Eco-innovation in Italy. EIO Country Profile

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1 Eco-innovation in Italy EIO Country Profile

2 Eco-Innovation Observatory The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation information gathered from across the European Union and key economic regions around the globe, thus providing a much-needed integrated information resource on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development. The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors. It is therefore relevant for all types of innovation. It is defined as follows: Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle. To learn more, visit and ec.europa.eu/environment/ecoap Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.

3 Eco-Innovation Observatory Country Profile : Italy Authors: Massimiliano Mazzanti, Claudia Ghisetti, Marianna Gilli Coordinator of the work package: Technopolis Group Belgium

4 Acknowledgments The authors would like to acknowledge the contributions of ENEA (Ente per le Nuove tecnologie l'energia e l'ambiente), Department for Sustainability and Energy Efficiency Technical Unit, and the support of Aldo Ravazzi, Benedetta Dell Anno and Alessandro Peru from the Italian Ministry of the Environment (MATTM). A note to Readers Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Union. This report presents a number of companies as illustrative examples of eco-innovation. The EIO does not endorse these companies and is not an exhaustive source of information on innovation at the company level. This brief is available for download from

5 Table of contents Summary... 1 Introduction Eco-innovation performance Selected circular economy and eco-innovation areas and new trends Barriers and drivers to circular economy and eco-innovation in Italy Policy landscape: towards circular economy in Italy ANNEX: Policy measures addressing circular economy and eco-innovations in Italy... 23

6 Summary Italy is among the largest economies in the European Union despite the fact that the economic crises at the end of the 2000s compromised several economic activities. However, as noted by the OECD 1, Italy s GDP is expected to rise by 1.4% between 2016 and 2017, while the government budget deficit will continue to decline gradually. Furthermore, the OECD notes that a large part of the Italian decline in GHG emissions can be attributed to the crisis and that As the recovery strengthens, containing the growth in emissions will depend on simplifying energy efficiency incentives and selecting those entailing the lowest abatement costs 2. Eco-innovation and the circular economy thus appear to be key aspects of the relaunch of the Italian economy. The present report will show that Italian eco-innovative performances have improved with respect to previous years and that in absolute terms they are well above the mean EU28 performances. The still-low private and public R&D expenditures can be explained by the Italian industrial structure, which is mainly composed of small-medium enterprises (SMEs) and family businesses, which have only limited access to credit and often are not of a large enough scale to undertake R&D projects. Nevertheless, the country shows great potential for specialising in renewable energy technologies, which, as shown in section 4, have been well supported by policies and regulations. This report will also analyse in depth the barriers to and the drivers of eco-innovation and the circular economy, especially those related to the economic system, technological trajectories, human resources and natural resources management, as well as those related to the organisational aspects of firms. Finally, an extensive description of the policy and regulation system in support of eco-innovation and the circular economy is offered, with a focus on both the national and regional levels, given the high decentralisation of resources and waste policies at the regional and municipal levels

7 Introduction Italy is a country facing significant challenges in linking its economic and environmental productivities. On the economic side, Italy has high public debt and growth that is below its potential; labour productivity (Figure 1) has constantly decreased since the beginning of the 2000s and at present is below the European average 3. Nevertheless, resource productivity (Figure 2) is above the EU28 average, a fact that can be partially explained by limited national resources, a shortage of raw materials, and strong implementation of policies in the waste and material realms. As far as waste management and disposal are concerned, Italy ranks in the middle (EEA 2014), with slow but ongoing improvements in performance. The high decentralization of resource and waste policies at the regional and also at the municipal level remains an institutional feature. Flexibility of policy implementation, with the possible emergence of regional 'leaders', increases the divergence in performance across different areas (Mazzanti and Montini, 2014). Regarding climate change, critical areas remain the transportation and household sectors, while industry has shown positive change in environmental efficiency. In 2013 it reached the EU2020 target of a 17% share of renewable energy and energy efficiency, with most investments devoted to the photovoltaic sector (45%). Investments in renewables have, however, collapsed due to retroactive cuts in fiscal incentives 4. Italy, according to recent projections, is also on track to reach its target for greenhouse gas (GHG) emissions, and the Collegato Ambientale (discussed in Section 4) would help in increasing sustainable consumption and production. GHG emissions not covered by the emission-trading scheme (ETS) should be reduced by 13% compared to 2005 under the EU strategy; the latest figures show a decrease of approximately 18% in It is worth noting how this promising emission performance is partially dependent on Italy s low employment growth (currently 1.1% with 11.5% unemployment rate). The role of eco-innovation will be crucial in sustaining this emission performance while the economy recovers towards full employment. Total environmental taxation is high (3.5% of GDP in 2014, or billion euros), though taxes are infrequently correlated with externalities. The revenue derived from resource and pollution taxes has decreased in real terms and remains below 600 million, with the largest share represented by the regional landfill tax introduced in Performances are consistent with Italian technological specializations 6. Italy ranks high in water pollution abatement and waste management. It is weaker in energy generation from renewables and non-fossil fuels, despite the increasing share of renewable energy sources in the country. In fact, in 2013 Italy reached the 2020 target for renewable energy (17.1%) and energy efficiency. It is also weak in the area of emission abatement and fuel efficiency in transportation (except fuel 3 Own elaboration based on the latest Eurostat data 4 For a detailed picture, refer to the Report by the Frankfurt School-Unep Centre/Bnef (2015) Global Trends in Renewable Energy Investment

8 efficiency through improving vehicle design, a product innovation). Energy efficiency in building and lighting is also not a key strength. Finally, Italy has achieved impressive levels of patenting and innovation in the area of 'green chemistry,' specifically in green plastics and biodegradable packaging. Figure 1 - Resource productivity in Italy and EU European Union (28 countries) Italy Figure 2 - Labour Productivity in Italy and EU EU28 Italy 3

9 1 Eco-innovation performance The analysis in this section is based on the EU-28 Eco-innovation scoreboard (Eco-IS) for the year Via its composite Eco-innovation index, produced by the Eco-Innovation Observatory (EIO), Eco-IS demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. Eco-IS is based on 16 indicators, aggregated into five components: eco-innovation inputs, activities and outputs, environmental and socio-economic outcomes Figure 3 EU27 Eco-innovation scoreboard 2015, composite index Source: EIO, 2016 Italy reports a value in the composite indicator of 105.6, which is 5.6 points higher than the European average. In absolute terms, Italy thus presents quite a strong performance with respect to the other European countries, and it is the 9 th ranked country after Denmark, Ireland, Luxembourg, Finland, Germany, Sweden, France and Austria. In relative terms, Italy has improved its EI performance with respect to the past: in 2014 it was ranked below the EU average with a score of 95 points and the 12 th position in the ranking. 4

10 Figure 3 Components of the eco-innovation composite index for Italy 2015 The decomposition of the composite indicator into the five dimensions that constitute it shows that positive contributions to the overall mean value are reported for four out of the five components, indicating Italy s balanced positive contribution to the composite index. In particular, Italy excels with respect to the European average under the dimensions Ecoinnovation activities, Eco-innovation outputs, Resource efficiency outcomes and Socio- Economic outcomes. The major contributor is Eco-Innovation activities with a value of 118 and 11 th place in the ranking vs. 14 th place in 2014; this is followed by Eco-innovation outputs, with a value of 117 and 8 th place in the ranking vs. 9 th in 2014, Resource efficiency outcomes, with a value of 116 and 4 th in the ranking vs. 8 th in 2014, and Socio-Economic outcomes with a value of 101 and 10 th in the ranking vs. 11 th in Overall, Italy has improved its position in the ranking with respect to all four dimensions considered by the EIS 2014, and, furthermore, in the previous EIS it was above the EU average only with respect to the dimensions Ecoinnovation outputs and Resource Efficiency outcomes. However, the dimension Eco-Innovation inputs reports values that are worse than the European average, with a value of 75, which is 25 points lower than the EU average; Italy also ranks 15 th in this single dimension, signalling that its main weakness is in this dimension. More precisely, the total value of green early stage investments is the weakest of the three indicators that constitute the dimension Eco-Innovation inputs. This is consistent with the past EIS, in which the component Eco-Innovation inputs was below the EU average. However, in the past EIS Italy s relative ranking for this dimension was 13 th rather than 15 th, thus signalling a decline in this dimension. 5

11 2 Selected circular economy and ecoinnovation areas and new trends Between 2014 and 2015, Italy was among the countries with the largest number of firms financed by the European Union through the SME instrument, a program within the H2020 framework that is specifically addressed to small and medium sized innovative enterprises 7. Among fields such as nanotechnology and transport, Italian firms are also leaders in the field of eco-innovation (where 36 SMEs obtained financing for 28 projects), especially those located in regions such as Lombardy, Emilia-Romagna and Lazio. Italy s eco-innovation and circular economy development are characterised by the following innovation areas. Recycling and waste: Whereas in the past edition of the report, Italy was cited for its high share of regeneration of mineral oil, updated 2014 data show that it has reduced by 3% the amount of mineral oil recycled, which amounted to t or 44% of its consumption. Other improvements should be noted instead: the increase (up to 80%) in re-use and/or recycling of non-functional motor vehicles, the increase by 12% of textile waste recycling and by 2% of packaging recycling, the 7% reduction in the production of construction and demolition waste, and the reduction in consumption of batteries and the increase in their collection up to 39%, which is 14 points higher than the imposed requirement. The collection of waste in electrical and electronic equipment (WEEE) also increased by 3% in 2014, with a pro-capita mean value of 3.81 kg 8. In this last respect, particular attention should be paid to the WEELABEX initiative ( and its certification criteria for the conformity verification of WEEE. Given the centrality of waste reduction, recycling and re-use in a circular economy, additional information on the Italian circular economy strategy is needed and will be addressed in Section 4. R&D and Eco-Innovation: The country is still characterised by low R&D investment levels, with 1.29% R&D intensity (total R&D expenditures as a share of Gross Domestic Product) vs. the 2.03% EU average, by the scarcity of public funding instruments, by the scarcity of high skilled human resources, and by the low share of high-tech manufacturing activities (Source: Eurostat). Public environmental R&D is also lower than the EU average, with a 6.5% share spent on total public expenditure compared to the mean EU value of 6.8% in This is reflected in the environmental innovation realm, in which the space for radical innovations remains scant, while most environmental innovations are incremental thus requiring lower innovation risks and investment levels. When considering innovation data by examining patent data in environmental technologies, there emerges a specialization in the field of general environmental management technologies, mainly due to high patenting activities in the subfields of water pollution abatement and waste management, in which Italy shows elevated export shares. However, the majority of Italian environmental patents are related to the field of For further information, the following source has been used to extract trends and elaborations: L Italia del Riciclo 2015, Fondazione per lo Sviluppo Sostenibile and FISE UNIRE Unione Nazionale Imprese Recupero, Rome. 6

12 renewable energy generation. 9 The so-called green firms, i.e., firms that produce goods or services with high environmental value, amount to 27.5% of the total in Italy (2015). Most of these belong to the Agriculture sector, of which 40.6% of firms are green, followed by Construction (38.8%) and Industry (35.4%). These green firms overall show better economic performances and export levels as well, signalling that they have responded better to the economic downturn than have other firms 10. Sustainable transportation: With 61 cars for every 100 inhabitants, Italy has the second highest European index for private transportation, after Luxembourg. Emissions from the transport sector remain at 1990 levels in terms of CO2 equivalents. Positive signals come, however, from data on sales of alternative fuel cars (mainly gas), which reached 15.3% of total car sales in 2013 (source: Eurostat). In the context of the obligations borne by the fuel suppliers, it is worth mentioning that the blending of fossil fuels with biofuels (DM 10 October 2014), when the latter come from biowaste and residues, will be incentivised. Negative signals come from the amount of public expenditures for public transportation, which have been decreasing dramatically in recent years (source: Istat). In the boxes are selected case studies of eco-innovation and the circular economy. ACEA PINEROLESE INDUSTRIAL SPA (Turin) The company addresses, inter alia, the production of biogas via anaerobic digestion (AD), in which heat is supplied by a district heating network in the town of Pinerolo (near Turin). The AD takes place solely by the power of MSW (the organic fraction of municipal solid waste) collected from Turin and the surrounding cities. Since 2014, a portion of the biogas has been converted into biomethane, which can power motor vehicles for civil use. Source and Further information: Keywords: bioenergy; recycling 9 Further information on patents in environmental technologies and specialisation can be found in the report: Tecnologia e Innovazione nella Green Economy Italiana Rapporto 2015, Osservatorio Innovazione e Tecnologia per la Green Economy, Septermber 2015, Rome. 10 Details on the construction of the data and green firms indicators can be found in the Relazione sullo stato della green economy in Italia 2015, Edo Ronchi, available here 7

13 GREEN DIESEL Porto Marghera (Venice) The Green Refinery project is the first example of the conversion of a conventional oil refinery into a biorefinery. The new renewable component produced by Eni at its biorefinery in Venice is called "Green Diesel." It is produced through the hydrogenation of vegetable oils using Ecofining technology, which is able to completely eliminate the oxygen contained in the raw material, thus producing a fully hydrocarbon product that is perfectly compatible with the fossil fuel to which it is added. Source and Further information: Keywords: bioenergy, eco-innovation REMADE IN ITALY Remade in Italy is a non- profit organization founded in 2009 by the Lombardy Region, CONAI (the Italian Union for packaging material), the Chamber of Commerce of Milan and CONAI for the promotion, at the national and international level, of products "made in Italy" arising from recycling. In 2014, Remade in Italy was recognized by ACCREDIA (the Italian body for certification), becoming the first certification scheme accredited in Italy for the verification of recycled content in a product. The certification Remade in Italy certifies traceability of production within the same production chain, from the verification of the origins of incoming raw materials to the output of the certified products, making it a tool specifically recognized in green public procurement as a model for the verification of the quality and sustainability of recycling. Remade in Italy products are identified by a label that contains information about the sustainability characteristics of the product, in terms of raw material savings, reduction of energy consumption and reduced CO2 emissions. Source and further information: 8

14 Recovery of critical raw materials from WEEE and the hydrometallurgical pilot plant ROMEO ENEA ( the Italian National Agency for New Technologies, Energy and Economic Sustainable Development, active in the field of eco-innovation, develops and implements technologies, methodologies and integrated approaches for the efficient use of resources and the closure of loops at the micro, meso and macro levels, with a particular focus on recycling technologies up to pre-industrial pilot scale technologies. With regard to the specific sector of critical raw materials recovery from electric and electronic equipment waste (WEEE), an innovative hydrometallurgical process for the recovery of added value raw materials such as gold, tin, silver and copper from printed circuit boards (PCBs) has been developed, tested and patented. This has been completed with the realization of a modular and flexible pilot plant at pre-industrial scale, named ROMEO (Recovery Of MEtals by hydrometallurgy) located at the ENEA Casaccia Research Centre (Rome). The pilot plant allows testing hydrometallurgical processes to recover valuable materials from complex end of life products and urban waste and industrial scraps, including their technical and economic efficiency, risk-benefit analysis, industrialisation scale-up feasibility and business plan definition. Source and Further information: «Hydrometallurgical process for the recovery of raw materials from printed circuit boards» Patent application n.rm2013a000549, PCTIB «Apparatus for high added value raw materials leaching and separation in printed circuit boards» Patent application n. RM2015A Keywords: WEEE; Printed Circuit Boards; recovery of precious metals; Hydrometallurgy 9

15 CIB CONSORZIO ITALIANO BIOGAS CIB - the Italian Consortium Biogas and Gasification is the first voluntary association that brings together companies producing biogas and syngas from renewable sources (mainly agricultural biomass), companies and suppliers of equipment and technology, industrial companies, organizations and institutions. CIB intends to be the technical reference in the biogas and gasification sector, with the aim of providing guidance to consortium members to improve the management of the production process and to contribute to the attainment of national renewable energy goals for Source and Further information: EcoTecnoMat EcoTecnoMat S.r.l. is a spin-off of the University of Modena and Reggio Emilia (UNIMORE) aimed at fostering product and process technological innovation. It is dedicated to research. It invents and develops materials with reduced environmental impact mainly (but not only) in the two sectors of ceramics and construction, which combine innovation and circularity. From the recycling and reuse of waste and the use of secondary raw materials, through innovation, the spinoff invents and commercializes new products and processes. Environmental benefits include reducing waste generation, fostering re-use and circularity of materials in sectors with relevant environmental pressures (ceramics and construction), and promoting eco-innovation. Source and Further information: Keywords: Ceramic, Eco-Innovation; Circular Economy; Raw material reduction; Research. 10

16 Revet Recycling and plasmix recycling Plastic recycling is handled in an innovative way that allows for the second use of plastic as if it were a raw material for certain applications. The company that has implemented such eco-innovation is Revet Recycling s.r.l., an Italian manufacturing firm. The innovation is related to the recycling of post consumption packaging mixed plastics (plastimix) and of industrial waste, which are transformed into a plastic granulate. The plastic granulate is then used for several applications and re-products, e.g., for urban fabric, prefabricated or even automotive components. Source picture and further information: Keywords: Plastic; Recycling Re-Use; Plastimix Sorgente Urbana and Case dell Acqua Hera project Hera Group ( the regional Northern Italian multi-utility for gas, water, waste and electricity provision, has launched a project for the urban distribution of water through the installation of public water sources in core urban environments. The environmental impact of this innovation is that of reducing the need for plastic packaging and the production of plastic bottles and their waste. Water is provided both still and sparkling. This innovation, combined with social innovation instruments such as dedicated apps to map public water sources (e.g., can greatly reduce plastic waste. Source and Further information: vita_servizi/business_acqua/canale_ac qua/sorgente_urbana/ Keywords: Water; Plastic packaging reduction Industrial symbiosis. Industrial symbiosis is mentioned as one of the enabling factors for the circular economy in the business model category (EEA, 2016), in which collaboration and cultural challenges are needed to foster eco-innovation actions at a systemic level. This should include different stakeholders, supply chains, expertise, technologies and products. This approach is not only a potential factor in the competitiveness of industrial activities but also a developing asset for the region, in which all resources are exploited locally and not dissipated, delegated or given away to third parties. The IS strategy for sharing resources can be activated among companies 11

17 present within a region (network for IS) and in industrial areas or industrial clusters for the transition to so-called eco-industrial parks, partly represented in Italy by APEAs (Ecologically Equipped Productive Areas). In Italy there are examples of both approaches, starting from the first regional platform of industrial symbiosis in Sicily to implementations in other regions (see the box on good practices) in the middle and north of Italy (ENEA, 2015). IS, made through ICT geo-refereed tools, can also support local development through enhanced recovery of industrial residues produced by many single generation points and valorised in barycentric plants (or new plants). This methodology thus offers economic, environmental and social advantages: job creation, landfill avoidance, resource conservation, cost reduction, and sharing and maintaining resources in local areas. Successful cases of industrial symbiosis in IT: Industrial Symbiosis pilot projects were developed, both with network and ecoindustrial park approaches: - Networking approach: Industrial Symbiosis in Sicily (IT), a project coordinated by ENEA with the collaboration of the main local stakeholders (chamber of commerce, industrial associations, universities). Main results: 90 companies involved, 400 input-output data shared, more than 600 potential synergies; focus for industrial symbiosis pathways on agroindustry, construction and plastics residues; methodology and ICT tool set up ( - Networking approach: Green Economy and Sustainable Development project in Emilia-Romagna region (IT), promoted by ASTER and Unioncamere with coordination of ENEA. Main results: 13 companies involved, 7 research labs cooperating, 90 potential synergies within and outside the network; focus on residues from agroindustry sector (main synergies for energy, bioplastics and nutraceutical substances production). - Industrial Area approach: in the Industrial cluster of RIETI (IT), coordinated by ENEA and with the support of the local consortium for its green development with focus on WEEE, plastics, agrifood, construction residues. Main results: 25 companies involved, more than 140 resources shared, approximately 110 potential matches and 30 technically verified matches. - keywords Industrial symbiosis; WEEE, plastics, agrifood, construction residues. - Contacts: Laura Cutaia, laura.cutaia@enea.it, and Grazia Barberio grazia.barberio@enea.it. Sharing Economy. The sharing economy is a reinvention of traditional market behaviours emphasising collaborative consumption models. Rather than simple consumption, the sharing economy is founded on the principle of maximizing the utility of assets via renting, lending, swapping, bartering and giving facilitated by technology. The sharing economy provides the ability to unlock the untapped social, economic and environmental value of underutilized 12

18 assets 11. The European Parliament 12 has recently estimated the impact of sharing economy, i.e., the yearly per capita expenditure that could be "replaced" with the use of the sharing economy, as ranging from 1,100 euro per year in Bulgaria to 14,600 in Luxembourg and 7,200 in Italy. One of the principal assets comes from the mobility sector 13. Especially in Italy, the average car is parked 88% of the time, and when the car is used, only 1.5 of its 5 seats are occupied. Sharing Economy platforms are growing in Italy and have increased by 22%: from 97 in 2014 to 118 in Users are, in general, very satisfied and ratings are high for respondents categories: accommodation is the highest ranked activity area, followed by transportation and second hand markets, and finally, collaborative lifestyles Barriers to and drivers of the circular economy and eco-innovation in Italy Barriers to eco-innovation and the circular economy in Italy are of different natures: there are structural barriers, such as those related to the economy and technology, as well as barriers related to policy and regulation. The following paragraphs aim to summarize these different facets. Economic barriers. As noted by Markianidou (2014), the availability of risk capital for both the creation and continuation of eco-innovative projects remains scarce. The OECD (2013) outlines two main barriers that contribute to maintaining a low rate of R&D and innovation/ecoinnovation investments: (i) barriers to market entry by new companies, which stem from regulatory burdens and (ii) the Italian industrial structure, which is mainly composed of small and family businesses (SMEs) that have less access to capital and therefore face more challenges in meeting the high cost of research. Technological barriers. As outlined by the OECD (2013), Italy s general innovation capacity is behind that of other European countries. Nevertheless, there has been major development in the area of green technologies related to renewable energy generation and non-fossil energy generation. This has been due to (i) increased pressure from the European Union to achieve environmental goals related to climate change; (ii) the consequent set up of a strong regulatory system to support the increase in renewable energy generation (see also section 4 on policy landscapes); together with (iii) increased public R&D funding for these technologies, mainly directed towards research in the fields of water pollution abatement and waste management 11 World Economic Forum s Young Global Leaders Sharing Economy Working Group: Position paper; Interview with Rachel Botsman, Founder of Collaborative Lab and author, with Roo Rogers, of What s Mine is Yours: How Collaborative Consumption is Changing the Way we Live, HarperBusiness, European Parliament s Directorate-General for Parliamentary Research Services The Cost of Non-Europe in the Sharing Economy: Economic, Social and Legal Challenges and Opportunities, January Ellen MacArthur Foundation Growth Within: a circular economy vision for a competitive Europe, First published June 25, Marta Mainieri Sharing Economy. Mappatura delle piattaforme italiane 2015, Collaboriamo.org, Altroconsumo et al. COLLABORATION OR BUSINESS? Collaborative consumption: from value for users to a society with values. OCU Ediciones SA,

19 technologies. Ghisetti and Rennings (2014) have found that innovations related to the reduction of energy and materials used per unit of output can positively affect firms competitiveness and can therefore be a good strategy from a macroeconomic perspective; this strategy may drive increased productivity among Italian firms, which is necessary if the country is to recover from recession and set the basis for long term growth. Eco-innovation also plays a relevant role in the services sector. Cainelli and Mazzanti (2012) investigated eco-innovation adoption in the manufacturing-related services sector and tested whether environmental policy in the industrial sector is relevant to inducing eco-innovation. They found that for carbon abatement and energy efficiency technologies, drivers of eco-innovation differ greatly and that cooperation, training, environmental management systems (EMSs) and public funding are key determinants of ecoinnovation processes. Human resources and knowledge capital. According to the most recent OECD report on education (2015), 24% of the overall Italian population has completed tertiary education (including both a bachelor s and master s degree), but only 13% of the population aged has attained a master s degree; less than 1% of the population has a PhD. Graduates in science and technology fields account for 14.5% of those with tertiary education. Secondary level education is the most common level of achievement among the Italian population (42%). There is a striking need for strong improvement in the educational sector. In fact, as noted by the OECD in 2013, (i) the number of Italian researchers who are working in the country is lower than OECD standards and (ii) a significant proportion of Italian researchers are attracted by career development opportunities abroad. A second issue is the lack of knowledge exchange between academia and industry, which the government is trying to overcome through programmes such as the National Research Programme (PRIN) or the Projects of Industrial Innovation (PII), proposed by the Industria 2015 strategy. Natural capital. According to the OECD 16, Italy has improved the management of its natural resources and energy consumption. From the perspective of raw materials, Italy has an abundance of non-metallic mineral metals, which used for the production of glass and ceramic. However, it is an importer of energy resources. According to ISPRA (2012), Italy s imports are on average 2.3 times higher than its exports, and its dependence on foreign countries for raw materials makes Italy, like most European countries, a net importer of material resources. A major problem is land scarcity: according to ISPRA (2015), as a result of several unsustainable decisions, land consumption is progressing and continues to generate an irreversible loss of valuable environmental resources and ecosystem functions, generating instability and erosion together with contamination and desertification, which negatively affect the transformation and beauty of Italian territory. Finally, concerning water, there are inefficiencies in Italy s water procurement networks and problems with water pollution, 17 although drinking water quality is perceived as generally good (OECD 2011). Progress is being made in reducing internal and coastal water pollution thanks to the adoption of EU directives 2000/60/EC (Water Framework Directive) and 2008/56/EC (Marine Strategy Framework Directive) Pollutants in rivers, lakes and coastal waters are mainly composed of faecal pollutants, toxic and harmful inorganic substances, natural non-organic substances, and oils and emulsifiers derived from household activities, as well as by metals, phosphates and polyphosphates from industrial activities (ISPRA 2012) 14

20 Organisational aspects of firms. Research related to the implementation of new management practices by firms, such as in Antonioli et al (2013), can provide a new understanding of the effects of firms organisational changes on EI adoption. Specifically, Antonioli et al. study whether environmental strategies and human resources training are integrated with the goal of fostering eco-innovation adoption. Although they examine one of the most competitive and densely industrialized regions of Italy (Emilia Romagna), they do not find evidence of complementarity between these strategies. A possible explanation, the authors conclude, is that green strategies are not yet fully embedded within the firms organisational strategies. Regulatory and policy framework. Policies have been relevant to both renewables and energy efficiency, with generous incentives provided to the electricity sector. Section 4, on policy landscapes, will discuss these areas in greater detail. Cainelli et al., (2015), studying incentives to adopt waste-related innovation in the manufacturing sector, found that regional factors related to both waste management and policy are relevant to the adoption of eco-innovation. Moreover, they show that better regional separated waste collection and stricter waste policy can positively influence the likelihood of adopting eco-innovation. Borghesi et al., (2013), who investigated the role of the EU-ETS on the Italian manufacturing sector, found that although ETS sectors are more innovative, the increasing stringency of sector-specific policy can be counter productive, mainly because of sector-specific factors as well as anticipatory behaviour from forward-thinking innovative firms. 4 Policy landscape: towards a circular economy in Italy The latest developments related to eco-innovation policy measures, funding schemes and policy targets can be summarised as follows, with a specific emphasis on the recent development of circular economy policies at the regional and national levels. The main reference is the bill 'Collegato ambientale', which entered into force on February 4th 2016 (Bill 28 December ). It contains a national plan for sustainable consumption and production as well as many new policies and funding schemes for waste, resources and circular economy targets. A key unexploited option in recent years was the 'delega fiscale' (fiscal bill) that was approved on 24 February 2014 ( Delegation to the government for defining a fairer, more transparent and growth-oriented fiscal system ). Article 15 mentioned, for the first time, environmental fiscal issues that could be implemented along various lines. We recall that in 2011, EEA estimated a revenue potential of approximately 30 Billion (compared to the current 1 Billion). The deadline passed in May 2015 with no fiscal implementation. Energy efficiency in buildings. The energy efficiency tax rebates, which cost approximately 12 billion in tax revenues, have been re-implemented in the 2016 financial bill. These funding schemes represent a substantial lever on increases in energy efficiency, serving to incentivise the best available technologies. For a more integrated and coherent energy policy, subsidies and incentives might be correlated in the future with environmental taxation revenues within ecological tax reforms. A stronger taxation on externalities, along with the removal of environmentally harmful subsidies, could be combined with innovation and energy efficiency tax rebates. The revenue that Italy will increasingly derive from ETS auctions could also be a source 15

21 of funding to sustain innovation adoption incentives. Support for R&D is also relevant. One potential risk would be to fund the downstream adoption of technologies and not R&D and patents. The patenting and export figures in some technology areas seem to suggest that this is happening (e.g., renewable energy). Support for eco-innovation and organizational innovations: EMS, ISO and Ecolabel. Organizational innovations have been shown to correlate with technological innovations and to complement the achievement of enhanced environmental and economic performances. Article 17 of Bill 28 December states that EMS, ISO 14001, Ecolabel and ISO50001 all add value to funding applications in relation to environmental themes in competitions for public funds. Articles 18 and 19 employ the future definition of minimum efficiency criteria in competitions for public funds for subcontracting and service outsourcing. Together, Articles address and sustain Green Public procurement strategies that have already been introduced in recent years. Assessment and communication of the ecological footprint. To sustain the competitiveness of the Italian economy in light of the increasing demand for green products, a national voluntary scheme for the assessment and communication of the country s ecological footprint has been established (Article 21 of Bill 28 December ). It refers to EU recommendation 2013/179/UE of the EC. It is defined as 'made green in Italy'. The specific technical measures and rules of this scheme should be defined by the Ministry of the Environment within 3 months since February Consumption of reused and recycled products. Voluntary agreements and incentives to support the consumption of products made from waste (post consumption materials), recovered materials, and parts of dismantled products have been established (Article 23 of Bill 28 December ). The Ministry of Economic development can set agreements with public bodies, economic associations, private firms, etc. and provide financial incentives to support business activities that produce goods made from reused and recycled materials and dismantled materials. Incentives are provided to commercial activities that sell recycled products defined under these rules: UNI EN 13242: 2013, UNI EN 12620:2013, and UNI :2013. Funding resources for the (fiscal) incentives are defined, as are the recycling standards under which the funding is provided. Measures to increase separated collection and recycling. Article 32 of Bill 28 December introduces a top-down increase of 20% in the local landfill tax for those municipalities that do not comply with national targets for the separated collection of waste. This measure is interesting because it oversees and intervenes in the centre-periphery scheme. Resource and waste policies are implemented at regional, provincial and municipal levels under national umbrellas. This flexible framework has generated leaders and laggards. The norm is to try to correct the situation by intervening from the top down. It is also worth noting that the Italian landfill tax generated 139 million of revenue in 2014, compared to 315 million in This decrease is due to landfill diversion trends and also to a weak increase of the nominal tax rate in most regions. Article 36-7 of Bill 28 December addresses support for composting by households and other activities, using schemes that decrease the waste tariff. This scheme reconfirms support (also present in the previous legal framework) for composting as a form of waste management. Some regions of Italy (e.g., Veneto) are leaders in the EU in terms of their shares of composted waste. 16

22 It is interesting to note that article 26 of the Treasury s 2016 Financial Bill, which prevents local authorities from increasing local taxes (to achieve the national aim of limiting tax burdens), is not applied to waste tariffs/taxes (TARI). Those may be increased at the local level to complement landfill taxes on the management side; this is designed to support the achievement of enhanced waste management schemes and new waste prevention programmes. Waste management on small islands. Article 33 of Bill 28 December introduces the possibility of charging a maximum 2.5 fee to tourists to address the increased waste pressures caused by tourists and to finance environmental recovery projects. Removal of environmentally harmful subsidies. Article 68 of Bill 28 December In line with EU objectives for Europe 2020, and with OECD recommendations regarding countrylevel environmental performance, the 2013 report on Italy established a new committee within the Ministry of the Environment that has the support of all research institutions and relevant ministries and agencies. Every year by June 30, the list of subsidies is updated. A report is sent by July of each year to the Parliament and the government. Efficiency, energy and private/public transport. 5 million are devoted to facilitating the transition from 'euro1-3' vehicles to at least euro5 vehicles. (art Financial Bill by the Treasury). Tax rebates for diesel fuel used by trucks are cancelled for vehicles below euro3 classes. The tax resources are used to fund the following with 160 Million from : (max 15%) new trucks used for transporting goods; railways and maritime transport interconnections, with the aim of reducing transport through roads; (min 85%) local public transport. Art. 5 of Bill 28 December addresses sustainable mobility. It introduces an experimental national programme of national sustainable mobility (home-school, home-work) in cities with more than 100,000 inhabitants. Renewable energy. The biomass, biogas, and sustainable bioliquids industries (Art. 1, paragraphs of the Financial law), who have ceased to benefit from the incentives on energy produced by January 1, 2016 and will cease by December 31, 2016, can benefit from the right to use up to 31 December 2020 an incentive on energy produced. The incentive is 80% of that granted to new plants and of equal power as that of DM 6 July White certificates. These are a cross-sectoral policy aimed at promoting energy efficiency and delivering emissions reductions across all energy end-use sectors. First introduced in 2001 and substituted by new decrees in 2004, the system required electricity and gas distributors to achieve a primary energy saving target (2.9 Mtoe) by This system has been extended to Gas and electricity distributors get their own target according to their national market share, and their annual energy saving target is achieved through the implementation of energy saving projects. Target-bound distributors can obtain their own certificates or buy them in the market (certificates can be traded bilaterally or through an organized market). 1cert=1toes. D.lgs.102 / 2014, which transposes Directive 2012/27/EU in the domestic law, has redefined the minimum cumulative savings target (25.5 Mtoe of final energy) to be achieved in the period, stipulating that the mechanism of white certificates needs to ensure the achievement of 60% of the target. Kyoto fund. The Financial Law of 2007 introduced the so-called Kyoto Fund, of approximately 600 M. This was meant to fund (innovation) projects to abate GHG in response to the Italian Kyoto targets. Financing is subject to an interest rate of 0.5% 17

23 The fund is managed by the Ministry of the Environment with the support of the Cassa Depositi e Prestiti (Italian national promotional Institution that has supported the economy since the 1850s, largely managing postal savings; In 2012 it was focused on renewable energy projects (200 million Euro), in 2013 on projects that favour 'youth employment in the green economy' (460 M funds), and in 2015, funding was dedicated to the implementation of measures to improve energy efficiency in public schools (the interest rate was reduced to 0.25%). Natural capital committee. Art. 67 of Bill 28 December establishes a Committee, on the premises of the Ministry of the Environment, that oversees the widespread involvement of the academic and research communities as well local government bodies. It mainly promotes the adoption of environmental accounting systems by local governments to inform and increase the efficiency and effectiveness of policies. Payment for Ecosystem Services. Art. 70 of Bill 28 December paves the way for Government decrees that should introduce schemes for 'payment for ecosystem and environmental services' (PSEA), on the principle that those payments are rewards for the value generated by ecosystem services marketability, through licensing the management of the economic functions provided by the stock of natural capital. Measures to sustain the Circular economy, Waste prevention, reuse of end of life goods, separated collection - Regional Bill 16/ Emilia Romagna region Emilia Romagna is one of the first and leading regions to approve a Regional Plan that incorporates the notion of the circular economy (1386/2013/EU). The plan is innovative and relevant given the economic weight of the region, which accounts for 4.5 million residents and more than 10% of Italian GDP. In addition, Italy s decentralized, regionally based system is dependent on good practices and policies developed by key regions. Environmental targets. The Bill promotes recycling and waste prevention in an integrated manner. The main targets to be achieved by 2020 are: (a) an increase in separated collection to 73%, (b) a 25% reduction in waste produced on a per capita basis. The target is higher than that proposed by Italy in 2013 following the 2008 Waste Framework Directive. It is implemented through incentives for virtuous municipalities that reduce urban waste per capita; (c) 70% recycling of material flows. Economic Incentives. (a) Introduction of polluter pays principle waste tariffs based on the produced quantity and door-to-door systems; (b) Incentives for virtuous municipalities and firms that properly manage waste. The economic programme is a complement to educational and informational activities, which are provided, among others, by centres for sustainability education; (c) a new Fund for waste prevention is created and fuelled by components of waste tariffs and landfill taxes, which vary between 9 and 25 per tonne across 825 different waste streams for hazardous materials). The fund is aimed (until 2019) at reducing waste tariffs in municipalities that produce waste per capita lower than the regional average, and at funding door-to-door projects. 18

24 Emilia Romagna (in Northeast Italy) is the leading region and the first to present a CE package bill well before the Presentation of the EC Document in December In early 2016, the overall picture regarding CE Regional bills, packages or actions in Italy is the following. A typical North-South divide emerges, with heterogeneity depending on the very decentralized implementation of policies for waste and natural resources. In the Northwest of Italy, we are witnessing the revision of the waste management plan by Piedmont 18. Though no specific reference is made to CE strategies, emphasis is placed on waste prevention, recovery and recycling. The autonomous Region Valle D'Aosta does not present relevant policies. In Liguria, the Genova municipality and the industrial association are promoting the permanent framework on the CE, with the support of the Region 19. The region also approved a waste strategy in 2015, which includes waste reduction targets (-12% by 2020) and recovery (50% by 2016 and 65% by 2020). Lombardy has not produced specific bills with reference to the CE so far; nevertheless, a waste strategy package was passed in June 2014 that includes: waste production-related tariffs for at least 20% of municipalities by 2020; 80% separated collection of waste by 2020; material recovery of at least 65% and energy recovery of 80% by As far as the Northeast of Italy is concerned, it is worth noting that in December 2015 Veneto approved an action plan for the implementation of Green Public Procurement for the period to promote the introduction of environmental and social criteria in public expenditures 20. The region Friuli Venezia Giulia approved, in March 2016, the EU CE priority as part of its future regional policies, although no bill has been produced so far. Trentino Alto Adige has no relevant bills or actions at the moment. Regarding the Central regions, the Marche Region, similar to Friuli Venezia Giulia, has not passed specific CE related bills. The region mentioned CE in a February 2016 resolution, in which it supported EU CE actions and will include strategies in future years 21. Umbria has not presented relevant bills or actions either 22. Tuscany, however, does present relevant actions. On November 18, 2014, Tuscany approved a new plan for waste and contaminated sites, which includes CE within its primary aims. The main goals are: waste reduction targets in per capita terms, 70% waste separated collection, material recovery of at least 60%, increase energy recovery from 13 to 20%, and reduce landfills to 10% of urban waste from the current 42% 23. Finally, Lazio is only showing some signs of action 24. In the South and Islands, Abruzzo has declared its intention to move towards CE plans, even though no formal bills have been passed and the waste 2020 plan has not been approved. The nearby Molise region approved, in December 2015, a waste management plan that includes a target of 50% separated collection by 2020, citing CE actions 25. Campania is discussing a new

25 waste management plan in the regional council 26, while Basilicata is going to approve a waste management plan by The last approved waste plan in Puglia was in It contained some references to the recovery of urban waste, mentioning a target of 50% by 2020 in terms of weight. At the moment, Calabria, Sardinia and Sicily do not seem to be taking any relevant actions towards CE related targets. Industrial symbiosis in Italian policy and regulations Interest in industrial symbiosis is growing in Italy and several projects have recently been developed. Furthermore, industrial symbiosis has been included as a strategy in several local programming tools. For example, in the waste management plan of the Emilia Romagna region, industrial symbiosis is identified as an opportunity to achieve the goals of preventing waste production, enhancing the regional production system and valuing critical fractions of waste by means of short chain re-use. In 2014 the Cartesio Network wrote the "Charter for Development of Ecologically Equipped Productive Areas in Italy", signed by the Emilia Romagna, Liguria, Marche, Piemonte, Sardinia and Tuscany Regions. The document promotes, among other things, "environmental improvement in the production areas, encouraging [...] solutions of industrial symbiosis, environmental management and resource re-use. In July 2015, the Lazio Region approved the "APEAs Guidelines" for the development of Ecologically Equipped Productive Areas in Lazio that include, among other requirements of APEAs, the use of industrial symbiosis between the member companies. In the same year, the "New Energy Plan for Lazio, Energy Saving and Efficiency" identified industrial symbiosis as an instrument of change in its development model, closely related to the objectives of economic and employment development through the decoupling of consumption and GDP. The Friuli Venezia Giulia Region, in the policy framework to support the development of sectors regulated by the regional law 20 February 2015 n. 3, included industrial symbiosis projects among its eligible activities. More information on: keywords: Framework, guideline, policy, waste management plan

26 References Antonioli, D., Mancinelli, S., & Mazzanti, M. (2013). Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies. Research Policy, 42(4), Borghesi, S., Cainelli, G., & Mazzanti, M. (2015). Linking emission trading to environmental innovation: evidence from the Italian manufacturing industry. Research Policy, 44(3), Cainelli, G., & Mazzanti, M. (2013). Environmental innovations in services: Manufacturing services integration and policy transmissions. Research Policy, 42(9), Cainelli, G., D Amato, A., & Mazzanti, M. (2015). Adoption of waste-reducing technology in manufacturing: Regional factors and policy issues. Resource and Energy Economics, 39, ENEA (2015). Rapporto Annuale Efficienza Energetica Fondazione per lo Sviluppo Sostenibile (2015). L Italia del Riciclo 2015, Fondazione per lo Sviluppo Sostenibile and FISE UNIRE Unione Nazionale Imprese Recupero, Rome. Frankfurt School-Unep Centre/Bnef (2015). Global Trends in Renewable Energy Investment Ghisetti, C., & Rennings, K. (2014). Environmental innovations and profitability: How does it pay to be green? An empirical analysis on the German Innovation survey. Journal of Cleaner production, 75, Gilli, M., Mazzanti, M., & Nicolli, F. (2013). Sustainability and competitiveness in evolutionary perspectives: Environmental innovations, structural change and economic dynamics in the EU. The Journal of Socio-Economics, 45, ISPRA (2013). Annuario in cifre Annuario dei dati ambientali, Rapporto numero 41/2013. ISPRA (2015). Il consumo di suolo in Italia, Rapporto numero 218/2015. Markianidou, P. (2014). Eco-Innovation Observatory - Country Profile 2014: Italy, Available at: Mazzanti, M., & Montini, A. (2014). Waste management beyond the Italian north south divide: spatial analyses of geographical, economic and institutional dimensions. Handbook on Waste Management, 256. OECD (2011). Greening household behaviour. The role of public policy htm OECD (2013) Italy, environment improving but more effort needed, OECD (2015) education at a glance Management/oecd/education/education-at-a-glance-2015_eag-2015-en#page1 OECD, (2013) OECD Environmental Performance reviews: Italy 2013, 21

27 Osservatorio Innovazione e Tecnologia per la Green Economy (2015). Tecnologia e Innovazione nella Green Economy Italiana Rapporto 2015, Rome. Ronchi, E. 2015, Relazione sullo stato della green economy in Italia (2015). Rome. available here _economy_in_italia.pdf 22

28 ANNEX: Policy measures addressing the circular economy and ecoinnovations in Italy GROUP OF POLICY MEASURES TYPE OF POLICY MEASURE SPECIFIC MEASURE (national, regional) Please provide reference to or brief summary of specific measures add cells if necessary Circular econom y Generic focus on ecoinnovati on FOCUS OF POLICY MEASURE Resource efficiency improvem ent Energy efficiency improvem ent Reducti on of emissio ns incl. CO2 Other relevant areas (e.g., renewa ble energy, etc.) Equity/busin ess support Venture capital funds - Regional Funds exist that invest in eco-innovation or related projects/companies (e.g., Toscana Innovazione) - The China Development Bank Securities has chosen the Italian research facility Nomisma to consult on investments in Europe. Among other investments, the "Made in Italy" sectors with brands, process innovation and technology are supposed to be the primary targets in Italy. Eco-innovation is not an explicit target, but might benefit from similar financing. - Italian mini bonds for SMEs (bonds can present Green features) X X X X SUPPLY SIDE FOCUS Public guarantee funds - Public fund funded by the Italian Ministry of Economic Development ( ) are managed through Mediocredito Centrale ( - The Ministry for Economic Development has granted new funds to a public guarantee fund with a focus on innovation and renewable energy in SMEs, especially in southern Italy. - Additionally, regional agencies manage regional guarantee funds, e.g., Agency Veneto Sviluppo has made available funds granted by the Veneto region for a guarantee fund available to industry. This fund is generic and has no explicit focus on eco-innovation. - The Financial bill of 2007 introduced the so-called Kyoto Fund, of approximately 600 M. This was meant to fund (innovation) projects to abate GHGs in response to Italian Kyoto targets. The fund is managed by the Ministry of the Environment with the support of the Cassa Depositi e Prestiti (Italian national promotional Institution that has supported the economy since the 1850s, largely managing postal savings; In 2012 it was targeted at projects on renewable energy (200 million Euro), in 2013 at projects that favoured 'youth employment in the green economy' (460 M funds) and in 2015, funding was dedicated to the implementation of measures to improve energy efficiency in public schools (the interest rate was X X 23

29 Support for R&D in public sector and industry reduced to 0.25%). - EEEF fund managed by Cassa depositi e prestiti, which is funded by the EC and EIB, among others. It funds local authorities, utilities, public transport operators, and ESCOs. It amounts to 800 M. R&D funding - Private and public R&D is mainly funded by Regional funds (e.g.., POR FESR that support industrial research and experimental development of SMEs) Collaborative grants - X 4.1 No information available on relevance to eco-innovation X R&D infrastructure - No information obtained No information available on relevance to eco-innovation Fiscal measures Tax incentives for R&D and start-ups - energy efficiency-related tax incentives (dl 201/2011) - new feed in premium for renewable energy sources other than solar PV (DM July 2012) (generic for all business purposes) X Tax incentives for R&D personnel - -This measure is generic and has no explicit focus on eco-innovation: Lavoro/2010/manovra_correttiva/GL_24_2010_Annicchiarico_Costa.pdf Education, training and mobility Tailored training courses for companies, entrepreneurs - No measures with explicit focus on eco-innovation were identified Advise/consult ing for start ups, companies, entrepreneurs - support start ups: Lombardia, Innovation Hubs, e.g., InnovHub Milano (Chamber of Commerce Milano) No information available on relevance to eco-innovation Placement schemes for students - Spinoffs: e.g., spinoff Politecnico, funded by fund Mecenati No measures with explicit focus on eco-innovation were identified, however, these reasonably apply to eco-innovation X Support for recruitment of R&D workers Incentives for R&D workers to return to Italy (special funds dedicated by the Ministry of education and Research every year) No information available on relevance to eco-innovation 24

30 Networks and partnerships Competence centres, clusters, sciencetechnology parks - Environmental Parks (e.g., Brescia - Turin - Environmental Parks) X X X Technology platforms and innovation networks Foresight and common vision building - Technology parks (Trieste Area Science Park, Kilometro Rosso 220&Itemid=182&lang=it) - The regional agency for applied research, innovation and tech transfer (no explicit focus on eco-innovation) - APSTI Associazione Parchi Scientifici e Tecnologici Italiani, the national network of scientific and technological parks (PSTs); the majority of PSTs are members of APSTI (31 associates); a number of PSTs have areas that are focused on eco-innovation No information available X No information available on relevance to eco-innovation Market intelligence and other forms of information sharing - Database Ecosmes (ENEA) X X X X Regulations and standards Regulations, targets, cap & trade schemes - Stringent national regulations with regard to environmental topics (air emission, waste water discharge, soil protection, hazardous substances, etc.) - Collegato Ambiente L.221/2015 contains several measures for resource efficiency, eco-innovation and the circular economy X X X X X DEMAND SIDE FOCUS - Environmental Action Strategy for Sustainable Development (EASSD-2002 (currently under review): - EASSD s four broad priority themes: Climate Change and stratospheric ozone; Protection and sustainable valorisation of Nature and Biodiversity; Quality of the environment and quality of life in urban areas; Exploitation of resources and waste generation. Priorities addressed in this last section are the use of natural resources, production-consumption cycles, water resources and waste. - Common EU target: Italy has to reach a renewable energy quota of 17% by Italian National Energy Efficiency Action Plan (2007) - approximately 9.6% energy savings target by white certificates (DM July 2004), certify the reduction of energy consumption achieved by energy efficiency investments - -energy performance certificates for buildings (decree 59/2009) conditions to 25

31 improve energy efficiency of new and renovated buildings Performance standards, labelling, certification Italian municipalities, i.e., almost 9% of the total number, have adopted criteria related to environmental sustainability in their town planning instruments, e.g., energy efficiency. - Incentives for environmental certification of SMEs (Decree SVS/03/2230), e.g., EMAS - Article 17 of Bill 28 December states that EMS, ISO 14001, Ecolabel and ISO50001 add value to submissions for funding in relation to environmental themes in public competitive tenders. Art set GPP standards and criteria. X X Public procurement Green public procurement of goods and services - "minimum environmental criteria" for: paper, fertilizers - "minimum environmental criteria" for: textile products, office furniture, public lighting systems; per opportuna consultazione è disponibile la di accompagnamento legislative decree n. 24, 2011, implementing EU directive 2009/33/CE, introduces the requirement to verify energy efficiency, environmental impact, and CO2 emissions during the entire life cycle. - Article 17 of Bill 28 December states that EMS, ISO 14001, Ecolabel and ISO50001 add value to submissions for funding in relation to environmental themes in public competitive tenders. Art set GPP standards and criteria - a national voluntary scheme for the assessment and communication of the ecological footprint is set (Article 21 of Bill 28 December It refers to EU recommendation 2013/179/UE of the EC. It is defined as 'made green in Italy' - "minimum environmental criteria" for purchasing - ForumCompraVerde.it 4.2 X 4.3 X 4.4 X 4.5 X X R&D procurement - ETAP (Environmental Technologies Action Plan) - CIP Eco-innovation - In May 2010 the Ministry of Economic Development, together with IPI (Institute for Industrial Promotion), recognised the opportunity to launch R&D procurement and anticipated pilot projects with a focus on environment. - Regional procurement for research and development projects X X X X Precommercial procurement - A framework is being prepared to launch tests for PCP. Technology Transfer Advisory support for technology adopters - COTEC Foundation - RIDITT - Italian grid for dissemination of Innovation and Technology transfer among firms, promoted by the Ministry of Economic Development and managed through (Institute for Industrial Promotion) (generic for all business purposes) X Financial or fiscal support for technology adopters - FESR - Projects Remake (region Lombardy) and Search and Develop IV, together with Innovhub, co-finance measures on energy efficiency and waste reduction X X X (e.g., grants for purchasing new 26

32 technology) Support of private demand Tax incentives for consumers (e.g., for purchasing environmental ly efficient products) - 55% tax reduction, presently confirmed but with potential diminished percentages over the next years; private organisms (e.g., environmental association legambiente, GAS) are using group purchasing schemes to obtain better economic conditions; Fourth Italian feed-in tariff for PV is confirmed, though with decreased contribution over time, between 2011 and 2016; Green certificates; White certificates; between March and April 2011 national incentives for installation of GPL/methane-based motors in private vehicles (funds exhausted in April 2011) - The incentives for plants that produce electricity through the use of biomass, biogas and liquids are maintained although reduced X X X X Tax reductions for products and services (e.g., VAT reductions) - Contribution for purchase of "greener" cars. - Property tax reduction for new cars with low emissions in a number of municipalities - Art Financial Bill by the Treasury is devoted to sustaining the transition from 'euro1-3' vehicles to at least euro5 vehicles. Tax rebates for diesel fuel used by trucks are cancelled below euro3 classes. The tax resources are used to fund (with 160 Million over ): (max 15%) new trucks used for transporting goods; railways and maritime transport interconnections, with the aim of reducing transport by roads; (min 85%) local public transport. - Voluntary agreements and incentives for supporting the consumption of products deriving from waste (post consumption materials), recovered materials, and parts of dismantled products (Article 23 of Bill 28 December ). The Ministry of Economic Development can set agreements with public bodies, economic associations, private firms, etc. and provide financial incentives X X X X X Demand subsidies (e.g., eco-vouchers, consumer subsidies) - Vouchers for research and innovation and financial contributions for patenting Awareness raising and information provision - Forum Compra Verde ( one of the main online actors with regard to GPP and private public procurement. - EcoSMEs is the main result of the project, a European project that has involved 45 experts from the United Kingdom, Germany, Italy, Spain and Greece who have combined their knowledge of IPP and Information & Communication Technologies, Management & Marketing and Training - COTEC Foundation X X X X 27

33 About the Eco-Innovation Observatory (EIO) The Eco-Innovation Observatory (EIO) is the initiative financed by the European Commission s Directorate-General for the Environment. The Observatory is developing an integrated information source and a series of analyses of eco-innovation trends and markets, targeting businesses, innovation service providers, and policy makers as well as researchers and analysts. Visit EIO and DG ENV Eco-innovation Action Plan (EcoAP) website and register to get access to more information and to access all EIO reports, briefs and databases. ec.europa.eu/environment/ecoap