Il waste sector in Italy continues to growing up with good prospects, but not without some difficulties. If growth is now consolidated, with investments which have been increasing on average by 16% every year since 2017, exceeding one billion euros in 2023, the regulatory framework remains a grey area that hinders its full development. Legislative contradictions, with the fragmentation of competences between the State, Regions and Authorities, continue to generate uncertainty and slow down investments. These are just some of the themes that emerged from the first report of theAgici Waste and Recycling Industry Observatory, presented in Rimini, during ecomondo, the international fair that celebrates the green economy and the circular economy.
The waste sector: full growth, but need for regulatory simplification
In 2022, in Italy they were 9.406 waste management plants active, ranging from storage to treatment, recycling, waste-to-energy and landfill. Most of these plants are small: 62% have a capacity of less than 50 thousand tons per year. Furthermore, waste management is mostly in the hands of small private businesses, which represent 85% of the companies in the sector and have a turnover of less than 25 million euros. Most of the plants (81%) are small in size, with many companies managing only one structure.
In this panorama, the following emerge: opportunity of growth, especially through aggregations of the market. An analysis of 38 companies across 6 supply chains showed significant growth between 2017 and 2022, with turnover rising to €10 billion and investments reaching €2022 billion in 1,2. In addition, 219 acquisition and investment transactions were recorded in new recycling technologies, fueled by growing investor interest in a growing sector and green and ESG (environmental, social and governance) objectives. But, as highlighted in the report, the sector risks not reaching its full potential due to a regulatory framework too complex e uncertain that creates uncertainties e slows down investments. The report suggests rethinking the waste regulatory system, simplifying the rules and creating a more stable and clear legislative framework. In addition, public support should evolve from direct incentives linked to recycling output to indirect stimuli that favor the growth of demand for secondary raw materials, to further push the industry towards innovation and sustainability.
Agici's appeal: simplify to grow
As pointed out by Marco Carta, director of the Observatory on the Recycling and Waste Industry of Agici, “The Italian waste management supply chain is undergoing a gradual transformation, favoring all the conditions necessary to aggregate skills, market shares, but above all capital”. And yet, it is not enough. “The main obstacles – continues Carta – are still the strong contradictions in the attribution of skills between the State and Regions and Authorities. Operators are able to produce innovation and recycle new materials, but it is necessary to create the conditions for further growth. In such a context, the watchword is to simplify, first and foremost the regulations and skills, to facilitate and support the market”.
