Circular economy in a recently transitioned high-income country in Latin America and the Caribbean: Barriers, drivers, strengths, opportunities, key stakeholders and priorities in Chile

This study explores Chile’s efforts to adopt a circular economy (CE) to enhance sustainability and economic resilience as a newly high-income country in Latin America and the Caribbean. Conducting 22 semi-structured interviews, the research identifies barriers, drivers, strengths, opportunities, key stakeholders, and priorities for transitioning to a CE. Through qualitative analysis, the study examines Chile’s CE landscape from cultural, political, technological, and economic perspectives, uncovering significant isomorphic pressures from international norms and sector spillovers. Findings indicate that despite proactive initiatives like the Roadmap for Circular Chile, several challenges persist. These include cultural resistance, limited public awareness and professional training, increased consumerism, inadequate regulatory enforcement, insufficient data and technological infrastructure outside metropolitan areas, an economy still reliant on resource extraction, and a lack of financial support from both public and private sectors. Conversely, Chile’s robust regulatory framework, commitment to international environmental agreements, and growing sustainability interest among younger populations drive CE progress. Additionally, traditional knowledge, local entrepreneurship, and the Extended Producer Responsibility law support localised circular models. Opportunities are particularly significant in the mining, agriculture, and tourism sectors, where CE principles can foster innovation, economic growth, and sustainable resource management. The study emphasises the essential roles of government agencies, institutions, and businesses as key stakeholders. It highlights the need to enhance public awareness, reform educational systems to include comprehensive environmental education, and train a skilled workforce to support the CE transition. By addressing these areas, Chile can effectively advance its circular economy initiatives and achieve greater sustainability and economic resilience. • Comprehensive analysis of CE in a transitioned high-income country • Novel link between isomorphic pressures and spillover effects at country level • Chile's CE is driven by youth and strong environmental policy goals. • Key barriers include a lack of tech, finance, and awareness for CE. • Public-private collaboration vital to scaling Chile’s CE.