In this expert blog, we explain how the expansion of the Extended Producer Responsibility (EPR) Law is opening up new investment opportunities in infrastructure, innovation, and traceability.
Since 2016, Chile has transformed waste management into a true platform for sustainable development.
With the enactment of the Extended Producer Responsibility Law (EPR Law No. 20.920), the country established a system that requires producers and importers to take responsibility for the waste generated by their products once they reach the end of their useful life, aligning economic incentives with long-term environmental goals.
This legislation has made Chile a regional leader in circular economy by creating a favorable environment for investment in infrastructure, traceability, and technological solutions, while providing regulatory certainty to investors interested in the Chilean environmental market.
Gradual implementation and long-term vision
One of the key factors behind the success of the EPR Law is its gradual, predictable, and transparent implementation, which has allowed stakeholders to anticipate compliance stages and plan investments with confidence.
Since it took effect, the law has advanced through progressive goal decrees, the formation of collective management systems (CMS), and the creation of digital tools such as the EPR Reporting System (SISREP), which will be launched in 2025.
Among the most significant milestones are:
- 2023: Launch of mandatory goals for tires and packaging and containers.
- 2025: Inclusion of textiles as a new priority product.
- Upcoming decree: Regulation of electrical and electronic equipment and batteries.
These developments strengthen an investment ecosystem that combines stable regulation, technological innovation, and public-private collaboration, driving new business opportunities in waste management and valorization.
Packaging and containers: Data driving a new market
According to the Recycling Statistics 2024 report (Kyklos, 2025), in Chile 1.96 million tons of packaging and containers were sold, of which 67% were managed by a CMS and 33% were valorized.
The best-performing materials were paper and cardboard (49%), while liquid cartons reached only 3%, highlighting a significant potential for technological and logistical improvement.
The gap between household (17%) and non-household (59%) waste streams shows that the main challenge lies not in recycling capacity but in waste collection and traceability, especially at the household level.
For investors, this gap represents concrete opportunities:
- Modernization of materials recovery facilities (MRFs).
- Door-to-door services with digital traceability.
- Compliance software integrated with SISREP.
Geographically, the EPR Law is generating waste valorization hubs in regions such as Biobío, Valparaíso, and the Santiago Metropolitan Region, which have strong agro-industrial sectors, logistical infrastructure, and port access.
These conditions support projects with export potential in waste valorization, environmental services, and technological development.
In summary, low levels of household coverage and a lack of traceability remain the critical gaps. This is precisely where attractive investment projects are emerging in areas such as digital evidence integrated with SISREP, MRF modernization, and the inclusion of grassroots recyclers.
Textiles: A new driver of circular innovation
The inclusion of textiles as a priority product in 2025 marks a turning point in Chile’s environmental policy.
With over 570,000 tons of textile waste generated annually, this sector offers huge potential for innovation, green jobs, and sustainable reindustrialization.
Take-back and buy-back programs promoted by retail and e-commerce companies are already generating traceable material streams. In addition, advanced classification technologies such as near-infrared (NIR) detection and computer vision are emerging, allowing fibers to be identified by composition and condition. This enables fiber-to-fiber recycling or upcycling processes applicable to industries like the automotive, construction, and furniture manufacturing sections.
Digital solutions such as digital product passports (DPP) and smart labeling are also emerging, aligned with European trends toward transparency and traceability in supply chains.
In the coming years, textile management systems are expected to integrate both large retailers and industrial sectors (hospitality, healthcare, uniforms), fostering circular and technologically advanced value chains.
Investment opportunities: Infrastructure, technology, and advanced recycling
The EPR ecosystem opens a broad range of investment opportunities in four main areas:
- Infrastructure: Cutting-edge sorting, valorization, and recycling facilities.
- Technology: Digital traceability, artificial intelligence, and environmental data management.
- Circular models: Collaborative collection systems and reverse logistics.
- Advanced recycling: Chemical processes, bio-recycling, and materials with high added value.
These categories reflect a dynamic market where innovation, sustainability, and digitalization converge, aligned with ESG criteria and Chile’s green transition policies.
The growth of green financing, impact funds, and innovation programs from Chile’s Economic Development Agency (CORFO) further strengthen this ecosystem, offering concrete tools for domestic and international investors to participate in the sector’s expansion.
Chile’s circular future
Chile’s circular economy is entering a phase of maturity that combines a robust regulatory framework, technological innovation, and regional development.
However, its success will depend on strengthening the connection with citizens, promoting environmental education, efficient logistics, and active consumer participation.
Against this backdrop, the EPR Law stands out as one of the main catalysts of Chile’s economic transformation, opening a new chapter in the relationship between investment, sustainability, and innovation.
Interested in investing in opportunities under the EPR Law?
InvestChile supports investors with up-to-date regulatory information, assistance in project identification, public-private coordination, and access to incentive programs.
Visit www.investchile.gob.cl or contact us to find out how to participate in this circular journey toward a more sustainable future.
