge for sustainable development. As populations and consumption continue to rise, so does the volume of solid waste, leading to environmental and social issues that directly affect cities. Managing solid waste is not only a logistical challenge but also a key strategy in combating climate change. Landfills in LAC contribute approximately 13.5% of global methane emissions, a gas with a global warming potential 87 times greater than carbon dioxide over a 20-year period (UNEP, 2022).
Waste management faces biophysical, technological, social, and administrative challenges, impacting public health, the environment, and contributing to greenhouse gas emissions. Effective waste management requires both efficient infrastructure and heightened social awareness, including the formalization of informal waste collectors. Administratively, it is essential to establish fair contracts and promote investments in material reuse. Given the complexity of the issue, cities must tailor their waste management models to their specific needs, adopting more specialized and sustainable approaches.
Circular Economy as an Opportunity
The circular economy seeks to extend the life cycle of products through reuse, repair, recycling, and other practices that add value (European Parliament, 2023). It also provides opportunities to integrate business models across the entire product lifecycle. Key strategies include circular production using biomaterials and bioplastics to reduce environmental impact and promoting the reuse of materials. Additionally, the circular economy recovers value by ensuring the quality of recycled materials and fostering partnerships to enhance recycling efforts. Collaboration with the private sector and local governments is essential, as they play a crucial role in implementing policies to prevent waste generation and promote sustainability.
“Pila Verde y Azul”: The Brazilian Model
A standout example of the circular economy in the region is the “Pila Verde” project in Santiago, RS, Brazil. In this city, organic waste accounts for over 50% of urban waste. To mitigate its environmental impact, the Department of Environment in Santiago implemented an initiative encouraging citizens to separate organic waste from recyclables.
“Pila Verde” is a symbolic currency given in exchange for organic waste, which can then be used to purchase products at local markets. This project has not only boosted public participation but has also become an educational tool in schools, integrating concepts such as solidarity economy, financial education, and sustainability. Residents bring their organic waste to collection centers, where they receive a “Pila Verde” for every 5 kilos of waste delivered. This waste is transformed into agricultural materials within approximately 45 days, thus closing a local economic cycle that reduces landfill waste and promotes a circular economy.
The initiative has since expanded with the “Pila Azul,” a recycling program where citizens can exchange plastic bottles and cardboard for credits that can be used for public services like transportation and parking. Recycled materials are processed by the mayor’s office and donated to recyclers, fostering citizen participation in sustainability and urban mobility.
The Case of Mexico City
Mexico City, one of the largest metropolises in the world, is another significant example of a city adopting the circular economy to address its high volume of solid waste. Through the Ministry of the Environment (SEDEMA), the city has implemented programs to reduce waste and combat climate change. During the webinar “Managing Urban Waste for Cleaner Cities”, organized by the IDB Cities Network on September 4, Mexico City’s Comprehensive Waste Management Program (2021–2025) was highlighted. Through this program, more than 2,000 tons of waste have been prevented from being sent to landfills each day. Additionally, the sale, distribution, and use of single-use plastics have been banned, reducing over 621,000 tons of CO2 annually and recycling more than 1,700 tons of waste. The Azcapotzalco Transfer Station processes up to 1,400 tons of waste daily, using advanced technology to generate energy. Initiatives like “Mercado de Trueque” and “Reciclatrón” promote public engagement in waste recovery and recycling.
In 2023, Mexico City passed its Circular Economy Law, which takes a comprehensive approach beyond waste management and recycling. The law promotes a regenerative, people-centered economy, emphasizing responsible consumption, reuse, and repair over recycling and disposal. It encourages circular design and the creation of green jobs, while also aiming to reduce emissions, conserve biodiversity, and meet international sustainability commitments.
Conclusion
The circular economy emerges as a vital solution for urban waste management in Latin America and the Caribbean, where population growth and increasing consumption present significant challenges. Innovative initiatives such as “Pila Verde” in Santiago and Mexico City’s Circular Economy Law demonstrate the importance of reuse, recycling, and public participation in transforming waste management practices. By adapting these models to local realities, cities can not only reduce emissions and conserve resources but also progress toward more sustainable and equitable development.
We invite you to watch the IDB Cities Network webinar on “Managing Urban Waste for Cleaner Cities” to explore circular economy approaches and successful case studies.
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