In a world increasingly constrained by resource scarcity, economic instability, and climate urgency, the circular economy emerges as a pragmatic and powerful lever for transformation. Italy, already a European frontrunner in circular practices, faces both the opportunity and necessity to accelerate its transition. The 7th Report on Circular Economy in Italy, published by the Circular Economy Network in collaboration with ENEA, outlines current trends, national challenges, and the untapped potential of circularity to drive not just environmental sustainability, but industrial competitiveness and energy resilience.
Italy’s leadership in circularity
Italy ranks second among EU countries in overall circularity, behind only the Netherlands. In 2023, it achieved a circular material use rate (CMU) of 20.8%, far exceeding the EU average of 11.8%. It also leads in waste recycling: 70.7% of packaging waste was recycled—higher than Germany (68.5%), France (67.2%), and Spain (69.4%).
Per capita material consumption in Italy was 11.1 tonnes in 2023, below the EU average (14.1 t), though rising since 2019. Meanwhile, resource productivity rose 20% over five years, reaching €4.3 per kg—far above the EU average of €2.7/kg.
The cost of dependence and the economic potential of circularity
Italy remains heavily reliant on imported materials—48% of its needs in 2023—more than double the EU average of 22%. This dependence contributes significantly to industrial costs, which have surged due to global tensions and resource price volatility. For instance, fossil fuel import costs rose nearly 40% between 2019 and 2024, despite a 30 Mt drop in volume.
However, circularity offers a counterweight. According to Cassa Depositi e Prestiti, circular practices in 2024 saved Italian manufacturers over €16.4 billion in production costs. With further optimization, potential savings could reach €119 billion by 2030.
The 2030 Circular Scenario: less waste, more value
The report outlines two future scenarios. A “business as usual” path projects continued increases in material consumption (611 Mt by 2030) and moderate recycling gains. In contrast, a “more circular” scenario would reduce material use by 14.5%, cut waste by 17 Mt, and boost recycling rates to nearly 90%. This path would reduce Italy’s material dependence by 40 Mt and save €82.5 billion.
Circularity also advances climate goals. The European Commission estimates that improved circularity can reduce energy system costs by 7% by 2050 and lower greenhouse gas emissions across industries.
Strategic materials and recycling gaps
Italy’s recycling performance varies across materials. While lead and copper exceed 50% recycling rates, critical materials like lithium, cobalt, and nickel remain under 25%. The Erion consortium estimates that adopting best EU practices could help Italy recover 7,600 tonnes of critical raw materials, vital for sectors contributing €564 billion in industrial output and €444 billion in exports.
As Valerio Forti of Burgo Group notes, “Sustainability is now a global imperative… ESG integration is no longer an option, but a necessity.”
Policy and innovation challenges
Despite strong performance, Italy lags in investment. Circular economy investments fell from €13.1 billion in 2019 to €10.2 billion in 2023, representing just 0.5% of GDP. By contrast, Germany and France invested €39.5 and €22.5 billion respectively.
Employment in circular sectors also fell by 7% between 2019 and 2023, though Italy’s share of circular jobs remains aligned with the EU average (2% of total employment).
Legislation is both a lever and a bottleneck. The 5.0 Transition Plan failed to explicitly support circular investments, unlike its 4.0 predecessor. Experts call for reallocation of unused funds and clear incentives aligned with the EU’s Clean Industrial Deal.
Conclusion: a necessary and strategic choice
Italy stands at a crossroads. With the EU targeting a circularity rate of 24% by 2030, the country is well-positioned to lead—but must invest, legislate, and innovate to maintain momentum. As emphasized by Roberto Ronca of Edison Next, “Circular economy is one of the fundamental levers… to reduce environmental impact and generate local value.”
Circularity is no longer an environmental choice, it is an economic imperative and a geopolitical strategy. Italy’s 2025 report provides a roadmap, but success depends on turning plans into action, across industries, policies, and communities.
