This chapter establishes the framework for the circular water economy in Latin America by examining the region’s key water challenges, identifying the primary drivers and opportunities for implementing such an approach and outlining the key dimensions of the circular water economy.
The Circular Water Economy in Latin America

1. The Circular Water Economy in Latin America
Copy link to 1. The Circular Water Economy in Latin AmericaAbstract
Introduction
Copy link to IntroductionWhile there is no standard definition of the circular water economy1, this report draws on the existing literature to define the circular water economy along three key dimensions: a) reducing water use and increasing water efficiency; b) increasing water reuse and recycling of treated wastewater; and c) recovering energy and materials from wastewater treatment. These dimensions align with the three key objectives of the broader concept of the circular economy (Ellen MacArthur Foundation, 2019[1]):
Minimising waste and pollution by treating wastewater to produce clean water and recovering energy during treatment, which significantly reduces greenhouse gas emissions;
Keeping resources in use in the economy for as long as possible, through water reuse and recycling, thereby reducing overall consumption and reliance on freshwater sources; and
Regenerating nature by lowering freshwater extraction, conserving ecosystems, and ensuring water security (Figure 1.1).
The circular water economy provides economic benefits to both private companies and society by reducing operational costs through energy recovery and resource efficiency, minimising water costs by extending water reuse cycles, ensuring adequate water supplies, while managing the environmental impacts associated with water lifecycle and supply chains, and preserving natural resources to remain available for future generations (OECD, 2023[2]). Addressing water scarcity, service disruptions and pollution requires bold, transformative action from both public and private sectors, including in Latin America, a region that faces a unique set of water challenges. Climate change, coupled with rapid urbanisation and demographic growth, is putting increasing pressure on existing water infrastructure and services. Without urgent and coordinated action, the risks of water scarcity and quality degradation will continue to grow, compromising both the health of communities and the viability of businesses dependent on water resources.
After providing a detailed overview of water challenges and risks in Latin America, this chapter will detail each of the aforementioned dimensions of the circular water economy, with relevant examples in Latin America and in the world.
Figure 1.1. The Circular Water Economy framework
Copy link to Figure 1.1. The Circular Water Economy framework
Source: Author’s elaboration
Why it matters: water challenges in Latin America
Copy link to Why it matters: water challenges in Latin AmericaThe Latin America2 region faces a complex array of challenges in relation to water resources and services (Figure 1.2). First, despite possessing the highest share of natural renewable water resources globally, the region stands among the most vulnerable ones to water risks, primarily due to the impacts of climate change. Around 75% of natural disasters are climate and water-related, including floods, droughts, and storms, which generate enormous economic costs (UNDRR, 2023[3]). Second, access to safe drinking water and sanitation remains a pressing concern. In 2020, one-quarter of the Latin America and the Caribbean (LAC) region population did not have access to safely managed drinking water, and two-thirds did not have access to safely managed sanitation, particularly in rural areas (WHO/UNICEF, 2022[4]). Third, in 2022, 54% of domestic wastewater flow in the LAC region is untreated, compared to 14% in Europe and North America and 42% globally (UN, 2024[5]). This lack of treatment leads to medium or extremely high physical water risk, with rural areas disproportionately affected – while 40% of household wastewater is treated in urban areas, only 9% is treated in rural communities (WHO/UNICEF, 2022[4]).
Figure 1.2. Main water risks and trends in LAC
Copy link to Figure 1.2. Main water risks and trends in LAC
Source: Author’s elaboration
LAC countries are particularly vulnerable to the impacts of climate change, experiencing recurrent disasters such as floods and droughts and related economic losses. With 35.1% of global renewable water resources, LAC is the most water-rich region in the world, but also amongst the most affected regions by climate change (OECD et al., 2022[6]). A high-emission scenario would lead to a regional reduction in GDP per capita of 1.3% by 2030 and 3.3% by 2050, compared to a scenario where temperatures do not rise (Van Der Borght et al., 2023[7]). A total of 74% of natural disasters in the LAC region are water-related, including floods, droughts, and storms. Between 2000 and 2022, floods ranked as the most prevalent disaster in the region (44% of the natural disasters), affecting Brazil, Colombia and Peru in particular. Floods resulted in over USD 1 billion in total damages on 12 occurrences during this period. Droughts have impacted over 53 million people in the region (UNDRR, 2023[3]; EM-DAT, (n.d.)[8]), and incurred USD 13 billion in losses due to declines in agricultural production between 2008 and 2018 (FAO, n.d.[9]). One-quarter of the population (150 million people) live in water-scarce areas (World Bank, 2022[2]). Freshwater availability per person in Central America is predicted to plummet by at least 82% by 2100 compared to 2005 levels, with a projected 11% decrease in total rainfall by 2050 (ECLAC, 2010[10]), raising serious concerns about water and food security (IPCC, 2022[11]).
Universal coverage of safe drinking water and sanitation remains a pressing concern in the LAC region. Between 2000 and 2020, approximately 164 million additional individuals had gained access to basic drinking water services (with 144 million in urban areas and 20 million in rural areas), and approximately 195 million to basic sanitation services (with 167 million in urban areas and 29 million in rural areas) (WHO/UNICEF, 2022[12]). Despite progress, 17 million people (2.6% of the LAC population) still lack access to safely managed drinking water services, and 72 million people (10.8%) remain without access to safely managed sanitation services in the region (WHO/UNICEF, 2022[12]). In urban settings, 19% of the population lack access to safely managed drinking water, and 40% to safely managed sanitation services, while in rural areas, nearly half of the population (47%) lack access to safely managed drinking water. In rural areas of countries such as Peru, up to 15% of the population still lack access to basic drinking water services, and more than one-third of the population still lack access to basic sanitation services (Figure 1.3 and Figure 1.4).
Figure 1.3. Drinking water services coverage in urban and rural areas in surveyed Latin American countries
Copy link to Figure 1.3. Drinking water services coverage in urban and rural areas in surveyed Latin American countries
Note: Data from 2022 distinguishes urban (U) and rural (R) areas in access to water. Basic drinking water services refer to water from improved sources, accessible within 30 minutes round trip. Improved sources include piped water, boreholes, protected wells/springs, and packaged or delivered water. "At least basic" includes both basic and safely managed water services.
Source: Author’s elaboration based on data from WHO/UNICEF (2024) Joint Monitoring Programme (JMP) for Water Supply, Sanitation and Hygiene, https://washdata.org/data/household#!/
Figure 1.4. Sanitation services coverage in urban and rural areas in surveyed Latin American countries
Copy link to Figure 1.4. Sanitation services coverage in urban and rural areas in surveyed Latin American countries
Note: Data from 2022 distinguishes urban (U) and rural (R) areas in access to water. “At least basic” indicates the percentage of people using improved sanitation facilities that are not shared with other households. Improved sanitation facilities include flush/pour flush to piped sewer systems, septic tanks or pit latrines; ventilated improved pit latrines, compositing toilets or pit latrines with slabs.
Source: Author’s elaboration based on data from WHO/UNICEF (2024) Joint Monitoring Programme (JMP) for Water Supply, Sanitation and Hygiene, https://washdata.org/data/household#!/
Existing water infrastructure falls short of ensuring universal drinking water and sanitation coverage, while population growth and urbanisation are exacerbating pressure on water demand and supply. A total of 7.2% of total investment (public and private) from 1990 to 2018 in LAC was allocated to essential services, including electricity, gas, and water (ECLAC, 2022[13]; OECD et al., 2023[14]). In 2021, investment in water infrastructure in LAC accounted for 0.26% of the region’s GDP (Infralatam, 2021[15]), which is among the lowest globally. Estimates indicate that LAC must invest USD 255.97 billion in infrastructure to achieve SDG63 by 2030, equivalent to 0.5% of regional GDP annually (IDB, 2021[16]). Of this, USD 183.8 billion is needed to address existing gaps, while USD 72.2 billion is required to meet future water demand. Furthermore, closing the wastewater treatment gap will require an additional USD 16.85 billion, representing a 7% increase in total investment needs (IDB, 2021[16]). Water demand in South America is expected to increase by up to 50% by 2050 compared to 2010 due to population and income growth, reaching 5% of global demand by that date (currently 4%) (Burek et al., 2016[17]).
Untreated wastewater poses significant risks to both water and air quality, with most of the LAC population facing medium to extremely high levels of physical water risk. In the LAC region, roughly 60% of the population faces medium to extremely high physical water risk due to untreated wastewater and the potential for coastal eutrophication (IDB, 2022[18]). About two-thirds of wastewater remains untreated in the LAC region (IDB, 2022[18]). Only Chile and Mexico safely treat more than 60% of household wastewater among the selected countries. Argentina, Brazil and Peru safely treat between 35% and 60%, while Colombia, Costa Rica and Paraguay manage between 15% and 30%. Honduras and Uruguay currently lack monitoring systems for this indicator (Figure 1.5). Wastewater systems are also responsible for generating greenhouse gas (GHG) emissions, both directly through the breakdown of excreta released into the environment or during treatment processes, and indirectly through the energy needed for treatment steps Box 1.1).
Figure 1.5. Percentage of domestic wastewater flows safely treated in surveyed Latin American countries
Copy link to Figure 1.5. Percentage of domestic wastewater flows safely treated in surveyed Latin American countries
Note: Data from 2022. No data is available for Honduras and Uruguay.
Source: Authors' elaboration based on data from UN (2024), Progress on Wastewater Treatment (SDG target 6.3), https://www.sdg6data.org/en/indicator/6.3.1
Box 1.1. Greenhouse gas emissions from the water and sanitation sector
Copy link to Box 1.1. Greenhouse gas emissions from the water and sanitation sectorWater use, storage and distribution are responsible for approximately 10% of global greenhouse gas (GHG) emissions. The degradation of organic material during wastewater treatment contributes to 1.57% of global GHG emissions and 5% of global non-carbon dioxide GHG emissions, primarily methane and nitrous oxide. Moreover, treatment plants are estimated to consume about 3% of global electricity. These emissions are expected to increase. By moving towards SDG targets 6.2 (Sanitation and hygiene) and 6.3 (Progress on Wastewater Treatment), there is potential to lower GHG emissions from sanitation and wastewater systems by harnessing energy and nutrients found in wastewater. Applying a circular approach to the water sector can reduce GHG emissions by generating renewable energy during the wastewater treatment process and replacing fossil-based fertilisers. This process decreases environmental pollution while bolstering food production through nutrient recovery and enhancing energy security by reducing reliance on conventional power sources.
Source: CDP (2020), A wave of change: The role of companies in building a water-secure world, https://www.cdp.net/en/research/global-reports/global-water-report-2020; Lu, L. et al. (2018), Wastewater treatment for carbon capture and utilization”, Nature Sustainability, https://doi.org/10.1038/s41893-018-0187-9
According to the OECD/IDB Survey on Water and Circular Economy (Box 1.2), water scarcity and resource constraints are key drivers in moving from a linear to the circular water economy by 80% of the ten surveyed countries, followed by environmental concerns and risk mitigation (60%) (Figure 1.6). Argentina, Brazil, Honduras, Mexico, and Uruguay consider water scarcity and resource constraints as the top drivers, while environmental concerns rank first for Colombia, Costa Rica, and Paraguay, and risk mitigation and regulatory pressures are the respectively the most prominent for Chile and Peru. Addressing water pollution, ensuring access to water and sanitation, and adapting to climate change are the primary opportunities identified by 60% of surveyed countries (Figure 1.7).
Figure 1.6. Drivers for the circular water economy in surveyed Latin American countries
Copy link to Figure 1.6. Drivers for the circular water economy in surveyed Latin American countries
Note: Countries ranked each of the drivers on a scale of 1-10, with 10 being the highest score. The high score category corresponds to a score between 8-10, followed by the medium score category (4-7) and the low score category (1-3).
Source: OECD/IDB (2024) OECD/IDB Survey on Water and Circular Economy in Selected Countries of Latin America.
Figure 1.7. Opportunities for the circular water economy in surveyed Latin American countries
Copy link to Figure 1.7. Opportunities for the circular water economy in surveyed Latin American countries
Note: Countries classified opportunities as ‘Great opportunity’, ‘Medium opportunity’, ‘Low opportunity’, and ‘Absence of opportunity’.
Source: OECD/IDB (2024) OECD/IDB Survey on Water and Circular Economy in Selected Countries of Latin America
Box 1.2. OECD/IDB Survey on Water and Circular Economy
Copy link to Box 1.2. OECD/IDB Survey on Water and Circular EconomyThe OECD/IDB Survey on Water and Circular Economy, carried out between October 2023 and February 2024, targeted ten countries in Latin America: Argentina, Brazil, Chile, Colombia, Costa Rica, Honduras, Mexico, Paraguay, Peru, and Uruguay (Figure 1.8). The survey was structured around five sections:
1. Identify the key drivers of the water circular economy.
2. Map the roles and responsibilities related to the circular water economy across levels of government.
3. Identify the main water and sanitation and circular economy legislations, regulations and policies and how they systematically address the circular water economy focusing on specific dimensions such as water use reduction, reuse, recycling, and the recovery of energy and materials.
4. Identify initiatives in the water sector related to the circular economy and clarify aspects such as stakeholder engagement, financing, and data and assessment measures.
5. Identify the challenges, opportunities and priority governance dimensions needed to transition from a linear to the circular water economy.
Figure 1.8. Geographical coverage of the Survey
Copy link to Figure 1.8. Geographical coverage of the Survey
Source: Author’s elaboration.
The circular water economy in detail
Copy link to The circular water economy in detailThe concept of the circular water economy focuses on three key dimensions: a) reducing water use and increasing water efficiency, b) promoting water reuse and recycling of treated wastewater, and c) recovering energy and materials from wastewater treatment. These concepts align with the broader circular economy goals of minimising waste and pollution, keeping resources in use for as long as possible, and regenerating nature. These dimensions are presented in more detail below.
Reducing water use is the first step in the circular water economy. This can be achieved by implementing advanced water-saving technologies across municipal, agricultural, and industrial sectors to increase water use efficiency, reducing non-revenue water (NRW) through the maintenance and upgrading of infrastructure, and raising awareness about the importance of water conservation. Rainwater harvesting systems, for example, can capture and store rainwater for non-potable uses like landscaping, cleaning, or toilet flushing, reducing dependence on freshwater supplies. As a result, water use can be significantly curtailed at the source, laying the foundation for a sustainable cycle.
When water is used, efforts should shift toward reuse. In some cases, water can be reused without treatment, making the most of its residual quality. In urban settings, greywater from sinks or showers can be reused directly for irrigating gardens or toilets flushing. In agriculture, water used for cleaning fruits and vegetables can be redirected for crop irrigation or livestock watering. Industrial processes can use cooling water for washing equipment or dust suppression.
Where direct reuse is not feasible, wastewater should be treated and recycled. When treated to the appropriate standards, wastewater’s quality can be restored to a level that allows it to be reinjected into the distribution system. This effectively reduces or, in some cases, replaces the need for freshwater extraction. For reuse to a potable water standard, advanced treatment processes like microfiltration, reverse osmosis, and UV disinfection with advanced oxidation can purify wastewater to meet drinking water standards, enabling it to be directly supplied to consumers or reintroduced into natural reservoirs or aquifers for later use. For non-potable purposes, treated wastewater can be used for agricultural irrigation, industrial cooling, or landscaping, significantly conserving freshwater resources. Additionally, treated wastewater can replenish wetlands, rivers and groundwater systems.
As a result of the wastewater treatment process, sludge is obtained in addition to treated water. Residual sludge contains high value materials including phosphorus, nitrogen, and sulphur that can be recycled, reducing the demand for virgin resources (Solon, 2019[19]). Biosolids (sludge treated to levels that permit its beneficial use) can be used to recover degraded land and as compost in agriculture (IEA, 2015[20]), helping mitigate water pollution, while decreasing costs for farmers (World Bank, 2019[21]). Using biosolids instead of disposing of them in landfills, also lowers or eliminates transport and landfill costs for water utilities, while reducing GHG emissions (UN World Water Assessment Programme, 2017[22]; Waternet, 2017[23]; World Economic Forum, 2020[24]). The remaining biomass can be incinerated to produce sewage sludge ash which, when used as agricultural fertiliser, produces similar comparable yield results to conventional phosphate fertiliser (Franz, 2008[25]). Sewage sludge ash can be employed in the construction industry as a replacement aggregate for use in concrete and mortar to make bricks or tiles or incorporated as raw material for cement (Smol, 2015[26]). Pilot projects are underway to recover cellulose from wastewater (EurEau, 2021[27]).
In addition, wastewater contains energy that can be captured in a number of forms, including thermal, chemical and hydraulic energy. Thermal energy is about capturing heat, used for district heating and cooling, powering agricultural greenhouses, and drying sludge. Chemical energy is stored in organic compounds present in wastewater and it involves converting organic compounds into usable fuels. Hydraulic energy focuses on harnessing the movement of freshwater or wastewater for power generation.
Each type of energy has specific methods of recovery and unique applications. Estimates of the recoverable energy embedded in municipal wastewater suggests that the potential for thermal energy (80% of energy recovered) is much higher than for chemical energy (20%). Only a very small amount (less than 1%) of the embedded energy is in the form of hydraulic energy (Tarallo, 2014[28]). Studies have demonstrated that wastewater contains five to ten times more energy than the energy needed for treatment. While only some of this energy can be recovered, it is possible for the largest urban wastewater treatment plant to be net energy producers (Riley and alii, 2020[29]). In current practices, the energy potential of wastewater is not fully exploited and, although several energy‑neutral or energy-positive plants exist and operate fully, they are not yet the norm. Wastewater treatment plants can become 100% self-sufficient in energy terms if they effectively employ energy efficiency and energy harvesting from wastewater.
The potential for circular water economy in Latin America
Copy link to The potential for circular water economy in Latin AmericaAccording to the OECD/IDB Survey, most Latin American countries predominantly adhere to a linear model for water supply, sanitation and resources management. Only Colombia, Mexico, and Peru perceive their water system as partially circular. As a result, there is considerable potential for countries in the Latin America to dramatically increase the circularity of their water systems. This section details the identified dimensions of the circular water economy and illustrates the potential for Latin American countries, drawing in the experiences of other countries and regions as well as the results of the OECD/IDB Survey.
Reducing water use and using it efficiently
Water can be lost in networks and used inefficiently. Globally, leaks and physical pipe breakages lead to the loss of over 33 billion m3 of treated water every year. In developing countries, roughly 45 million cubic metres of water are lost daily with an economic value of over USD 3 billion per year (World Bank, 2016[30]). Saving half of those losses would provide enough water to serve at least 90 million people. According to OECD (2016[31]), smaller cities surveyed (under 1.5 million inhabitants) reported higher average water loss than larger cities. The correlation between GDP per capita and the share of water losses shows greater water losses in cities with lower GDP per capita. Wastage in these cities is generally associated with unauthorised consumption, poor connections and metering inaccuracies (Farley, 2001[32]). A substantial number of cities across Latin America continue to face high levels of physical water losses. In the LAC region, the NRW rate exceeds 40% (IDB, 2018[33]).
The economically optimal level of water losses in municipal networks is estimated between 10% and 20% on average, depending on the nature of individual systems (OECD, 2016[31]). According to an approach adopted by the European Commission, this level is reached at the point at which the cost of reducing leakage is equal to the benefit gained from further leakage reductions (European Commission, 2013[34]). Appropriate leakage management can help reduce significantly water abstraction, recover revenue from water losses and in some cases mitigate the need for water source expansion (US Environmental Protection Agency, 2016[35]). Reducing water losses can generate economic value for utilities but requires strong investments. For example, in the European Union (EU), the overall cost of reduce water losses by 10% amounts to approximately EUR 8 billion, and about twice the amount would be needed to achieve a 20% leakage rate, underlining the financial issues at stake to reach low levels of leakage (OECD, 2023[36]).
Water-saving techniques and awareness raising are important to increase water use efficiency. In 2021, global water use efficiency (WUE)4 stood at USD/m3 20.8, and data indicates a positive trajectory, with water-use efficiency increasing from USD/m3 17.3 in 2015 to 18.9 USD/m3 in 2018, reflecting a 20% efficiency gain (FAO/UN Water, 2021[37]). Several countries are establishing targets and providing solutions. For example, Germany’s 2023 National Water Strategy emphasises water-saving technologies, better wastewater management, and sustainable farming practices. In 2023, France unveiled a comprehensive Water Saving Plan, targeting a 10% reduction in national water use by 2030. Among surveyed Latin American countries, in 2021, only Brazil surpassed global WUE, with Costa Rica closely following. However, three out of the ten countries – Chile, Colombia and Peru– fall short of achieving even half of the global water efficiency level (Figure 1.9).
Figure 1.9. Water use efficiency in surveyed Latin American countries
Copy link to Figure 1.9. Water use efficiency in surveyed Latin American countries
Note: Data from 2021. Water Use Efficiency (WUE) is the sum of the efficiencies in the major economic sectors weighted according to the proportion of water withdrawn by each sector over the total withdrawals.
Source: Author’s elaboration based on FAO AQUASTAT database https://data.apps.fao.org/aquastat/?lang=en&share=f-2a4f649d-bc55-4fddbeea-734145de5a00.
Reusing water and recycling treated wastewater
Water reuse refers to the direct repurposing of used water without undergoing treatment. This practice is often limited to non-sensitive applications where the quality of the water is already adequate for the intended use. Globally, only 11% of wastewater is reused, highlighting significant room for increased reuse (UNEP, 2023[38]). In agriculture, particularly in water-scarce regions like the Middle East and North Africa, reuse plays an important role in supporting irrigation needs. In LAC, the potential for reuse is underexploited despite agriculture being the primary consumer of water. In the region, where irrigation accounts for over 60% of water withdrawals on average (Figure 1.10), reuse rates for untreated water remain negligible. For instance, in surveyed Latin American countries, reuse of untreated wastewater is almost non-existent except in isolated cases where minimal-quality water can meet non-drinking needs. Reuse typically involves informal practices without systemic implementation.
Figure 1.10. Water withdrawals by sector in surveyed Latin American countries
Copy link to Figure 1.10. Water withdrawals by sector in surveyed Latin American countries
Note: The data correspond to 2021
Source: Author’s elaboration based on FAO AQUASTAT database https://data.apps.fao.org/aquastat/?lang=en&share=f-2a4f649d-bc55-4fddbeea-734145de5a00.
Water recycling, on the other hand, refers to the process of treating used water at various levels (primary, secondary, or advanced) to a quality that is suitable for industrial processes, irrigation, or even potable water supply. Globally, around 359 billion m³ of wastewater is produced annually, yet 48% is discharged untreated (Jones et al., 2020[39]). Increasing recycling rates could address water scarcity and environmental concerns.
In Latin American countries, the potential of wastewater recycling is still to be unlocked. Chile and Mexico safely treat over 60% of household wastewater, but recycling rates remain low, with Mexico leading at 20%. Argentina, Brazil and Peru treat 35% to 60% of wastewater, yet recycling efforts focus more on industrial rather than municipal uses (UN, 2024[40]). Opportunities abound for increasing recycling rates by expanding wastewater treatment infrastructure. Treated wastewater could significantly supplement agriculture and industrial water needs, addressing shortages. Some examples are already in place: the Atotonilco de Tula wastewater treatment plant in Mexico recycles water for irrigation purposes, while the Aquapolo wastewater treatment plant in São Paulo, Brazil, recycles water specifically for industrial use.
In Europe, water reuse and recycling are structured practices with specific applications. Approximately 1 billion out of 40 billion m³ of treated wastewater is reused annually, though the European Commission estimates this figure could be increased sixfold (Water Reuse Europe, 2020[41]). Out of the almost 800 water reuse and recycling practices identified in Europe, 62% are concentrated in water-scarce countries like Spain, while coastline regions with high tourism pressure prioritise treated water reuse and recycling to counteract resource depletion (Water Reuse Europe, 2020[41]). Overall, agricultural reuse remains the most common water reuse application in Europe (39%) followed by industrial reuse (15%) and reuse for recreational purposes (11%) (Water Reuse Europe, 2020[41]).
Outside Europe, the case of Singapore is often mentioned as a best practice. In 2003, the Public Utilities Board, Singapore’s National Water Agency, introduced NEWater, a high-grade reclaimed water produced from treated used water, which exceeds the drinking water standards set by the World Health Organization (WHO) and the US Environmental Protection Agency. NEWater is used primarily for non-potable industrial purposes at wafer fabrication parks, industrial estates and commercial buildings (OECD, 2016[31]). After almost 20 years in action, NEWater supplied 30% of Singapore’s demand for water in 2022, with the aim of covering 50% by 2060 (Rahmawan and Eliana, 2023[42]).
Recovering energy and materials from wastewater treatment
As noted above, recovering energy and materials from wastewater treatment is a core part of the circular water economy, but is still in its infancy in most parts of the world. Advanced technologies allow for the recovery of biogas (a source of energy) and valuable biochemical compounds.
Bio-factories are particularly innovative and have transformed the concept of a wastewater treatment plant by introducing the recovery of materials and energy. In the metropolitan region of Santiago, Chile, for example, Aguas Andinas set three bio-factories: La Farfana, Mapocho-Trebal, and La Florida. These bio-factories collectively treat 100% of Greater Santiago's wastewater, allowing a significant portion of clean water to be reintroduced into the Mapocho River, with the remainder allocated for irrigation in the metropolitan region. They won the United Nations "Momentum for Change Climate Action Award" in 2018. Beyond wastewater treatment, the goal of these bio-factories is to generate zero waste, be self-sufficient in energy and carbon neutral by extracting and providing resources such as electricity, natural gas, agricultural fertiliser, and clean water (IDB, 2022[43]).
In another example, the bio-factory in the city of Granada, Spain, aims at shifting from being a significant energy consumer to becoming energy-to-energy producers; recycling treated water rather than only purifying and returning it to the natural environment; and transforming waste into resources rather than sending it to landfill (OECD, 2021[44]). In 2019, the bio-factory almost reached its 100% energy self-sufficiency goal. Furthermore, 18.91 million m3 of treated water have been reused for irrigation and for the maintenance of the minimum ecological flow of the local Genil River. In addition, from the 16 525 tonnes of fresh sludge material produced in the bio-factory in 2019, 14.3% was recycled for compost and 85.7% for direct application in the agricultural sector (OECD, 2021[44]).
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Notes
Copy link to Notes← 1. Arup, Ellen MacArthur Foundation, & Antea Group (2019). Water and Circular Economy: A Whitepaper. Available at: https://www.arup.com/-/media/arup/files/publications/w/water_and_circular_economy_whitepaper.pdf; Brears, R. (2019). "Introduction." In Palgrave Studies in Climate Resilient Societies: Developing the Circular Water Economy. Springer International Publishing, Cham. Available at: https://doi.org/10.1007/978-3-030-32575-6_1; Morseletto, P., Mooren, C., & Munaretto, S. (2022). "Circular Economy of Water: Definition, Strategies, and Challenges." Circular Economy and Sustainability, Vol. 2(4), pp. 1463-1477. Available at: https://doi.org/10.1007/s43615-022-00165-x; Sauvé, S., et al. (2021). "Circular Economy of Water: Tackling Quantity, Quality, and Footprint of Water." Environmental Development, Vol. 39, p. 100651. Available at: https://doi.org/10.1016/j.envdev.2021.100651; Smol, M., Adam, C., & Preisner, M. (2020). "Circular Economy Model Framework in the European Water and Wastewater Sector." Journal of Material Cycles and Waste Management, Vol. 22(3), pp. 682-697. Available at: https://doi.org/10.1007/s10163-019-00960-z; World Bank (2021). Water in Circular Economy and Resilience (WICER). Available at: https://www.worldbank.org/en/topic/water/publication/wicer
← 2. Latin America comprises Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominica, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Uruguay, Venezuela.
← 3. SDG 6 on Water and Sanitation seeks to ensure safe drinking water and sanitation for all, focusing on the sustainable management of water resources, wastewater and ecosystems, and acknowledging the importance of an enabling environment.
← 4. In the water sector, it is commonly understood as a dimensionless ratio between water used and water withdrawn. In contrast, the agricultural sector often employs WUE to gauge the efficiency of crops in producing biomass and harvestable yield. This ambiguity has led to challenges in standardising the concept.