- Latin America and the Caribbean have not yet succeeded in decoupling economic growth from resource use. The material intensity of the region’s economy is relatively stable and its energy intensity (energy consumed per unit of output) also appears to be holding steady.
- The development challenge for the region is to reconcile economic growth with the changes in energy patterns needed to decouple growth from greenhouse gas emissions by giving more space to renewable sources, especially in transport, thereby making the production structure and the functioning of cities more efficient.
- It is essential to promote sustainable consumption and production patterns, the construction of sustainable infrastructure, improved access to basic services and the creation of decent jobs that help to reduce the negative environmental impact of businesses, sectors and economies.
- The circular economy is particularly relevant to the region, given the economic weight of the extractive sectors and low recycling rates. It is projected that by 2030 and in net terms, more than one million jobs will have been created in Latin America and the Caribbean against the backdrop of an energy transition and efforts to keep the average global temperature rise well below 2°C above pre-industrial levels.
- In a scenario of the adoption of circular economy principles, job creation in sectors such as the reprocessing of metals and wood would more than offset the losses associated with the extraction of minerals and other raw materials.
- The idea is to generate net welfare gains from economic activities by reducing resource use, degradation and pollution, while increasing quality of life.