We invite you to read the column written by our partner, Antonio Rubilar, where he addressed the importance of waste revaluation and Chile’s opportunities towards a sustainable transformation.
For a long time, talking about waste was synonymous with loss. Today, however, waste has begun to be transformed into opportunities: previously discarded materials are being revalued, incorporated into new production chains and converted into inputs with real economic potential. Chile has not been oblivious to this transformation. Recycling, which used to be associated exclusively with environmental care, has become a growing business model.
In this context, there are some relevant incentives that promote waste recovery. The Ministry of the Environment’s Recycling Fund is one example: it allows municipalities to finance reuse projects. There are also municipal exemptions and eco-design mechanisms that make certain products more attractive to consumers. The Public Procurement Law even allows environmental criteria to be incorporated into tenders.
However, these efforts remain timid. For example, we could make much more progress if the Public Procurement Law required that a minimum percentage of annual tenders be awarded to companies that incorporate recycled or reused components. This is a clear opportunity for the State to show leadership in the area of economy.
From a regulatory perspective, the REP Law has been an important step forward, imposing collection and recovery obligations on certain producers and importers. But much remains to be done. Current regulations are still limited to some sectors, and progress in sustainability, although appreciable, does not yet reflect a strong or cross-cutting legislative commitment.
There are critical sectors that require urgent regulation. The case of the textile industry in the north of the country – where tons of clothes end up accumulated as waste – perfectly illustrates this need. The same is true of food waste, an issue that is absent from the current regulatory framework, despite its economic, social and environmental impact.
What can we do? An effective strategy must include measures differentiated by sector, but also cross-cutting instruments. Tax incentives such as the reduction of VAT on products with recycled components, or the possibility of deducting part of the investment in circular economy from the First Category Tax, could be decisive levers to accelerate this cultural and industrial change.
Chile has the conditions to lead a sustainable transformation. What is missing is a more decisive regulation and an incentive scheme that recognizes what is at stake today: not only the value of waste, but the future of our production model.
Column written by:
Antonio Rubilar | Partner | arubilar@az.cl
