Peru's Production Ministry's transition to the circular economy

Published on Friday, 20 May 2022

Since the Peruvian Government published the National Competitiveness and Productivity Plan 2019-2030 (PNCP) in July 2019, the Production Ministry has been steadily encouraging Peruvian companies to adapt their production processes to the circular economy model and to foster innovative initiatives and the use of clean technologies. By February 2020, the Production Ministry had already complied with policy measure 9.3 of the PNCP  entitled "Circular Economy and Clean Production Agreements in the industry, fishing and agricultural sectors." Through Supreme Decree No. 003-2020-Produce, the ministry published a roadmap for the industrial sector's transition to the circular economy. The roadmap details how to switch from a linear economic model to a circular one in the manufacturing industries and in industrial fishing processing. It also establishes short-, medium-, and long-term goals of how to make products according to circular design, that are longer-lasting, made from recycled materials, and which can be reused and recycled.

The roadmap considers four courses of action summarized below:

         i.            Sustainable industrial production: industrial production according to a circular economy approach. This strategy includes companies in the sector signing clean production agreements (APL) voluntarily. To date, 14 such agreements have been signed .

       ii.            Sustainable consumption, aimed at spreading best practices and raising awareness about circular economy issues. This measure includes introducing non-financial incentives for private sector companies that voluntarily publish information, educate and encourage sustainable consumption and lifestyles.

      iii.            Use of disused material and management of industrial waste: the promotion of the use of discarded materials and the recovery of industrial waste from the fishing, agricultural, and manufacturing sectors etc.

      iv.            Innovation and financing: seeks to promote startups that take a circular economy approach, to make public funding available for innovation in the productivity sector and to introduce incentives that encourage innovative initiatives and the use of clean technologies.


In addition to the roadmap, the Production Ministry has been working on the ZIS Peru Project "Development of Sustainable Industrial Zones in Peru" which is financed by the Global Environment Facility (GEF) and executed by the Production Ministry and the United Nations Industrial Development Organization (UNIDO). This ambitious project aims to design a Sustainable Industrial Zone in Lima and Callao that uses energy efficiency, rational management of chemical products and renewable energies. According to preliminary estimates, the project could result in a potential reduction of 80,000 tons of CO2 emissions per year, and mean annual savings of electricity, natural gas, diesel and LPG. Once the project is finished, the idea is for this model to be replicated in other industrial areas of the country. For more information about the project, visit the website:


Complementary to ZIS Peru is the "Eco-Industrial Parks of Peru" Project. This program came about as part of the Global Eco-Industrial Parks Program (GEIPP) that is promoted by UNIDO and which aims to spread the use of tools and innovative methods to improve efficiency in the use of resources. The project seeks to apply prerequisites and indicators to convert three industrial parks in Lima into eco-industrial parks. The three parks chosen as potential eco-efficient parks are: La Chutana Industrial Park, located 60 kilometers south of the country's capital, the Indupark, in Pucusana, and the Sector 62 Industrial Park, in Chilca. This project has been running since 2021 and is expected to be completed by 2023.