Mainstreaming the circular economy in production processes and investment

Project description

Title: Circular economy for a climate-friendly urban development
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Peru
Lead executing agency: Ministry of Production, Peru (Ministerio de la Producción – PRODUCE)
Overall term: 2022 to 2024

Five Peruvian women from the tailoring cooperative AMOSDIC talk at a table on which sewing material is lying. © GIZ / Florian Kopp

Context

Over the last decade, the Peruvian economy has been one of the fastest-growing in Latin America. The manufacturing industry, which is dominated primarily by micro-enterprises and small businesses, plays an important role and employs around 15% of the labour force.

This sector contributes significantly to environmental pollution in urban centres, mainly as a result of the use of inefficient technologies, which leads to excessive water and energy consumption..

Therefore, the introduction and development of a sustainable circular economy is a political priority in Peru. The circular economy has a key role to play in achieving the national climate targets, 2030 Agenda goals, and in diversifying production in the country. Peru reached an important milestone in 2020 by adopting the national action plan on the manufacturing industry’s transition to a circular economy, which must now be implemented.

Objective

The conditions for implementing the manufacturing industry’s transition to a circular economy have been improved.

Approach

The project advises the Ministry of Production and the manufacturing industry on the following topics:

  • It supports the adaptation of regulations and orients promotion and financing models to a transition to a circular economy.
  • It promotes the  cooperation by creating opportunities for coordination and raising stakeholders’ awareness of relevant issues.
  • It supports the development of a circular economy training and advisory service, which will help companies to transform their production processes.

Last Update: April 2022