Circular Economy Transition in an Emerging Economy: Current Status and Priorities in Peru.

Abstract

The circular economy is increasingly recognised as a multidimensional paradigm that goes beyond reducing waste and recycling, encompassing systemic design, regenerative practices, socio-technical innovation, and equity considerations. This study examines Peru's efforts to transition towards circularity as a representative emerging economy in Latin America, based on 15 semi-structured interviews with stakeholders from academia, policymaking, business, and non-governmental organisations. It provides new empirical insights by identifying context-specific drivers and barriers not previously reported in the literature. The analysis identifies barriers such as limited consumer awareness, weak enforcement of regulations, technological gaps, and financial constraints affecting especially micro, small, and medium enterprises. Drivers and strengths include international cooperation, biodiversity, ancestral knowledge, and emerging policies. The government, European agencies, and civil society emerge as central actors in this transition. Conceptually, the study offers a novel contribution by adapting Schlossberg's transition theory, traditionally applied in psychology and education, to the field of sustainability. Findings emphasise the need to raise awareness, foster a cross-sectoral and decentralised regulatory framework with clear responsibilities, enforcement, and accountability mechanisms, promote targeted investments, and design policies that integrate informal sectors. This research contributes to both theory and practice: methodologically by extending transition theory to sustainability studies, and empirically by providing the first multi-stakeholder analysis of CE in Peru, offering insights for policymakers seeking to balance environmental and economic goals.

Supplementary information: The online version contains supplementary material available at 10.1007/s43615-026-00791-9.