Circular economy as a driver of profitability and employment | Opinion

Recicladores trabajando en planta de residuos - economía circular en Perú

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With 23,000 tons of waste per day, the challenge is no longer just environmental: but also economically.

Marian Buraschi - Libélula Partner and Director

In the current scenario of volatility in raw material prices, waste management in Peru has ceased to be an operating cost and has become a strategic business unit. The Ministry of the Environment (MINAM) states that 23,000 tons of solid waste are generated in the country every day, which poses the challenge of transforming an underexploited «urban mine» into an engine for economic reactivation. According to MINAM, 77% of this waste has potential for recovery, but we recycle only 1.9%. This gap is not only an environmental problem; it is a financial inefficiency that the business sector must lead to capture value.

The recycling value chain is, by nature, labor-intensive. While final disposal in landfills is a linear process that generates little added value, recycling creates an ecosystem that today supports close to 500,000 Peruvian families. The key for the business community lies in the formalization of the 180,000 grassroots recyclers (MINAM). Data to 2025 show that, in districts where recyclers have been integrated into the formal logistics chain, the collection efficiency of usable materials increased by 46%. In the last year alone, the sale of this waste generated revenues of more than S/. 3.8 million in the formal sector, demonstrating that professionalization reduces costs and secures inputs.

One critical sector is the recovery of Waste Electrical and Electronic Equipment (WEEE). In Peru, 3.3 kg of WEEE are generated per inhabitant per year. For the industry, this represents high purity «secondary mining». Recovering gold, silver and copper from discarded electronic boards is now more efficient and economical than primary extraction of certain components. Technology companies that implement reverse logistics are recovering assets that have already been paid for, reducing their exposure to virgin input inflation and closing the product life cycle under international standards.

Compliance with Legislative Decree No. 1278 has become a standard of competitiveness. Companies that adopt circular economy models not only mitigate regulatory risks before the OEFA, but also improve their risk profile to access sustainable financing (Green Bonds). By integrating recycled material, companies report a growth in waste valorization of 35.4% per year, optimizing their EBITDA and strengthening their corporate reputation with investors who now prioritize ESG criteria.

Recycling in Peru should no longer be seen as philanthropy, but as an audit of operational efficiency. Every ton of waste that is not used is capital that the company has already paid for and has decided to bury. The transition to a circular economy is the most strategic way to generate massive employment and ensure resilience in the Peruvian market. Will you join us?

Published in Gestión Newspaper.

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