The circular economy as a strategy for industries according to Confindustria

The transition to a circular economy is no longer just an environmental necessity — it is a strategic opportunity for industries worldwide. That’s what Confindustria’s second report on the circular economy claims. The 2024 study on the circular economy has been presented in the European Parliament and it outlines key strategies, challenges, and policy recommendations to accelerate this shift. Moreover, it emphasizes how circular principles can drive industrial innovation, reduce waste, and improve economic resilience while addressing critical regulatory and market barriers.

The national confederation of industries in Italy Confindustria hosted the event “Loop Forward: Building a Circular Economy for a Sustainable and Competitive Europe” with the Permanent Representation of Italy to the European Union, in cooperation with the Federation of German Industries (BDI), Mouvement des Entreprises de France (MEDEF), and the Confederation of Swedish Enterprises di(SN). At the event, Italian MEPs Antonio Decaro, president of the Environment commission in the EP, and Massimiliano Salini, host of the high level debate, held a speech to emphasize the importance of the practice and the integration of it in the next years in EU. Also, the Italian minister of the Environment and Energy Security Gilberto Pichetto Fratin underlined the importance of “simpler and clearer European rules for all 27 countries: it is in our interest to have maximum simplicity to protect citizens and businesses”.

According to the second report, a successful circular transition requires addressing three fundamental areas. One of the biggest challenges is the presence of regulatory barriers that slow down the adoption of circular business models. Bureaucratic and administrative hurdles make it difficult for companies to implement innovative sustainability practices. Simplifying authorization processes and ensuring a more consistent regulatory framework would make it easier for industries to embrace circularity. Another critical aspect is facilitating the exchange of circular goods and products. Developing efficient markets where businesses, suppliers, and consumers can connect helps drive the adoption of sustainable goods and promotes industrial symbiosis—where waste from one sector becomes a resource for another. Strengthening infrastructure is equally essential. The development of recycling facilities, logistics networks, and digital tracking systems plays a crucial role in making circular supply chains more effective and scalable.

Unlike traditional approaches that focus solely on waste management, Confindustria’s report presents a broader vision, linking circular economy principles with energy policy, transportation, infrastructure, and public procurement. This integrated perspective ensures that sustainability efforts align with industrial and economic growth strategies. The report also showcases best practices from different industries, ranging from bioeconomy and decarbonization initiatives to innovative transportation models. These case studies highlight how Italian businesses are already implementing circular solutions, proving that sustainability and profitability can go hand in hand.

To accelerate the transition, the report suggests several key policy actions. Public procurement can serve as a powerful tool in advancing circular economy principles, with governments incorporating sustainability criteria into contracts and tenders. Developing circular supply chains through targeted incentives and investments can further support businesses in adopting resource-efficient models. Encouraging the use of recycled materials and optimizing resources reduces dependency on virgin raw materials while promoting a more sustainable production cycle. Fiscal measures, such as tax incentives and subsidies, can also help create a strong market for circular products, making them more financially viable for businesses and consumers alike. Administrative processes should be streamlined to facilitate quicker approvals for circular economy projects, ensuring that bureaucratic delays do not hinder progress.

The circular economy represents more than just an environmental goal — it is a pathway to long-term industrial resilience and competitiveness. By fostering collaboration between businesses, policymakers, and consumers, it is possible to create an ecosystem where circular principles drive both innovation and economic success. Confindustria’s report serves as a call to action, emphasizing that with the right policies, investments, and regulatory frameworks, Italy — and the world — can transition toward a more sustainable and efficient economic model.