Chile · Regulation · Business

Four major consumer-facing companies have joined Chile’s TRAEE collective waste system, positioning themselves ahead of binding TRAEE REP Law decrees that will soon mandate recycling targets for electronics and batteries.

The TRAEE platform and its regulatory moment

TRAEE, which stands for Transformación de Residuos de Aparatos Eléctricos y Electrónicos, is the first collective management system in formation for electrical and electronic waste under Chile’s REP Law (Law 20.920). Incubated by the Santiago Chamber of Commerce (CCS), it has until now operated as a voluntary, pre-regulatory platform running pilots with municipalities and recyclers.

That status is changing rapidly. The Ministry of Environment is preparing decrees that will set mandatory collection and valorisation goals for electrical and electronic equipment (AEE) and batteries, triggering a 24-month window for producers to form and gain approval for formal management systems.

Why Cencosud, Falabella and Tottus are moving now

For large retailers that sell high volumes of electronics and batteries, joining TRAEE at this stage is a calculated compliance move. Romina Reyes, TRAEE’s manager, has noted a typical operational limbo of six to eight months between new partners joining and formal approval of a management plan by the Ministry.

Early adhesion allows Cencosud, Falabella and Tottus to co-design the collective system they will later depend on for legal compliance. It also helps ensure the system has the scale, geographic reach and financial backing to meet future targets, reducing the risk of non-compliance once decrees take full effect.

Duracell and the coming battery decree

Duracell’s entry is particularly strategic. Batteries are explicitly foreseen as a priority product under the REP Law, and a dedicated Supreme Decree for battery collection and valorisation goals is under preparation.

TRAEE is transitioning to serve a new combined priority product category called “Pilas + RAEE” (P+RAEE). Having a global battery brand inside the system strengthens its capacity to handle this combined stream and embeds Duracell in a multi-sector solution rather than leaving it to manage isolated compliance efforts.

The broader REP Law timeline

Chile’s REP Law creates a binding framework where producers and importers of priority products must organise and finance the management of their post-consumer waste. Implementation has been gradual, with mandatory targets for tyres and packaging beginning in 2023.

Textiles are expected to be declared a new priority product, with goals still to be set by decree. The next wave will cover electrical and electronic equipment and batteries, and stakeholders describe this fifth year of implementation as critical for determining whether the REP system advances or stagnates.

What this means for investors and the market

The adhesion of major retailers to TRAEE signals that Chile’s extended producer responsibility regime is moving from pilot phase to enforceable reality. For investors in Chilean retail and consumer goods, this means compliance costs will become a visible line item, but early movers may gain operational advantages and reputational capital.

Competition authorities, including the FNE and TDLC, oversee collective systems under the REP Law to ensure they operate autonomously and do not hinder competition. That oversight is particularly relevant when major retailers coordinate through a single system, and governance and transparency will be closely watched as TRAEE scales up.

Frequently Asked Questions

What is the REP Law in Chile?

The REP Law (Law 20.920) is Chile’s extended producer responsibility framework. It requires producers and importers of priority products—including electronics, batteries, packaging and tyres—to organise and finance the collection and recycling of their post-consumer waste, with binding targets set by decree.

Why are retailers joining TRAEE now?

The Ministry of Environment is preparing decrees that will set mandatory recycling targets for electronics and batteries. Joining TRAEE before those decrees take effect allows companies to co-design the collective system, secure geographic coverage and avoid the six-to-eight-month operational limbo that follows formal adhesion.

What does Duracell’s participation mean for battery recycling in Chile?

Duracell’s entry strengthens TRAEE’s capacity for the new combined “Pilas + RAEE” category. A dedicated Supreme Decree for battery collection and valorisation goals is under preparation, and having a global battery brand inside the system aligns it with upcoming binding obligations.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.