Chile: milestone for the recycling sector

September 16 marked one year since the full implementation of Decree No. 12 from the Ministry of the Environment, which sets collection, recovery and other associated obligations/targets for packaging and containers as a priority product under the EPR Law.

Producer responsibility organizations (PROs), which are essential to the operation of the EPR Law, have indicated that there is still much ignorance about the law, and some producers are unaware that they fall under this regulation. Only 15% of the companies regulated by the law are subscribed to a PRO.

This lack of awareness extends across all sectors of the economy, consequently creating significant challenges in meeting the targets. The definitive results of the first year have yet to be published, and everyone is waiting to see whether the authorities will apply sanctions or not and what impact these will generate.

Chile’s National Association of the Recycling Industry (ANIR) continues to contribute not only to achieving the proposed targets of the EPR Law but also to ensuring that this industry serves as an example of high regulatory compliance standards, positive community engagement and contribution to the common good. Specifically, ANIR is working on refining and standardizing waste traceability in the country, fostering a clear and reliable information environment for public decision-making.

Additionally, and in light of the significant lack of public awareness, ANIR has developed an educational podcast entitled “El Séptimo Recurso” (“The Seventh Resource”) to raise awareness and educate the public about recycling. The major challenge Chile faces today is to ensure that the public actively collaborates to achieve the objectives and targets of the EPR Law.

In the economic sphere, the Central Bank of Chile has indicated a decrease in the dynamic level of economic activity observed at the beginning of the year, partly due to somewhat weaker private consumption. It is also very common to hear from within the business community that, in Chile, it remains extremely complex to obtain permits to operate an industrial plant, thus generating distrust and a low level of legal certainty and thereby disincentivizing investments in the country. For this reason, the government has announced upcoming changes in this regard, so we hope to have good news soon.

Furthermore, the reduction in the monetary policy rate has continued to translate into short-term bank placement rates in line with usual patterns. Bank credit remains weak, particularly its commercial component, amid financing access conditions that have not changed significantly. Projections continue to suggest that local economic activity and demand will grow around general trend in the coming years. For 2024, GDP growth’s estimated range is between 2.25% and 2.75%, while projections remain in the range of 1.5% to 2.5% for 2025 and 2026.

In the political realm, municipal elections are approaching across Chile, the outcome of which will reflect the level of public support for the current government. These elections often serve as an accurate predictor of the upcoming presidential race and are a key milestone in the country’s future development, as both mayors and governors play a fundamental role in overseeing public spending.