“Innovation is the 'fuel' of the circular economy. But Italy risks falling behind and being overtaken by other countries”. With these words the CEO of Enel, Francesco Starace, presented to the Ambrosetti Forum in Cernobbio the study on the circular economy entitled Circular Europe. How to successfully manage the transition from a linear to a circular world”, created by the Enel Foundation and The European House – Ambrosetti in collaboration with Enel and Enel X. What emerged was a picture which on the one hand recognizes the programmatic efforts of the EU in the sector, but which on the other shows that the economies of the Old Continent still move in no particular order. Precisely underestimating the strong impact that a precise strategy in the direction of circularity would have on the GDP and on the economy.
The circular economy is correlated to 300-380 billion euros of European GDP, according to 2018 data, and to 27-29 billion euros in Italy alone. The study compares our country with two other countries where Enel is present, Romania and Spain (Greece would also be present but is not part of the analysis), and indicates that, for example, we are already behind Spain, where the economy of reuse and sustainability is worth a slice of GDP equal to 33-35 billion euros. At the same time, the circular economy is linked to around 200.000 jobs in Italy, 20.000 in Romania, 350.000 in Spain and up to 2,5 million in Europe again in 2018. The effect on investments is quantified as 8-9 billion euros in Italy, 1-2 billion euros in Romania, 9-11 billion euros in Spain and an overall impact of 90-110 billion euros in the European Union in 2018.
Significant benefits are also estimated on labor productivity: about 560-590 euros per employee per year in Italy, 1.210-1.270 euros per employee in Romania (the country with the greatest impact), 640-670 euros per employee in Spain and 570-940 euros per employee overall in European level. Of the three countries on which the comparative focus was most concentrated, “Romania – said Starace – has shown a high improvement over the last five years, Spain an intermediate progress while Italy moved more slowly in the transition to a circular model”.
In addition to the economic benefits, there are obviously environmental ones, which the study mentioned. The transition from primary to secondary materials makes it possible to significantly reduce greenhouse gas emissions (GHG): for example, taking into consideration 4 important materials for industry (iron, aluminium, zinc and lead), the average reduction of GHG emissions per kg of material produced is equal to 73,5%. Furthermore, an increase in the penetration of renewable sources in energy production by one percentage point reduces GHGs by up to 72,6 million tonnes of CO2 equivalent in Europe and 6,3 in Italy (i.e. about half of annual gas emissions greenhouse in the Municipality of Rome).
If the institutions are not yet fully "on track", despite the European plan, the study by Enel and Ambrosetti nonetheless reveals that the business world would not wait to move to a circular economy model: 95% of the sample consider the circular economy a strategic choice for your company. Above all, a tool to gain a competitive advantage in terms of diversification, market expansion and cost reduction. However, the majority of European business leaders believe that their country is not ready to face the challenge: uncertainty about value creation (43,6% of answers) and lack of skills (35,9%) are the two most frequent responses regarding the impediments to the development of the circular economy in Europe.
"If you think in terms of the circular economy, you also have to work outside the perimeter of a company, no one can work alone", is the conclusion of the CEO of Enel Starace. Hence “the invitation to our regulators and to our Government to pay attention to these issues, which have a strong relevance. Innovation is the fuel of the circular economy, without innovation circularity does not go forward. There are many possible solutions, but if you work together and abandon the old paradigms you will find the best ones". Above all, noted the CEO of Enel X Francesco Venturini, it is necessary to “move towards a clear vision and strategy”.
Finally, the study identifies and recommends ten areas of intervention to stimulate the circular transition. Here they are:
- define for the Member States ofXNUMX-XNUMX business days national strategies for circular economic development;
- redefine the governance of the circular economy to support a 360° transition in all sectors;
- leverage on legislation to promote the circular transition;
- create conditions of competitiveness compared to non-circular solutions;
- use finance as a lever to promote Research and Development and good practices in the field of circular economy;
- address the lack of a clear definition and of homogeneous and exhaustive metrics;
- transform the business models they generate waste in circular patterns;
- promote transversal measures and coordination for all sectors affected by the transition to the circular economy;
- leveraging the circular economy to rethinking cities and urban spaces;
- promote culture and awareness about the benefits deriving from the circular economy.
