The Utilitatis-Utilitalia report

Waste: 13 billion euro turnover. In the South the highest Tari in Italy

Presented the photograph taken by the Green Book 2024, the annual report on the municipal waste sector in Italy, promoted by Utilitalia and edited by the Utilitatis Foundation

by Celestina Dominelli

Ispra: cala produzione rifiuti urbani, cresce la differenziata

5' min read

5' min read

A turnover of about 13 billion euro (0.7% of GDP) and a national production of 29.1 million tonnes. While, on the plants front, the gap between North and South remains, with the latter paying the highest Tari (road tax) in the country: 378 euros per inhabitant per year against the 284 of the North. This is the snapshot taken by the Green Book 2024, the annual report on the urban waste sector in Italy, promoted by Utilitalia and edited by the Fondazione Utilitatis, produced this year in collaboration with Ispra and with the participation of Enea, the Ree Coordination Centre and the National Register of Environmental Managers.

Variable speed waste collection in the country

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The report first of all highlights the need to improve the management system, especially in the South of Italy, in order to achieve the European targets: at least 55% of municipal waste to be recycled by 2025 (60% by 2030 and 65% by 2035) and landfilling up to a maximum of 10% by 2035. In 2022, national municipal waste generation stood at 29.1 million tonnes, down 1.8% compared to 2021. While the percentage of separate collection reached 65% (+1.2 points compared to 2021) with growth in all macro-areas of the country, the recycling percentage was around 49%. There remains, therefore, a wide gap between the percentage of separate collection and actual recycling rates, which, moreover, has tended to widen in recent years.

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Sector numbers

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As for the numbers of the sector, in 2022 the turnover (considering a sample of 439 companies) reached about 13 billion euro, equivalent to about 0.7% of GDP, employing more than 86 thousand direct employees. The companies that manage plants are those that achieve the best economic performance, as is also confirmed by the data on added value per employee (around 402 thousand euros), while the companies that only manage collection record a lower level of productivity (57 thousand euros per employee). Similarly, companies with the highest turnover (over EUR 100 million) achieve the best economic-financial performance.

The South has the highest Tari (local taxes) in Italy

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The South, however, continues to have a significant plant deficit that does not allow the cycle to be closed properly, contributing to the differential in expenditure for the urban hygiene service. Due to the higher cost mainly incurred for the transport of waste to plants outside the region and abroad, the South records the highest Tari (city tax) in the country with 378 euro/inhabitant in 2023, leaving behind the Centre (347 euro) and the North (284 euro).

The role of regulation

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Regulation, the Report suggests, is confirmed as a necessary condition for the development of the sector, one of whose objectives is to overcome differences in service quality and costs incurred, which often result in a combination of higher costs and lower quality in different areas of the country. The tariff method defined by the authority contributes to this aim by guaranteeing transparency in costs, certainty in the remuneration of investments, protection of consumers from planning inefficiencies, and valorisation of territories that accept appropriate plant solutions.

Mazzola (Utilitatis): companies need clear rules

For the Utilitatis Foundation president, Mario Rosario Mazzola, 'certain rules are needed that oblige companies, with a correct system of rewards and penalties, to make the management of the entire waste cycle more efficient and to guarantee citizens and cities better services. In waste, as is also the case in the water sector and other network services, the path must be that of providing a higher quality and more homogeneous service throughout the country and, in this sense, Arera plays a fundamental role in tracing the path'.

The plant deficit

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The increase in separate waste collection has led to a growing demand for new treatment plants over the years, but not all regions still have sufficient facilities to process the quantities produced. According to an estimate by Utilitalia, based on Ispra data from the 2023 report (with 2022 data), while the north of the country (although not all regions) and Sardinia have a sufficient number of plants, the centre, the southern peninsular and Sicily already suffer from a deficit that forces them to export waste to the north and abroad. This situation is likely to worsen in the coming years with the expected development of differentiated waste collection in the areas that are currently lagging behind; this will lead to the production of greater quantities of organic waste and scraps that, together with the residual fractions, will have to be treated in energy recovery plants in order to keep the use of landfill disposal below 10%.

The estimated requirement

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As far as the workforce is concerned, the analysis shows that, on the basis of the activity of existing plants and those recently or soon to be activated, the country will have a demand of about 1 million tonnes by 2035, down from previous estimates. This requirement is unevenly distributed: the North will have a higher supply than demand (making it possible to make up part of the deficit of the other geographical macro-areas) and Sardinia will be self-sufficient, while the Centre, the southern peninsular and Sicily will have a plant deficit.

The absence of projects with the exception of Rome

On the other hand, as regards the treatment of residual non-recyclable waste, the scenario estimated for 2035 shows that the country's needs will be about 2.5 million tonnes and that all macro-areas will have a plant deficit. While for the treatment of organic waste there is an increase in new installed capacity, the forecasts for energy recovery are less comforting: at the moment there are no major projects underway, with the exception of the Rome plant, for which the tender for its construction and management is underway, which would in fact halve the needs of the central macro-region and about a quarter of the national one.

Brandolini (Utilitalia): industrial management of the entire cycle is crucial

'The Green Book,' explains Utilitalia president Filippo Brandolini, 'highlights the importance of industrial management of the entire waste cycle, the need to build plants, especially in the Centre-South, and the urgency of overcoming management fragmentation. These are three fundamental elements for the full affirmation of the circular economy. In this regard, the member companies of Utilitalia, thanks also to the funds of the NRP, are now committed to continuing the process of upgrading and improving differentiated waste collection systems as well as building innovative plants in strategic supply chains such as the organic fraction, textiles, and WEEE'.

The node of critical raw materials

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To support the ecological transition, demand for critical raw materials, which are of fundamental importance for European industry but are exposed to a higher risk of supply, also due to the difficult geopolitical scenario, is expected to increase exponentially in the coming years. The development of supply chains for the recovery of critical and strategic raw materials is crucial to help ensure security of access to resources: the renewable plants (photovoltaics, wind power and their associated storage systems) that will be decommissioned in the coming years (about 400,000 tonnes of waste from photovoltaics alone by 2035), represent a real urban mine.

The Importance of Proper Recycling of WEEE

From this point of view, proper recycling of WEEE can be an opportunity to reduce dependence on third countries. However, in 2023, the total national collection of WEEE from households stood at about 349,000 tonnes, down 3.1% from 2022. The collection levels, at around 6 kg per inhabitant, are still far from the targets set by Europe (12 kg per inhabitant) and do not allow for the economics of recovering critical raw materials. In view of their strategic value and the difficulties in supplying these materials, it seems essential to boost collection, which seems to be the real driving force behind the development of the supply chain, and to guarantee the investments required to fully extract the value chain of this flow. To do this, the mechanisms for financing collection by extended producer responsibility schemes need to be reviewed.

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