The 2024 Report on the Circular Economy in Italy
The circular economy is one of the big issues of our time and our future.
Italy has always had a leading role in Europe on this front. One month from the European elections, the figures were presented in Rome from the sixth Report on the Circular Economy in Italy, produced by the Circular Economy Network (CEN) and ENEA. The CEN is a project promoted by Fondazione per lo Sviluppo Sostenibile (Sustainable Development Foundation) and other partners, such as Uliveto and Rocchetta, Burgo Group, Haiki Cobat, Conai, Conou, Ecopneus, Edison Next, Erion, Federbeton, Hera Group, Iren, Italian Exhibition Group, Montello and Novamont, while ENEA is the Italian National Agency for New Technologies, Energy and Sustainable Economic Development.
Material consumption and productivity
For the first time in this edition of the Report, the circular performances of the five biggest economies in the European Union (Italy, France, Germany, Spain and Poland) were compared using European Commission indicators: production and consumption, waste management, secondary raw materials, competitiveness and innovation, ecological sustainability and resilience.
Top place was confirmed for Italy (45 points) in terms of the circular economy, followed by Germany (38), France (30), Poland and Spain (26). This positive result for Italy primarily comes from its waste management.
In 2022, resources productivity in Italy generated €3.70 in GDP for every kg of resources consumed, an increase of 2.7% from 2018. The EU average in 2022 was €2.50/kg. The data of the four other main European countries is also below Italy. In terms of its circular material use rate, i.e. the ratio between the use of secondary raw materials generated through recycling and overall material consumption, Italy confirmed its position in 2022, recording a figure of 18.7%. In 2021, investments in certain circular economy activities in the EU27 amounted to €121.6 billion, 0.8% of GDP. Italy, with €12.4 billion (0.7% of GDP), is in third place behind Germany and France. However, compared with 2017, Italy recorded an increase in investments of 14.5%.
The circular economy then also creates jobs. In 2021, 4.3 million people in the EU27 were employed in the circular economy, 2.1% of all employees; while in Italy this figure was 613,000, or 2.4%, +4% compared with 2017; Italy was second after Germany, which has 785,000 workers in these sectors (1.7% of its total).
Critical raw materials
In 2023, the European Commission identified 34 “critical raw materials” for its economy. 17 of them were categorised as strategic: copper is one of them. It is estimated that demand for copper could double by 2050. The problem is that Europe only has 3% of global reserves, while the largest concentration of reserves can be found in Chile (31%), Peru (11%) and the Democratic Republic of Congo (9%). The same applies to another category of critical raw materials, ‘rare earths’, some of which are used in permanent magnets and are also strategic elements for renewables, electric mobility and electronics. Globally, about 85% of light rare earths and all heavy rare earths used depend on China. Once again in this case, demand for rare earths could increase substantially and even rise tenfold by 2050. Global reserves of rare earths are once again concentrated in China (44 Mt), Vietnam (22 Mt), Brazil (21 Mt) and Russia (12 Mt).
Regaining momentum towards a circular economy
In many aspects, Italy has been a benchmark for years in the EU when it comes to the circular economy. However, it is currently facing a period of stagnation, when good results are treading water without any further push for improvement. Certain trends are even negative, such as material consumption (rising from 11.8 to 12.8 t/head over the past five years, +8.5%), while some are slightly positive, but overshadowed by other countries, such as the increase in resources productivity, with Germany recording +19%, France +18% and Spain +16%, while Italy had a moderate +2.7%.
Source: https://circulareconomynetwork.it/rapporto-sulleconomia-circolare-in-italia-2024/
Material consumption and productivity
For the first time in this edition of the Report, the circular performances of the five biggest economies in the European Union (Italy, France, Germany, Spain and Poland) were compared using European Commission indicators: production and consumption, waste management, secondary raw materials, competitiveness and innovation, ecological sustainability and resilience.
Top place was confirmed for Italy (45 points) in terms of the circular economy, followed by Germany (38), France (30), Poland and Spain (26). This positive result for Italy primarily comes from its waste management.
In 2022, resources productivity in Italy generated €3.70 in GDP for every kg of resources consumed, an increase of 2.7% from 2018. The EU average in 2022 was €2.50/kg. The data of the four other main European countries is also below Italy. In terms of its circular material use rate, i.e. the ratio between the use of secondary raw materials generated through recycling and overall material consumption, Italy confirmed its position in 2022, recording a figure of 18.7%. In 2021, investments in certain circular economy activities in the EU27 amounted to €121.6 billion, 0.8% of GDP. Italy, with €12.4 billion (0.7% of GDP), is in third place behind Germany and France. However, compared with 2017, Italy recorded an increase in investments of 14.5%.
The circular economy then also creates jobs. In 2021, 4.3 million people in the EU27 were employed in the circular economy, 2.1% of all employees; while in Italy this figure was 613,000, or 2.4%, +4% compared with 2017; Italy was second after Germany, which has 785,000 workers in these sectors (1.7% of its total).
Critical raw materials
In 2023, the European Commission identified 34 “critical raw materials” for its economy. 17 of them were categorised as strategic: copper is one of them. It is estimated that demand for copper could double by 2050. The problem is that Europe only has 3% of global reserves, while the largest concentration of reserves can be found in Chile (31%), Peru (11%) and the Democratic Republic of Congo (9%). The same applies to another category of critical raw materials, ‘rare earths’, some of which are used in permanent magnets and are also strategic elements for renewables, electric mobility and electronics. Globally, about 85% of light rare earths and all heavy rare earths used depend on China. Once again in this case, demand for rare earths could increase substantially and even rise tenfold by 2050. Global reserves of rare earths are once again concentrated in China (44 Mt), Vietnam (22 Mt), Brazil (21 Mt) and Russia (12 Mt).
Regaining momentum towards a circular economy
In many aspects, Italy has been a benchmark for years in the EU when it comes to the circular economy. However, it is currently facing a period of stagnation, when good results are treading water without any further push for improvement. Certain trends are even negative, such as material consumption (rising from 11.8 to 12.8 t/head over the past five years, +8.5%), while some are slightly positive, but overshadowed by other countries, such as the increase in resources productivity, with Germany recording +19%, France +18% and Spain +16%, while Italy had a moderate +2.7%.
Source: https://circulareconomynetwork.it/rapporto-sulleconomia-circolare-in-italia-2024/
