The benefits of the circular economy? Strategy, costs and reputation

It is important to describe the benefits of an approach such as the circular economy, which is becoming increasingly widespread, particularly in Italia. But we must not overlook another fact: rather than merely an operational practice, this is a cultural and innovative concept that helps to find solutions to practical needs, including those arising from the deterioration of the global environment.

In this context, the ‘toothbrush metaphor’ may be more illuminating than any other explanation: indeed, using this toothbrush instead of a manual one yields, in return for a small investment, enormous savings in terms of cleaning effectiveness, the use of raw materials and, consequently, energy and waste. And these benefits are even greater when, should the toothbrush break, one takes the time to repair it rather than replace it.

This aside, which is necessary if we are to strive for further improvements, in no way detracts from the credit that must be given to Italia for the results it has achieved in recent years in the field of the circular economy. Suffice it to say that our country ranks first amongst the four largest economies in the European Union and second amongst the 27 EU Member States, behind only the Netherlands. More specifically, as much as 21.6 per cent of the materials consumed come from recycling, almost double the European average (12.2 per cent). Furthermore, Italia recycles 86 per cent of the waste it manages, compared with the EU average of 41 per cent, and over three-quarters of its packaging. This is therefore an extremely positive picture that places us in a position of international leadership and which, nevertheless, stems from necessity. Italia, in fact, relies on other countries for 46.6 per cent of the materials it uses – more than double the European average – and so, despite the good results achieved so far, investment in the circular economy still needs to grow substantially.

But what concrete advantages can we expect from greater use of the circular economy? First and foremost, the benefits can be economic in nature, as very often (though not always) recycled raw materials cost less than virgin raw materials. Other important benefits are strategic in nature, as the use of secondary raw materials can reduce a company’s dependence on critical supply sources and, consequently, ensure stability in the production chain that would otherwise be lacking. Of no less importance are the reputational benefits, which can have a positive impact on companies’ positioning and competitiveness: these benefits arise when the customer – whether an industry or a consumer – appreciates the company’s efforts to reduce its environmental impact by using raw materials or semi-finished products derived from circular economy processes.

Last but not least are the benefits arising from the new operational guidelines for ‘Bianchi’ certificates published by the GSE under Directorial Decree No. 203 of 28 July 2026. This guide provides, in fact, for the inclusion within the White Certificates mechanism of certain circular economy initiatives that have generated additional and measurable energy savings. In this regard, the legislator has demonstrated foresight and awareness in successfully linking one of the key drivers for reducing environmental impacts – namely, the implementation of circular economy processes – with the tangible economic benefit for those companies that practise it, thereby enabling them to realise economic value from assets that were previously unseen.