Guatemala- Waste Management

Sector : Waste Management
Location : Guatemala

Overview

The Sustainable Climate Fund (SCF) is providing technical support to a plastic-free initiative in Central America. The project aims to replace conventional plastic with seaweed-based resins, which are, regenerative, carbon-capturing, and ocean-farmed. By adopting this approach, the project addresses plastic waste and environmental challenges in a practical and sustainable manner.

Guatemala, the largest economy in Central America, has made significant strides towards sustainable development. With a GDP of approximately $84 billion, the country has implemented the Climate Change Framework Law, which supports the Low Emission Development Strategy (LEDS). This strategy which aims to cut greenhouse gas emissions by 59% by 2050. This strategy targets six key sectors: energy, transportation, industry, land use, agriculture, and waste management, providing a foundation for more innovative projects contributing to and achieving the Sustainable Development Goals. (SDGs).

The Challenge

Guatemala faces significant challenges in managing plastic waste. The Motagua River alone contributes approximately 2% of global ocean plastic emissions. On average, each Guatemalan generates 0.519 kilograms of waste daily, with 9% comprising plastic. In rural areas, inadequate waste collection services often lead to open burning of plastic, exacerbating air pollution and poising serious adverse health risks.

In 2019, Guatemala implemented a nationwide ban on single-use plastics such as bags, straws, and food containers, with exceptions for medical applications and factory-sealed products. Businesses were mandated to transition to compostable materials that meet EU standards (UNE-EN 13432) within two years, subject to material availability.

This project seeks to address these challenges by introducing renewable seaweed-based biomaterials, which decompose very quickly under industrial and home-based composting conditions. Additionally, seaweed cultivation is intended to strengthen coastal resilience, stabilize shorelines, and support marine biodiversity.

SCF’s Involvement – Technical Assistance

To further support the development of this project, SCF’s Technical Assistance Facility

has approved a grant for a Pre-feasibility Study for gap assessment in Guatemala City.

The study will assess current supply chain and logistics, which includes

Bottlenecks identification
Cost analysis
Optimization strategies
Technology integration
Compliance review
Quality assurance / quality control
Current storage practices

This technical assistance will guide the project’s commercial scale-up, ensuring sustainable and efficient production of seaweed-based products in Guatemala.

Our Target Impact

The primary goal of this project is to reduce greenhouse gas emissions, generate decent jobs and empower women.

SDG 13 Climate Action
- Carbon Emissions: By replacing fossil fuel-derived plastics, the project is expected to reduce carbon emissions. A life cycle analysis (LCA) based carbon footprint is in progress to estimate CO₂ impact and avoidance.
- Climate Adaptation: Seaweed farming has the potential to enhance coastal resilience and support adaptation to climate risks.

SDG 8 Decent Work and Economic Growth
- Job Creation: Guatemala has a high rate of informal labor (71%), and 55% of the population lives in poverty. The project is expected to create jobs in seaweed farming industry and support the local economy.

SDG 5 Gender Equality
- Women’s Leadership and gender equality: The project is co-led by women and follows SCF’s gender policy, aligned with 2X criteria. Current plans include a workforce with at least 25% women, initiatives to involve women in the seaweed supply chain, and a gender equity program focused on equal pay and leadership development.