We invite you to read the column written by our partner, Antonio Rubilar, where he addressed the five challenges faced by companies to implement the REP Law.
According to figures from the Ministry of the Environment, Chile generates between 17 and 19 million tons of solid industrial waste per year, of which, at least until now, a very small portion has been sent for recycling, recovery or circularity. Faced with this scenario, Law No. 20.920 on Extended Producer Responsibility (REP) represented a crucial step towards a circular economy. However, the effective implementation of this regulation faces a series of challenges that Chilean companies have not yet managed to overcome.
The objective of the REP Law is clear: to oblige producers – manufacturers, importers and marketers – to take charge of the waste derived from their products once their useful life is over. This includes priority categories such as tires, lubricating oils, packaging, batteries, electrical and electronic equipment, and batteries. But between diagnosis and implementation there is a gap that still remains open.
One of the main obstacles lies in energy recovery. If we want to be a true leader in the circular economy, it is essential to make progress in this area, because even if a company recycles a large part of its waste, there is always a significant portion that ends up in landfills because it is not recyclable. Energy recovery is a process by which the energy content of certain non-recyclable waste is used to generate energy, in the form of electricity, heat or fuels, thus preventing it from ending up in landfills or dumps. However, in order for this to advance, political will is necessary, because creating a plant that generates energy with waste is not as profitable as a solar or wind power plant. That is why it is necessary to promote policies that make projects in this area equally profitable.
In addition, there is a lack of recycling infrastructure and logistics at the national level. Although the legal framework is ambitious, its success depends on having collection, sorting and recovery systems that are still incipient in many regions of the country. The installation of clean points, treatment plants and traceability systems requires investments that exceed the capacity of many companies, especially SMEs.
Another relevant challenge is the weak regulatory knowledge and lack of technical capabilities within companies. Many organizations are still unaware of their specific obligations under the REP Law or underestimate them, which leads to delays in compliance and risks of sanctions. The Undersecretariat of the Environment has developed information campaigns, but these have not yet sufficiently penetrated the business structure, especially outside Santiago.
In addition, the lack of a circular business culture also plays a determining role. In many companies, waste management is still seen as a cost rather than an opportunity to innovate, generate reputational value or even monetize through recyclable by-products. The REP Law requires not only compliance, but also a rethinking of business models, from product design to distribution and disposal. The integration of eco-design, reuse of materials and traceability of inputs must cease to be the exception and become the rule.
Finally, the fifth challenge lies in the asymmetry of information and the risk of unfair competition: while some companies are seriously investing in management and compliance systems, others still operate outside the regulatory radar. This creates a sense of unfairness that can discourage voluntary compliance.
In the context of International Recycling Day, this May 17, the call cannot only be symbolic. The REP Law is an opportunity for Chile to move towards a more sustainable production model, aligned with international commitments on climate change and waste management. But its effective implementation requires more than good will: it requires public-private coordination, financing, effective oversight and a profound cultural change.
Column written by:
Antonio Rubilar | Partner | arubilar@az.cl
