"Towards a Model of Circular Economy for Italy - Overview and Strategic Framework” is a document that defines Italy’s strategic positioning on circular economy, in line with the commitments adopted under the Paris Agreement, UN Agenda 2030, G7 Communiqué and within EU. It is also an important part of the implementation of the wider National Strategy for Sustainable Development, contributing in particular to the definition of the objectives of a more efficient use of resources and of more circular and sustainable patterns of production also thanks to more aware and conscious consumption habits. The document calls for a "change of paradigm" for Italy's economy, for a new way to consume, produce and do business. It is composed of 4 main parts which describe respectively: 1) the principles and objectives of circular economy; 2) the paradigm shift needed to support new production and business models; 3) the regulatory and economic instruments required to shift the fiscal burden from labour to natural resources; 4) the transition phase based upon a new concept of waste, the role of public sector (e.g. GPP), and the monitoring framework.

The great challenge that Italy, along with the most industrialized countries, will face in the next decade is to adequately and effectively respond to the complex environmental and social dynamics while maintaining the competitiveness of its productive system. A new sustainability and innovation-prone industrial policy, that can at the same time increase the competitiveness of Italian production and manufacturing, requires a paradigm shift leading the Italian economy to rethink the way to consume, to produce and do business. Italy has the characteristics and capabilities to do so and needs to seize this opportunity in developing new business models in order to maximize the value of Made in Italy and the role of Small and Medium-sized Enterprises (SMEs). With regard to the workforce, it is crucial that the human resources employed in sectors and businesses that are no longer in line with the requirements of modern and sustainable development are not excluded from the socio-economic system. Such resources should be prepared to occupy new jobs, aligning their skills to the productive activities promoted and created by the transition process.

"Towards a Model of Circular Economy for Italy - Overview and Strategic Framework” is a document that defines Italy’s strategic positioning on circular economy, in line with the commitments adopted under the Paris Agreement, UN Agenda 2030, G7 Communiqué and within EU. The document aims at supporting the implementation of the National Strategy for Sustainable Development, recently adopted on the 22nd of December 2017, in particular regarding the vision for an efficient use of resources and sustainable consumption and production patterns. It is composed of 4 main parts which describe respectively:

1) the principles and objectives of circular economy as stated at international, European and national level, with the provision of country-specific challenges and opportunities;

2) the paradigm shift needed to support new production models based upon Eco-Design, Extended Producer Responsibility, Industrial Symbiosis, Bioeconomy, (this latter comprising a dedicated strategy launched on 20 April 2017) and new business models such as sharing economy, leasing economy etc.;

3) the regulatory and economic instruments, including the environmental fiscal reform shifting the fiscal burden from labour to natural resources;

4) the transition phase based upon a new concept of waste, the role of public sector (e.g. GPP), and the monitoring framework, this latter supported by a working group established within the Ministry for the Environment to define the most suited set of indicators to measure progress and allow reliable assessment on public and private initiatives.

Considering the complexity and the importance of the document, the Italian government organised a public consultation to collect contributions from different institutions, enterprises, experts and citizens who deal daily with the issue of circular economy to develop a document that is the result of a shared and participatory process. The consultation process was very broad: over 300 representatives of public administrations, small, medium, and large companies, associations, consortia, certifying bodies, and private citizens provided contributions showing ownership and active participation in the efforts to promote circular economy as an opportunity for the transition of Italy towards sustainable development.

The document represents a first step towards promoting a new circular economy model for Italy. It provided the opportunity to build a shared platform for defining a “National Action Plan on the Circular Economy”, capable of settings goals, describing policy measures, and identifying implementation tools. The consultation process emphasized the pressing demand for action on specific areas, including among others: 1) the regulatory framework with aim of improving coherence and consistency with the overall objectives and promote a simplification process; 2) economic instruments to support the transition towards a circular economy model also through environmental tax reform; 3) communication and awareness raising to promote ownership and active participation of citizens, central and local administrations, to show case the opportunities and benefits linked to circular economy and enhance cooperation and support among different actors (public, private, research, academia); 4) promote research to foster innovation and new technologies, to increase competitiveness in industrial sectors and train managers and technicians in order to meet the new needs of the Circular Economy.