Eco-innovation in Italy

EIO Country Profile 2016-2017

Eco-Innovation Observatory

The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation and circular economy information, gathered from across the European Union and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development.

The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as:

“Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”.

To find out more, visit www.eco-innovation.eu and ec.europa.eu/environment/ecoap

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.

Eco-Innovation Observatory Country Profile 2016-2017: Italy

Author: Carolina Spaini

Coordinator of the work package: Technopolis Group Belgium

Acknowledgments

The document has been prepared with the kind support of Laura Cutaia, Grazia Barberio and Claudia Brunori from the Department of Sustainability of ENEA (Ente per le Nuove Teconologie, l’Energia e l’Ambiente).

A note to Readers

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Union. A number of companies are presented as illustrative examples of eco-innovation in this report. The EIO does not endorse these companies.

The report is based on an updated methodology for calculating the Eco-Innovation Index, which has also been applied retroactively to all previous years, hence the outcome in the Eco-Innovation Scoreboard (Eco-IS) for 2017 presented in this report can be compared with the analysis in the previous reports to a limited extent.

Comments and suggestions on this document can be sent to Asel Doranova asel.doranova@technopolis-group.com

This brief is available for download from https://ec.europa.eu/environment/ecoap/country_profiles_en

Table of contents

Summary ........................................................................................................................ 1

Introduction .................................................................................................................... 2

1 | Eco-innovation performance ....................................................................... 3

2 | Selected circular economy and eco-innovation areas and new trends ........ 5

3 | Barriers and drivers to circular economy and eco-innovation in Italy........ 11

4 | Policy landscape in Italy ............................................................................. 13

ANNEX: Policy measures addressing circular economy and eco-innovations in Italy ... 18

1

Summary

2017 Eco-innovation Index ranks Italy 7th, after Sweden, Finland, Germany, Luxembourg, Denmark, and Slovenia. Its performance is 13% higher than the EU28 average. This position confirms the progress made by Italy in the development and implementation of policies dedicated to eco-innovation and circular economy, but it also shows that structural changes, supported by research and innovation, are still required in order to facilitate the transition towards a more efficient use of resources and more circular and sustainable patterns of production.

The general eco-innovation performance of the country is improving every year, with outstanding scores in the resource efficiency outcomes dimension, especially in the field of material productivity. Less successful are instead the results regarding eco-innovation inputs, where the availability of risk capital for both the creation and continuation of eco-innovative projects remains scarce. This problem is strictly correlated with the low level of public support for SMEs, which are the backbone of Italy's productive system, taking part in the green economy.

Within its best practices, Italy is pioneering voluntary agreements, and has one of the highest levels of EMAS and Eco-labels in the EU. Other areas where eco-innovations are progressing well include recycling and bioeconomy, in particularly in food and beverages industries.

With the Law n. 221 of 28 December 2015, called “Collegato Ambientale”, and the emanation of some norms, the Italian government introduced policies to promote circular economies. Several supplementing measures addressing various streams of waste and design have been activated between 2016 and 2017.

2

Introduction

Italy is the 9th largest economy in the world and the 3rd largest in the Eurozone, and it has been a relatively stable economy over time. With limited raw materials but a strong manufacturing industry, Italy is a country that more than others can benefit from circular economy and eco-innovation, which can guarantee a stable and secure supply of these raw materials.

Even if Italy was not an early mover in the field of environmental policies compared to other European countries, in a number of aspects its environmental record has significantly improved, with scores above average in its performances for CO2 emissions in comparison to GDP and in the field of renewable energies. However, in other dimensions such as water efficiency and waste management, Italy is still less effective, with significant fields disparities between northern or central Italy and southern Italy.

Environmental implementation and eco-innovation represent a challenge in Italy, with high regional variations in water and waste management and low R&D investment levels.

The general eco-innovation performance of the country is improving every year, with outstanding scores in the resource efficiency outcomes dimension, especially in the field of material productivity. Less successful are instead the results regarding eco-innovation inputs, where the availability of risk capital for both the creation and continuation of eco-innovative projects remains scarce. This problem is strictly correlated with the low level of public support for SMEs, which are the backbone of Italy's productive system, taking part in the green economy.

The implementation of eco-innovation and circular economy in Italy still requires tailored solutions, aimed at facilitating their spread and application, and at overcoming the country’s structural obstacles. Those solutions should focus mainly on the harmonization of regulatory framework, streamlining of procedures, advanced training and retraining in various sectors and cultural areas, and investments in research and innovation.

3

1 | Eco-innovation performance

The analysis in this section is based on the EU 28 Eco-innovation Index (EcoI Index) for the year 2017. The Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. EcoI Index is a composite index that is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes.

Figure 2.1 EU27 Eco-innovation Index 2017, composite index

Source: EIO, 2017

The composite indicator for the eco-innovation performance in Italy reports an index of 113.2, which is 13.2 points higher than the European average and 2.1 points higher relative to 20161. As in 2016, also in 2017 Italy ranks 7th, after Sweden, Finland, Germany, Luxembourg, Denmark, and Slovenia. This position confirms the progress made by Italy in the development and implementation of policies dedicated to eco-innovation and circular economy, but it also shows that structural changes, supported by research and innovation, are still required in order to facilitate the transition towards a more efficient use of resources and more circular and sustainable patterns of production.

1 According to the recalculations made in 2018.

0

20

40

60

80

100

120

140

160

BulgariaCypru

s

Poland

Estonia

Hungary

Romania

Latvia

SlovakiaCro

atia

Greece

Czech

Republic

Lithuania

Belgium

Malt

a

Netherla

nds

France

Ireland

EU AVERAGE

United Kingd

om

Portuga

lSpain

Austria

Italy

Slovenia

Denmark

Luxembourg

Germany

Finland

Sweden

Eco-Innovation Index 2017

4

Figure 2.2 Components of the Eco-innovation index for Italy, 2017

Source: EIO, 2017

The composite indicator can be disaggregated in 5 dimensions, which are then compared to the European average, as shown in Figure 2.2. Italy’s strongest performance is in resource efficiency outcomes, where, with 180 points, the country ranks 2nd in Europe after Luxembourg. The high score is given mainly by a good performance of the country in the field of material productivity, which is the amount of GDP generated by domestic material consumption. This result is due in part to the international economic downturn but also to the substantial growth in efficiency in the use of resources. Moreover, the scores of eco-innovation activities and eco-innovation outputs are both above average. Socio-economic outcomes are also just above the average, while eco-innovation inputs are moderately low across the board, with a score of 66 points. The main responsible for dragging down the score for this last dimension is the volume of green investments per capita at early stages between 2004 and 2017, where Italy scores 30% less than the European average and it is positioned 19th in Europe. This finding is consistent with the previous EIS edition, where green early stage investments were the weakest component, and a declining pattern was detected in Italy’s performance in eco-innovation inputs (from 13th to 15th in 2015, and from 15th to 17th in 2017). The lack of green investments is a symptomatic factor in Italy, directly connected to the scarce capacity to promote its excellences in green economy and at the same time to give stability to the potential investors through a clear national green economy strategy.

0

50

100

150

2001.Eco-innovation inputs

2.Eco-innovation activities

3. Eco-innovation outputs4.Resource efficiency outcomes

5. Socio-economic outcomes

EU AVERAGE Italy

5

2 | Selected circular economy and eco-innovation areas and new trends

Looking at the European funding and projects, Italy is the second country after Spain with the highest number of firms (508) financed by the Horizon 2020’s SME Instrument, with 457 projects funded and 128 million € allocated between 2014 and 2017. The SME Instrument addresses small and medium-sized enterprises (SMEs) with a radically new idea underpinned by a business plan for rolling out marketable innovation solutions and with ambitions to scale up. Among the funded SMEs, Italy is first in the topic of eco-innovation and raw materials (67 participants, 26 only in Lombardia) and in the topic of nanotechnologies (76 participants)2.

The following areas stand out in the Italy’s circular economy and eco-innovation development.

Ecolabelling:

Ecolabelling is a voluntary method of environmental performance certification and labelling that is practiced around the world. An ecolabel identifies products or services proven environmentally preferable overall, within a specific product or service category. With regard to resource efficiency, Italy is pioneering voluntary agreements, and has one of the highest levels of EMAS and Eco-labels in the EU in 2017.

EMAS: Organisations and sites per country – October 2017

Source: Official statistics of the European EMAS Helpdesks

2 EIC SME Instrument data hub, https://sme.easme-web.eu/

6

EU Ecolabel: Total EU Ecolabel licences per country – September 2017

Source: http://ec.europa.eu/environment/ecolabel/

Recycling and waste:

Since the Ronchi Decree3, Italy has begun a long journey to introduce the necessary reforms in favour of developing a circular economy. In 2016, with a percentage of separate waste collection equal to 52.5% of the national production, hence exceeding the 50% threshold set by the European legislator as a target for 2020, Italy had a very advanced level of recovery and recycling, and a level of excellence in Europe for industrial and commercial waste, with a rate of landfill disposal among the lowest in Europe. In particular, recycling of packaging remains a good practice in Italy as in the previous years. In 2016, paper and cardboard packaging released for consumption grew by almost 3% compared to 2015: the share sent for recycling is equal to 80% of the amount consumption. Glass packaging also recorded an increase of 1% in consumption in 2016; in the same year the separate collection of glass packaging waste grew by 2%. However, there is a considerable difference in waste management performance between macro-areas in the country. In fact, while in the North of Italy the percentage of separate waste collection reached the 64.2% of the national production, in the Center it is at 48.6%, and in the South only at 37.6%. In order to further increase the levels of recovery and recycling and to meet the requirements of the European legislation, undergoing the reform, it is also necessary to homogenize the performances between the North and the Center-South of the Country.

Bioeconomy in food, beverage and tobacco industries:

In Italy, bioeconomy, which is the set of all sectors that deal with renewable raw materials of biological origin, is a solid reality. In 2016 the set of activities related to the Italian bioeconomy

3 Implementation of waste directives 91/156/EEC, 91/689/EEC on hazardous waste and 94/62/EC on packaging and packaging waste, legislative decree n.22 of 5 February 1997.

7

generated an output of around 260 billion euros, 8.3% of the Italian economic cost and 26% if we consider only the component of the production of goods. The most important sector in terms of production value is that of the food, beverage and tobacco industries, which is one of the main specializations of the Italian economy. In estimating the overall value of the bioeconomy, it represents more than half of the total (51%), for a value of over 132 billion euro, with an increase of more than 2 billion euro compared to 2015. In fact, 2016 was a year of consolidation of the signs of recovery already observed in 2015, which benefited both from the recovery in domestic demand (the result of the recovery in the hotel and hospitality services channel) and the reconfirmed liveliness on international markets. In addition, concerning public policies, many advances were recorded to support bioeconomy. Consultation is underway for the national strategy on “Bioeconomy in Italy: a unique opportunity to connect the environment, economy and society” promoted by the Presidency of the Council of Ministers.

In the boxes are selected case studies of eco-innovation and the circular economy.

ENEL (FUTUR-E):

Enel has embarked on a project, called Futur-E, designed to give new life to thermoelectric power plants, which will be used for purposes even outside the energy sector. These plants powered Italy's industrial growth and now, through collaboration with local communities and shared value creation, they can be the protagonists of new sustainable development and innovation stories.

The Futur-E project was one of 18 case studies presented at Europe’s Decommissioning and Demolition of Conventional Power Plants Conference 2018, which took place in Berlin on February 15 and 16. The issue is important due to its consequences on the environment. The progressive withdrawal from fossil fuel production, through initiatives aimed at creating new roles for the sites of large thermal power plants that are no longer of strategic value to energy production, is a crucial step in the European pathway towards the decarbonisation of our generation mix by 2030, alongside the investment in renewables.

Source and further information: https://corporate.enel.it/en/futur-e

Keywords: circular economy; thermoelectric plants; sustainable development.

8

EcodesignLab Srl:

The EcodesignLab Srl is a spin-off company from the University of Camerino and an innovative start-up that departs from research in order to provide a service to companies.

A company that provides eco-design and product eco-innovation services, EcodesignLab consists of a team of professors and researchers, young designers and eco-innovation experts. Its goal is to plan and implement environmental consulting in order to create innovative and sustainable products, from the analysis of a product’s environmental profile to redesigning it to improve its sustainability and to providing consultancy on obtaining environmental certification.

EcodesignLab offers a 360-degree approach to product innovation. No type of product is too difficult: everything is designed according to eco-design criteria and strategies, from a grape-transport box to a furnishing radiator.

Products are redesigned and new eco-friendly products are conceived through strategies such as design for reduction, design for durability, and design for disassembling.

Source and further information: http://ecodesignlab.it/en/

Keywords: eco-design; eco-innovation; sustainability.

Jojob:

Created to promote and encourage carpooling, Jojob is the first solution of corporate carpooling able to meet the needs of commuters as well as enable companies to measure their results both ecologically and energy.

Since its launch in 2014, there has been a significant increase in shared travel and carpooling for what used to be only for long rides and is fast becoming the daily practice of hundreds of thousands of employees in Italy. Compared to traditional carpooling systems, created and managed by individual companies, Jojob has proved capable of generating widespread use and is now an effective alternative to home-work travel.

Jojob is composed of two instruments: a web tool that facilitates meetings between colleagues and employees of neighbouring businesses, and a mobile application with proprietary

9

technology that enables users to measure the distance and have analytical data for environmental certifications and sustainability budgets.

Source and further information: https://www.jojob.it/

Keywords: carpooling; sustainable mobility; sharing economy.

Gruppo CAP:

The CAP Group manages integrated water service in Lombardia. In August 2016, CAP Group undertook an experiment to implement eco-innovative and energy-efficient solutions for the recovery of biofuels by water cycle at the water treatment plant in Niguarda-Bresso (Milan). The project consists of the production of biomethane from sludge, as a sustainable, ecological and innovative alternative to the traditional sludge disposal methods, which are gradually becoming less feasible and acceptable from the environmental point of view, and more expensive to perform.

The experiment includes the treatment of residual sludge from the traditional anaerobic biological treatment process (activated sludge) and its transformation into biogas. Subsequently, the biogas is purified using membrane technology, which guarantees biomethane of an excellent quality.

The Niguarda-Bresso plant alone could produce 341,640 kg of biomethane per year, sufficient to supply 416 vehicles travelling 20,000 km per year: an overall distance equivalent to over 200 times the Earth’s circumference.

Source and further information: https://www.gruppocap.it/

Keywords: bioenergy; recycling; sustainable mobility; circular economy.

Orange Fiber:

Orange Fiber is an innovative Italian start-up producing textiles - releasing vitamins on the skin - from citrus waste.

The sustainable commitment of Orange Fiber aims to resolve the problem of the accumulation of waste from the citrus industry: 700,000 tonnes per year involving high costs of disposal.

From here the intention to give new life to the “pastazzo” – technical term to define what remains of the citrus fruits after squeezing – which is an Italian excellence. The pastazzo is

10

processed, according to a patented process, to be able to extract the cellulose that will form the yarn. The final product is a biodegradable material like silk: with the same characteristics as any other fabric, it is suitable to be woven with any type of existing yarn. Inside are also contained essential oils in the form of capsules that dissolve in contact with the skin.

Source and further information: http://orangefiber.it/en/

Keywords: recycling; sustainable fabric; waste recovery; eco-innovation.

Intesa San Paolo:

The Intesa Sanpaolo Group is the leading provider of financial products and services to both households and businesses in Italy.

Through the connections within the “CE100” platform of the Ellen Mac Arthur Foundation, Intesa Sanpaolo is actively engaging other members in order to support their own specific circular economy initiatives and expand their networks through a dedicated matchmaking mechanism and identifying possible

opportunities to be jointly developed. Moreover, with the “Start-up Initiative”, Intesa Sanpaolo integrates its circular economy commitment into an existing programme so as to identify and nurture start-up companies.

Intesa Sanpaolo’s strategic choice to support the circular economy is consistent with the objective of promoting sustainable economic development in the long run. The Group has always been committed to social and environmental responsibility: in the period 2007 – 2014, it supported investments in the environment and renewable energy for more than 11 billion euro.

Source and further information: http://www.group.intesasanpaolo.com/

Keywords: circular economy; investments; renewable energy; funding.

11

3 | Barriers and drivers to circular economy and eco-innovation in Italy

Regulatory and policy framework: One of the main barriers to circular economy in Italy is the legislative framework. Different environmental policies are implemented at regional, provincial and municipal levels under national umbrellas, which it translates into confusing and different approaches to waste management and recycling in the singular territories. The non-harmonisation of different laws, as well as the lack of some policy structures, affect the behaviour of companies that risk penalties as plant stoppage and requisition in case of non-compliance.

Economic barriers: As noted already in the previous eco-innovation observatory reports by Markianidou (2014) and Mazzanti et al. (2015), and as confirmed by the low score of Italy in 2017 in the eco-innovation inputs dimension, an important obstacle to eco-innovation in the country remains the low rate of R&D and investments. The main barrier to improving the availability of risk capital in eco-innovative projects is represented by the same Italian industrial structure. In fact, the Italian industry is mainly composed of small and family businesses (SMEs) that have less resources and capital to spend, and therefore face more challenges in meeting the high cost of research and in accessing to European and national funding. However, according to the 2017 GreenItaly report, the number of Italian companies that have invested in green products and technologies in the period 2011-2016, or expect to do so by the end of 2017, is 354,580 (27.1% of the total companies in the country), with shares reaching 33.8% in manufacturing. Human resource and knowledge capital: While there is no lack of creative entrepreneurship in Italy, the scenario regarding the availability of qualified experts is different. At university level, Italian education has a traditional setting: the persons competent on material resources do not have knowledge of the economic and legal environment. This means that scientific experts do not know where the raw material markets are and how those markets are regulated. The scarcity of high-skilled human resources, however, does not influence the competitiveness of research in the country. There is in fact a high patenting in the fields of water pollution abatement and waste management, for which Italy shows elevated export share. Natural capital: Italy is one of the advanced economies with fewer natural resources. Its industry, and particularly high-tech manufacturing, depends almost entirely on imports of raw materials from other countries. Since the manufacturing sector and districts4 are Italian strengths, and the cost of imported raw materials and their impact on the final cost of products is high, eco-innovative initiatives might be an opportunity to increase the productivity of the resources employed and favour eco-innovation of process, product and consumption methods.

4 An industrial district is an agglomeration of companies, generally small and medium-sized, located in a circumscribed and historically determined area, specialized in one or more phases of a production process and integrated through a complex network of economic interrelations and social. Industrial districts represent about one-fourth of the Italian economic system, and manufacturing employment of industrial districts is over one-third of the Italian employment as a whole.

12

The recent approval of the National Strategy for Sustainable Development5 will start the systematic use of a set of indicators that will allow, in the coming years, to carry out a quantitative and more effective assessment of the effects of public policies on Natural Capital. Social, cultural and organisational capital: While social awareness in the context of sustainability and eco-innovation is now at the centre of the social and industrial debate in the country, it is often focused only on the waste recycling segment, while it should start from waste prevention through interventions in consumption and the production world, referring to eco-design, sustainable production and industrial symbiosis. Regarding cultural and organisational capital, the high variation of regional organisational policies in water and waste management represents one of the biggest challenges in Italy. Despite overall progress in separate collection and recycling, the differences in performance at local level can be high. Excellent initiatives are common in the north of the country and in some contexts also in the centre and south. However, in general the centre and south of the Country perform less well in waste management than the north. The reasons for the disparities are principally due to the late industrialisation of the southern regions, difficulties with administrative capacity and an economic imbalance between the municipalities which implement the separate collection.

5 Strategia Nazionale per lo Sviluppo sostenibile, approved 22 December 2017

13

4 | Policy landscape in Italy

Support for eco-innovation and organizational innovations: EMAS, ISO and Ecolabel. The successful use of the EU EMAS system depends on the relationship between the companies and the consultant that brings EMAS to the company: it is important that the consultant has a general vision and understands that the company might get economic benefits from the system (for example avoiding to meet with penalties and plant stoppage). The most obvious limits to the dissemination of EMAS and Ecolabel are in fact linked to their voluntary nature and the limited level of diffusion for a series of product groups, as well as the lack of knowledge in the market. In the regions of Trentino-Alto Adige, Puglia and Sicilia, policies have been implemented to promote Ecolabel for the touristic sector. However, to understand the impact of the Ecolabel certification, it would be useful to have an indicator of Ecolabel efficiency. For example, in the case of certified touristic accommodations, overnight stays should be counted as well, so that small mountain retreats with few rooms will not count as big hotels. Or, in the case of Ecolabel certificated companies producing paper or floor tiles, the number of products sold by those companies compared to the rest of the industry should be also reported.

Product environmental footprint monitoring: A pilot initiative has emerged, called “Made green in Italy”, which consists in a national voluntary scheme with the intent of certifying pure Italian brands complying determinate standards and using the Product Environmental Footprint. However, the scheme has not yet been officialised by the Ministry of the Environment and it overlaps in part with the eco-label and other standard systems.

Green/circular public procurement: The Green Public Procurement (GPP) National Action Plan (NAP) document6 outlines the strategy for the diffusion of GPP in Italy, the commodity categories, the reference environmental targets to be attained - both qualitative and quantitative - and the general methodological aspects. Moreover, from 2016, the Law n.221 of 28 of December 2015, established the compulsory commitment for the Italian Public Administration to the GPP. Italy thus became the first country in the world to adopt such an obligation. The new Code of Public Contracts7 has further reinforced the statement by defining more specifically the Environmental Minimum Criteria (EMC) for the eligibility of applicants to participate in public tenders.8 The EMCs are the environmental requirements defined for the various phases of the purchasing process, aimed at identifying the design solution, the product or the best service from an environmental point of view along the life cycle, taking into account the availability of the market. The EMCs are defined within the framework of the Plan for the environmental sustainability of consumption in the public administration sector and are adopted by Decree of the Minister of the Environment for the Protection of Land and Sea. In Italy, the effectiveness of the EMCs has been ensured thanks to the art. 18 of Law 221/2015 and, subsequently, to art. 34 on "Energy and environmental sustainability criteria" of Legislative Decree no. 50/2016 "Procurement Code" (modified by Legislative Decree 56/2017), which made it mandatory for all contracting authorities to apply.

6 Approved through Interministerial Decree 11 April 2008 and updated with the Decree 10 April 2013.

7 Legislative Decree 18/04/2016, n. 50.

8 Consultation paper on “Bioeconomy in Italy” from the Agency of Territorial Cohesion

14

Legislative measures: with the Law n. 221 of 28 December 2015, called “Collegato Ambientale”, and the emanation of some norms, the Italian government introduced policies to promote circular economies. The following measures activated between 2016 and 2017 are the most relevant:

• Ministerial Decree of 24 May 2016 which determines the awarding points for the assignment of design services and works for the construction, renovation and maintenance of buildings and for the management of public administration sites.

• Ministerial Decree of 26 May 2016 which approved the guidelines for calculating the percentage of separate collection of municipal waste.

• Ministerial Decree of 10 June 2016, no. 140, which dictates the criteria for the design and ecological production of electrical and electronic equipment.

• Law n. 166 of 19 August 2016 with which an intervention was carried out aimed at favoring the recovery and donation of food, pharmaceutical and other products in favor of non-profit-making individuals.

• Ministerial Decree n. 264 of 13 October 2016 which contains the indicative criteria to facilitate the demonstration of the existence of the requirements for the qualification of production residues as by-products and not as waste.

• Ministerial Decree n. 266 of 29 December 2016 which approved the operating criteria and simplified authorization procedures for the community composting of organic waste.

• Ministerial Decree of 15 February 2017 with which the minimum environmental criteria were adopted to be included in the technical specifications of tenders for the execution of plant health treatments along the railway lines and along the roads.

• Ministerial Decree of 20 April 2017 which adopts the criteria for the implementation, by the municipalities, of systems of measurement and pricing of the quantity of waste conveyed to the public service or of management systems characterized by the use of corrections to the distribution criteria. These systems aimed at implementing an effective tariff model commensurate with the service rendered to cover the full costs of service for the management of urban waste and similar waste.

Emilia Romagna experience: with the introduction of the regional bill 16/2015, the region was the first in Italy to approve a regional law to sustain circular economy, waste prevention, reuse of end of life goods and separated collection. In 2016, with the deliberation n. 2260/2016, the Regional List of By-Products was set up. The companies whose production process and the substances or objects deriving from it can meet the requisites established by the current legislation for the qualification of by-products are registered on the regional list. In 2017 entered then into force the decree "Regulation containing indicative criteria to facilitate the demonstration of the existence of the requirements for the qualification of production residues as by-products and not as waste.” (17G00023) (GU General Series n.38 of 15-02-2017).

The boxes below show selected good practices of policy measures and initiatives from national, regional or local government on eco-innovation and the circular economy.

15

States General of the Green Economy

The States General of the Green Economy, now in their 6th edition, are a multi-stakeholder process, promoted by the National Council of the green economy, composed by 66 business organisations, in collaboration with the Ministry of Environment and the Ministry of Economic Development.

The aim is to develop, through a “participatory elaboration method”, a programmatic platform able to promote a green economy in Italy through the analysis of positive

potentials and obstacles, as well as policies and measures needed to improve the ecological quality of the strategic sectors. The ambition is to promote a re-orientation of the Italian economy towards a green economy in order to open new opportunities for sustainable development.

The initiative takes place throughout the year thanks to the activity of 9 working groups involving the principal stakeholders and experts of the sector in the following topics. One of these working groups is dedicated exclusively on “Eco-innovation in the circular economy”.

Source and further information: http://www.statesgeneral.org/

Keywords: green economy; programmatic platform; work groups; circular economy.

Symbiosis Users Network (SUN):

ENEA promoted the constitution of an Italian industrial symbiosis network (SUN) to encourage collaboration between different public and private users that intent to promote industrial symbiosis as instrument of eco-innovation and transition to circular economy.

The network is voluntary-based, and has as participants the Ministry of Environment, the Ministry of Economic Development, Confindustria, Unioncamere, Territorial Cohesion Agency, universities, and other relevant stakeholders.

Main objectives of SUN:

• promoting eco-innovation and the transition to the circular economy through the application of industrial symbiosis;

• promote the collaboration of the various public and private operators on the subject of industrial symbiosis;

• promote SUN as an Italian reference for operators wishing to apply industrial symbiosis, at an industrial level of research and territory;

16

• promote the collection and sharing of experiences, the examination of problems, the development of opportunities at economic, territorial and social level on the issues of industrial symbiosis;

• identify solutions to the main technical and regulatory criticalities for the implementation of industrial symbiosis paths.

Source and further information: http://www.sunetwork.it/

Keywords: industrial symbiosis; eco-innovation; network; circular economy.

Start to be circular – Milan municipality

Start to be circular is an initiative of the municipality of Milan promoted by the Bracco Foundation, the Giuseppina Mai Foundation of Confindustria and Banca Prossima, created to promote the transition to sustainable growth through innovative entrepreneurial initiatives.

Its purposes are to:

• promote the transition to a circular economy in support of growth sustainable through innovative business initiatives that impact on important phases of the economic-production cycle such as procurement, design, the production, distribution, consumption and recycling of waste;

• promote entrepreneurship among young people; • spread the values of the circular economy through promotion and implementation.

The prize for the Start to be Circular call will be awarded to the three most deserving startups selected according to the criteria described below. The maximum total value of the Call is higher than € 130,000.

Source and further information: http://fondazionebracco.speedmiup.it/

Keywords: circular economy; territorial initiatives; startup; award.

17

References

Agency of Territorial Cohesion, 2017, Consultation paper on “Bioeconomy in Italy”

Calenda C., Galletti G. L., Towards a Model of Circular Economy for Italy, Ministero dell’Ambiente in collaborazione con il Ministero dello Sviluppo Economico

Croci E., Grasso D., 2017, Italy is a leader in bioeconomy, Ecoscienza, n. 2

ENEA, 2017, Rapporto Annuale sull’Efficienza Energetica

European Commission, 2017, The EU Environmental Implementation Review, Country Report – ITALY

Fondazione Symbola – Unioncamere, 2017, GreenItaly – Rapporto 2017

Intesa San Paolo, Assobiotec, 2018, La bioeconomia in Europa, 4° report

ISPRA, 2017, Rapporto rifiuti urbani

Markianidou P., 2015, Eco-Innovation Observatory, Country Profile 2014: Italy

Mazzanti M., Ghisetti G., Gilli M., 2016, Eco-Innovation Observatory, Country Profile 2015: Italy

Ronchi E., 2016, Relazione sullo Stato della Green Economy - 2016, Fondazione per lo sviluppo sostenibile

Stati generali della Green Economy, 2017, L’Ecoinnovazione nell’economia circolare

18

ANNEX: Policy measures addressing circular economy and eco-innovations in Italy

Group of policy measures Type of policy measure

Specific measure

Please provide reference to or brief summary of specific measures (national, regional)

add cells if necessary

Focus of policy measure (tick if relevant)

Circular economy

Generic focus on

eco-innovation

Resource efficiency

improvement

Energy efficiency improve

ment

Reduction of emissions incl. CO2

Other relevant

areas (e.g. renewable

energy, etc)

SUPP

LY S

IDE

FOCU

S

Equity/business support

Publicly co-funded venture capital funds

- SMAT bonds for water network modernization: SMAT (the public company managing integrated water service in Turin) issued in 2017 a EUR 135 million bond with main investors BNP Paribas and Cassa Depositi e Prestiti (CDP).

- Foresight Italian Green Bond Fund: the maiden dedicated infrastructure project bond fund in Italy, has attracted banks, insurance companies and family offices, including the European Investment Bank (EIB). The fund, which targets a final close of EUR 200 million, had the first close at 70 million, and expects its second close by the end of 2018. Possible targets include solar, wind, waste-to-energy (WtE), biomass and anaerobic digestion (AD) as well as energy efficiency projects.

x x x

- Italian Green Bonds

Public guarantee funds

- Marguerite Fund II: CDP, EIB and the principal Promotion National Institutes (BGK, CDC, KfW and ICO) launched in 2017 the successor fund of Marguetire I: 700 million EUR for projects in sustainable infrastructures.

x x x

- Fondo Rotativo Imprese: revolving fund that supports research and innovation projects, with the participation of the Ministry of Economc Development, ABI and CDP. In 2017, 75 EUR million have been released for the industrial sustainability target.

- Extension until 30 June 2018 of the Kyoto Fund, fund managed by CDP and the Ministry of the Environment, to finance projects on energy efficiency and environmental sustainability.

- EEEF fund managed by “Cassa depositi e prestiti”, which is funded by the EC and EIB, among others. It funds local authorities, utilities, public transport operators, and ESCOs. It amounts to 800 M€.

19

Support for R&D in public sector

and industry

R&D funding

National funding: In order to promote product, process and service eco-innovation, and in particular eco-innovative design (to improve durability, recyclability, repair, and environmental and social sustainability), the Italian Ministry of Environment sustains research projects having as a goal to increase products’ life cycle.

• A first tender has been published in June 2017 to finance industrial research and/or experimental development to encourage products eco-design and correct waste management. (Euro 1,200,000)

The Ministry of Environment is also committed in sustaining research and promotion of technologies to recover, recycle, and treat electric and electronic equipment waste.

• A tender of 900,000 Euro has been published in June 2017 with the objective to increase the technological level of treatment plants, in order to maximise the quantity of recoverable or recyclable material.

x x x x

Regional funding: Lazio Green, POR – FESR

Collaborative grants

- International cooperation: http://web.uniud.it/ricerca/finanziamenti/comunitari/programmi-di-cooperazione-internazionale

R&D infrastructure

- No information obtained

Fiscal measures

Tax incentives for R&D and

start-ups

- Tax credit of 50% on incremental expenses in Research and Development, recognized up to an annual maximum of 20 million € per year per beneficiary and calculated on a fixed basis given by the average of expenses in R&D. All expenses related to fundamental research, industrial research and experimental development are eligible: costs for highly qualified and technical personnel, research contracts with universities, research institutions, companies, start-ups and innovative SMEs, amortization of instruments and equipment laboratory, technical skills and industrial privatives. The measure is applicable for expenses in Research and

20

Development which will be incurred in the period 2017-2020 (no explicit measure for circular economy or ecoinnovation).

Tax incentives for R&D personnel

Education, training and

mobility

Tailored training courses for companies, entrepreneurs

- No measures with explicit focus on circular economy or eco-innovation were identified

Advise/consulting for start ups, companies, entrepreneurs

- support start ups: Lombardia, Innovation Hubs, e.g., InnovHub Milano (Chamber of Commerce Milano), Startup Ally, Nuvolab

Placement schemes for students

- Spinoffs: e.g., spinoff Politecnico, funded by fund “Mecenati” x

Support for R&D workers recruitments

- Incentives for R&D workers to return to Italy: tax incentives concerning the so-called "impatriate" workers (employees or self-employed, managers, highly specialized workers and graduates), researchers and teachers, counterparties and new residents.

Networks and partnerships

Competence centres, clusters, science-technology

parks

- Environmental Parks (e.g., Brescia - Turin - Environmental Parks) x x x

Technology platforms and innovation networks

- Technology parks (Trieste Area Science Park, Kilometro Rosso: http://www.kilometrorosso.com/index.php?option=com_content&view=article&id=220&Itemid=182&lang=it)

x

21

- The regional agency for applied research, innovation and tech transfer (no explicit focus on eco-innovation): http://www.venetoinnovazione.it/

- APSTI – Associazione Parchi Scientifici e Tecnologici Italiani, the national network of scientific and technological parks (PSTs); the majority of PSTs are members of APSTI (31 associates); a number of PSTs have areas that are focused on eco-innovation

Foresight and common vision building

No information available

Market intelligence and other forms of information

sharing

x x x X

Database Ecosmes (ENEA): http://www.ecosmes.net/cm/index-EP

DEM

AND

SIDE

FO

CUS

Regulations and standards

Regulations, targets, cap & trade schemes

Stringent national regulations with regard to environmental topics (air emission, waste water discharge, soil protection, hazardous substances, etc.)

- “Collegato Ambiente” L.221/2015 contains several measures for resource efficiency, eco-innovation and the circular economy: - Environmental Action Strategy for Sustainable Development (EASSD-2002): four broad priority themes: Climate Change and stratospheric ozone; Protection and sustainable valorisation of Nature and Biodiversity; Quality of the environment and quality of life in urban areas; Exploitation of resources and waste generation. Priorities addressed in this last section are the use of natural resources, production-consumption cycles, water resources and waste.

- Common 20-20-20EU target: Italy has to reach a renewable energy quota of 17% by 2020.

- Italian National Energy Efficiency Action Plan (2017) – confirm the 20.5 Mtep of primary energy savings target by 2020

x x x x x

22

Performance standards, labeling, certification

- The Italian national competent body for the implementation of the Regulation (CE) n. 66/2010 Ecolabel is the Italian Ecolabel Section of the Committee for Ecolabel and Ecoaudit, established at the Ministry of the Environment with Decree 413/1995, as amended by Decree 236/1998. The Italian Ecolabel Section is made up of a President and six members appointed by decree by the Minister for the Environment and Protection of the Territory and the Sea (MATTM). In September 2017, 17% of the EU Ecolabel licences have been awarded to Italian companies.

x x

- Incentives for environmental certification of SMEs (Decree SVS/03/2230), e.g., EMAS

- Article 17 of Bill 28 December 2015 – 221 states that EMS, ISO 14001, Ecolabel and ISO50001 add value to submissions for funding in relation to environmental themes in public competitive tenders. Art. 18-19 set GPP standards and criteria.

Public procurement

“Green“ public procurement of goods and services

- NATIONAL ACTION PLAN ON GREEN PUBLIC PROCUREMENT – GPP NAP: http://www.minambiente.it/pagina/piano-dazione-nazionale-sul-gpp

- Minimum Environmental Criteria: http://www.minambiente.it/pagina/i-criteri-ambientali-minimi

x x x x X

- Forum Compra Verde (www.forumcompraverde.it), one of the main online actors with regard to GPP and private public procurement.

R&D procurement

- ETAP (Environmental Technologies Action Plan) - CIP Eco-innovation

- Regional procurement for research and development projects

x x x x

Pre-commercial procurement

- The national pre-commercial procurement program of the Ministry of Education, University and Research (Miur), managed in collaboration with the Agency for Digital Italy with the support of the Ugo Bordoni Foundation. In 2017, there were 19 market consultations, spread over 25 issues with a total value of approximately 53 million euro. The events of interest were around 1500 and involved over 1000 operators (70% company, 20% universities and research institutions, 10% PA, foundations, non-profit organizations, etc.), of which 43% were start-ups and small and medium-sized companies. (generic for innovation)

23

Technology Transfer

Advisory support for technology adopters

- COTEC Foundation

- RIDITT - Italian grid for dissemination of Innovation and Technology transfer among firms, promoted by the Ministry of Economic Development and managed through (Institute for Industrial Promotion) (generic for all business purposes)

x

Financial or fiscal support for technology adopters

(e.g. grants for purchasing new technology)

- FESR

- Projects Remake (region Lombardy) and Search and Develop IV, together with Innovhub, co-finance measures on energy efficiency and waste reduction

x x x

Support of private demand

Tax incentives for consumers (e.g. for purchasing

environmentally efficient products)

- 55% tax reduction, presently confirmed but with potential diminished percentages over the next years; private organisms (e.g., environmental association legambiente, GAS) are using group purchasing schemes to obtain better economic conditions; Fourth Italian feed-in tariff for PV is confirmed, though with decreased contribution over time, between 2011 and 2016; Green certificates; White certificates; between March and April 2011 national incentives for installation of GPL/methane-based motors in private vehicles (funds exhausted in April 2011)

- The incentives for plants that produce electricity through the use of biomass, biogas and liquids are maintained although reduced

x x x x

Tax reductions for products and services (e.g. VAT

reductions)

- Contribution for purchase of "greener" cars.

- Property tax reduction for new cars with low emissions in a number of municipalities

- Art. 645-6 2016 Financial Bill by the Treasury is devoted to sustaining the transition from 'euro1-3' vehicles to at least euro5 vehicles. Tax rebates for diesel fuel used by trucks are cancelled below euro3 classes. The tax resources are used to fund (with 160 Million € over 2016-2020): (max 15%) new trucks used for transporting goods; railways and maritime transport interconnections, with the aim of reducing transport by roads; (min 85%) local public transport.

x x x x x

24

- Voluntary agreements and incentives for supporting the consumption of products deriving from waste (post consumption materials), recovered materials, and parts of dismantled products (Article 23 of Bill 28 December 2015 – 221). The Ministry of Economic Development can set agreements with public bodies, economic associations, private firms, etc. and provide financial incentives

Demand subsidies (e.g. eco-vouchers, consumer

subsidies)

- Vouchers for research and innovation and financial contributions for patenting

Awareness raising and information provision

- Forum Compra Verde (www.forumcompraverde.it), one of the main online actors with regard to GPP and private public procurement.

- EcoSMEs is the main result of the project, a European project that has involved 45 experts from the United Kingdom, Germany, Italy, Spain and Greece who have combined their knowledge of IPP and Information & Communication Technologies, Management & Marketing and Training http://www.riditt.it/

- COTEC Foundation

x x x x

About the Eco-Innovation Observatory (EIO)

The Eco-Innovation Observatory (EIO) is the initiative financed by the European Commission’s Directorate-General for the Environment. The Observatory is developing an integrated information source and a series of analyses on eco-innovation trends and markets, targeting business, innovation service providers, policy makers as well as researchers and analysts.

Visit EIO and DG ENV EcoAP website and register to get access to more information

and to access all EIO resources.

www.eco-innovation.eu ec.europa.eu/environment/ecoap