The circular economy proposes a new way of organizing the systems for production, distribution, trade and consumption of goods and services in a society.

In its most current conceptual development, it aims to return to the beginning of the process of value creation, research, develop and innovate in products that are "circular-by-design". Circular goods are those that prevent indiscriminate use of resources by entering an endless flow of materials that do not lose their value in the process (“infra-recycling”) but are transformed to generate more value in the next cycle (“supra-recycling”). This new system requires to radically rethink the purpose and way we produce and consume. Likewise, in the transition towards this new model, circular economy can also contribute to solving pressing problems of the still current linear production and consumption models, such as sustainable waste management and its impacts on environmental, human and animal health.  

Circular economy has gained ground in public policy debates and agendas and international cooperation in Latin America and the Caribbean. However, to advance in its implementation, it is necessary to generate data, develop new methodologies and promote more interdisciplinary, intersectoral and multi-administrative collaboration. For example, the project “Inclusive, Sustainable and Smart Cities”, in its module 2022-2024, provides support to city governments in designing better and more circular urban connectivity. This support consists of technical assistance and public policy proposals for the application of the circular-economy approach in electromobility, to move towards more resilient economic models in the face of external shocks derived from volatility in energy prices. Circular economy is also a cross-cutting topic for the Strategic Alliance between ECLAC and Germany, i.e., it is present in the activities of all the projects of the strategic framework and is also concretized in the activities of a working group specially created to identify synergies between sectors and topics and promote the implementation and mainstreaming of circular economy in the different topical areas.