An Overview of the Italian Roadmap for the Implementation of Circular Economy in the Energy Transition of Buildings

Abstract

An important task for the European Union is to transpose agreements and international standards in regulation and directives that are binding on member states. The resultant European action plans and directives identify priority areas in the building and energy sectors where circular economy principles can be applied. Italy records a general circular materials rate of 20.8%, surpassing the mean European value. But low recycling rates are still registered in the construction sector. This paper aims to assess the position of Italy with respect to the European regulatory framework on circularity in the energy transition of buildings. Firstly, the government’s initiatives and technical standards are introduced and commented upon. Secondly, the study illustrates the current Italian platforms, networks, and public and private initiatives highlighting opportunities and obstacles that the energy sector has to overcome in the area of circularity. It emerges that Italian policies still use voluntary tools that are not sufficiently in line with an effective circular economy model. Moreover, data collection plays a crucial role in accelerating the implementation of future actions. Italy should consider the foundation of a National Observatory for the Circular Economy to elaborate European directives, harmonize regional policies, and promote the implementation of effective practices.

1. Introduction

The awareness of environmental problems around the world has stimulated a growing interest in sustainable development models. Since the industrial revolution, the predominant economic growth model has been the “linear” model, based on “take-produce-use-dispose” phases [1]. However, the linear model, which is no longer competitive and sustainable, necessitates the transition to a circular economy [2]. According to the European Parliament, the circular economy (CE) is a production and consumption model that involves the sharing, lending, reusing, repairing, reconditioning and recycling of existing materials and products for as long as possible [1]. In the global context of circularity, the European Union (EU) assumes a major role in the diffusion of policies. It is sufficient to say that, in 2018, European employees working in circular activities numbered more than 3.5 million with Italy occupying the second place (519,000 employees), after Germany (680,000 employees) [3]. The various plans and programs adopted by the European Commission (EC) over time have identified the construction and energy sectors as two areas of primary importance on which to apply circular economy criteria. In the EC states, in fact, the life cycles of buildings are responsible for: 50% of total energy consumption, 50% of raw material extraction, and 40% of total greenhouse gas emissions. Summarily, the two biggest challenges faced by the EU are the energy transition and the protection of natural resources [4].

The construction sector, as a consequence, is facing the challenge of reducing its environmental impact through: the adoption of ad hoc regulations, the circular disposal of waste, and the implementation of near-zero net energy balance buildings (NZEB) [5]. On the other hand, the energy sector is battling significant adversities, such as the transition from fossil fuels to renewable sources, eco-friendly products design, and material recovery.

From a quantitative point of view, the most recent Eurostat data (2023) [6] indicate an average European circular materials rate of 11.8%. The Italian rate (20.8%) is second after the Netherlands (30.6%). This estimate is a positive indication of the Italian commitment for circularity targets. On the other hand, this rate covers a wide range of materials. Considering the building sector, the Italian rate of recycling concrete, an example, is still marginal (10%) compared to some EU countries with a rate of 90% [7]. The Italian recycling rate of electrical and electronic equipment is equal to 32.1%, which is lower than the European average rate (43.1%) [8]. However, some recycling processes of photovoltaic modules in Italian plants can reach high recovery rates (80–95%) [9].

The EU has the dual function of transposing international standards and agreements and, at the same time, issuing regulations and directives that are binding on member states.

These considerations inspired the following research questions related to the implementation of the circular economy principles in building and building energy systems sectors:

• What is the temporal and content evolution of the European and Italian policies, regulations, and standards?
• Is it possible to identify virtuous initiatives undertaken by Italian public institutions and companies?
• What are the main barriers to the adoption of Italian policies, regulations, and technical practices? And are there potential solutions?

Therefore, the definition of the European regulatory framework on CE is the starting point of the present study. In fact, this analysis allows for an assessment of Italy’s position with respect to the European framework on circularity in the energy transition of buildings, highlighting any regulatory gaps and outlining the actions necessary for Italy to be aligned with the EU provisions. In particular, the research delves into the topic while passing through five key areas, as follows: (1) an overview of the European regulatory framework (action plans, directives, and standards), (2) policy and regulatory framework in Italy, (3) the Italian standards, (4) platforms, networks, public and private actions, and funding opportunities for the circular economy in Italy, (5) obstacles, and potentialities that the circular economy approach to energy systems has to overcome.

In conclusion, the study identified key points to facilitate the implementation of European directives and regulations in Italy.

For instance, it would be necessary to adopt mandatory circularity requisites for new buildings and recovery schemes, such as for dismantling and reuse, for traditional and renewable energy systems. In addition, incentives could be introduced alongside the application of voluntary Italian standards’ criteria. Private companies should be encouraged to meet established minimum requirements by adopting circular economy models, drawing inspiration from public examples. Current best practices, in fact, have demonstrated that the public procurement is an effective tool for promoting circular economy strategies.

Also the principles of Extended Producer Responsibility (EPR) should be enhanced in the construction and energy system sectors, accompanied by circular design targeted at the modularity, reparability, and reusability of components.

2. Implementing the Circular Economy in Europe: Action Plans, Directives, and Standards

The economy of the EU, as aforementioned, is mainly linear. The production of annual waste amounts to 2.2 billion tons and the rate of recycled materials re–introduced into the economy still amounts to 12% [1,10]. The transition from the linear to the circular model involves many obstacles such as the lack of economic, technological, information technology, and government support. The lack of public awareness is also recorded [11]. The EU, on the other hand, has been committed to updating existing legislation to better address waste management reducing pressures on the environment, improving the security of supply of raw materials, and increasing competitiveness, innovation, growth and employment [1,10]. The life cycle assessment (LCA) methodologies adopted by the EU, previously produced by the International Organization for Standardization (ISO), are a foundational pillar of the transition to a more sustainable future. The ISO 14040 and ISO 14044 standards, both first released in 2006 and updated in 2021, describe the reference principles, requirements, and guidelines for conducting a product life cycle analysis [12,13]. LCA promotes a more responsible use of resources, such as materials and building technologies, contributing to the achievement of the sustainable development goals established internationally and adopted also at the European level [14,15]. The continuous focus on the treatment and recovery of waste led the European Parliament to deliberate, in 2009, the Directive 2009/125/EC on waste [16]. This Directive has the aim of creating a comprehensive framework and establishes the specific requirements to be adopted for the eco-design of products. In particular, in article 4, it drafts a “hierarchy of waste” as follows:

(a)

Prevention;

(b)

Preparation for reuse;

(c)

Recycling;

(d)

Other recovery (such as energy recovery);

(e)

Disposal (including the recovery of substances or energy generation).

In 2010, the EU adopted the Europe 2020 strategy with the aim of “promoting a more resource efficient, greener, and competitive economy”. One of the main goals is to increase energy efficiency and renewable energy by 20%. Moreover, the strategy commits to developing a strategic research agenda focused on a number of challenges; including energy security; implementing the strategic energy technology plan with the aim of promoting renewable energy sources; improving the regulatory framework for the use of market instruments (such as energy taxation review). Member states had to transpose these directions by implementing and using nationwide regulations, building performance standards, reducing energy use, and investing funds in energy efficiency in public buildings [17]. In the same year, the EU adopted the Directive 2010/31/EU [5] that aims to support energy transition, reduce energy consumption, and incentivize the decarbonization of the building sector through the concept of Nearly Zero Energy Buildings (NZEB). Although European regulations promote the installation of renewable energy systems to decarbonize buildings, key technologies such as wind turbines, photovoltaic panels, and batteries still use virgin rather than recycled raw materials. To this end, the energy sector would require the rapid implementation of circular economy principles to properly manage waste and increase energy efficiency [18].

In 2012, the European Parliament developed the Directive 2012/19/EU on waste electrical and electronic equipment (WEEE). This Directive aims to establish standards for the eco-design of energy products and to promote the implementation of efficient systems for the collection, treatment, and recycling of electronic waste [19]. Moreover, the EU regulated the extended producer responsibility principle (EPR) of PV panels and prompted photovoltaic manufacturers to act early in planning for a take-back system in their territories. The EPR organizations, in addition, require compliance with standards (CENELEC or WEEELABEX) by contract operators. The EU prohibits the mixed collection of PV panels with construction waste and imposes depollution requirements on some metals and special care during the extraction of exhaust air and the removal of dangerous substances [20]. In 2014, the EC passed a communication on waste reduction including a statement on the circular economy. Specifically, the document addressed certain issues related to waste from constructions, promoting markets for recycled materials and introducing a common framework to assess the environmental performance of buildings [21].

Over time, a need to draft structured guidelines on circularity arose, and it was concretized by the Circular Economy Action Plans (CEAPs). In 2015, in fact, the first Action Plan for the Circular Economy (CEAP 1) was launched, and it was subsequently updated in 2020 (CEAP 2) as the European Green Deal came into effect. The European Green Deal, implemented in 2019 and updated in subsequent years, is an EU growth strategy that consists of a package of policy initiatives that include the green transition and the implementation of the CE with the aim of achieving climate neutrality by 2050 [22].

The European Green Deal and the Circular Economy Action Plans have commonalities in circularity at the regulatory level. The CEAP 1 [23], with the goal of reducing waste going to landfills, promotes the selective demolition and reuse of construction materials [24]. Generally, but mainly intended for the energy sector, the CEAP 1 defines the creation of a market for secondary raw materials with the aim of reducing the dependency on virgin raw materials [23]. Moreover, it includes the End-of-Waste Criteria initiative supported by the Directive 2008/98/EC [25], later updated by Directive 2018/851/EU [26]. The CEAP 2 [27] introduced obligations in the legislative proposals related to the circular design of products and production processes in different areas, such as energy and construction, [28]. The goal of the CEAP 2 was, in fact, the promotion of strategies aimed at reducing waste, increasing recycling, and improving product design for long-term sustainability [29].

In addition, it is imperative that recycled materials can be considered safe and competitive meeting the stringent quality requirements defined by the CEN/TC 444 technical standards [30]. Table 1 summarizes the EU Directives that support the CEAPs.

It is estimated that around 60% of the current buildings will still be in use by 2050, requiring the upgrading of existing facilities [4]. To address this issue, in 2020, the EC launched the “Renovation Wave”. The aim of this initiative is to promote the revision of the Energy Performance of Buildings Directive (EPBD) to increase energy efficiency and achieve climate neutrality by 2050. The “Renovation Wave” foresees a doubling of the annual rate of renewable energy and promoting the renovation of 35 million buildings by 2030. The major benefits of such action would be as follows: reductions in energy consumption and greenhouse gas emissions, improvements of the quality of life for European citizens, and the creation of new jobs in the energy and building sectors [31,32].

Table 1. Main regulations that support the Circular Economy Action Plans (CEAPs).

Regulation	Description	Goals
DIRECTIVE 2008/98/EC [25] (then Directive 2018/851/EU) [26]	Definition of the “waste hierarchy” to encourage reuse and recycling of waste.	Reduce the amount of waste sent to landfills and achieve high recycling rates.
DIRECTIVE 2009/125/CE [16]	Elaborations for the eco-design of energy consuming products.	Encourage environmental friendly product design, promote energy efficiency and develop durable products.
DIRECTIVE (EU) 2012/19 [19]	Introduction of the principle of “extended producer responsibility” (EPR) to reduce the environmental impact of waste electrical and electronic equipment (WEEE).	Producers have to collect and recycle WEEE by promoting sustainable waste management (including PV modules).
DIRECTIVE 2018/2001/UE [33]	Mandates the use of a minimum levels of energy from renewable sources in new buildings and in buildings undergoing significant renovations.	32% increase in renewable energy use by 2030.
REGULATION (EU) 2019/1020 [34]	Ensuring that products are made according to the principles of sustainability and circularity.	Regulate and ensure that products placed on the market meet sustainability and safety standards.
DIRECTIVE (EU) 2019/771/UE [35]	It is based on the principle of “right to reparation”.	Ensure consumer information on product repair and reduce electronic waste by incentivizing more sustainable behaviors.

Table 1. Main regulations that support the Circular Economy Action Plans (CEAPs).

Regulation	Description	Goals
DIRECTIVE 2008/98/EC [25] (then Directive 2018/851/EU) [26]	Definition of the “waste hierarchy” to encourage reuse and recycling of waste.	Reduce the amount of waste sent to landfills and achieve high recycling rates.
DIRECTIVE 2009/125/CE [16]	Elaborations for the eco-design of energy consuming products.	Encourage environmental friendly product design, promote energy efficiency and develop durable products.
DIRECTIVE (EU) 2012/19 [19]	Introduction of the principle of “extended producer responsibility” (EPR) to reduce the environmental impact of waste electrical and electronic equipment (WEEE).	Producers have to collect and recycle WEEE by promoting sustainable waste management (including PV modules).
DIRECTIVE 2018/2001/UE [33]	Mandates the use of a minimum levels of energy from renewable sources in new buildings and in buildings undergoing significant renovations.	32% increase in renewable energy use by 2030.
REGULATION (EU) 2019/1020 [34]	Ensuring that products are made according to the principles of sustainability and circularity.	Regulate and ensure that products placed on the market meet sustainability and safety standards.
DIRECTIVE (EU) 2019/771/UE [35]	It is based on the principle of “right to reparation”.	Ensure consumer information on product repair and reduce electronic waste by incentivizing more sustainable behaviors.

On September 2021, the Energy Ministers of the EU countries discussed the European Green Deal and the economic recovery of the member states identifying renewable sources as of great importance for the energy transition.

The Ministers, on that occasion, emphasized that investments in the topics of interest, including energy, have already been included in the national energy and climate plans (NEEAPs) of the member states [36].

It is important to note that the European Green Deal and the CEAPs also take measures to encourage the integration of small and medium-sized enterprises (SMEs) into sustainable production processes.

SMEs can benefit from technical and financial support targeted to adopt innovative technologies, comply with environmental regulations, and achieve sustainability goals [37].

Table 2. Strategies and expected results of CEAPs.

Area	Strategy	Expected Results
Buildings	Selective demolition and reuse of construction materials	75% of materials reused by 2030
Secondary raw materials	Developing a market for secondary raw materials	20% annual market growth by 2025

defines the strategies and expected results of the CEAPs.

In 2021, the European Parliament welcomed a resolution on the new action plan for the circular economy, enacting stricter recycling standards in order to create a sustainable economy by 2050. The European Parliament’s 2021 legislative package identified buildings as a key sector and aimed to incentivize their decarbonization and reduce methane emissions by 80% by 2030 [4,28].

The lack of robust End–of–Life (EoL) strategies hinder the implementation of a circular economy in this sector.

In 2022, the REPowerEU was launched as a sustainable, affordable, and secure energy plan for the EU. In this context, the rapid implementation of solar and wind power projects becomes crucial to reducing gas imports by about 50 billion cubic meters [38].

In 2022–2023, the International Organization for Standardization (ISO) developed and published standards based on the circular economy, which were subsequently adopted by the European Union and member states.

In 2024, the European Union was making the circular economy a top priority and, in April, the European Council approved and adopted standards focused on environmental protection. The new rules aim to drastically reduce greenhouse gas emissions, promote the efficient use of energy resources, stimulate the circular economy, and improve the energy performance of buildings. A key milestone was finally reached in July, with the entry into force of the Right to Repair Directive. This measure incentivizes producers and consumers to extend the life of products, including energy products, with the aim of adopting more sustainable consumption patterns. In November, the European Council approved a revision of the Construction Products Regulation, introducing new obligations in line with circular economy principles. Companies will now be required to adopt more circular practices, such as projecting for reuse and recycling, using recycled materials, and providing repair instructions [39].

European Standards Related to Circular Economy

The European technical standards were drawn up taking into account the outputs of the working groups of ISO/TC 323 “Circular economy” and the following standards [40]:

• ISO 59004—Circular economy—Framework and principles for implementation [41];
• ISO 59010—Circular economy—Guidelines on business models and value chains [42];
• ISO 59020—Circular economy—Measuring circularity framework [43];
• ISO/CD TR 59031—Circular economy—Performance-based approach—Analysis of cases studies [44];
• ISO/TR 59032—Circular economy—Review of existing value networks [45].

To understand the current framework for circularity in Italy, it is necessary to briefly explain the contents of ISO standards, from which the national standards are derived. In particular, the ISO 59004 describes principles and definitions for implementing the circular economy, outlining practical guidance in any organization. The purpose is to promote sustainability, resource renewal, and ecosystem resilience [2,41]. The ISO 59010 guides organizations in transforming their business models from linear to circular [42]. In particular, this standard charts a path and provides several tools for making business models more circular considering economic, social, and environmental aspects. The ISO 59020 provides a clear and structured methodology for measuring and evaluating circularity in organizations. The document aims to standardize the process through the use of mandatory and optional circularity indicators, ensuring results that are consistent, verifiable and comparable [43]. The ISO CD/TR 59031 is currently under development and will provide a collection of product-as-a-service circularity best practices [2,44]. The ISO/TR 59032 presents a collection and analysis of existing business models, with the aim of accelerating the transition to a circular economy and complementing the ISO 59010 by offering additional information on value networks [2,45].

In Europe, as a consequence of the international initiatives, targeted standards were developed for assessing the sustainability of buildings:

• CEN/TR 15941:2010—Sustainability of construction works—Environmental product declarations—Methodology for selection and use of generic data;
• EN 15978:2011—Sustainability of construction works—Assessment of environmental performance of buildings—Calculation method;
• EN 15942:2011—Sustainability of construction works—Environmental product declarations—Communication formats: business to business.

The technical report CEN/TR 15941 (2010, updated 2024) provides a standardized methodology for developing Environmental Product Declarations (EPDs). This document supports the consistent use of environmental data in assessing the sustainable performance of buildings [46]. The EN 15978 (2011) defines a calculation method for assessing the environmental performance of a building during its life cycle. The analysis aims to assess the environmental performance of buildings using appropriate indicators. The life cycle stages analyzed include: materials production, construction, use, EoL, and benefits due to recycling, recovery or reuse [47]. The EN 15942 standard, developed in 2011 and updated in 2021, harmonizes the communication of the EPD in the European countries. The standard is applicable to all construction products and services related to buildings and construction works and simplifies the management of EPD data at the building level [48].

In conclusion, Figure 1 summarizes the roadmap of the European strategies, directives, and standards.

3. Policy and Regulatory Framework in Italy

In Italy, a first signal of the rising use of Green Public Procurement arrived in 2002 via the approval of the resolution n. 57 “Environmental action strategy for sustainable development in Italy” by the Inter-Ministerial Committee for Economic Planning [49]. This document established that “at least 30% of purchased goods must also meet ecological requirements; 30–40% of durable goods stock must reduce energy consumption, taking into account replacement and using the scrapping mechanism”. With the successive decree 8 May 2003 n. 203 (Official Gazette Series n. 180, 5 August 2003), the Ministry of the Environment and Land Protection identified “rules and definitions for the regions to adopt provisions for public bodies and companies with predominantly public capital, also for service management, which guarantee that manufactured goods and goods made with recycled material cover at least 30% of the annual requirement” [50].

The Legislative Decree issued in December 2004, and published in the Official Gazette in April 2006, constitutes the single text of regulations on environmental protection and waste management [51].

Later, the Law n. 221 of 2015 defined the “Provisions on environmental matters to promote green economy measures and to curb the excessive use of natural resources” [52].

The Chapter VI describes the “Provisions on waste management”, and specifically Article 41 establishes rules for the proper EoL management of photovoltaic panels, providing for: the adoption of a financial guarantee system by ensuring that there are resources for proper EoL disposal and the recycling of modules, as well as the creation of a geolocation system that facilitates the recovery [53].

The decree n. 116/2020 (Official Gazette Series n. 226, 11 September 2020) [54] modifies the Legislative Decree 152/2006 [51] by transposing the European directives on waste EU 2018/851 [26] and on packaging and packaging waste 2018/852 [55].

This decree substantially modifies the fourth part of Legislative Decree 152/2006 [51], the so-called Consolidated Environmental Text, and all public and private entities that produce waste and operate in the field of waste, packaging, and packaging waste management will have to adapt to this new text.

The Legislative Decree n. 76/2020 [56] (converted into Law n. 120/2020, Official Gazette Series 228, 14 September 2020 [57]) regulated the matter in terms of the demolition and reconstruction of buildings, with the introduction of amendments to the rules contained in the consolidated construction text n. 380/2001 [58].

In 2022, the Italian Ministry of Ecological Transition proposed a “National strategy for the circular economy” that was accepted and promoted by the following Ministry of Environment and Energy Security in 2023 [59]. The “National strategy for the circular economy” is, therefore, a programmatic document that defines actions, objectives, and measures to be pursued in policies and aimed at ensuring an effective transition towards a circular economy model.

In particular, via the national strategy, the Government intended to define new administrative and fiscal tools to enhance the market for secondary raw materials, so that they could be competitive in terms of availability, performance and cost compared to virgin raw materials. To this end, the adopted strategy acts on the chain of materials purchase (Minimum Environmental Criteria for green purchases in the Public Administration), on the criteria for the cessation of the status of waste (End of Waste), on the extended responsibility of the producer and on the role of the consumer, and on the diffusion of sharing practices and of “product as a service”. The strategy also constitutes a fundamental tool for achieving the objectives of climate neutrality and defines a roadmap of measurable actions and targets between now and 2035.

The Ministry of Enterprises and Made in Italy [60] created a section intended to elaborate proposals for the development of products, technologies, and production processes with a lower environmental impact, the sustainable development, the transition towards a circular economy, and for the promotion of bio-economy sectors.

Moreover, the Ministry works on connection actions with the state and regional administrations and with other public entities that implement programs and interventions aiding companies in eco-sustainable development. It seeks to define proposals and evaluations relating to the use of public demand for industrial policy purposes with particular reference to the circular economy and research and innovation.

In 2023, the Ministerial Decree 59/2023 was adopted, establishing a national electronic waste traceability register [61].

4. Italian Standards Related to Circular Economy

UNI is the Italian National Standards Body [62] recognized by ISO (International Organization for Standardization) and CEN (European Committee for Standardization). UNI is a private non-profit association that has developed, published, and disseminated voluntary technical standards for over 100 years. The technical standards codify the state of the art of a product, a service, a process, or a profession. The UNI EN 15804 introduced new requirement to convert specific and high-quality data using the ILCD (International Reference Life Cycle Data) method. These data, related to constructed buildings, will have to be integrated, transformed, and uploaded to national databases in order to facilitate the implementation of LCA studies. In line with this standard, LCA studies will have to include 13 mandatory indicators and 6 additional environmental indicators. The EoL phase is not mandatory [63].

The first Italian standards focused on circularity were published in November 2022 and in March 2023. In Italy, the ISO 59020 standard was implemented in the UNI/TS 11820:2022 entitled “Circularity measurement—Methods and indicators for measuring circular processes in organizations”. The standard introduces and describes a set of meso and micro level indicators to assess the level of circularity in one or more organizations. It provides an assessment of the level achieved but does not stipulate minimum levels of circularity. The standard is adopted on a voluntary basis and implemented at the corporate and organizational level. In particular, 37 companies have been involved, including public bodies and private organizations of different sizes and structures, and they have participated in the experimental phase of measuring circularity (in September and October 2021) [64].

The ISO/CD TR 59031 and ISO/TR 59032 are transposed by the UNI/TR 11821:2023 entitled “Collection and analysis of circular economy best practices.” The technical report encapsulates the circular economy best practices amongst Italian organizations divided into application macro-areas and addresses the performance, impacts, quantitative and qualitative improvements, and replicability of the adopted best practices [65].

This standard suggests a method of collecting and analyzing 41 best practices of the circular economy [2].

Figure 2 shows an overview of the international circular economy standards, with a focus on their adoption in Italy.

In the next two sections, we present a description of the general framework and specific information provided by the Italian standards about the implementation of the circular economy in energy systems and buildings.

4.1. The Italian Standard UNI/TS 11820:2022

The UNI/TS 11820:2022 defines an objective system for assessing the level of circularity of one or more organizations (including public administrations) by collecting useful information and a set of indicators. An in-depth analysis of the level of circularity, in fact, allows one to identify opportunities for improvement [11]. The score system of an organization’s circularity possesses a maximum value of 100 points and is based on a set of scalable indicators. The technical specification does not establish a minimum value, but rather assesses the level of circularity against the maximum attainable level [64]. The circularity assessment methodology compares the level of circularity between organizations belonging to the same sector and reporting year. It is an experimental standard, and the creation and correction of the set of circular economy indicators involved different opinions of technical bodies and organizations. It bases the quantification of circular economy on 12 principles, of which 4 are inspirational and 8 are operational. Figure 3 summarizes the guiding principles of CE adopted in the UNI/TS 11820:2022.

Before assessing the level of circularity, it is necessary to define the assessment boundary on which to carry out the calculation, then select the indicators to be calculated, and then find data (including data related to energy resources). The specific indicator can be calculated if data are valuable and reliable. The circularity measurement is based on a set of 71 indicators and each of them can be attributed to products, services, and products and services. The indicator can be: “core”, and therefore compiled compulsorily; “specific”, and therefore compiled for at least 50%; or “rewarding”, and compiled optionally. The indicators can be quantitative, qualitative, and semi-quantitative. Their measurement is divided into three levels, as shown in Figure 4 and listed in the following:

• Micro allocated to individual holdings, and addressing the EoL phase of the product, improving environmental performance such as by reducing resource consumption, designing greener and more durable products, and managing waste;
• Meso granted to groups of industrial or territorial clusters (territories, regions, metropolitan areas, provinces), aiming to create district–wide industrial synergies by allowing separate organizations to converge cooperatively to exchange raw materials and secondary products to reap mutual benefits. This level is targeted at reducing both the use of resources employed and the dependence on resources of companies and countries [11];
• Macro intended for countries and is not included in the circularity measurement method of the UNI/TS 11820. Some key principles are given in Annex B, and macro-level indicators are suggested as “Recycling rate of waste electrical and electronic equipment (WEEE) to total waste” and “Recovery rate of construction and demolition waste to waste generated”.

The standard bases the method of assessing circularity on nine criteria: applicability, consistency, comparability, transparency, completeness, traceability, data reliability, spatial and temporal scales, and systematic interdependencies. The level of circularity is evaluated through a mathematical equation, and the results must be graphically represented. There are six indicator groups, and those of interest to us pertain to the themes of “energy and water resources” and “human resources, assets, policies and sustainability.” Five specific and quantitative indicators are devoted to energy and water resources: four of them measure the “energy” magnitude and one indicator focuses on mass. They assess electricity and thermal energy self-produced and/or purchased from renewable sources. Among the indicators on “human resources, assets, policy and sustainability”, the indicator 57 provides a semi-quantitative assessment and aims to evaluate the average energy performance index of the organization’s buildings with a scale ranging from 0% (energy class G) to 100% (energy class A). This indicator assesses the presence of sustainability certifications for the organization’s buildings in the past three years. In summary, the standard focuses on the operational phases of buildings, on the energy performance index, and on the reduction of environmental impacts. On the other hand, it has a limitation regarding the analysis of the complete life cycle of a building. The technical specification, in fact, does not address the decommissioning and disposal of a building in depth, but only classifies construction and demolition waste as special.

4.2. UNI/TR 11821:2023

The Italian standard UNI/TR 11821:2023 proposes a method of collecting best practices (BPs) of circularity, implemented by organizations of different types and sizes, with the aim being to conduct analyses on current patterns, impacts, improvements, and replicability in the same or other sectors, and to highlight barriers to implementation [2,65]. The circular reference cases were collected from June 2021 to February 2023 and selected by the UNI/CT 057 technical committee. The standard aims to compare circular solutions in different areas and offer alternatives to linear economy models. The technical report defines as a “best practice” (BP) any action practiced by one or more organizations, in line with CE principles. It describes 41 BPs belonging to different sectors categorized from A to U. In particular, the following categories were identified in line with the topic of this study: electricity supply, gas, steam and air conditioning (sector D), waste management and remediation activities (sector E), and construction (sector F).

In addition, the best practices are divided into 13 macro-areas, such as sustainable building management, collection, re-use, recycling, and energy recovery processes.

Each BP evaluates one or more life cycle stages, such as raw material procurement, design, production, and EoL.

More specifically, EoL management is the most analyzed (14 times), whereas raw material procurement, production, and EoL management are analyzed 4 times all together. The design phase is focused on three times.

Raw material supply and EoL management are considered two times, and raw material supply, production and EoL management are analyzed seven times all together.

Two analyses were carried out combining design, production and EoL management or raw material supply and production.

In this analysis, only 2% of the best practices were found to be related to the construction sector, while 24% were in the waste treatment sector, including the recycling of renewable energy equipment. The macro-area “sustainable building management” analyzes, in depth, the circularity actions that characterize the entire life cycle of a building, from the construction phase to the decommissioning phase. The goal is to overcome the linear pattern currently used in construction by adopting different solutions that minimize resource consumption. The contribution that a “sustainable building management” can provide to the circular economy revolves around aspects usually overlooked in construction. From this perspective, the future management of the built environment is twofold: on the one hand, the adoption of innovative technologies will enable the recovery of and a reduction in the consumption of materials and energy for indoor use, and on the other hand, the occupants’ correct behavior enables a more judicious waste management. This helps to highlight a best practice that analyzes the production and EoL management in the building sector in Pesaro. This municipality, through the Public Works Service, has implemented an effective system to monitor material flows generated by the demolition of an old building and the construction of a new school. The decision to sort materials in situ according to the EWC (European Waste Catalogue) and the obligation for companies to deliver waste to certified recycling centers resulted in a high value of recycled material [66]. In order to spread innovation in this area, it is essential for administrative bodies to draft clear calls for proposals that specify the section on circularity in buildings. This would incentivize the adoption of circular solutions in public buildings and stimulate the adoption of circular practices further into private buildings. Despite the high replicability of the best practices within the sector, their spread is hindered. At the legal level, concerns are reported related to the creation of recycling centers. At the administrative level, the lack of clear notices is an obstacle. On the information front, there is a need to make the practice more cost-effective. Finally, at the behavioral and cultural level, it is crucial to inform businesses and technicians about the new opportunities [65]. Another best practice, developed by ENEA (Italian National Agency for New Technologies, Energy and Sustainable Economic Development), presents an innovative process for recovering high-purity metals from electronic boards found in WEEE (Waste Electrical and Electronic Equipment). The process is aimed at reducing environmental impact and adopting a sustainable model, drawing inspiration from best practices in Northern Europe. The replicability of the process is hindered by infrastructure barriers [65,67].

5. Circular Economy Strategies Framework in Italy

The main national programmatic document is the National Strategy for Circular Economy (2022) which has its foundations in the National Recovery and Resilience Plan [68].

The Minimum Environmental Criteria [69] is another important reference that provides the environmental requirements for the various phases of the purchasing process, and is aimed at identifying the best design solution, product or service from an environmental point of view along the life cycle, taking into account market availability.

The Minimum Environmental Criteria also have an effect on various products and are widely used in the construction sector to facilitate the circulation of materials and services with a high sustainable value calculated through the use of LCA.

Moreover, Italy adopts the Agenda 2030 targets set at the European level, sharing the plan developed by the Buildings Performance Institute Europe [3].

5.1. Circular Economy Platforms and Networks

The Sustainable Development Foundation [70] was born in 2008 as a point of reference for the main sectors and actors of the green economy in Italy. The foundation collects experiences and knowledge to support businesses and organizations in sharing a common vision towards the ecological transition. The Foundation has also established a structure, namely the Circular Economy Network [71], for the development of studies and proposals on the efficient use of materials within production, distribution, and consumption in the area of waste management. The activities target both private and public sectors and include reports, assessments, prevention programs, waste management plans, analyses of governance models, studies and legal/regulatory assistance.

Moreover, in 2017, ENEA promoted the first Italian industrial symbiosis network, named SUN (Symbiosis Users Network) [72], which involves 42 partners including universities, political institutions, research bodies, private companies, technological networks, and local bodies. The SUN network was proposed as an Italian reference for operators who want to apply industrial symbiosis, at an industrial, research, and territorial level.

The Italian Circular Economy Stakeholders Platform (ICESP) [73] was created in 2018 to bring together initiatives, share experiences, highlight critical issues, and indicate perspectives to represent in Europe the Italian specificities in terms of circular economy and to promote the circular economy through dedicated actions. The ICESP is also supported by ENEA as an initiative integrated with the European Platform for the Circular Economy (ECESP) with the aim of spreading knowledge, mapping good practices, and fostering multi-stakeholder dialogue. The 275 members of the ICESP are representatives of local and national public institutions in education, research and innovation. Companies, trade associations, and representatives of civil society are also involved.

Moreover, this Italian platform was selected by a jury chaired by the Holland Circular Hotspot to be the protagonist of an exclusive video at the World Circular Economy Forum (WCEF, Helsinki, Finland, 2023), one of the main global events on the circular economy.

The Ministry of Environment and Energy Security, in 2023, in collaboration with the National Register of Environmental Managers and the Chamber of Commerce, created the National Electronic Register for Waste Traceability (RENTRI) [74].

The purpose of the register is to streamline procedures, data transmission times, and the achievement of European recovery and recycling targets. For the subjects registered in Category 3-bis of the National Register of Environmental Managers (ANGA), i.e., those who also handle WEEE waste, the obligation to register with RENTRI depends on the type of activity carried out and the mode of operation. In particular, subjects that operate under the simplified modes are exempt from registering in the platform, while those who operate outside the simplified modes are obliged to be registered and comply with the same rules as those who produce hazardous waste [75].

5.2. Funding Opportunities

The National Recovery and Resilience Plan (NRRP) [68] is the package of investments and reforms prepared by the Italian government as a part of the “Next Generation EU”, aiming to make buildings and infrastructures more modern and sustainable within five years. EUR 25.40 billion is dedicated to this mission.

The NRRP offers the opportunity of: tax incentives, rewards in terms of scores for virtuous companies, and calls for tenders for the financing of research and development projects aimed to increase the scientific and technological-industry level in this area.

Moreover, funding opportunities are offered by public/private organizations, such as the following:

Cariplo [76] that is a philanthropic association providing grants to social enterprises or cooperatives active in sustainable projects; Intesa Sanpaolo [77] that is an Italian bank that devoted EUR 5 billion in 2018–2021 to support projects in the circular economy in partnership with the Ellen MacArthur Foundation. The bank is a major partner of the European Investment Bank (EIB) with two credit lines for the circular economy worth EUR 1 billion.

Enel Green Power is a company that created the “Open Innovability” division [78], a platform collecting sustainable projects and innovative ideas in the area of circularity.

5.3. Local Public and Private Initiatives

Two Italian regions, Apulia and Piedmont, have implemented the Regional Strategy for Sustainable Development and are partners in the pilot project “Region2030: Monitoring the SDGs in EU regions—bridging the data gap” of the Joint Research Center (JRC) of the EC [79].

Moreover, with Resolution n. 98-9007 (2019), the Regional Council of Piedmont approved the “Technical document setting up and first guidelines of the Regional Strategy for Sustainable Development of Piedmont” identifying the CE as a model to be promoted for the sustainable development of the regional system [80].

In addition, in 2018, the Lombardy Region created the Observatory for the circular economy and the energy transition to share the strategic objectives of the regional climate policies, and to improve the sustainability of the resources use in collaboration with the players in the territory [81].

The Lombardy Region, in collaboration with the nine chambers of commerce (Unioncamere Lombardia) [82], has allocated over EUR 4 million to support SMEs and micro-enterprises in the transition towards a circular economy model at the supply chain level (Lombardy Region Council Resolution no. 6402 of 23 May 2022) [83].

The Marche Region has approved the regional law (17 March 2022, n. 4) “Promotion of investments, innovation and digital transformation of the Marche entrepreneurial system”, with a particular focus on the CE implementation [84].

From a quantitative point of view, the technical report of the international festival Circonomia (2023) [85] shows a synthetic index of circularity of the Italian regions. This index summarizes the main features of the circular economy: material and energy consumption, land use, decarbonization, waste recover and reuse. It has a considerable territorial variability and, at the macro-area level, the north-west, north-east, and the centre show values around 14.5, close to the national average (13.5). The south and islands recorded a lower index of about 10. Trentino-Alto Adige (16.5), Marche (16.0), and Lombardy (15.5) recorded the highest values. In contrast, some regions of southern Italy, such as Apulia (7.0) and Sicily (9.5), delayed in adopting circular economy practices.

The regional project “Imprese green” promoted by the Lazio Region supports the green conversion of SMEs and develops CE models. In particular, EUR 23.3 million have been allocated for sustainable and intelligent mobility, green building and smart building, and circular economy and energy development [86].

Moreover, the Lazio Region is the first in Italy that approved the Regional Ecological Transition Plan with a resolution of the Department of Ecological Transition and Digital Transformation (January 2023). The document offers a plan of public spending in order to achieve the global sustainability objectives between now and the next few years, up to 2050, for a total of EUR 5.9 billion [87].

In addition, there are several Italian circular models that have been developed in the energy sector and in the context of material recovery. Founded in 2020, the 9-Tech company has built a treatment plant capable of separating PV module materials and recovering them with a high recovery rate. The plant processed 1,382 kg of panels, recovering: 983 kg of glass, 146 kg of aluminum, 42 kg of silicon cells, and 11 kg of copper contacts [88].

Since 2012, Tialpi s.r.l. has developed and integrated the Frelp by Sun project, which involves the recovery and valorization of 81% by weight of panels (materials such as aluminum and glass) [89]. In 2021, the company built a plant in Piedmont capable of processing 30 photovoltaic panels/hour. The Italian company boasts the best photovoltaic material recovery rate in Europe and has also obtained the “End of waste” certification for the recovery of high-quality glass [90].

The ReSiELP project (2017–2020) received funding from the European Institute of Innovation and Technology (EIT), and involves eight companies and several European research institutes. The goal of ReSiELP is to bring together technologies from different sectors with the aim of recovering critical and valuable raw materials, such as those also found in PV waste through innovative technologies based on the circular economy concept aiming at a zero–waste approach [91]. PHOTORAMA is also a three-year EU–funded project (2021–2024) with the goal of mapping out a circular and sustainable chain to develop a carbon-neutral PV industry and develop, recycle, and recover useful materials from EoL PV panels [92].

Several near-zero energy buildings (NZEB) constructed in Italy have gained wider resonance and acknowledgement by virtue of using natural or recycled materials with low environmental impact. Valuable examples include Fiorita Passive House in Cesena, Biocasa_82 in Treviso, Kindergarten in Guastella, and LAGO Campus in Padova [93]. In 2025, the city of Rome will have its first NZEB school. The facility will be built with environmentally sustainable and energy self-sufficient materials [94].

6. Discussion on Barriers and Potentialities to CE Implementation

The original input for the implementation of circular economy strategies came from the ISO standards in 2004–2006, and concerned the LCA methodology and CE guidance for implementation.

In Europe, the first Waste Directive was produced in 2009 and further strategies and directives, such as the Europe 2020 strategy and the Directive 2010/31/EU, followed in 2010 promoting a more resource-efficient, greener and competitive economy. These initiatives were mainly focused on supporting the energy transition, reducing energy consumption, and encouraging the decarbonization of the building sector.

Electrical and electronic equipment (WEEE), including PV technology, were the subjects of the first directive adopted in 2012 that considered energy devices.

The first CEAP started in 2015 and was updated in 2020, associated with the green transition and climate neutrality concepts of the European Green Deal and the energy transition strategies of the REPowerEU. Overall, the concept of the circular economy was associated with the availability of resources and climate change issues. Moreover, the construction and energy sectors were identified as crucial and strategic. The design phase gained importance along with the more attentive end-of-life stage.

Also the methodologies aimed at assessing the environmental performance of buildings became more effective following the introduction of specific and appropriate indicators.

At the national level, Italy’s first steps towards the application of CE principles began in 2002–2006 with the formulation of the environmental action strategy for sustainable development and the single text of regulations on environmental protection and waste management.

The national initiatives stopped for a decade and started later thanks to the impetus of the European directives of 2018. Since 2020, the topic of the circular economy has been dealt with continuity. It should be mentioned that Italy benefited from European incentives and initiatives after the COVID-19 pandemic and the “National strategy for the circular economy” was supported by the National Recovery and Resilience Plan.

The implementation of the circular economy can still be considered as in a development phase, and is developing practical tools, such as the national electronic waste traceability register.

Italy is significantly behind in receiving technical standards. The Italian standards are more recent (2022–2023) and partially received the ISO standards published in 2004, and updated in 2024. This aspect can be underlined as a critical issue limiting the availability of technical guidance for companies and practitioners.

On the other hand, Italy is active in networking initiatives conducted at the National and European levels.

Further considerations are provided by the report of the European Topic Centre on Circular Economy and Resource Use (ETC CE), which highlights that the Italian policies still use voluntary instruments [95]. As a consequence, regulations, standards, and consumers’ behavior are not in line with effective circular production and consumption strategies. Another important issue is related to the data availability. According to UNI/TS 11820:2022 [11], in fact, data retrieval is an essential step to ensuring the transparency and reliability of the circularity assessment process. However, information management and sharing are still insufficient in this area, making the lack of data as a significant obstacle in the implementation of CE.

Therefore, data collection plays a crucial role in accelerating the transition to circularity and is also crucial because the comparison between the current and future scenarios depends on the understanding of the level of circularity in place.

For instance, some companies that work in the energy sector, such as PV technology, show interest in the evaluation of the material flows generated by the decommissioned modules and their future inclusion in the value chain.

The lack of information and data produces other barriers (e.g., technical knowledge and skills, methods and tools, processes and infrastructure). To overcome these obstacles, information should be collected by agencies following structured and systematic criteria.

The data acquisition phase is a difficult task, especially in the context of renewable energy systems due to the rapid rate of installations and the inhomogeneous geographic location.

The impacts of regulations and standards on the circularity of energy systems can be significant. Despite the European Community’s advocacy of circularity criteria, there is a dearth of standards on the topic of the circular economy in energy systems. The UNI/TS 11820:2022 and UNI/TS 11821:2023 standards can be considered, in fact, as a sort of guidelines for measuring circularity and as a collection of best practices targeted at general contexts. To address this shortcoming, it would be desirable that the CE legislates on the topic and provides a uniform framework for all member states.

The shortage of raw materials is a crucial problem. The primary raw materials widely used in the manufacture of energy systems are often cheaper than secondary materials. Market demand for recovered products is still limited because circular products do not have clear warranty schemes.

Further barriers are represented by the following:

• The limited usage of recycled building materials/products compared to traditional materials;
• The ability of companies to seize opportunities of considerable impact;
• The absence of a well-structured, monitored, and inclusive value chain;
• The scarce communication between institutions and citizens;
• The lack of awareness in companies and public authorities and among citizens of circular economy concepts;
• The lack of well-focused policies and regulations;
• The insufficient financial support and fiscal incentives;
• The Italian construction sector is mainly fragmented into small and medium-sized enterprises, especially family-run ones.

Moreover, the best practices evaluated in the Italian standard do not present documented examples regarding the application of CE principles to the operational phase of the life cycle, neglecting the fact that some actions (e.g., maintenance and monitoring) can have a potential positive impact on the life span and life extension of a product.

As also noticed in the report of the European project SocKETs [96], the building and construction sector in Italy is still characterized by a linear approach. Almost all the involved subjects declared that incremental steps have been made in energy efficiency, but other aspects, such as the implementation of eco-design principles, reduction in resources consumption, the extension of product life cycles, and the proper use of waste and secondary raw materials, are not covered. Awareness about environmental preservation is prompting all productive sectors to abandon the linear economy model and adopt the circular economy model. In spite of this, many companies are unwilling to make material use rates accessible in the public domain. It should be up to the European government, and subsequently to the member states to agree on data exchange actions between government agencies and manufacturing companies.

Some regions (such as Lombardy and Apulia) have delivered a specific strategy for sustainable development, but the implementation of strategies to reach a circular economy appears to be still framed at the local level.

Potential improvements can be obtained by the following:

• Introducing materials passport and appropriate national databases that facilitate the analysis of the life cycle on a national scale;
• Publicizing good practices in terms of secondary materials and their introduction into procurement;
• Explaining not only reward scores of case studies, but advantages in terms of tax deductions and incentives;
• Adopting a secondary raw materials policy;
• Integrating specific indicators for the building operational phase in order to enrich CE assessments and guide future policies;
• Training of end users on the concepts and benefits of the circular economy;
• Finding an effective method to transfer what is quite easily achieved in large enterprises to the myriad of SMEs.

The recycling of raw materials, particularly in the energy and construction sectors, could be a key solution for countries like Italy, which are heavily dependent on imports. Through recycling, the country could recover materials lacking in production but already present in its territory as a consequence of imported installation. This approach enables the promotion of the circular economy, while simultaneously reducing import costs and increasing the country’s independence from the foreign market of raw materials.

Generally, building owners do not have sufficient knowledge about what they could do to make real improvements in the most economical and sustainable ways. The creation of a new cross-cutting figure to assess circularity and evaluate the economic benefits could be a suitable solution. This means retraining workers, investing more in professional and technical education, and promoting construction jobs to make them more attractive.

The renewable energy sector is beginning to adopt the principles of the circular economy, albeit gradually. Several Italian companies invest in the circularity of such systems. In contrast, the building and construction sector is still oriented toward a linear approach. Recent significant initiatives in building circularity can be mentioned, such as the construction of a new school in the municipality of Pesaro and the construction of an NZEB building in Rome. To spread innovation in this area, it is essential that administrative bodies draft clear calls for proposals and promote circularity-conscious projects. The adoption of circular solutions in public buildings would stimulate the adoption of circular practices in private buildings as well.

The goal of a zero-waste approach is still far from practical realization but, gradually, efforts are being made to achieve it through various projects involving numerous companies and research organizations.

7. Conclusions

Many plans adopted in the EU aim to decarbonize the building and energy sector and reduce the usage of virgin raw materials. Currently, EU member states are developing national circular economy strategies, and the circularity rates are slowly increasing. Despite this, and especially in the energy sector, the percentage of recycled or reused materials remains limited.

In Italy, standards do not establish a minimum score to evaluate the circularity of a system. However, the Italian government could consider introducing threshold values that companies would have to reach in order to obtain certifications and access to funding. The recent introduction of a national electronic register for waste traceability (RENTRI) could encourage the creation of a passport systems describing the amounts of materials that make up a given product. In addition, the platform could highlight how some discarded materials can be reused in production chains.

Two main obstacles are holding back the adoption of the circular economy. First, poor public awareness leads to the misperception that recycled materials are of lower quality and durability than virgin raw materials. Secondly, the lack of data and scarce information sharing between companies are significant constraints. Moreover, the initiatives placed and standards adopted in Italy are voluntary.

The adoption of circular economy criteria in Italian regions is slow and fragmented. Some regions such as Lombardy, Apulia, Lazio, and Piedmont passed laws or plans, allocated funds, and implemented virtuous actions on circularity. Other regions, however, have not yet taken the first steps in adopting circularity criteria. To refortify its credibility in this area, Italy should consider establishing a National Observatory for the Circular Economy. The observatory would be tasked with: collecting data, harmonizing regional circular economy policies, and promoting collaboration and the sharing of good practices among regions. The observatory could play a key role in promoting the transition to a more sustainable economy in Italy.