National Strategy for the Circular Economy

The National Strategy for Circular Economy (SEC) was developed as part of Italy's broader reforms and was adopted in September 2022, with the signing of Ministerial Decree No. 342 on 19 September 2022. The primary aim of this strategy is to provide a programmatic framework for actions, objectives, and measures to ensure an effective transition towards a circular economy in Italy. It seeks to define new administrative and fiscal tools to strengthen the market for secondary raw materials, making them competitive with virgin materials in terms of availability, performance, and costs.

The strategy has been announced and is currently in force, with implementation of priority measures scheduled to occur by 2026, in line with the timeframe of Italy's National Recovery and Resilience Plan (PNRR).

Key Provisions Relating to Recycling and Critical Minerals:

1. Digital Waste Traceability: The strategy introduces a new digital waste traceability system (R.E.N.T.R.I. and other digital platforms) to support the development of a secondary market for raw materials and aid control authorities in preventing illegal waste management.
2. Fiscal Incentives: The plan includes tax incentives and the identification of specific financial instruments to support recycling activities and the use of secondary raw materials.
3. Environmental Taxation Reform: A revision of the environmental taxation system on waste is proposed to make recycling more economically advantageous than landfilling and incineration across Italy.
4. Right to Reuse and Repair: The strategy emphasises the development of reuse centres and the identification of regulatory and economic tools to incentivise operators in this sector.
5. Extended Producer Responsibility (EPR): The reform of the EPR system and consortia aims to support the achievement of EU targets through the creation of a specific supervisory body under the presidency of the Ministry of Ecological Transition (MITE).
6. End-of-Waste Criteria: The strategy supports existing regulatory tools, including end-of-waste legislation at national and regional levels. It aims to accelerate the adoption of End-of-Waste decrees, particularly for construction, textiles, plastics, and Waste Electrical and Electronic Equipment (WEEE).
7. Green Public Procurement: The plan reinforces the use of Minimum Environmental Criteria (CAM) in public procurement, aiming to strengthen the technical capacity of contracting authorities for the correct application of CAM.
8. Secondary Raw Materials Market: The strategy aims to strengthen the market for secondary raw materials through actions on the material purchase chain, end-of-waste criteria, extended producer responsibility, consumer roles, and the promotion of sharing practices and "product as a service" models.
9. Industrial Symbiosis: The strategy supports industrial symbiosis projects through the identification of specific regulatory and financial instruments.
10. Circular Economy in Key Sectors: The strategy specifically addresses sectors such as construction, textiles, plastics, and WEEE, which are likely to involve critical minerals.

This comprehensive strategy demonstrates Italy's commitment to transitioning towards a circular economy, with several provisions that could significantly impact the recycling and efficient use of critical minerals across various sectors. The strategy aligns with the requirements of the European Commission as part of the Operational Arrangements of the PNRR, ensuring a coordinated approach to circular economy implementation at both national and European levels.

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