Report on the Circular Economy in Italy 2026
Italy is a leader in Europe for circularity, but it is still the most dependent country on material imports out of the major EU economies. 46.6% of its processed raw materials come from abroad, compared with the EU average of 22.4%, with Spain at 39.8%, Germany at 39.5% and France at 30.8%. In 2025, expenditure on material imports was nearly €600 billion, an increase of 23.3% compared with 2021, albeit with falling overall volumes. The cost of metals (nickel, copper and steel) increased by 18% and accounts for 40% of the total value of national imports. Economic pressure is set to increase with ongoing geopolitical tensions as well as the prices and volatile supply of strategic raw materials, along with fossil fuels.
The data that emerges from the Report on the Circular Economy in Italy 2026, presented on 14th May in Rome at the Italian National Conference on the Circular Economy, promoted by the Circular Economy Network in collaboration with the Sustainable Development Foundation and ENEA, therefore shows the good and bad sides of Italy and Europe. Italy has a good level of circularity with its waste recycling rate and efficient use of materials, but it invests little in circular innovation, it has weaknesses in various secondary raw material markets and it is still exposed to a heavy dependence on imports of strategic raw materials.
Europe is not running fast enough: the 2030 target is at risk
In terms of Europe, the Report highlights a significant delay: despite the considerable increase in recycling and the reduction in disposal, overall waste production remains high and consumption of raw materials, most of which are imported, is still substantial. Global volumes of materials used have more than tripled over the past 50 years and keep growing at 2.3% per year. At this rate, the EU will not hit its circularity rate target of 24% by 2030.
Phosphorus, magnesium and water: the new frontier of circularity as security. The section by ENEA
An innovative section of the 2026 Report, produced by ENEA, makes a direct connection between circularity and the security of critical raw materials, a hot topic due to the Hormuz crisis. The Critical Raw Materials Act, which came into force in May 2024, sets specific targets: by 2030, 10% of critical raw materials must be mined in Europe, with 40% processed on the continent and 25% obtained through recycling.
Phosphorus, an essential component in fertilisers and animal feed, is a prime example: Europe depends on imports for 82% of its phosphorus. The main EU suppliers are Morocco (27%), Russia (24%), Algeria (10%) and Israel (7%): four countries with whom geopolitical relationships are anything but easy. The Report indicates an underused recoverable source of this strategic element in sewage sludge.
Its foreign dependence for magnesium is even more critical: China controls 88% of global production and the EU depends on it completely for its primary magnesium. The Report analyses the potential of circular desalination: the brine produced by plants – traditionally considered a problematic waste product – contains elements such as magnesium, potassium, calcium and bromine with a theoretical market value of over €200 per cubic metre.
In terms of water, about 30% of Europe’s territory suffers from seasonal water shortages every year, with peaks of over 70% in southern Europe during the summer. The European Commission’s Water Resilience Strategy aims to reduce water consumption by 10% by 2030. For Italy, upgrading its large sewage treatment plants to new standards will require investments estimated between €800 million and €2 billion.
Circularity as a strategic response
In Italy, the circular material use (CMU) rate reached 21.6% in 2024 – the highest in Europe – compared with the EU average of 12.2%. This means that over a fifth of the materials consumed in Italy are not mined or imported, but rather recovered. This is an enormous strategic saving in terms of costs, emissions and geopolitical dependency.
The recycling rate out of the total waste managed (urban and special) shows us that Italy recycles 85.6% (137 Mt) out of 160 Mt, more than double the EU average of 41.2% and clearly surpassing Spain (54.7%), France (52.3%) and Germany (44.4%).
Resource productivity has increased by 32% since 2019: Italy confirmed its place as the leader in 2024, generating €4.7 of GDP for every kilogram of resources consumed, the highest figure among the major European economies and clearly above the EU average (€3/kg).
In terms of packaging recycling, Italy led the European rankings with 76.7% in 2024 (CONAI data), compared with the EU average of 67.5%.
Every step forwards in circularity directly means less oil imported, fewer metals purchased abroad and less exposure to geopolitical instability.
