Source: elfinanciero.com.mx
The circular economy is a strategic enabler for redesigning business models and deepening the role they play in improving economic competitiveness and sustainability.
We are seeing an acceleration in the climate crisis as we witness increasing loss of biodiversity, more waste disposal and more scarcity of resources. Given all of the above, the concept of the "circular economy" is becoming more important than ever because it creates opportunities for economic growth and sustainable development in Latin America.
The circular economy presents a new approach for promoting more sustainable practices and helps create jobs without harming the environment. This model has positioned itself as the cornerstone for a resilient, low-carbon economic recovery in the midst of the "new normal" emerging in the aftermath of the COVID-19 pandemic.
As it is design-driven and sustained by the use of renewable energy and materials, the circular economy revolutionizes the way we design, produce and consume. The model is based on three fundamental principles: the elimination of waste and pollution; keeping products and materials in use; and the regeneration of natural systems.
These principles are essential to achieve the sustainability objectives and commitments of the Paris Agreement in Latin America, where currently, many of the resources that enter the linear economy do not re-enter and are discarded or replaced by new elements.
In this scenario, Enel X, as a leader of the energy transition in Latin America is positioning itself as a "booster," an accelerator of circularity within a new system of circular suppliers and customers. It aims to play an innovative role in this circular economic market and tap into its enormous potential and its capacity to foster competitiveness, innovation and sustainability.
However, in order to promote this new economy, it is necessary to change the approach from a traditional view, which has been based on linear processes, to a circular mentality of markets, customers and consumers. It requires a 360° change from business managers, citizens and governments alike. Separating economic activity from the use and consumption of finite resources is essential so that we can foster virtuous economic, natural and cultural capital.
“The circular economy is a strategic enabler that allows us to redesign business models that help to deepen our understanding of the role they play in improving economic competitiveness and sustainability. Today, the challenge is twofold. On the one hand we need to design for circularity and, on the other, guide the transition from what has not been thought of in a circular way until now,” said Simone Tripepi, Head of Enel X Latam.
We must channel the opportunities that emerging technologies present to us towards a circular use. In that way, companies can see the results and competitive advantages that they could achieve through more efficient energy use, the reduction of emissions and the optimization of supply chains.
Following this same logic, Enel X has integrated sustainability and innovation as fundamental pillars of its growth strategy. It promotes a systematic approach as the only way forward so that industries and companies can remain competitive.
We are seeing the growth of an economic model that is shaking the very foundations of linear consumption paradigms. Enel X bases its model on 5 concepts: circular materials and renewable energy; the products as a service model; exchange platforms; the extension of life, and the end of life of the resources; as well as the synergies between each principle and preserving the value of goods at the end of their cycle.
One example of how Enel X has applied these principles to boost the circular economy in different countries of the region can be found in northern Brazil. A project was implemented using the product as a service model, creating value for all component parts by combining the exchange of generated energy with renewable sources between the different consumption units.
“We designed a 5,068 MWp photovoltaic plant as a solution to integrate clean energy into the operations of our company. We reached around 417 consumption units in various locations, offsetting the solar energy generated in the electricity bills,” said Tripepi.
Chile is increasingly becoming a shining example of how to move in this direction with the promotion of initiatives like, the “Recambio mi Air” program. For years the program has been offering people to swap their firewood stoves for efficient air conditioning systems. To date, 10,000 people have taken advantage of the program, which has led to a reduction of more than 30,000 tons of CO2 emissions. To complement the initiative, more than 900 tons of materials from the swapped wood stoves have been recycled. This program has brought significant environmental benefits and encouraged adoption of circular economy principles to increase energy efficiency and emissions reduction in the home and the implementation of safe technology for the inhabitants.
The initiatives in Chile have focused on improving the quality of life for people and on encouraging the adoption of circular economy principles in sectors such as hot water services and real estate projects. This has been done initially as retrofit projects of existing equipment through the Energy Management (EM) platform, which improves the efficiency of hot water and allows its customers to reduce their operating costs. The product as a service model fits well with Enel X solutions in real estate projects. Enel X promotes the use of renewable energy through the installation of solar panels on the walls and roofs of buildings and electric vehicles charging infrastructure in buildings and houses.
In the case of Colombia, Enel X is taking action on several fronts. One of its projects is the recycling of waste materials (due to deterioration or obsolescence) from public lighting, which means selling off materials so they can be given new life in another product. Another initiative is the reuse of Christmas lighting technology the following year, which sometimes requires fixing or remanufacturing it.
In Peru, Enel X has introduced more than 400,000 efficient lighting areas throughout the country, replacing sodium for LED bulbs as well as installing new lighting points. These projects have actively contributed to improving energy efficiency in municipalities, making them more sustainable, while at the same time improving quality of life for their residents.
In conclusion, there is huge potential for the circular economy in the region and we are increasingly seeing initiatives being implemented at all stages of the value chain. Enel X has concrete solutions in the design, construction and adaptation of these projects all over the continent. The company seeks to deliver global solutions that help us to continue channeling opportunities into the circular economy and to promote sustainable development in Latin America. In this region a strong commitment from the public sector will be essential as will the participation of the private sector and society at large. Only then can we move forward with the principles of this model that is revolutionizing the economy.
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