Second only to the Netherlands, Italy leads major EU economies in circular economy performance
Italy ranks at the top of the European circularity index — an assessment that considers performance in production and consumption, waste management, use of recycled raw materials, competitiveness and innovation, sustainability, and resilience.
According to the 2025 Circular Economy Report by the Circular Economy Network — promoted by the Foundation for Sustainable Development and developed in collaboration with ENEA — Italy holds second place among the 27 EU countries, right after the Netherlands, but ranks first among the major European economies, ahead of Germany, France, and Spain.
Based on the most recent available data (2023), Italy has increased its resource productivity in recent years, reaching €4.3 per kilogram — a 20% improvement compared to 2019.
Additionally, the circular material use rate has risen to 20.8%, up from 18.7% in 2023. However, there is a downside: dependence on imported materials remains high. In 2023, imports accounted for 48% of total material needs — a figure significantly above the EU average of 22% for the same year.
Italy’s strengths and weaknesses in the transition to a sustainable economic model
“Italy continues to rank among the top European countries in terms of circularity, particularly in areas such as resource productivity, waste recycling, and the circular use rate of materials,” says Claudia Brunori, director of the Department for Sustainability, Circularity, and Climate Change Adaptation of Productive and Territorial Systems at ENEA. “However, we still fall behind when it comes to private investments in making production activities more circular.”
In the current context of geopolitical and climate instability, Brunori stresses the need to reduce Italy’s reliance on imported materials — a dependency that is more than twice the European average. “This makes it all the more urgent to implement an economic system grounded in circular principles, starting with eco-design and product innovation,” she explains. “Only through this shift can we ensure a sustainable and secure supply of raw materials, especially those that are critical and strategic.”
Among the most promising sectors for circular innovation, she highlights circular biotechnologies and biomaterials derived from organic waste.
In addition, policy frameworks and access to funding play a critical role in accelerating circular transformation. While Italy has made significant progress, especially with local and regional initiatives, stronger national strategies and incentives for businesses — particularly SMEs — could drive broader and faster adoption.
In conclusion, integration of circular economy principles into industrial policies, education and research is considered essential for maintaining competitiveness while advancing environmental goals
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