How production agreements help promote circular economy initiatives in the private sector

Peru's Environment Ministry (MINAM) has been encouraging private companies from different sectors to enter Clean Production Agreements (APLs for their Spanish acronym) with the ministry to improve their production processes and reduce their environmental impact. The APLs are a model example of creating public-private partnerships that support circular economy strategies.

ENEL Peru is currently working closely with MINAM to reach an APL. To find out more, we spoke to the ministry's Director General of Solid Waste Management, Edgar Romero de la Puente, about the benefits of APLs.

1.       What are Cleaner Production Agreements, and how do they come about?


The MINAM has been promoting the adoption of several instruments designed to encourage more efficient use of materials and solid waste management. Clean Production Agreements (APL) for solid waste are one of those voluntary instruments whose aim is to add a series of steps to productivity and services processes that go beyond just complying with existing legislation. These agreements are intended to promote the efficient use of materials and solid waste management as part of a circular economy approach to productivity.


The origins of APLs can be found in Article 77, Law No. 28611, of the General Environmental Law, which states that national, sectoral, regional, and local authorities can promote clean production in investment projects and business activities.


In this context, the Law on Integrated Solid Waste Management, approved through Legislative Decree No. 1278 and came into force with new regulations in December 2017, recognized circular economy and the value of solid waste reuse as principles of integrated solid waste management. It also revises the definition of the purpose of waste management, stating that its primary purpose is the prevention and reduction of solid waste production. And for already existing waste, it recommends prioritizing the reuse of material or resulting energy built.


Ministerial Resolution N° 155-2019-MINAM approves Directive N° 02-2019-MINAM/DM, called "Directive for the revision of the proposal, subscription, monitoring, control, and recognition of compliance with Clean Production Agreements (APL) on solid waste."


2.       How many APLs have we signed to date?


We have signed 17 APLs with leading companies from their respective sectors. There are also nine APLs in the process of signing or negotiating. We also acknowledge four leading companies for their efforts: Coca Cola System (Coca-Cola Servicios Peru and Arca Continental Lindley), Unión de Cervecerías Peruanas Backus y Johnston S.A. A, Koplast Industrial SAC, and Empresa Peruana de Moldeados S.A.C.


3.       How do companies benefit from subscribing to APLs?


Remember that the first clause of Directive N°02-2019-MINAM/DM specifies that the owners of activities of a productive, extractive, or services nature can voluntarily sign Clean Production Agreements on solid waste with MINAM and/or the competent authority, if applicable.


These agreements bring benefits to the companies that sign them, both internal: such as economic savings, efficiencies in their processes, identification of opportunities for improvement; as well as external: boosting company prestige, the awarding of a diploma certifying compliance as well as a seal of recognition, which can be used on their products, for example.


4.       How do APLs help improve a country's environmental management?


APLs create the way for private and public sector collaboration towards the common goal of improving environmental management, specifically in national integrated solid waste management. Thanks to this alliance, we have achieved:


·         Substitution of 13,000 tonnes of virgin raw material with recycled PET material.

·         Recovery of more than 439 tonnes of inorganic and 1,446 tonnes of organic waste.

·         Production of 20,373,000 packaging containers using 30% recycled resin for supermarkets nationwide.

·         Training of more than 4,000 people in integrated solid waste management.

·         Implementation of waste sorting programs by more than 19 local governments.

·         Promotion of eco-design and returnability of products.


5.       Free final words


In recent years, the Peruvian State and private sector have been promoting different instruments to encourage efficient use of materials and solid waste management. One of those instruments is the Clean Production Agreement on solid waste.


I want to highlight the work carried out by ENEL in signing its own APL and invite all production and service companies to join this initiative. Our technical team is at the disposal of all companies wanting to sign and will be happy to accompany you throughout the process. To participate, write to us at attention-citizenship