COMMISSION STAFF WORKING DOCUMENT The EU Environmental Implementation Review Country Report - ITALY Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions The EU Environmental Implementation Review: Common Challenges and how to combine efforts to deliver better results - Hoofdinhoud

Council of the European Union

Brussels, 6 February 2017 (OR. en)

5967/17 ADD 16

ENV 103 ECOFIN 70 SOC 68 COMPET 74 POLGEN 9 CONSOM 37

COVER NOTE

From: Secretary-General of the European Commission, signed by Mr Jordi AYET PUIGARNAU, Director

date of receipt: 6 February 2017

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of the European Union

No. Cion doc.: SWD(2017) 47 final

Subject: COMMISSION STAFF WORKING DOCUMENT

The EU Environmental Implementation Review

Country Report - ITALY

Accompanying the document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

The EU Environmental Implementation Review: Common Challenges and

how to combine efforts to deliver better results

Delegations will find attached document SWD(2017) 47 final.

Encl.: SWD(2017) 47 final

EUROPEAN COMMISSION

Brussels, 3.2.2017 SWD(2017) 47 final

COMMISSION STAFF WORKING DOCUMENT

The EU Environmental Implementation Review

Country Report - ITALY

Accompanying the document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

The EU Environmental Implementation Review: Common Challenges and how to

combine efforts to deliver better results

{COM(2017) 63 final i}

{SWD(2017) 33 - 46 final}

{SWD(2017) 48 - 60 final}

Italy 2

This report has been written by the staff of the Directorate-General for Environment, European

Commission. Any comments are welcome to the following e-mail address: ENV-EIR@ec.europa.eu

Italy 3

More information on the European Union is available on the internet ( http://europa.eu ).

Photographs: p.13 – ©gehringj/iStock, p.20 – ©Peeter Viisimaa/iStock, p.22 – ©hraska/iStock, p.28

– ©onairda/iStock

For reproduction or use of these photos, permission must be sought directly from the copyright holder.

©European Union, 2017

Reproduction is authorised provided the source is acknowledged.

Table of Content

EXECUTIVE SUMMARY .................................................................................................................................... 4

PART I: THEMATIC AREAS ................................................................................................................................ 5

• 1. 

  TURNING THE EU INTO A CIRCULAR, RESOURCE-EFFICIENT, GREEN AND COMPETITIVE LOW-

  CARBON ECONOMY ............................................................................................................................... 5

  Developing a circular economy and improving resource efficiency ...................................................... 5

  Waste management .............................................................................................................................. 8

• 2. 

  PROTECTING, CONSERVING AND ENHANCING NATURAL CAPITAL ..................................................... 11

  Nature and Biodiversity ....................................................................................................................... 11

  Estimating Natural Capital ................................................................................................................... 13

  Green infrastructure ............................................................................................................................ 13

  Soil protection ..................................................................................................................................... 13

  Marine protection ............................................................................................................................... 15

• 3. 

  ENSURING CITIZENS' HEALTH AND QUALITY OF LIFE .......................................................................... 16

  Air quality ............................................................................................................................................ 16

  Noise ................................................................................................................................................. 17

  Water quality and management ......................................................................................................... 17

  Enhancing the sustainability of cities .................................................................................................. 21

  International agreements .................................................................................................................... 23

PART II: ENABLING FRAMEWORK: IMPLEMENTATION TOOLS ...................................................................... 24

• 4. 

  MARKET BASED INSTRUMENTS AND INVESTMENTS ........................................................................... 24

  Green taxation and environmentally harmful subsidies ..................................................................... 24

  Green Public Procurement .................................................................................................................. 25

  Investments: the contribution of EU funds ......................................................................................... 25

• 5. 

  EFFECTIVE GOVERNANCE AND KNOWLEDGE ...................................................................................... 28

  Effective governance within central, regional and local government ................................................. 28

Italy 4

Compliance assurance ......................................................................................................................... 31

Public participation and access to justice ............................................................................................ 32

Access to Information, knowledge and evidence ................................................................................ 33

Italy 4

Executive summary

About the Environmental Implementation Review pioneering voluntary agreements, and has one of the

In May 2016, the Commission launched the highest levels of EMAS and Eco-labels in the EU. The

Environmental Implementation Review (EIR), a two-year adoption of the Collegato Ambientale was a major step cycle of analysis, dialogue and collaboration to improve forward towards environmental integration.

the implementation of existing EU environmental policy Main Challenges

and legislation 1 . As a first step, the Commission drafted

28 reports describing the main challenges and The main challenges with regard to implementation of EU opportunities on environmental implementation for each environmental policy and law in Italy are to:

Member State. These reports are meant to stimulate a  Improve waste management and water positive debate both on shared environmental challenges infrastructure, including waste water treatment, for the EU, as well as on the most effective ways to which are persistent concerns particularly in address the key implementation gaps. The reports rely on southern Italy. the detailed sectoral implementation reports collected or  Improve management of land use, flooding and air issued by the Commission under specific environmental pollution in the centre and northern regions. legislation as well as the 2015 State of the Environment  Designate remaining SACs. Improving the Report and other reports by the European Environment conservation status of habitats and species of EU Agency. These reports will not replace the specific interest by fully implementing the Natura 2000 instruments to ensure compliance with EU legal instruments, using the regional Prioritised Action obligations. Frameworks to ensure a better integration of EU

The reports will broadly follow the outline of the 7th funds and a more strategic planning of investments.

Environmental Action Programme 2 and refer to the 2030

Agenda for Sustainable development and related Main Opportunities

Sustainable Development Goals (SDGs) 3 to the extent to

which they reflect the existing obligations and policy Italy could perform better on topics where there is

objectives of EU environmental law 4 . already a good knowledge base and good practices. This applies in particular to:

The main challenges have been selected by taking into  Use the opportunities for EIB loans and

account factors such as the importance or the gravity of

the environmental implementation issue in the light of environmental investment with the ESIF support and the impact on the quality of life of the citizens, the the EFSI. ESIF support can increase the quality and

distance to target, and financial implications. efficiency of public administration to develop a better model of environmental governance.

The reports accompany the Communication "The EU  Use the proposed Green Act and the Committee on

Environmental Implementation Review 2016: Common Environmental Taxation to make wide-ranging challenges and how to combine efforts to deliver better proposals.

results", which identifies challenges that are common to  Use the Integrated Project “GESTIRE 2020” [to

several Member States, provides preliminary conclusions update the Lombardy Natura 2000Prioritised Action on possible root causes of implementation gaps and Framework] as an example for other Italian regions.

proposes joint actions to deliver better results. It also

groups in its Annex the actions proposed in each country Points of Excellence

report to improve implementation at national level. Where Italy has developed innovative approaches they

General profile could be shared with other countries. Good examples are:

Environmental implementation represents a challenge in  Integrated environmental assessments & the user

Italy with high regional variations in water and waste friendliness of the webportal of the Ministry of management. With regard to resource efficiency, Italy is Environment on EIA & SEA.

 Regional Administrative Reinforcement Plans

1 Communication "Delivering the benefits of EU environmental policies covering ESIF and national funds through a regular Environmental Implementation Review"  The Committee on Environmental Accounting

( COM/2016/ 316 final ). established by the Collegato Ambientale.

2 Decision No. 1386/2013/EU of 20 November 2013 on a General Union  Innovative approaches developed by LIFE projects.

Environmental Action Programme to 2020 " Living well, within the

limits of our planet ".  The BES (Benessere equo e sostenibile

5 ) indicators.

3 United Nations, 2015. The Sustainable Development Goals

Italy 5

Part I: Thematic Areas

• 1. 

  Turning the EU into a circular, resource-efficient, green and

  competitive low-carbon economy

Developing a circular economy and improving Industria 4.0 10 . The Collegato Ambientale adopted

resource efficiency 28.12.15 foresees the adoption of a national plan on sustainable consumption and production within one

The 2015 Circular Economy Package emphasizes the need year 11 . There is a National Plan on Food Waste since

to move towards a lifecycle-driven ‘circular’ economy, 2014, and a law to encourage the donation and with a cascading use of resources and residual waste that distribution of food products and reduce waste has been is close to zero. This can be facilitated by the recently adopted 12 .

development of, and access to, innovative financial

instruments and funding for eco-innovation. In Milan there is a high-level of separate collection of food waste (93 kg/inhab/yr) 13 recognised worldwide as a

SDG 8 invites countries to promote sustained, inclusive best practice in a city with over 1 million population. This and sustainable economic growth, full and productive has had a 'domino effect' in encouraging take up of employment and decent work for all. SDG 9 highlights collection of food waste in surrounding municipalities.

the need to build resilient infrastructure, promote

inclusive and sustainable industrialization and foster A local initiative of circular economy is how industrial innovation. SDG 12 encourages countries to achieve the waste from is being used in the Val di Cornia in Tuscany sustainable management and efficient use of natural (the Rimateria initiative

14

).

resources by 2030. Figure 1: Resource productivity 2003-15 15

Measures towards the circular economy

Transforming our economies from linear to circular offers an opportunity to reinvent them and make them more sustainable and competitive. This will stimulate investments and bring both short and long-term benefits

for the economy, environment and citizens alike 6 .

In terms of resource productivity 7 (how efficiently the

economy uses material resources to produce wealth),

Italy is performing better than average in the EU, with

3.04 EUR/kg (EU average is 2) in 2015. 8 Figure 1 shows

that Italy has had a small but steady increase of resource productivity since 2005.

Overall, 385,570 Italian companies invest in the green

As yet there is no national policy for programming for a economy and around 26.5% of Italian businesses can be circular economy. Nevertheless, the planned Green Act considered green. The Green businesses' rate of (mentioned in the 2015 and 2016 National Reform innovation is double that of other businesses (22.2% Programmes) should facilitate the transition to a more against 11.4%). Similarly, with regard to exports, green circular and resource efficient economy. Efforts are businesses export almost double that of other

starting-up to promote circular economy at the regional

level 9 .Furthermore the 2017 Budget Law (Legge di

Stabilità 2017) is promoting circular economy through 10 Ministry of Environment, Press Release ; Budget Law 232,

11.12.16, Art.9

11 Collegato Ambientale -Disposizioni in materia ambientale per promuovere misure di green economy e per il contenimento dell'uso eccessivo di risorse natura, Law n.221 of 28.12.2015, in force since

6 European Commission, 2015. Proposed Circular Economy Package 04.02.2016.

7 Resource productivity is defined as the ratio between gross domestic 12 Disposizioni concernenti la donazione e la distribuzione di prodotti product (GDP) and domestic material consumption (DMC). alimentari e farmaceutici a fini di solidarieta' sociale e per la

8 Eurostat, Resource productivity , accessed October 2016 limitazione degli sprechi , Law n.166 of 19.08.2016

9 For example the new EU co-financed SCREEN project (Synergic 13 European Commission, Brussels workshop 13.01.2016

Circular Economy across European regioNs (SCREEN), funded by the 14 Rimateria Horizon 2020 programme involving Lazio and Lombardy. 15 Eurostat, Resource productivity , accessed October 2016

Italy 6

businesses 16 . The States General of the Green Economy Around 41% of Italy's SMEs have invested up to 5% of

has been promoted by the National Council of the Green annual turnover in their resource efficiency actions (EU28

Economy, made up of 64 business organisations that average 50%), 15% are currently offering green products represent the green economy in Italy, in collaboration and services (EU28 average 26%), 37% took measures to with the Ministries of Environment and Economic save energy (EU28 average 59%), 59% to minimise waste

Development 17 . Furthermore, in 2016, the Italian Alliance (EU28 average 60%), 25% to save water (EU28 average for Sustainable Development (ASviS) was created with 44%), and 38% to save materials (EU28 average 54%) 22 .

the objective of raising awareness on the Sustainable From a circular economy perspective, 25% took measures

Development Goals (SDGs) 18 . to recycle by reusing material or waste within the

According to a study by the European Commission, Italy company (EU28 average 40%), 10% to design products uses mainly voluntary agreements and initiatives, nonthat are easier to maintain, repair or reuse (EU28 average legal standards for products and services, and supports 22%) and 17% were able to sell their scrap material to extended producer responsibility for materials and another company (EU28 average 25%).

products to foster resource efficiency. 19 The resource efficiency actions undertaken allowed the

There are some notable examples such as the Italian reduction of production costs in 46% of the Italy's SMEs

Environmental Footprint Programme, launched by the (EU28 average 45%)

23

. This is highly relevant considering

Ministry for the Environment. The programme concerns the high number of SMEs in Italy (79.3% of private sector the environmental footprint of goods/services (carbon jobs above the EU-28 average of 66.8%)

24

.

footprint and water footprint). The Collegato Ambientale Around 30% of SMEs in Italy have one or more full time establishes a wider use of Product Environmental employee working in a green job at least some of the

Footprinting (PEF) with the "Made Green in Italy" time (EU28 average 35%) 25 .

scheme. Italy is by far the most active Member State in

using EMAS and it has the highest number of Eco-label In 2014, Italy had five SME support programmes for

products in the EU. resource efficiency (e.g. Giada Project; Innovhub Milano). 26 Furthermore, Italy was involved in the

Italy is characterised by low R&D investment levels, with European Regional Development Fund (ERDF) coa

 1.29% R&D intensity 20 (2.03% EU average), caused by financed PRESOURCE project, which provides several

the scarcity of public funding instruments and of high tools and instruments to help promoting resource

skilled human resources, and by the low share of highefficiency in SMEs. 27

tech manufacturing activities. However, there is a high

patenting in the fields of water pollution abatement and The transition to a resource efficient economy will result waste management, for which Italy shows elevated in new jobs related to reuse, repair or recycling. In Italy,

export shares 21 . 117,000 new jobs could be created and 327,000 jobs could be secured if SMEs in four sectors (food &

beverages; energy, power & utilities; environmental

SMEs and Resource Efficiency technologies; construction) would fully use their

Innovative and export-oriented Small and Medium Sized potential for resource efficiency. Indeed the cost savings

Enterprises (SMEs) are the backbone of Italy's productive for these four SME sectors in Italy could amount to EUR system. In terms of value added and jobs, SMEs play a 10.4 billion; this implies an average saving of EUR 19,000 more significant role in Italy than in most other EU per enterprise for just over 547,000 businesses in the countries, but their productivity, measured as value four sectors.

28

  EFSI has financed an equity SMEs project

added per capita, is approximately 10 % below the EU average. Furthermore, Italian SMEs perform below the 22 European Commission, 2015. Flash 426 Eurobarometer "SMEs, EU average in terms of their environmental performance, resource efficiency and green markets"

suggesting that it needs to do more in terms of policy in 23 Idem

this area. The main challenges are related to the low level 24 European Commission, SMEs country sheets , 2016 25 The Flash 426 Eurobarometer "SMEs, resource efficiency and green

of public support for SMEs taking part in the green markets" defines "green job" as a job that directly deals with economy. information, technologies, or materials that preserves or restores

environmental quality. This requires specialised skills, knowledge, training, or experience (e.g. verifying compliance with environmental

16 Symbola, Press Release legislation, monitoring resource efficiency within the company,

17 States General promoting and selling green products and services).

18 Italian Alliance for Sustainable Development 26 RPA 2014, Economic and Social Benefits of Environmental Protection

19 A framework for Member States to support business in improving its and Resource Efficiency Related to the European Semester , study for resource efficiency , 2015, study for the European Commission European Commission

20 total R&D expenditures as a share of GDP 27 PRESOURCE

21 Osservatorio Innovazione e Tecnologia per la Green Economy, 28 RPA, 2015. Assessing the Potential Cost Savings and Resource

T ecnologia e Innovazione nella Green Economy Italiana – Rapporto Savings of Investments in 4 SME sectors , study for European 2015 Commission, p. 38 & 30

Italy 7

in Italy promoting environmental sustainability. Other shortlisted as a 2016 REGIOSTAR finalist 34 .

EFSI projects under consideration are also

environmentally friendly 29 . Figure 2: Eco-Innovation Index 2015 (EU=100)

35

Over the 2014-20 programming period, the ERDF will invest in R&I and SME competitiveness based on national and regional smart specialisation strategies. For Italy, the national strategy identifies 5 focus areas, including energy, the environment and sustainable industry.

Eco-Innovation

The relative positioning of Italy based on the analysis of the 2015 Eco-Innovation Scoreboard has improved and moved up in the EU28 ranking from 12th to 10th place

(Figure 2). Social awareness with regard to needs and opportunities in the context of sustainability and ecoinnovation

has strongly grown over the recent years. 30 As

a highlight, it should be noted that the universal EXPO in

Milan 2015 on 'Feeding the Planet, Energy for Life' 31

showcased eco-innovation.

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 availability of risk capital for both the creation and continuation of eco-innovative projects remains scarce. Italy’s general innovation capacity is behind that of other European countries. Nevertheless, there have been major developments in the area of

green technologies related to renewable energy Cainelli et al.

36

, studying incentives to adopt wastegeneration

and non-fossil energy generation. related innovation in the manufacturing sector, found that regional factors related to both waste management

Research related to the implementation of new and policy, are relevant to the adoption of ecomanagement practices by firms, such as in Antonioli et innovation. Moreover, they show that better regional

al 32 , can provide a new understanding of the effects of separated waste collection and stricter waste policy can

firms’ organisational changes on eco-innovation positively influence the likelihood of adopting ecoadoption. Specifically, this study looked into whether innovation.

environmental strategies and human resources training

are integrated with the goal of fostering eco-innovation Suggested action

adoption. Although they examined one of the most  Integrate resource efficient and circular economy competitive and densely industrialized regions of Italy principles within the SME sector, namely energy and (Emilia Romagna), they did not find evidence of water savings, recycling methods, ecodesign complementarity between these strategies. A possible production and the establishment of secondary raw explanation, the authors concluded, is that green material market. strategies are not yet fully embedded within the firms’  Incentivise academia and schools in order to promote organisational strategies. Another example is Lombardy circular economy innovation.

recognized as having a high clustering of eco-industries 33  Step up the transition to a more circular and resource

with their ERDF co-financed Open Innovation Platform efficient economy, including by adopting the Green Act.

29EFSI – Country Sheet Italy

30 Eco-Innovation Observatory , p.12

31 Milan Expo

32 Antonioli, D., Mancinelli, S., & Mazzanti, M. (2013). Is environmental innovation embedded within high-performance organisational 34 European Commission, 2016 REGIOSTARS finalists changes? The role of human resource management and 35 Eco-innovation Observatory : Eco-Innovation scoreboard 2015 complementarity in green business strategies. Research Policy, 42(4), 36 Cainelli, G., D’Amato, A., & Mazzanti, M. (2015). Adoption of waste 975-988. reducing technology in manufacturing: Regional factors and policy

33 European Cluster Observatory issues. Resource and Energy Economics, 39, 53-67

Italy 8

Waste management (488 kg/y/inhabitant in Italy compared to 475

kg/y/inhabitant).

Turning waste into a resource requires:

 Full implementation of Union waste legislation, Figure 3 depicts the municipal waste by treatment in Italy

which includes the waste hierarchy; the need to in terms of kg per capita, which shows an increase of ensure separate collection of waste; the landfill recycling and composting and a decrease in landfilling. diversion targets etc.

 Reducing per capita waste generation and waste Figure 4: Recycling rate of municipal waste 2007-14 40

generation in absolute terms.

 Limiting energy recovery to non-recyclable materials

and phasing out landfilling of recyclable or recoverable waste.

SDG 12 invites countries to substantially reduce waste generation through prevention, reduction, recycling and reuse, by 2030.

The EU's approach to waste management is based on the

"waste hierarchy" which sets out an order of priority when shaping waste policy and managing waste at the operational level: prevention, (preparing for) reuse, recycling, recovery and, as the least preferred option, disposal (which includes landfilling and incineration without energy recovery). The progress towards reaching recycling targets and the adoption of adequate

WMP/WPP 37 should be the key items to measure the

performance of Member States. This section focuses on management of municipal waste for which EU law sets Figure 4 shows that in 2014 recycling of municipal waste, mandatory recycling targets. including composting and material recycling, accounted

Figure 3: Municipal waste by treatment in Italy 2007- for 46% (although there are large differences between

14 38 regions), just above the EU average (44%) and slightly below the EU 2020 target of 50% recycling 41 .

Landfilling of municipal waste accounted for 34% compared to other treatment options (EU average 27%) in 2014 and the amount of waste landfilled, and is constantly decreasing since 2002, in favour of the other treatment options that rank higher in the waste

hierarchy, including separate collection and recycling 42 .

Italy reported reaching its 2011 landfill target of 92 kg/inhabitant in 2014, and seems now to be on the path towards fulfilment of the 2018 target of the landfill directive. The Italian government is deploying steady efforts to restore the irregular landfill sites for some of which Italy has been subjected to financial penalties by the EU Court of Justice in 2014.

Waste policies are implemented at regional, provincial and municipal levels under national umbrellas. Despite overall progress in separate collection and recycling, the

Municipal waste generation 39 has been decreasing in the differences in performance at the local level can be high. last years in Italy and it is slightly above the EU average Excellences are common in the north of the country and

40 Eurostat, Recycling rate of municipal waste , accessed October 2016

37 Waste Management Plans/Waste Prevention Programmes 41 Member States may choose a different method than the one used by

38 Eurostat, Municipal waste and treatment, by type of treatment Eurostat (and referred to in this report) to calculate their recycling method, accessed October 2016 rates and track compliance with the 2020 target of 50% recycling of

39 Municipal waste consists of waste collected by or on behalf of municipal waste. municipal authorities, or directly by the private sector (business or 42 Italy has introduced measures to increase separated collection and private non-profit institutions) not on behalf of municipalities. recycling since 1997.

Italy 9

in some contexts also in the centre and south (Campanianational level 49 and consequently a recent Decree

Province of Benevento 68.9% & Sardinia – Province of provides a picture of the existing and needed incineration

Medio Campidano 66.6% separate collection 43 ). capacity region by region taking into account, inter alia,

However, in general the centre and south of the Country the foreseen reduction of waste production, and the perform less well in waste management than the north. future increase of separate collection in line with the

The reasons for the disparities are principally due to the national legal obligation (65%)

50 .

late industrialization of the southern regions, difficulties With a 65.9% of packaging waste being recycled, Italy has

with administrative capacity and an economic imbalance reached the 2008 target of 55% 51 . Recovery and recycling

between the municipalities which implement the of packaging waste are constantly increasing since year separate collection. Nevertheless it would be worth 2000. A Decree has been adopted in 2016 on measures exploring further the underlying causes to be able to find to create an adequate integrated system for the organic

the most efficient solutions. Italy has been subjected to fraction of organic waste 52 . It is estimated by CIC 53 that

sanctions by the EU Court of Justice for poor waste EUR 20 million/year is saved through biowaste management in Campania region, which culminated in contributing to the circular economy. the waste crisis of 2007; since then, the separate

collection in the region is steadily improving, as well as According to a study

54 , moving towards the targets in the

recycling. Roadmap on resource efficiency

55 , could create over

83,400 additional jobs and an increase in the annual

Another factor influencing the differing geographical turnover of the waste sector by over EUR 8.8 billion. performance is the variable waste and landfill gate fees

applied in the regions 44 . Some regions have also Separate collection and recycling are constantly growing introduced special measures aimed at fostering separate all over the national territory as shown in Figure 5

56 .

collection or recycling operations. In the Marche region, Figure 5: Regional separate collection rates for example, the landfill tax to be paid by municipalities is progressively reduced depending on the rate by which the national separate collection targets are exceeded. In

Emilia-Romagna, which in 2010 reached 19% organic recycling of total municipal waste production, in order to promote the use of compost, farmers receive subsidies of

EUR 150–180 per hectare 45 .

In order to support Italy in bridging the implementation

gap, the Commission has delivered a roadmap 46 for

compliance, in which economic instruments play a key role. For the regions in need of relevant infrastructure, waste management has been subject to Action Plans for the ex-ante conditionality for waste to streamline financing from the ERDF between 2014-20. In addition,

EFSI is being used to improve environmental

infrastructure for waste 47 . ERDF investments in 2014-20 For packaging waste, Italy applies Extended Producer

for waste are only aimed at the activities at the top of the Responsibility (EPR) by means of the national hierarchy hence excluding landfilling and incineration. organisation CONAI. Different consortia have been The share of incineration compared to other treatment established for paper, glass, plastic, etc.. The system options for municipal waste was 21% in 2014 48 . covers a large part of the recycling in Italy, achieving Furthermore, the government was mandated to assess increased volumes of recycled packaging every year. the needs for incineration of municipal solid waste at During 2016 a reform should be introduced to move from

43 ISPRA Rapporto Rifiuti Urbani Edizione 2015, p.57 49 Decree Law N° 133 of 12.09.2014

44 Mazzanti M and Montini A (2014), Waste management beyond the 50 Decree DPCM 10.08.2016

Italian north-south divide: spatial analyses of geographical, economic 51 ISPRA Rapporto Rifiuti Urbani Edizione 2015 and institutional dimensions, in Handbook on waste management T. 52 Decree DCPM 07.03.2016 Kinnaman & K. Takeuchi eds. (E. Elgar). 53 Consorzio Italiano Compostatori, presentation, Waste Directors,

45 European Environment Agency 2016, Municipal Waste Management Brussels, 26.10.2016

Country Fact Sheet , p.19 54 Bio Intelligence service, 2011. Implementing EU Waste legislation for 46 European Commission roadmap Green Growth , study for the European Commission

47 EFSI – Aimag Settore Idrico e Ambiente 55 The Roadmap outlines how we can transform Europe's economy into

48 Eurostat, Municipal waste and treatment, by type of treatment a sustainable one by 2050. method, accessed October 2016 56 ISPRA Rapporto Rifiuti Urbani Edizione 2015, p.36

Italy 10

taxes to tariffs in the waste sector 57 .

Regarding waste prevention, since 2013 Italy has adopted the National Waste Prevention Programme. On the basis of this National Programme, each Region has adopted regional prevention plans that, inter alia, include measures to increase the use of green public procurement and the reuse. A specific Fund for project financing for waste prevention and waste reduction has been established, with EUR 513,475 assigned in 2014 to selected projects.

Suggested action

 Introduce a national landfill tax or harmonise the

regional taxes to phase-out landfilling of recyclable and recoverable waste. Use the revenues to support the separate collection and alternative infrastructure but avoid building excessive infrastructure for the treatment of residual waste. Improve co-operation between regions to use waste treatment capacity more efficiently.

 Focus on improving the effectiveness of the separate

collection to increase recycling rates in the regions that are lagging behind.

 Extend and improve the cost-effectiveness, monitoring

and transparency of existing EPR schemes.

57 Programma Nazionale di Riforma 2016, April 2016, p.58

Italy 11

• 2. 

  Protecting, conserving and enhancing natural capital

Nature and Biodiversity designations covered 6721 km², showing a slight increase

from 2012. Nevertheless, the latest assessment of the

The EU Biodiversity Strategy aims to halt the loss of SCIs part of the Natura 2000 network shows that there biodiversity in the EU by 2020, restore ecosystems and are insufficiencies in designation for the marine their services in so far as feasible, and step up efforts to components of the network 59 (see Figure 6 60 ).

avert global biodiversity loss. The EU Birds and Habitats

Directives aim at achieving favourable conservation Figure 6: Sufficiency assessment of SCI networks in Italy status of protected species and habitats. based on the situation until December 2013

61

SDG 14 requires countries to conserve and sustainably use the oceans, seas and marine resources, while SDG 15 requires countries to protect, restore and promote the sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

The 1992 EU Habitats Directive and the 1979 Birds

Directive are the cornerstone of the European legislation aimed at the conservation of the EU's wildlife. Natura

2000, the largest coordinated network of protected areas in the world, is the key instrument to achieve and implement the Directives' objectives to ensure the longterm protection, conservation and survival of Europe's most valuable and threatened species and habitats and the ecosystems they underpin.

The adequate designation of protected sites as Special

Ares of Conservation (SAC) under the Habitats Directive and as Special Protection Areas (SPA) under the Birds

Directive is a key milestone towards meeting the Although the 6-year deadline established by the Habitats objectives of the Directives. The results of Habitats Directive to designate SACs and establish appropriate Directive Article 17 and Birds Directive Article 12 reports conservation objectives and measures has expired for and the progress towards adequate Sites of Community 2281 SCIs, as in May 2016 Italy had completed the SAC Importance (SCI)-SPA and SAC designation 58 both in land designation and related obligations only for 578 SCIs. and at sea, should be the key items to measure the There are a high number of complaints regarding the performance of Member States. implementation of the Nature Directives on degradation In Italy 2585 sites have been designated under the of designated sites, asserted bad quality of Appropriate Habitats and the Birds Directives. By early 2016, 18.97% Assessments under Article 6(3) Habitats Directive, and of the national land area of Italy was covered by Natura poor species protection. The experience of the 2000 (EU average 18.1%), with Birds Directive SPAs Commission in evaluating the ERDF Operational

covering 13.31% (EU average 12.3%) and Habitats

Directive SCIs covering 14.21% (EU average 13.8%). By 59 For each Member State, the Commission assesses whether the

2012 Italy designated 523 marine Natura 2000 sites that species and habitat types on Annexes I and II of the Habitats

covered 6608.1 km². Italy also had 88 nationally Directive, are sufficiently represented by the sites designated to

designated Marine Protected Areas covering 26644.9 km² date. This is expressed as a percentage of species and habitats for which further areas need to be designated in order to complete the

which showed an 11.1% overlap with the Natura 2000 network in that country. The current data , which were accessed in sites. By the end of 2014 Italy's marine Natura 2000 2014-15, reflect the situation up until December 2013.

60 The percentages in Figure 5 refer to percentages of the total

number of assessments (one assessment covering 1 species or 1 58 Sites of Community Importance (SCIs) are designated pursuant to habitat in a given biographical region with the Member State); if a

the Habitats Directive whereas Special Areas of Protection (SPAs) are habitat type or a species occurs in more than 1 Biogeographic region designated pursuant to the Birds Directive; figures of coverage do within a given Member State, there will be as many individual not add up due to the fact that some SCIs and SPAs overlap. Special assessments as there are Biogeographic regions with an occurrence Areas of Conservation (SACs) means a SCI designated by the Member of that species or habitat in this Member State. States. 61 European Commission, internal assessment.

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Programmes 2014-20 is that the appropriate assessments The lack of adequate resources to support appropriate were of widely varying quality. This has negative impacts land management and conservation measures is on nature but also on business and legal certainty. acknowledged as a major obstacle to achieve the

According to the latest report on the conservation status objectives of the Nature Directives. In 2007-13 the of habitats and species covered by the Habitats Directive disbursement from ERDF and EAFRD

66

  for nature

(covering the period 2007-12) 62 , only 34% of the conservation measures is particularly low (see section 4). assessments for plant species and 44% for animal species This could be improved by administrative capacity indicate a favourable conservation status 63 . For habitat building. A recently adopted LIFE Integrated Project types the percentage of assessments showing a (GESTIRE 2020) creates an integrated management favourable conservation status is only 22% (EU 27: 16 %), structure for achieving conservation objective for the while 40% (EU 27: 47%) are considered to be Lombardy Natura 2000 regional network. The project unfavourable–inadequate and 27% are see unfavourable aims to update the Lombardy Prioritised Action

– bad (EU 27: 30%). This is depicted in Figure 7 64 . Framework (PAF) in the following ways: coordinate management; integrate regional policies; train personnel

Figure 7: Conservation status of habitats and species in working; raise public awareness; and plan interventions

Italy in 2007/2013 (%) 65 to conserve biodiversity, such as enhancing connectivity and tackling invasive alien species. 67

Figure 8: Short-term population trend of breeding and

wintering bird species in Italy in 2012 (%) 68

Persistent data gaps exist for the forestry sector: data on annual wood removals have not been reported to the

For birds, Figure 8 demonstrates that 42% of the 'Joint Forest Sector Questionnaire' for several years. This

breeding species showed short-term increasing or stable

population trends (for wintering species this figure was makes it difficult to ascertain whether forest harvesting rates are within the limits of Sustainable Forest

73%). Management. No information is available on the share of

forest area under management plan or equivalent (no figures for the 2010 reporting period).

62 The core of the ‘Article 17’ report is the assessment of conservation

status of the habitats and species targeted by the Habitats Directive. Suggested action

63 Conservation status is assessed using a standard methodology as 

being either ‘favourable’, ‘unfavourable-inadequate’ and Complete the Natura 2000 designation process and put

‘unfavourable-bad’, based on four parameters as defined in Article 1 in place clearly defined conservation objectives and the

of the Habitats Directive. necessary conservation measures for the sites and

64 Please note that a direct comparison between 2007 and 2013 data is provide adequate resources for their implementation

complicated by the fact that Bulgaria and Romania were not covered

by the 2007 reporting cycle, that the ‘unknown’ assessments have in order to maintain/restore species and habitats of

strongly diminished particularly for species, and that some reported community interest to a favourable conservation status changes are not genuine as they result from improved data / across their natural range.

monitoring methods. 65 These figures show the percentage of biogeographical assessments

in each category of conservation status for habitats and species (one assessment covering 1 species or 1 habitat in a given biographical region with the Member State), respectively. The information is 66 European Agricultural Fund for Rural Development based on Article 17 of the Habitats Directive reporting - national 67 GESTIRE 2020 LIFE integrated project summary of Italy 68 Article 12 of the Birds Directive reporting - national summary of Italy

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 Develop and promote smart and streamlined

implementation approaches, in particular as regards site and species permitting procedures, ensuring the necessary knowledge and data availability. Strengthen communication with stakeholders.

 Build capacity for completion and implementation of Green infrastructure

Management Plans, as well as for improving the overall

quality of appropriate assessments. The EU strategy on green infrastructure

72

  promotes the

 Use the available funds, namely ERDF and EAFRD, to incorporation of green infrastructure into related plans implement well-designed nature conservation and programmes to help overcome fragmentation of

measures. habitats and preserve or restore ecological connectivity, enhance ecosystem resilience and thereby ensure the

continued provision of ecosystem services.

Green Infrastructure provides ecological, economic and social benefits through natural solutions. It helps to understand the value of the benefits that nature provides to human society and to mobilise investments to sustain and enhance them.

Estimating Natural Capital

Italy considers that Green Infrastructure implementation

The EU Biodiversity Strategy to 2020 calls on the Member should start with protected areas, which are crucial to

States to map and asses the state of ecosystems and conserve natural capital, implement sustainable tourism

their services 69 in their national territory by 2014, assess and use traditional forms of agriculture and industry. The

the economic value of such services, and promote the Ministry of the Environment responsible for integration of these values into accounting and reporting implementing the Green Infrastructure Strategy has systems at EU and national level by 2020. commissioned the development of: a methodological

The four steps of the Mapping and Assessment of framework for identifying ecosystem restoration

Ecosystems and Their Services (MAES) process are: 1) priorities and promoting Green Infrastructure; a map ecosystems; 2) assess the condition of ecosystems; restoration project on freshwater ecosystems; and two 3) assess the ecosystem services; and 4) make an pilots for the urban/peri-urban Rome Metropolitan Area. integrated ecosystem assessment based on these data. Improving connections between natural and cultural

Italy is currently in the third phase of the process. The capital was also underlined by the Charter of Rome. 73

Ministry of the Environment has provided financial

support to universities and scientific societies for the The importance of the linkages between culture and implementation of MAES. Italy is also very involved in the nature that is a central feature of Italian policy is

assessment of cultural services and urban ecosystems. exemplified by the Corona Verde project in the region of Piedmont. The project which involves 93 municipalities is

Italy has shown a high interest in natural capital designed to develop Green Infrastructure integrating the accounting. The Ministry of the Environment has set up a Corona di Delitie system of royal residences within the natural capital committee and launched an Turin green-belt. The Corona Verde project will provide a environmental accounting project for protected areas in wide range of benefits e.g. protection against soil Italy which should provide a framework for pursuing a erosion, enhancement of tourism and the reduction of natural capital accounting process at the national level. atmospheric pollution. Another example, is the As part of the implementation of the Collegato EcoSistema Filtro a constructed wetland in Sardinia (&

Ambientale, a decree should have been issued in 2016 on Natura 2000 site), built in 2004 to filter treated water 74 . estimating ecosystem and environmental capital 70 71 , . Italy is currently involved in the EU co-financed Green

Suggested action Surge project

75 , and some Regions use ERDF and EAFRD

to increase green infrastructure and wildlife corridors.

 Provide resources for the mapping and assessment of

ecosystem services, their valuation and integration into Soil protection

natural capital accounting systems. The EU Soil Thematic Strategy highlights the need to ensure a sustainable use of soils. This requires the

72 European Union, Green Infrastructure — Enhancing Europe’s Natural

69 Ecosystem services are benefits provided by nature such as food, Capital, COM/2013/0249 clean water and pollination on which human society depends. 73 Ministry of Environment, Carta di Roma

70 Programma Nazionale di Riforma 2016, April 2016, p.58 74 EcoSistema Filtro

71 Ministry of Environment , Collegato Ambientale 75 Green Surge case studies Milan & Bari

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prevention of further soil degradation and the around 2.7% in 2012 77 . The soil sealing has increased the

preservation of its functions, as well as the restoration of vulnerability to landslides and flooding in several areas, degraded soils. The 2011 Road Map for Resourcewhich translates into an increased intensity and Efficient Europe, part of Europe 2020 Strategy provides frequency of flood events and related damages. This that by 2020, EU policies take into account their direct problem is exacerbated by low soil organic matter in and indirect impact on land use in the EU and globally, many regions. Indeed Italy has an average soil water and the rate of land take is on track with an aim to erosion rate (8.4 tonnes per ha per year in 2010), which achieve no net land take by 2050. is well above the EU average (2.4 tonnes per ha per

SDG 15 requires countries to combat desertification, year).

78

restore degraded land and soil, including land affected by Figure 9: Land Cover types in Italy 2012 79

desertification, drought and floods, and strive to achieve a land-degradation-neutral world by 2030.

Soil is an important resource for life and the economy. It provides key ecosystem services including the provision of food, fibre and biomass for renewable energy, carbon sequestration, water purification and flood regulation, the provision of raw and building material. Soil is a finite and extremely fragile resource and increasingly degrading in the EU. Land taken by urban development and infrastructure is highly unlikely to be reverted to its natural state; it consumes mostly agricultural land and increases fragmentation of habitats. Soil protection is indirectly addressed in existing EU policies in areas such as agriculture, water, waste, chemicals, and prevention of industrial pollution.

There are still not EU-wide datasets enabling the provision of benchmark indicators for soil organic matter decline, contaminated sites, pressures on soil biology and diffuse pollution. An updated inventory and assessment of soil protection policy instruments in Italy and other EU Member States is being performed by the EU Expert Group on Soil Protection.

The main soil degradation processes occurring in Italy

are: erosion/disaggregation, compaction, salinization, In Italy there is a growing awareness of the importance of contamination, landslides, biodiversity decline/loss, soil soil protection both at, political and scientific level. For consumption/sealing, & decline/loss of organic matter. example, it is participating in the UNCCD

80 pilot project

on target and indicators of Land Degradation Neutrality.

Artificial land cover is used for settlements, production

systems and infrastructure. It may itself be split between Relevant legislative instruments for soil protection are built-up areas (buildings) and non-built-up areas (such as approved at national level or indirectly through the linear transport networks and associated areas). Figure 9 transposition of EU law. Furthermore, many soil

shows the different land cover types in Italy in 2012. protection measures in Italy are included in policy instruments that are not directly connected to the

With a mean annual land take rate 76 of 0.37% (driven by protection of soil. In 2016 the Italian Parliament

urban sprawl and infrastructures) over the period 2006- discussed a Decree Law on the containment of the loss of

12, the speed of urban development in Italy is just below land and reuse of soil built on 81 . Furthermore, Italy has a

the EU average (0.41%), representing 5786 hectares per zero objective for soil consumption by 2050 as required year. Soil-sealing over wide areas, due to excessive by the Resource Efficient Europe Roadmap. As regards urban development, has significantly increased hydrogeological risk. In terms of the percentage of built

up land, Italy ranked the 4 th highest in the EU with

77 Eurostat, Built up Areas , accessed June 2016 78 Eurostat, Soil water erosion rate , Figure 2, accessed November 2016 79 European Environment Agency, Land cover 2012 and changes

76 European Environment Agency Draft results of CORINE Land Cover country analysis [publication forthcoming]

(CLC) inventory 2012 ; mean annual land take 2006-12 as a % of 2006 80 UN Convention to Combat Desertification artificial land. 81 Ministry of Environment – Press Release 12.05.16

Italy 15

soil contamination, Italy has identified under a 1998 law 82 report as one of the areas most responsive to climate

a number of contaminated sites (SIN) which require change due to water scarcity, concentration of economic priority remediation. It is important that the activities in coastal areas, and reliance on climatemanagement of these sites respects EU waste legislation. sensitive agriculture. The introduction of invasive alien

The EAFRD should help to enhance soil organic matter species presents an important threat in the and reduce soil erosion, while the ERDF will support the Mediterranean Sea region with the number of invasive

rehabilitation of industrial sites and contaminated land. alien species increasing significantly since 1970. Finally, the unique biodiversity is also threatened by pollution

Marine protection from land-based sources, such as discharges of excess

nutrients and hazardous substances, marine litter, over

The EU Coastal and Marine Policy and legislation require fishing, and degradation of critical habitats.

that by 2020 the impact of pressures on marine waters is

reduced to achieve or maintain good environmental In 2012, Italy has determined GES for all the descriptors status and coastal zones are managed sustainably. listed in the MSFD. However, the Commission's

assessment found that some GES definitions are to be

SDG 14 requires countries to conserve and sustainably developed. In particular, the GES definitions for marine use the oceans, seas and marine resources for litter and underwater noise were found to be below the sustainable development. minimum requirement or lack specification/ambition.

The Marine Strategy Framework Directive (MSFD) 83 aims Italy established a monitoring programme of its marine

to achieve Good Environmental Status (GES) of the EU's waters in 2014. The monitoring programmes for all marine waters by 2020 by providing an ecosystem descriptors apart from hydrographical changes and approach to the management of human activities with marine litter need further refinement and development impact on the marine environment. The Directive to constitute an appropriate framework to monitor requires Member States to develop and implement a progress towards GES status and targets. In addition, Italy strategy for their marine waters, and cooperate with reported that most of its monitoring programme will only Member States sharing the same region or subregion. be adequate to measure progress towards GES by 2018,

As part of their marine strategies, Member States had to the date by which the next assessment of their waters is

make an initial assessment of their marine waters, due. In its reports on the implementation of the MSFD 86 ,

determine GES 84 and establish environmental targets by the Commission provided guidance to assist Italy. Italy is

July 2012. They also had to establish monitoring involved in various EU supported research projects

87 .

programmes for the on-going assessment of their marine The new National Plan on Ports includes activities for waters by July 2014. The next element of their marine recovery and preservation of the seabed and starting up strategy is to establish a Programme of Measures (2016). monitoring programmes of protected sites near ports 88 .

The Commission assesses whether these elements

constitute an appropriate framework to meet the Suggested action

requirements of the MSFD.  Continue work to improve the definitions of GES,

In 2012, Italian marine protected areas covered 30366.9 including through regional cooperation by using the square kilometres of its marine waters in the work of the relevant Regional Sea Convention.

Mediterranean Sea 85 . Italy has also one of the longest  Further develop approaches assessing (and

coastlines in the EU. Italy’s marine waters are part of the quantifying) impacts from the main pressures in order marine region of the Mediterranean Sea and cover the to lead to improved and more conclusive assessment sub-regions of the Adriatic Sea, the Ionian Sea and the results for 2018 reporting.

Central Mediterranean Sea and the Western  Continue to integrate existing monitoring programmes

Mediterranean Sea. Italy is party to the Barcelona required under other EU legislation and to implement

Convention. The Mediterranean Sea region has been other joint monitoring programmes, where they exist, identified by the EEA in its 2015 State of the Environment developed at (sub)regional level, for instance by the

Barcelona Convention.

82 Law 426/1998 has identified the so-called Siti di Interesse Nazionale

(SIN), i.e. highly polluted sites in Italy which need to be 86 Report from the Commission "The first phase of implementation of decontaminated. For example, the industrial area of Taranto, which the Marine Strategy Framework Directive (2008/56/EC) - The comprises the ILVA steel plant, has been included in the list of SIN. European Commission's assessment and guidance" COM(2014)097 &

83 European Union, Marine Strategy Framework Directive 2008/56/EC Commission Staff Working Document Accompanying the Commission

84 The MSFD defines Good Environmental Status (GES) in Article 3 as: Report assessing Member States' monitoring programmes under the

“The environmental status of marine waters where these provide Marine Strategy Framework Directive (COM(2017)3 i and SWD(2017)1 ecologically diverse and dynamic oceans and seas which are clean, final)

healthy and productive” 87 RTD project: KNOWSEAS; MYOCEAN; VECTORS; HERMIONE; 85 2012 Data provided by the European Environmental Agency – not CORALFISH; PERSEUS

published 88 Piano Strategico Nazionale della Portualità e della Logistica p.189

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 Enhance comparability and consistency of monitoring  Ensure that all of its monitoring programme is

methods within Italy's marine region and address implemented without delay, and is appropriate to knowledge gaps. monitor progress towards the GES.

• 3. 

  Ensuring citizens' health and quality of life

Air quality 57%) ensure air emissions for these pollutants are within the currently applicable national emission ceilings 91 .

The EU Clean Air Policy and legislation require that air

quality in the Union is significantly improved, moving At the same time, air quality in Italy continues to give closer to the WHO recommended levels. Air pollution cause for concern. For the year 2013 in Italy, the and its impacts on ecosystems and biodiversity should be European Environment Agency estimated that about 66 further reduced with the long-term aim of not exceeding 630 premature deaths were attributable to fine critical loads and levels. This requires strengthening particulate matter concentrations

92 , 3 380 to ozone efforts to reach full compliance with Union air quality concentration

93

  and 21 040 to nitrogen dioxide

legislation and defining strategic targets and actions concentrations

94,95 .This is due also to exceedances above

beyond 2020. the EU air quality standards, such as shown in Figure 10

96 .

The EU has developed a comprehensive suite of air These problems became an extreme concern in quality legislation 89 , which establishes health-based November-December of 2015 with particulate matter standards and objectives for a number of air pollutants. levels well above the EU daily limit values in Milan, Rome As part of this, Member States are also required to and Naples leading to the closing of these cities to traffic. ensure that up-to-date information on ambient On the 30 December 2015, the Environment Ministry,

Figure 10: Attainment situation for PM10, NO2 and O3 in 2014

91The current national emission ceilings apply since 2010 ( Directive 2001/81/EC ); revised ceilings for 2020 and 2030 have been set by Directive (EU) 2016/2284 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC i and

concentrations of different air pollutants is routinely repealing Directive 2001/81/EC i. made available to the public. In addition, the National 92 Particulate matter (PM) is a mixture of aerosol particles (solid and

Emission Ceilings Directive provides for emission liquid) covering a wide range of sizes and chemical compositions.

reductions at national level that should be achieved for PM10 (PM2.5) refers to particles with a diameter of 10 (2.5) micrometres or less. PM is emitted from many human sources,

main pollutants. including combustion.

The emission of several air pollutants has decreased 93 Low level ozone is produced by photochemical action on pollution and it is also a greenhouse gas

significantly in Italy 90 . Reductions between 1990 and 94 NOx is emitted during fuel combustion e.g. from industrial facilities

2014 for sulphur oxides (-93%), nitrogen oxides (-61%), and the road transport sector. NOx is a group of gases comprising

ammonia (-17%) as well as volatile organic compounds (- nitrogen monoxide (NO) and nitrogen dioxide (NO2). 95 European Environment Agency, 2016. Air Quality in Europe – 2016

Report . (Table 10.2, p.60, please see details in this report as regards 89 European Commission, 2016. Air Quality Standards the underpinning methodology)

90 See EIONET Central Data Repository and Air pollutant emissions data 96 Based on European Environment Agency, 2016. Air Quality in Europe viewer (NEC Directive) – 2016 Report . (Figures 4.1, 5.1 and 6.1)

Italy 17

Regions and Municipalities signed an anti-smog protocol, and/or to reduce nitrogen dioxide (NO 2 ) (and ozone and in 2016 a specific agreement was made for Bologna concentrations), inter alia, by reducing transport

under this protocol 97 . related emissions - in particular in urban areas.



In 2013, Italy had over 60% of the urban population Reduce PM 10 emission and concentration, inter alia, by

resident in areas exposed to PM10 concentrations over reducing emissions related to energy and heat the daily limit value (50 µg/m3 on more than 35 days in a generation using solid fuels, to transport and to year), substantially worse than the EU average of agriculture.

16.3% 98 . An emerging issue in Italy is high PM emissions

associated with the increasing use of fuelwood in smallscale

 combustion units. Furthermore, for several air Noise

quality zones the long-term objectives regarding ozone The Environmental Noise Directive provides for a

concentration are not being met 99 . common approach for the avoidance, prevention and

The persistent breaches of air quality requirements (for reduction of harmful effects due to exposure to

PM environmental noise. 10 and NO 2 ), which have severe negative effects on

health and environment, are being followed up by the Excessive noise is one of the main causes of health

European Commission through infringement procedures issues 102 . To alleviate this, the EU acquis sets out several

covering all the Member States concerned, including requirements, including assessing the exposure to

Italy. The aim is that adequate measures are put in place environmental noise through noise mapping, ensuring to bring all zones into compliance. that information on environmental noise and its effects is

It is estimated that the health-related external costs from made available to the public, and adopting action plans air pollution are above EUR 47 billion/year (income with a view to preventing and reducing environmental adjusted, 2010), which include not only the intrinsic value noise where necessary and to preserving the acoustic of living a full healthy life but also direct costs to the environment quality where it is good.

economy. These direct economic costs relate to 17

million workdays lost each year due to sickness related to Italy's implementation of the Environmental Noise air pollution, with associated costs for employers of EUR Directive is significantly delayed. The noise mapping

103

2400 million/year (income adjusted, 2010), for for the most recent reporting round, for the reference healthcare of above EUR 185 million/year (income year 2011, is only 62% complete for agglomerations, 50% adjusted, 2010), and for agriculture (crop losses) of EUR for major airports, and only partially completed for major

418 million/year (2010) 100 . roads and major railways. Action Plans for noise management in the current period have been adopted

Licenses are issued at regional and state level through a for only 3% of agglomerations, and are missing for all of so called integrated environmental authorization (AIA). major airports, major roads and major railways.

However evidence shows that the implementation of the

conditions prescribed in the AIAs is not always Suggested action

satisfactory and requires the intervention of the central  authorities and/or the European Commission such as Complete missing noise action plans and maps

illustrated by the ILVA Taranto case.

Suggested action Water quality and management

 Maintain downward emissions trends of air pollutants The EU water policy and legislation require that the in order to achieve full compliance with air quality limit impact of pressures on transitional, coastal and fresh values - and reduce adverse air pollution impacts on waters (including surface and ground waters) is health, environment and economy. significantly reduced to achieve, maintain or enhance

 Reduce nitrogen oxide (NO good status of water bodies, as defined by the Water x ) emissions to comply with

currently applicable national emission ceilings 101 Framework Directive; that citizens throughout the Union benefit from high standards for safe drinking and bathing

97 Ministry of Environment – Press Release 01.06.16 water; and that the nutrient cycle (nitrogen and

98 Eurostat, Safeguarding Clean Air , accessed June 2106

99 See The EEA/Eionet Air Quality Portal and the related Central Data

Repository 102 WHO/JRC, 2011, Burden of disease from environmental noise, 100 These figures are based on the Impact Assessment for the Fritschi, L., Brown, A.L., Kim, R., Schwela, D., Kephalopoulos, S. (eds),

European Commission Integrated Clean Air Package, 2013 World Health Organization, Regional Office for Europe , Copenhagen, 101 Under the provisions of the revised National Emission Ceilings Denmark

Directive, Member States now may apply for emission inventory 103 The Noise Directive requires Member States to prepare and adjustments. Pending evaluation of any adjustment application, publish, every 5 years, noise maps and noise management action Member States should keep emissions under close control with a plans for agglomerations with more than 100,000 inhabitants, and view to further reductions. for major roads, railways and airports.

Italy 18

phosphorus) is managed in a more sustainable and groundwater bodies (25% unknown) achieve good

resource-efficient way. chemical status 108 . In addition, 53% of groundwater

SDG 6 encourages countries to ensure availability and bodies (32% unknown) are in good quantitative status

109 .

sustainable management of water and sanitation for all. The main pressure on Italian waters comes from diffuse

The main overall objective of EU water policy and sources that affect 38% of surface water bodies

110 . The

legislation is to ensure access to good quality water in latest data show that 26% of water bodies are affected sufficient quantity for all Europeans. The EU water by point sources, 16% by water abstraction and 8% by acquis 104 seeks to ensure good status of all water bodies flow regulation. Italian waters are affected by a broad across Europe by addressing pollution sources (from e.g. range of economic activities. These include: industry, agriculture, urban areas and industrial activities), physical both abstractions and point source pollution; agriculture, and hydrological modifications to water bodies) and the point and diffuse source pollution from livestock raising,

management of risks of flooding. as well as abstractions and diffuse source pollution for crops; coastal works and recreation, affecting transition

Italy is a water-stressed country. Most of the water and coastal waters. An example is the sub-basin of the abstracted in Italy is for consumptive uses especially Ticino River – water bodies are affected by 25 different

irrigation. 105 Water scarcity and drought risk are typical of types of pressures, from urban wastewater discharges to

southern regions. In the North, in contrast, where water abstractions to engineering works. resources have been physically abundant, climate change

effects together with water withdrawal levels have Significant differences in terms of pressures are seen

recently giving rise to water scarcity concerns. across the country, for example, diffuse sources from agriculture are a significant pressure for more than half

River Basin Management Plans (RBMPs) are a of the surface water bodies in Northern Apennines (55% requirement of the Water Framework Directive and a of water bodies), Serchio (71%) and Sicily (53%) river means of achieving the protection, improvement and basin districts but much less in Sardinia (27%) or the sustainable use of the water environment across Europe. Eastern Alps (29%). Water abstraction is an important This includes surface freshwaters such as lakes and rivers, pressure in Southern Apennines (28% of water bodies groundwater, estuaries and coastal waters up to one affected) and Northern Apennines (24%) compared to nautical mile. Eastern Alps, Sardinia and Sicily (all less than 10% of

According to the Italian authorities, the second water bodies affected).

generation of RBMPs provide an improved monitoring The latest data show that 99% 111 of large drinking water

system and the programs of measures reflect better the supplies reach minimum standards. However, punctual pressures on the water bodies. However, as the drinking water problems exist (arsenic and fluoride in Commission has not yet been able to validate this Lazio).

information for all Member States it is not reported here. As shown in Figure 11, in 2015, in Italy out of 5518

In its first generation of RBMPs Italy reported the status bathing waters, 90.5 % were of excellent quality, 4.9% of of 7644 rivers, 38 lakes, 181 transitional, 489 coastal and good quality and 1.9 % of sufficient quality. 95 bathing 733 groundwater bodies. Only 29% of natural surface waters were of poor quality or non-compliant while it

water bodies achieve a good or high ecological status 106 was not possible to assess the remaining 55 bathing

(while the status of 56% is unknown) and 16% of heavily waters 112 .

modified or artificial water bodies achieve a good or high ecological potential (44% unknown). Only 18% of surface water bodies (79% unknown), 21% of heavily modified

and artificial water bodies 107 (66% unknown) and 49% of

104 This includes the Bathing Waters Directive (2006/7/EC); the Urban

Waste Water Treatment Directive (91/271/EEC) concerning 108 Good chemical status is defined in the Water Framework Directive discharges of municipal and some industrial waste waters; the referring to compliance with all the quality standards established for Drinking Water Directive (98/83/EC) concerning potable water chemical substances at European level. quality; the Water Framework Directive (2000/60/EC) concerning 109 For groundwater, a precautionary approach has been taken that water resources management; the Nitrates Directive (91/676/EEC) comprises a prohibition on direct discharges to groundwater, and a and the Floods Directive (2007/60/EC) requirement to monitor groundwater bodies.

105 European Commission, 2016. EU Resource Efficiency Scoreboard 110 Diffuse pollution comes from widespread activities with no one

2015 discrete source, e.g. acid rain, pesticides, urban run-off, etc. 106 Good ecological status is defined in the Water Framework 111 Commission's Synthesis Report on the Quality of Drinking Water in

Directive, referring to the quality of the biological community, the the Union examining Member States' reports for the 2011-2013 hydrological characteristics and the chemical characteristics. period, foreseen under Article 13(5) of Directive 98/83/EC i;

107 Many European river basins and waters have been altered by COM(2016)666 i, p.13 human activities, such as land drainage, dredging, flood protection 112 European Environment Agency, 2016. European bathing water and, building of dams. quality in 2015 , p. 26

Italy 19

Figure 11: Bathing water quality 2012 – 15 113 treatment currently estimated by Italy at EUR 4.6 billion 116 .

Figure 12: Urban waste water Italian situation 2012 –

Final deadline 2005 117

There are considerable issues of non-compliance with the

Urban Waste Water Treatment Directive (UWWTD).

Recent efforts have been made, but almost one third of all agglomerations above 2000 p.e. (in a total of approximately 3200) are subject to EU infringement procedures. It shows that Italy has not achieved the

obligation to reach 100% compliance by 2005. Groundwater and surface waters pollution is also a major

Figure 12 shows the total generated load at Member challenge. In addition to wastewater discharges,

State level (in population equivalent (p.e.) and regardless agriculture, and in particular the use of digestate from of agglomerations) and the load that remains to be anaerobic digestion of a biodegradable feedstock,

addressed by Italy. especially in areas characterized by intensive livestock production, exerts a significant pressure on water

In addition, reporting under the UWWTD and the resources. A particular effect is eutrophication in the

Drinking Water Directive reveal discrepancies between Adriatic Sea. Closing the implementation gap in the regions and the need for improvement of Nitrates Directive would address this situation, but implementation at regional level, especially with regard further efforts both in terms of monitoring potentially to monitoring. Urban wastewater treatment data were vulnerable areas and enforcing existing measures, need completely or partially missing from some regions, to be done at regional level making use of the EAFRD, rendering it impossible to calculate compliance rates at which could also support supplementary measures in

national level 114 . accordance with the Water Framework Directive.

Activities to solve these issues are being implemented. There is a need for improvements in the efficiency of the

The ERDF will be used in the southern Italy to address the water supply system, in particular the high leakage rates extensive UWWTD non-compliance, in conjunction with (27% nationally, the figure is closer to 50% in the south) the National Cohesion and Development Fund. EFSI is and it is urgent to invest in renewal of water also intervening to improve water infrastructure. infrastructure (the average age is 30 years). 118 Despite

Furthermore, the Decree-Law Unblock Italy 115 speeds up being the major water user in the country, water prices in

investments in water and flooding through administrative the agricultural sector are significantly lower than reforms and in 2016 special commissioners to speed up domestic and industrial prices, providing little incentive compliance with the UWWTD have been appointed. for an efficient water use.

Significant investments are needed for urban wastewater Investments in the water sector from the ERDF and

EAFRD 2014-20 are made subject to Action Plans for the

113 European Environment Agency, State of bathing water country reports -Italy , 2016

114 European Commission, Eighth Report on the Implementation Status 116European Commission, Facts and Figures about Urban Waste Water and the Programmes for Implementation of the Urban Waste Water Treatment

Directive (COM (2016)105 final) and Commission Staff Working 117 European Commission, 2016 . Urban waste water, 8th Document accompanying the report (SWD(2016)45 final ). implementation report

115 Sblocca-Italia Law 164/2014 118 Partnership Agreement 2014-20 , section 1A, pp.66-7

Italy 20

ex-ante conditionality for water, to ensure the correct services relating to the 2016 – 20 period. AAEGSI has application of the Water Framework Directive, including introduced an increasing (progressive) tariff system the adoption of updated RBMPs and the recovery of related to consumption that ensures incentive pricing, costs for water services. supports investments and provides adequate incentives

In Italy integrated water services (public water supply, for users to use water resources efficiently. New rules on wastewater treatment and sewerage) are regulated by water tariffs entered into force on 01.01.2016. an independent authority called AEEGSI 119 which Furthermore, the 2016 Budget Law

127

  has created a

approves the tariff methodology and the tariff plans of guarantee fund to improve water infrastructure, financed water utilities. by the new tariff.

The Ministry of Environment, in cooperation with District Authorities, has established a Working Group to draft national guidelines on the abstraction procedures and setting up environmental flows.

Flood risk areas have already been identified and

mapped in Italy 128 . The first cycle of Flood Risk

Management Plans (FRMPs) have been completed apart

from Sicily 129 .

Italy is hit regularly by flooding incidents with serious economic damage costs (the latest serious flooding incidents occurred in October and November 2014 with a total cost of damage estimated at EUR 2.2 billion). It is estimated that 60% of the country is at risk of flooding. The total cost of floods extrapolated in Italy over 11 years

Italy has issued guidelines in the form of Ministerial between 2002-13 was around EUR 11 billion for the 20

Decrees for the definition of environmental costs needed major floods recorded. The average cost per flood was

for cost recovery 120 & on water abstraction EUR 558 million, well above the EU average of EUR 370 measurements and distribution in the agricultural million 130 . Over a longer time period, it is estimated that sector 121 and various regulations governing the the costs of damages on physical assets in the period implementation of cost recovery including environmental 1950-10 amounted to EUR 52 billion 131 . In contrast, the

and resource cost. For example, by decision costs of securing the entire national territory was

662/2014/IDR 122 , AEEGSI has identified a first set of estimated at EUR 44 billion 132 .

charges to include in the environmental resources' costs

(ERC) and by decision 656/2015/R/IDR 123 has regulated In order to provide an effective governance system to the relationship between service granting authorities and manage hydro-geological risk, Italy launched a National water utilities. In addition with decision Operational Plan for the mitigation of hydrogeological 643/2013/R/IDR 124 , AEEGSI has introduced the Water risk in the period 2015-20, based on the proposals Tariff Method 125 and with decision 664/2015/R/IDR 126 it directly submitted by the regions to a constantly updated has approved a new tariff method for integrated water web platform called ReNDiS

133 ; so far about 9,000

requests of mitigation measures for over EUR 31 billion have been received. Submitted proposals are evaluated

119 Autorità per l'energia elettrica, il gas ed il sistema idrico in accordance with criteria laid down in a Council of

120 Decreto MATTM n. 39 del 24/2/15 di approvazione criteri per la definizione degli ERC per tutti gli usi

121 Decreto MiPAFF del 31/7/2015 Approvazione delle linee guida per la regolamentazione da parte delle Regioni delle modalita' di

quantificazione dei volumi idrici ad uso irriguo 127 Legge di stabilità 2016 122 Delibera 662/R/2014/IDR dell'AEEGSI “Individuazione ed 128 European Commission, Report on the progress in implementation

esplicitazione dei costi ambientali e della risorsa con riferimento a of the Floods Directive p. 55 quanto previsto nel metodo tariffario idrico (MTI) per l’anno 2015 129 Italian government

123 Delibera 656/2015/R/IDR dell'AEEGSI “Convenzione tipo per la 130 RPA 2014, Economic and Social Benefits of Environmental regolazione dei rapporti tra enti affidanti e gestori del servizio idrico Protection and Resource Efficiency Related to the European integrato -Disposizioni sui contenuti minimi essenziali” Semester , study for European Commission

124 Delibera 27/12/13 n. 643/2013/R/IDR dell'AEEGSI Approvazione del 131 Consiglio Nazionale dei Geologi (CNG), 2010. Terra e sviluppo, metodo tariffario idrico e delle disposizioni di completamento decalogo della terra 2010 – Rapporto sullo stato del territorio

125 Metodo Tariffario Idrico - MTI italiano. Roma, 13.10.2010

126 Delibera 664/2015/R/IDR dell'AEEGSI “Approvazione, ai fini della 132 Analysis of the potential for growth and job creation through the valorizzazione dei conguagli nell’ambito del metodo tariffario per il protection of water resources, pack 2, final report, (2015), ACTeon & secondo periodo regolatorio mti-2, delle predisposizioni tariffarie IMDEA et al (unpublished consultants' report carried out for the

relative all’ambito territoriale ottimale sarnese vesuviano, per il Commission) periodo 2012-2015” 133 Repertorio Nazionale degli interventi per la Difesa del Suolo

Italy 21

Ministers Presidential Decree 134 . Furthermore, to ensure Water Framework Directive Article 4(7), in particular

the funding of the most urgent measures, another new hydropower projects.

Council of Ministers Presidential Decree 135 identifies as  Increase investment in water infrastructure to ensure

part of the National Operational Programme, a implementation for the collection and adequate

Metropolitan Areas Plan 136 consisting of a set of treatment of wastewater. mitigation measures for metropolitan areas and urban  Reduce the polluting pressures by agriculture on

areas with high levels of population exposed to flood risk. surface and ground waters such as by introducing

This Plan includes 33 projects already funded for a value binding requirements for farmers to improve nutrient of over EUR 650 million, and a programmatic part with balances. The implementation of actions in new another 99 projects for a value of around EUR 500 national guidelines is a first step. million.  Improve land use and flood control.

Management and prevention of floods is an area where

potentially more economical nature-based solutions Enhancing the sustainability of cities could improve resource efficiency through reducing costs The EU Policy on the urban environment encourages and delivering multiple benefits. In its 2014-20 ERDF and cities to implement policies for sustainable urban EAFRD regional programmes Italy is planning to invest in planning and design, including innovative approaches for nature-based solutions to deal with flood control in urban public transport and mobility, sustainable addition to grey infrastructure. Under EFSI a new loan is buildings, energy efficiency and urban biodiversity underway to deal with flooding and hydrogeological conservation. risks 137 . Finally, among the measures included in National

Operational Plan green Infrastructures are considered a SDG11 aims at making cities and human settlements priority over other measures, as they contribute to inclusive, safe, resilient and sustainable.

integrated goals from both RBMPs and FRMPs. Europe is a Union of cities and towns; around 75% of the

Suggested action EU population are living in urban areas.

139

  The urban environment poses particular challenges for the

 Improve water policy in line with the intervention logic environment and human health, whilst also providing

of the Water Framework Directive, i.e. provide a more opportunities and efficiency gains in the use of resources.

detailed assessment of pressures to improve

monitoring to know the status of water bodies and The Member States, European institutions, cities and design Programmes of Measures that address all the stakeholders have prepared a new Urban Agenda for the main pressures identified, in particular from EU (incorporating the Smart Cities initiative) to tackle agriculture, industry and urban wastewater. The these issues in a comprehensive way, including their Programmes of Measures should be adequately connections with social and economic challenges. At the funded. The national and regional administration in heart of this Urban Agenda will be the development of the water sector should improve coordination including twelve partnerships on the identified urban challenges, using the district basin authorities created by the including air quality and housing

140 .

Collegato Ambientale 138 . The European Commission will launch a new EU

 Roll out a water pricing policy based on adopted benchmark system in 2017 141 .

national guidelines, including metering for more

efficient use of water. Water abstraction permits The EU stimulates green cities through awards and should be reviewed so they are consistent with funding, such as the EU Green Capital Award aimed at environmental objectives. cities with more than 100,000 inhabitants and the EU

 Ensure that new projects that can cause deterioration Green Leaf initiative aimed at cities and towns, with of the status are properly assessed according to the between 20,000 and 100,000 inhabitants.

In addition, Italy has allocated 5% of its ERDF budget 2014-20 to sustainable urban development.

134 Individuazione dei criteri e delle modalità per stabilire le priorità di There is a great level of motorisation in Italy's

attribuzione delle risorse agli interventi di mitigazione del rischio metropolitan and medium sized cities. Medium sized

idrogeologico , DCPM 28.05.15 cities have the highest number of cars (63.8 per 100

135 Individuazione degli interventi compresi nel Piano stralcio aree metropolitane ed aree urbane con alto livello di popolazione esposta a rischio di alluvione , DCPM 15.09.15 139 European Environment Agency, Urban environment

136 Piano Stralcio Aree Metropolitane 140 http://urbanagendaforthe.eu/

137 EFSI – Italian Flood Prevention Loan 141 The Commission is developing an Urban Benchmarking and

138 The Collegato Ambientale (art. 51) updates the governance Monitoring ('UBaM') tool to be launched in 2017. Best practices structure for planning in the field of water and soil conservation emerge and these will be better disseminated via the app featuring (approval in July 2016 – Conferenza Stato Regioni), making the UBaM tool, and increasingly via e.g. EUROCITIES, ICLEI, CEMR, operational the district Basin Authority. Committee of the Regions, Covenant of Mayors and others.

Italy 22

persons) followed by the 14 metropolitan cities (62.7 per Reggio Emilia had over 1m of cycle path/inhabitant, the

100 persons) in 2011 compared to the national average highest among the 2016 Green Capital Award

(62.5 per 100 persons). In the period 2001-11, there has contenders 148 . EFSI is being used in Bologna to improve been a noticeable reduction in motorisation in centreurban mobility 149 . Connecting Italy (Connettere Italia), the

north metropolitan cities whereas in the southern new strategy for transport infrastructure and logistics metropolitan cities there has been an increase. This can includes a target of a 20% increase in km of trams and be explained by public policies encouraging public metro lines per inhabitant by 2030, a 40% target for transport. The majority of regions will be using 2014-20 public transport, and a 10% target for softer transport ERDF funds to support clean urban infrastructure and modes (e.g. cycling). Furthermore, it is planned to have a promotion; there is also a dedicated ERDF National 30% increase in the population served by high-speed Programme for Metropolitan Cities 2014-20. trains by 2030, a 50% increase in railway freight transport

Italy is the 10th worst in the EU with regard to the by 2021 and a maximum time of 2 hours to reach ports economic costs caused by traffic congestion. 142 Certain and airports in the core network

150

. Italy has also created

urbanised areas such as Rome, Milan and the Venicein 2007 a national observatory on local public

Mestre area are particularly affected. Solving the transport

151 .

congestion problem would substantially reduce the Each inhabitant has an average of 30.3 m3 of urban

(health costs of) air pollution and the direct economic green space in 2011. The lowest values are found in the costs of congestion. There is scope for a more centre (23 m2 per inhabitant) and the north-west (24.3 comprehensive approach to congestion problems in Italy. m2 per inhabitant), and in the north-east the average

figure is almost doubled (45.4 m2 per inhabitant). It is

also relatively high in the south (37.1 m2) 152 . The majority of Italian cities have less than 20% green urban areas. 153

In 2012, over 86% of the residents of Reggio-Emilia lived within 300m of recreational green areas, helped through

planning policies such as a green belt 154 . Paternò, a

medium-sized city in Sicily, has used the ERDF to boost

green infrastructure 155 . Another innovative project is the Vertical Forest 156 , in the Porta Nuova district of Milan,

containing plants roughly equivalent to 2.5 acres of

forest. 157

A consequence of energy use and traffic is on airborne particulate matter. The metropolitan cities have the highest number of days when daily limit values are passed (56.1 on average) compared to medium sized

cities (43.1 on average) 158 .

Regarding municipal waste, medium-sized cities such as Treviso increased recycling from 52% in December 2013

Regarding public transport, compared to the national to 86% in November 2015

159 . In Reggio-Emilia the

average index of 208.9 passengers using public transport recycling rate is almost 60%

160

. In Milano separate

per city, metropolitan cities have a figure of 242.9 143 ,

with a higher value in the centre-north & Cagliari (391.7 148 European Green Capital Good practice report 2016, p.15

• & 

  234, respectively) compared to the metropolitan cities 149 EFSI – Ambiente Urbano Bologna V

in the south (70.8) in 2012 144 . Mobility sharing is strongly 150 Connettere l’Italia - Strategie per le infrastrutture di trasporto e logistica , pp.44-46

encouraged with the establishment of a national 151 Osservatorio Nazionale sulle politiche del Trasporto Pubblico Locale

observatory 145 , and in Milan for example it is estimated 152 ISTAT Green Space that 10-20% of the vehicles are shared 146 . The ERDF is 153 European Environment Agency, Green Urban Areas

supporting the construction of the tramway in Florence 154 European Green Capital Good practice report 2016, p.19 155 GRaBS, (Green and Blue Space Adaptation for Urban Areas and Eco

reducing congestion and improving quality of life 147 . Towns),Interreg IV C

156 Bosco Verticale 157 ten Brink P., Mutafoglu K., Schweitzer J-P., Kettunen M., Twigger

142 INRIX scorecard Ross C., Baker J., Kuipers Y., Emonts M., Tyrväinen L., Hujala T., and

143 Number of passengers taking public transport divided by the Ojala A. (2016) The Health and Social Benefits of Nature and resident population of a given city Biodiversity Protection. A report for the European Commission,

144 Partnership Agreement 2014-20 , section 1A, pp.139 Institute for European Environmental Policy, London/Brussels, p.12

145 Observatory on Mobility Sharing 158 Partnership Agreement 2014-20, section 1A, pp.141

146 Foundation on Sustainable Development, mobility sharing , p.17 159 European Commission, Brussels workshop 13.01.2016

147 European Commission, regional projects , Florence tram 160 European Green Capital Good practice report 2016, p.35

Italy 23

collection is 54% 161 . The situation is worse in southern participation of third countries to such agreements is an

Italian cities which encounter serious difficulties in established EU policy objective. In agreements where managing waste (with some exceptions such as the cities voting takes place it has a direct impact on the number of of Salerno and Benevento which have a higher separate votes to be cast by the EU. collection). The ERDF has supported improvements in

waste treatment in Salerno 162 . Currently, Italy has signed but not yet ratified the Offshore Protocol of the Barcelona Convention 170 , the

Regarding leakage of drinking water, the centre and Protocol on Integrated Coastal Zone Management, two southern cities have a higher level than the national agreements under the Convention on Long-range average. The highest losses are in Catania (56.9%) and Transboundary Air Pollution: the Gothenburg Protocol to

Cagliari (58.5%) in 2012 163 . EFSI is being used to improve Abate Acidification, Eutrophication and Ground-level water supply in Milan 164 and Ancona 165 . Ozone and the Heavy Metals Protocol. The same applies

Metropolitan cities such as Venice, Florence, Rome, to the Stockholm Convention on Persistent Organic

Naples, Bari, Reggio Calabria, Messina, Catania and Pollutants, the Kiev Protocol on Pollutant Release and

Palermo have persistent difficulties to treat waste Transfer Registers, and the Nagoya Protocol

171

. The

waters. Reggio Emilia has an almost 90% urban Italian authorities have indicated their commitment to wastewater connection rate 166 . The ERDF has heavily ratify the Minamata Convention on mercury, already supported urban wastewater treatment in the Campania signed in 2013.

Region for example the project for Campi Flegrei 167 , Suggested action

whereas European Investment Bank (EIB) loans are being

used especially in centre and northern Italy to ensure  Increase efforts to be party to relevant multilateral

compliance. ,168169 environmental agreements, by signing and ratifying the

remaining agreements.

International agreements

The EU Treaties require that the Union policy on the environment promotes measures at the international level to deal with regional or worldwide environmental problems.

Most environmental problems have a transboundary nature and often a global scope and they can only be addressed effectively through international co-operation.

International environmental agreements concluded by the Union are binding upon the institutions of the Union and on its Member States. This requires the EU and the

Member States to sign, ratify and effectively implement all relevant multilateral environmental agreements

(MEAs) in a timely manner. This will also be an important contribution towards the achievement of the SDGs, which Member States committed to in 2015 and include many commitments contained already in legally binding agreements.

The fact that some Member States did not sign and/or ratify a number of MEAs compromises environmental implementation, including within the Union, as well as the Union’s credibility in related negotiations and international meetings where supporting the

161 Consorzio Italiano Compostatori, presentation, Waste Directors,

Brussels, 26.10.2016 162 European Commission, regional projects , Salerno waste 163 ISTAT UrBes 2015, p.30 164 EFSI , MM water infrastructure upgrade 170 Protocol for the Protection of the Mediterranean Sea against 165 EFSI , multiservizi settore idrico Ancona Pollution Resulting from Exploration and Exploitation of the 166 European Green Capital Good practice report 2016, p.41 Continental Shelf and the Seabed and its Subsoil. 167 European Commission, regional projects, Lake Flegrei 171 Protocol on Access to Genetic Resources and the Fair and Equitable 168 EIB Viver Hydrobond Sharing of Benefits Arising from their Utilization to the Convention on

169 EIB Breaking Down Investment Barriers at Ground Level , p.31 Biological Diversity.

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Part II: Enabling Framework: Implementation Tools

• 4. 

  Market based instruments and investments

  2030 (real 2015 terms), equivalent to 0.45% of GDP. The

Green taxation and environmentally harmful next largest contribution to revenue comes from the

subsidies proposed water abstraction tax. This accounts for EUR 4.64 billion in 2030 (real 2015 terms), equivalent to

The Circular Economy Action Plan encourages the use of 0.23% of GDP.

financial incentives and economic instruments, such as

taxation to ensure that product prices better reflect Italy has a diesel differential of around 85% (as a environmental costs. The phasing out of environmentally benchmark a figure of 100% means the same level of harmful subsidies is monitored in the context of the taxation for petrol and diesel cars, i.e. no diesel European Semester and in national reform programmes differential)

175 , whereas externalities associated with

submitted by Member States. diesel are higher than petrol and therefore it would justify higher taxation.

Taxing pollution and resource use can generate increased

revenue and brings important social and environmental Figure 13: Environmental tax revenues as a share of

benefits. total revenues from taxes and social contributions (excluding imputed social contributions) in 2014 176

Italy has environmental tax revenues amounting to 3.6%

of GDP in 2014 (EU 28 average: 2.46% of GDP). 172 In the

same year environmental tax revenues accounted for

8.28% of total revenues from taxes and social-security contributions (EU28 average: 6.35%) as shown in Figure 13.

Shifting taxation away from labour towards taxes less harmful to growth remains a key challenge in Italy, and has been recommended as a country specific recommendation (CSR) under the European Semester 2012-14. Italy remains fairly modest in its proposed tax shift with 0.2% of GDP. A 3 year plan of measured tax cuts is planned starting with property taxes in 2016.

A 2016 study shows there is considerable potential for

shifting taxes from labour to environment 173 . Under a good practice scenario 174 , these taxes could generate an

additional EUR 10.85 billion by 2018, rising to EUR 19.53 billion by 2030 (both in real 2015 terms). This is equivalent to an increase by 0.64% and 1.4% of GDP in 2018 and 2030, respectively.

The largest potential source of revenue comes from the suggested harmonisation of taxes on transport fuels, generating EUR 9.14 billion of revenue generated by

172 Eurostat, Environmental tax revenues , accessed June 2016

173 Eunomia Research and Consulting, IEEP, Aarhus University, ENT,

2016. Study on Assessing the Environmental Fiscal Reform Potential for the EU28. N.B. National governments are responsible for setting

tax rates within the EU Single Market rules and this report is not Environmentally-harmful subsidies (EHS) persist in Italy

suggesting concrete changes as to the level of environmental

taxation. It merely presents the findings of the 2016 study by notably a reduced rate of VAT on energy and low

Eunomia et al on the potential benefits various environmental taxes could bring. It is then for the national authorities to assess this study 175 Update by European Commission, 2015 based on Harding M., 2014. and their concrete impacts in the national context. A first step in this The Diesel Differential: Differences in the Tax Treatment of Gasoline respect, already done by a number of Member States, is to set up and Diesel for Road Use . OECD Taxation Working Papers, No. 21; expert groups to assess these and make specific proposals. European Environment Agency 2016, Environmental taxation and EU

174 The good practice scenario means benchmarking to a successful environmental policies , table 4.3, p.24

taxation practice in another Member State. 176 Eurostat, Environmental tax revenues , accessed October 2016

Italy 25

taxation of company cars. There has been very limited (CONSIP), which has seen the use of sustainable criteria progress on the removal of EHSs with some increases in in more than 50% of tenders for certain product

excise duties and an extension for grants for energy categories 180 . The Collegato Ambientale establishes MEC

efficiency (so an environmentally positive subsidy) that apply to at least 50% of the value of a given offered in the 2015 budget but so far not enacted. The procurement activity with the possibility of increasing Collegato Ambientale establishes a catalogue of this percentage in a period of 5 years. Furthermore, a environmental friendly and harmful subsidies with a national public procurement strategy was adopted in report due by 31 July of each year. early 2016.

Italy has proposed to establish a Committee on

Environmental Taxation, mentioned in its 2015 National Investments: the contribution of EU funds

Reform Programme (but not mentioned in the 2016 European Structural and Investment Funds Regulations

National Reform programme). The Collegato Ambientale provide that Member States promote environment and creates a Committee on Environmental Accounting that climate objectives in their funding strategies and should produce a report by the 28 February of each year. programmes for economic, social and territorial

Green Public Procurement cohesion, rural development and maritime policy, and reinforce the capacity of implementing bodies to deliver

The EU green public procurement policies encourage cost-effective and sustainable investments in these areas.

Member States to take further steps to reach the target Making good use of the European Structural and

of applying green procurement criteria to at least 50% of

public tenders. Investment Funds (ESIF)

181

  is essential to achieve the environmental goals and integrate these into other policy

Green Public Procurement (GPP) is a process whereby areas. Other instruments such as the Horizon 2020, the public authorities seek to procure goods, services and LIFE programme and the EFSI

182

  may also support

works with a reduced environmental impact throughout implementation and spread of best practice.

their life-cycle when compared to goods, services and Italy receives EUR 32.8 billion in total Cohesion Policy works with the same primary function that would funding over 2014-20 period (current prices, including otherwise be procured. ERDF, ESF, European Territorial Cooperation funding and

The purchasing power of public procurement in the EU the allocation for the Youth Employment Initiative, see equals to approximately 14% of GDP 177 . A substantial part Figure 14); national co-financing adds another EUR 20.2 of this money is spent on sectors with high billion. Furthermore there is yet another EUR 54.8 billion environmental impact such as construction or transport, from the National Cohesion and Development Fund

183 .

so GPP can help to significantly lower the impact of Italy also receives EUR 10.4 billion for rural development public spending and foster sustainable innovative and EUR 537 million for fisheries and maritime affairs

184

.

businesses. The Commission has proposed EU GPP Cohesion policy (and rural development) is a mixed

criteria 178 . competence with both national programmes and regional programmes. The less developed south

In 2013 Italy has adopted the national action plan (NAP) (Basilicata, Calabria, Campania, Puglia and Sicily) and for GPP. The NAP GPP provides that the Ministry of the transition regions (Abruzzo, Molise and Sardinia) receive Environment set out the minimum environmental criteria a higher intensity of funding than the more developed (MEC), which represent the reference point at national centre and north in both the ERDF and the National level for the use of GPP by contracting authorities. The Cohesion and Development Fund (80% in the south, 20% Collegato Ambientale (Article 19) makes GPP mandatory. in the centre & north).

One good practice is the Remade in Italy179 accredited In addition, 30% of the first pillar of the Common certification scheme specifically aimed at the verification Agricultural Policy (CAP) (EUR 27 billion for Pillar 1 for

of recycled content in a product. Italy 185 ) will contribute to basic environmental

Regarding the level of uptake of GPP in public authorities

in Italy, there is a positive trend in the last years, also due 180 Presentation made by CONSIP, Rome Conference 25.11.14 on

to the involvement of its central purchasing body 'L’uso strategico degli appalti pubblici per un'economia sostenibile' 181 ESIF comprises five funds – the European Regional Development

Funds (ERDF), the Cohesion Fund (CF), the European Social Fund

177 European Commission, 2015. Public procurement (ESF), the European Agricultural Fund for Rural Development

178 In the Communication “Public procurement for a better (EAFRD), and the European Maritime and Fisheries Fund (EMFF). The

environment” (COM /2008/400) the Commission recommended the ERDF, the CF and the ESF together form the Cohesion Policy funds. creation of a process for setting common GPP criteria. The basic 182 European Investment Bank, 2016 European Fund for Strategic concept of GPP relies on having clear, verifiable, justifiable and Investments ambitious environmental criteria for products and services, based on 183 Fondo per lo Sviluppo e la Coesione a life-cycle approach and scientific evidence base. 184 European Commission ; Dipartimento per le Politiche de Coesione

179 Remade in Italy 185 European Commission, Common Agriculture Policy ; Pillar 1 is the

Italy 26

protection. additional waste recycling capacity will be created;

Figure 14: European Structural and Investment Funds 1,373,786 additional persons will be served by improved

2014-2020: Budget Italy by theme, EUR billion 186 water supply ; 4,014,540 persons will be served by improved wastewater treatment; in terms of expected

results in the whole territory, 1,693,859 persons will benefit from forest fire protection measures ; 77,088 Hectares of land will be rehabilitated ; 273,915 Hectares of habitats will be supported to attain a better

conservation status 188 .

Current data suggest that the overall disbursement of funds for the 2007-13 programming period for the ERDF in Italy reached 80% of the allocated resources with 95% in the centre-north and 78% in the south (all figures well above the EU average), but the environmental sector is

performing worse than other sectors. 189 In 2014-20, the

EU funds will be instrumental inter alia to end the persistent infringements in the water and waste sectors. Indeed, the ERDF is being used to deal with underinvestment in water e.g. in Campania in a substantial way with five Major Projects.

With regard to natural capital (biodiversity), clean-up of contaminated land, and risk prevention, the ERDF is available over the whole territory. In central and northern Italy investments are focused on sustainable transport and energy, research and competitiveness of SMEs. This includes opportunities for eco-innovation and promoting the circular economy.

The Cohesion Policy in Italy has suffered three main

With regard to the support by EARFD, the agri-climate problems - fragmentation, lack of adequate environment component includes a wide range of administrative capacity and a weak central control. The measures, some of which are ambitious and address a new National Cohesion Agency was created to resolve wide range of environmental issues (biodiversity, water, these issues.

soil, air). The new National Strategy for Internal Areas supported

The ERDF allocation for environment (Thematic Objective by the ESIF is another opportunity to make

6 – T06) is EUR 2.6 billion which is 12.5% of the total environmental investments 190 . allocation for the ERDF 187 . Investments in water and

waste are only eligible in the less developed south and A lack of administrative capacity in small municipalities

Sardinia. As the ERDF allocation is insufficient to close can lead to difficulties in using EU funds for implementation gaps, adequate financing from the environmental purposes. The cohesion policy places an National Cohesion and Development Fund and EIB and emphasis on financing so-called major projects; in the EFSI loans is needed. case of Italy, there are several major projects in the field

of urban wastewater treatment in the Campania region.

The action plans for the ex-ante conditionalities for water On the other hand, it is often smaller projects at and waste investments under the ERDF and EAFRD 2014- municipal level that are needed to implement EU 20 mentioned earlier will play a major role in accelerating environmental objectives and targets (e.g. separate the implementation of the environmental legislation, and collection, public awareness on waste prevention, nature foster a dialogue with the authorities. and biodiversity projects).

Some of the expected results from ERDF investments in The Ministry of Environment has developed several the South of Italy are as follows: 877,800 Tonnes/year of initiatives & projects to strengthen its support of the

non-rural development (non-EAFRD) part of the CAP 188 European Commission, European Structural and Investment Funds - 186 European Commission, European Structural and Investment Funds Italy

Data By Country 189 Final data for the period 2007-13 will only be available at the end of 187 This figure includes risks and land decontamination too. The narrow 2017.

environmental allocation (water, waste, nature, air) is EUR 1.4 billion 190 Programma Nazionale di Riforma 2016, April 2016, p.132

Italy 27

regions. This support aims at the better use of ESIF resources in the environmental sector during the programming period 2014-20 and the improvement of the complementarity between ESIF and other funds and programmes.

One existing project is the Knowledge Platform - Best

Practices for the Environment and Climate Action 191 , financed with Technical Assistance 192 collecting results

from EU co-financed projects through various programmes and developing networking capabilities. The transfer of acquired knowledge and results from LIFE projects have already begun to assist the Calabria and

Sicily Regions (ARUPA; PRIME; GESTIRE 2020; TRUST;

AQUOR) 193 . The Platform supports the Regions and the

SME in accessing innovative methodologies and technologies.

The Ministry of Environment is also a partner of several projects implemented through the Rural National

Network Programme (co-financed by EAFRD), including the one focused on complementarity between the LIFE

Programme 2014-20 and Rural Development policies 194 .

With the technical support of the LIFE National Contact

Point at the Ministry of Environment 195 , 306 projects

were co-financed 2007-13 and 29 projects in 2014.

Moreover, Italy is involved in 104 of the 189 projects resulting from the 2014, 2015 and 2016 one stage calls for proposals in the Societal Challenge “Climate action, environment, resource efficiency and raw materials”

(including the SC5 relevant projects resulting from the

calls for SMEs Instruments - phase 2) 196

With regard to the use of EFSI, in November 2014 Italy presented around 80 projects worth over EUR 40 billion, with the process still being open to new eligible projects.

EFSI environmental projects in the fields of dealing with hydrogeological hazards, urban wastewater treatment and decontaminated land are cited earlier in this Country

Report.

191 La Piattaforma delle Conoscenze , Ministry of the Environment

192 PONGAT 2007-13

193 LIFE projects : ARUPA; PRIME; GESTIRE 2020; TRUST; AQUOR

194 Complementarietà e sviluppo di sinergie con il programma per l’ambiente e l’azione per il clima LIFE a supporto dei PSR 2014/2020

195 LIFE projects national page , Ministry of Environment

196 European Commission, Horizon 2020

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• 5. 

  Effective governance and knowledge

SDG 16 aims at providing access to justice and building

effective, accountable and inclusive institutions at all Capacity to implement rules

levels. SDG 17 aims at better implementation, improving

policy coordination and policy coherence, stimulating It is crucial that central, regional and local science, technology and innovation, establishing administrations have the necessary capacities and skills

partnerships and developing measurements of progress. and training to carry out their own tasks and co-operate and co-ordinate effectively with each other, within a

Effective governance of EU environmental legislation and system of multi-level governance. policies requires having an appropriate institutional

framework, policy coherence and coordination, applying According to the World Bank 2015 Worldwide legal and non-legal instruments, engaging with non Governance Indicators, Italy scores well below the EU governmental stakeholders, and having adequate levels average for the government effectiveness indicator, of knowledge and skills 197 . Successful implementation which captures the perceptions of the quality of public depends, to a large extent, on central, regional and local services, the capacity of the civil service and its government fulfilling key legislative and administrative independence from political pressures, and the quality of tasks, notably adoption of sound implementing policy formulation.

198 A CSR was adopted in 2015 to

legislation, co-ordinated action to meet environmental improve the institutional framework and modernising the objectives and correct decision-making on matters such public administration. The Government has passed a law as industrial permits. Beyond fulfilment of these tasks, in August 2015 to improve the public administration, and government must intervene to ensure day-to-day more steps were announced for 2016

199 . The Commission

compliance by economic operators, utilities and has again proposed a CSR for 2016

200

  on implementing

individuals ("compliance assurance"). Civil society also reform of the public administration which has has a role to play, including through legal action. To environmental importance as it does for other sectors

201 .

underpin the roles of all actors, it is crucial to collect and share knowledge and evidence on the state of the environment and on environmental pressures, drivers and impacts.

Equally, effective governance of EU environmental legislation and policies benefits from a dialogue within

Member States and between Member States and the

Commission on whether the current EU environmental legislation is fit for purpose. Legislation can only be properly implemented when it takes into account experiences at Member State level with putting EU commitments into effect. The Make it Work initiative, a

Member State driven project, established in 2014,

organizes a discussion on how the clarity, coherence and Several factors underlie the reduced effectiveness of structure of EU environmental legislation can be actions in Italian public administrations. Competences improved without lowering existing protection standards. are unclearly shared among central and local

administrations, generating overlapping and intra

Effective governance within central, regional institutional conflicts. These make administrative

and local government processes uncertain both in terms of duration and

Those involved in implementing environment legislation outcome. Furthermore, the lack of transparency and at Union, national, regional and local levels need to be public control over the administrative activities reduces equipped with the knowledge, tools and capacity to the accountability of the public administration

202 .

improve the delivery of benefits from that legislation,

and the governance of the enforcement process. 198World Bank - Worldwide Governance Indicators

199 Programma Nazionale di Riforma 2016, April 2016, p.3 & pp.87-91, (Law 124/2015)

200 2016 CSR proposed 18.05.16 201 this CSR also refers to stepping up the fight against corruption by revising the statute of limitations and reducing the length of civil

197 The Commission has work ongoing to improve the country-specific justice proceedings by enforcing reforms and through effective case knowledge about quality and functioning of the administrative management.

systems of Member States. 202 European Commission 2016 Country Report for Italy

Italy 29

The 2013 European Quality of Government Index gives a some of which were established and penalised by the EU similar picture with Italy well below the EU average, Court of Justice in areas such as management of waste.

ranking 23rd of the 28 EU Member States 203 . Peculiarly, Improving the administrative capacity is vital to address

Italy shows the widest variation across EU regions with such implementation gaps.

Trento the highest placed region and Campania the

lowest. In some of the environmental cases where individuals or NGOs have gained access before the national courts over

The implementation framework for the environment is the past years, the Italian judges referred several fragmented and essentially reactive. Furthermore, it is requests for preliminary rulings to the EU Court of recognized that administrative capacity to implement Justice. This represented a valuable contribution to the environmental requirements is weak in the Mezzogiorno. development of EU environment law, since preliminary Furthermore, the OECD has stated that the Ministry of rulings enable the Court of Justice to give a coherent Environment is under-resourced to allow it to ensure interpretation of the EU law.

environmental integration in all policy areas. 204

Italy agreed to adopt regional (and national) Coordination and integration

Administrative Reinforcement Plans (PRAs 205 ) to improve

implementation of ESIF in part as a reaction to the In the light of its decentralised institutional setting which aforementioned 2015 CSR 206 . The PRAs cover also nonis one of the fundamental principles of administrative ESIF administrative capacity-building and should lead to a organization and is a constitutional principle, Italy has reform of the public administration and reinforcement of established the Inter-ministerial Committee for European managing structures. The National Operational Affairs

210

. This high-level political forum works under the

Programme on “Governance and Institutional Capacity” Presidency of the Council of Ministers with the aim of

2014-20 provides another opportunity to improve ensuring political coordination among national and

administrative capacity also in the environmental sector. regional authorities in relation to the European dossiers. The Inter-ministerial Committee for European Affairs is

The fragmentation at regional and local levels and red assisted by the Technical Committee of Evaluation 211

tape are also recognized to cause problems for the which facilitates the policy convergence and synergies,

activities of SMEs 207 . A recent administrative change among the Ministries' representatives and the Regions called the Single Environmental Authorisation 208 has on specific implementation issues in a timely and

reduced the administrative burden. However, it is still effective manner. estimated that in 2015 'environmental issues' are seen as

costing EUR 3.41 billion out of a total of around EUR 32 At national level, the prime responsibility for cobillion in terms of administrative burden by the first ordinating environmental matters lies with the Ministry

Italian Measurement Programme 2008-12. of Environment, Land and Sea. Although the Ministry does not benefit from a specific National Operational

Reforms of the governance of national parks & protected Programme on “Environment” funded by the ESIF, many areas and of the waste consortia were announced in the projects/initiatives have been proposed to integrate

2016 National Reform Programme 209 . environmental objectives and actions in other National

Environmental policy developments in Italy are mainly Operational Programmes. Other key ministries for driven by EU Regulations and Directives. However, there environmental integration are: the Ministry of Economic has been a consistent problem with late transposition. Development;, the Ministry of Agriculture, Food and This has resulted in several infringements and a high Forestry; the Ministry of Education, University and number of complaints to the Commission. The situation is Research;, the Ministry of Infrastructure and Transport; further complicated by two levels of transposition, first at and the Ministry of Health; the aforementioned National national and later regional level. If the national Cohesion Agency is also a key actor. The regions, transposition is incorrect, this has a knock on effect on provinces and municipalities have also environmental the regional level, e.g. the situation with the EIA Directive competences. The general legislative power belongs to

up until November 2015. the State and the Regions on an equal footing. Furthermore, Regional Environmental Agencies (ARPAs)

Italy has also a considerable number of infringements exist for controlling pollution, monitoring and technical relating to the application of EU environmental law, support and the national Institute for Environmental

Research (ISPRA) 212 has been given the role for ensuring

203 Charron N., 2013. European Quality of Government Index (EQI) that regional agencies perform in a uniform manner in

204 OECD, Environmental Performance Review Italy 2013

205 Programma Rafforzamento Amministrativa 210 Comitato Interministeriale per gli Affari Europei

206 Partnership Agreement 2014-20. Law No. 234 of 24 December 2012, Art. 2

207 European Commission, Small Business Act Italy Fact Sheet , 2015 211 Comitato Tecnico di Valutazione

208 Autorizzazione Unica Ambientale (AUA) Law No. 234 of 24 December 2012, Art. 19

209 Programma Nazionale di Riforma 2016, April 2016, p.58 212 Istituto superiore per la protezione e la ricerca ambientale

Italy 30

June 2016. environmental considerations into sectoral policies and

The sustainable development strategy has not been programmes. These efforts should be grounded in the updated since 2002. A public consultation was launched development of a more effective assessment culture

224

.

in March 2016 on an update of the strategy introducing The transposition of the revised Environmental Impact the SDGs 213 . A Commission on Sustainable Assessment (EIA) Directive

225 will be an opportunity to

Development 214 was established in 2002 as part of the streamline the regulatory framework on environmental

Committee for Economic Planning 215 , which is the main assessments. This approach would reduce duplication inter-ministerial body that defines national economic and avoids unnecessary overlaps in environmental policy, outlines multi-year budgets and monitors their assessments applicable for a particular project. implementation. However, the OECD has judged in 2013 Moreover, streamlining helps reducing unnecessary that the Commission on Sustainable Development has administrative burden and accelerates decision-making,

been largely inactive 216 . without compromising the quality of the environmental assessment procedure. The Commission has issued a

The Collegato Ambientale foresees updating of the guidance document in 2016 226 regarding the setting up of

National Strategy on Sustainable Development every coordinated and/or joint procedures that are three years. It should be noted that there is also no simultaneously subject to assessments under the EIA environmental action plan at national level, although Directive, Habitats Directive, Water Framework Directive,

these exist in some regions 217 . and the Industrial Emissions Directive.

Italy has taken significant steps towards the inclusion of Italy has already integrated/coordinated environmental the environmental dimension into budgetary and assessment procedures under the EIA Directive (SEA, financial issues with the creation of the BES indicator Habitats, Integrated Emissions Directives) which can be

system (Wellbeing, Equal and Sustainable) 218 . The BES considered a good practice. Lessons should be learnt

indicators are organised in 130 sub-indicators in 12 from past environmental crises, e.g. recurring flooding

fields 219 . The law 220 establishing BES also creates an ad incidents in central and northern Italy, waste

hoc Committee made of representatives from the management in Campania and Lazio, water in Sicily, and

Ministry of Economy and Finance (MEF), Bank of Italy, traffic congestion in the Venice-Mestre area, all examples

the National Institute of Statistics (ISTAT) 221 and highwhich have been cited earlier in this Country Report. The

level experts from the academic and research field to lack of coordination among regions also affects the identify the indicators that will be attached to the Annual proper implementation of the Water Framework

Financial Law 222 . Furthermore, MEF is tasked with the Directive. The occurrence of crises in Italy is linked to the

production of an annual analysis reporting back to the convergence or divergence of subnational units (regions, parliament by 15 February each year as regards progress provinces and municipalities) in terms of economic and

and trends of the indicators. environmental performance. 227 The appointment of

Following the introduction of a law in 2005, Regulatory emergency commissioners has been used to deal with

Impact Assessments (RIA) are formally required for every crises, but this does not entail derogation from EU rules.

legislative proposal in Italy. However, the systematic The Collegato Ambientale (Article 51) updates the application of RIA varies between the different sectors of governance structure for planning in the field of water

the Italian public administration 223 . and soil conservation (approved in July 2016 by the State

More robust and systematic use of RIAs and Strategic Regions Conference

228 ), making operational the District

Environmental Assessments (SEAs), as well as ex post Basin Authority.

evaluation of policies, would also help to mainstream Some environmental integration is taking place. One

good practice example is the Environmental Network 229 ,

213 Ministry of Environment – Press Release 31.03.16

214 Ministry of Environment, Sustainable Development Strategy

215 Comitato interministeriale per la programmazione economica 224 OECD, Environmental Performance Review Italy 2013

(CIPE) 225 the transposition of Directive 2014/52 i/EU is due in May 2017

216OECD, Environmental Performance Review Italy 2013 226 European Commission, 2016. Commission notice — Commission

217 European Environment Agency, More from less – material resource guidance document on streamlining environmental assessments efficiency in Europe . 2015 overview of policies, instruments and conducted under Article 2(3) of the Environmental Impact

targets in 32 countries, 2016, Italy report, p.9 Assessment Directive (D irective 2011/92/EU of the European 218 Benessere equo e sostenibile Parliament and of the Council, as amended by Directive 2014/52 i/EU). 219 BES webpage , ISTAT 227 Waste management beyond the Italian north-south divide: spatial 220 Law No. 163 of 4 August 2016 n° 163, Art 1,6 & Art.14 G.U. analyses of geographical, economic and institutional dimensions,

25/08/2016 Mazzanti M and Montini A (2014), Handbook on waste management 221 Istituto nazionale di statistica edited by T. Kinnaman & K. Takeuchi (E. Elgar).

222 Documento di Economia e Finanza 228 Conferenza Stato Regioni

223 RPA 2014, Economic and Social Benefits of Environmental 229 Rete delle Autorità Ambientali e delle Autorità di Gestione. The

Protection and Resource Efficiency Related to the European Italian network regularly participates in the meetings and activities Semester , study for European Commission of the European ENEA-MA.

Italy 31

a network of national & regional environmental and of means to promote compliance, including awarenessmanaging authorities ensuring integration through the raising campaigns and use of guidance documents and ESIF activities in existence for over 10 years. While the online information tools. Follow-up to breaches and Network has produced many useful outputs and liabilities can include administrative action (e.g.

facilitated the exchange of experiences, it has been withdrawal of a permit), use of criminal law 234 and action

rather intermittent in its activities. Another example is under liability law (e.g. required remediation after the register of the environmental sustainability of school damage from an accident using liability rules) and

buildings 230 . contractual law (e.g. measures to require compliance

In the framework of the REACH Regulation, the national with nature conservation contracts). Taken together, all technical coordination committee (CTC) represents a best of these interventions represent "compliance assurance" practice concerning governance at the national level. The as shown in Figure 15.

CTC 231 gathers relevant branches of the public Best practice has moved towards a risk-based approach

administration in order to agree a common position both at strategic and operational levels in which the best mix at the national and at the EU level. In order to share this of compliance monitoring, promotion and enforcement is

governance experience, a website 232 has also been directed at the most serious problems. Best practice also

established, allowing a continuous dialogue among all recognises the need for coordination and cooperation relevant stakeholders. between different authorities to ensure consistency,

The relatively low priority assigned to the environment avoid duplication of work and reduce administrative by the national and some regional governments over burden. Active participation in established pan-European much of the last decade, coupled with a highly networks of inspectors, police, prosecutors and judges, decentralised governance system, has made it difficult to such as IMPEL

235

, EUFJE 236 , ENPE 237 and EnviCrimeNet 238 ,

scale up positive environmental initiatives, despite the is a valuable tool for sharing experience and good efforts deployed by the environmental authorities 233 . practices.

However, recent initiatives, for example to promote a Figure 15: Environmental compliance assurance green economy, indicate an increased emphasis on environmental issues by the government and should help co-ordination.

Suggested action

 Address the fragmentation at regional and local levels

by developing better national level coordination mechanisms for environment.

Compliance assurance

EU law generally and specific provisions on inspections, other checks, penalties and environmental liability help lay the basis for the systems Member States need to have in place to secure compliance with EU environmental rules.

Currently, there exist a number of sectoral obligations on

Public authorities help ensure accountability of dutyinspections and the EU directive on environmental holders by monitoring and promoting compliance and by liability (ELD) 239 provides a means of ensuring that the taking credible follow-up action (i.e. enforcement) when "polluter-pays principle" is applied when there are breaches occur or liabilities arise. Compliance monitoring accidents and incidents that harm the environment. can be done both on the initiative of authorities There is also publically available information giving themselves and in response to citizen complaints. It can insights into existing strengths and weaknesses in each involve using various kinds of checks, including Member State.

inspections for permitted activities, surveillance for

possible illegal activities, investigations for crimes and For each Member State, the following were therefore audits for systemic weaknesses. Similarly, there is a range reviewed: use of risk-based compliance assurance;

234 European Union, Environmental Crime Directive 2008/99/EC.

230Programma Nazionale di Riforma 2016, April 2016, p.83 235 European Union Network for the Implementation and Enforcement

231Ministry of Environment, Ministerial Decree 22.11.2007 of Environmental Law

232 REACH - Prodotti Chimici: informiamo i cittadini 236 European Union Forum of judges for the environment

233 For example, in the water field, this is also reflected in the low 237 The European Network of Prosecutors for the Environment quality of the data monitored and reported under the Drinking Water 238 EnviCrimeNet

and Urban Wastewater Treatment Directives. 239 European Union, Environmental Liability Directive 2004/35/CE

Italy 32

coordination and co-operation between authorities and Interpol 245 .

participation in pan-European networks; and key aspects

of implementation of the ELD based on the Commission's Information in Italy's report for the period 2007-13 recently published implementation report and REFIT suggests a high incidence of cases potentially falling

evaluation. 240 within the scope of the ELD, as well as a high number of requests for action by Italian citizens or NGOs. However,

In Italy, some positive developments have occurred to while Italian authorities have participated in the underpin risk-based compliance assurance: (i) For Commission training programme for the ELD, Italy has instance, the regional environmental agency of Lombardy not developed guidance or other administrative support (ARPA Lombardia) has developed a good inspection tools, and there is no register for environmental liability planning system, mechanisms for dialogue with the cases. As regards financial security (to pay for regulated community to promote compliance general remediation where the operator cannot), information is guidance on industrial inspections, extensive training incomplete. The country did not establish mandatory

plans 241 and an innovative use of earth observation financial security, but there is an insurance pool 246

techniques. (ii) A recent revision of its Criminal Code has operating and sufficient insurance cover seems to be on put Italy in a better position to tackle the most serious offer (although not taken up).

environmental offences. Suggested action

However, risk-based approaches and data collection are

not applied consistently across the country 242 . The low  Improve transparency on the organisation and

deterrence of sanctions imposed in practice and lack of functioning of compliance assurance and on how cooperation between different environmental inspection significant risks are addressed.

authorities and between them and police and  Step up efforts in the implementation of the

prosecutors represent challenges 243 . Environmental Liability Directive (ELD) with proactive

initiatives, in particular by setting up a national register

Up-to-date information is lacking in relation to the of ELD incidents and drafting national guidance. Italy following: (i) Data-collection arrangements to track the should moreover take further steps to ensure an use and effectiveness of different compliance assurance effective system of financial security for environmental interventions. (ii) The extent to which risk-based liabilities (so that operators not only have insurance methods are used to direct compliance assurance both at cover available to them but actually take it up).

the strategic level and in specific problem-areas highlighted elsewhere in this Country Report, i.e. noncompliance

with waste rules 244 , the threats to protected Public participation and access to justice

habitat types and species, air quality problems, the The Aarhus Convention, related EU legislation on public pressures on water quality from diffuse water pollution participation and environmental impact assessment, and and deficits in urban waste-water treatment. the case-law of the Court of Justice require that citizens

and their associations should be able to participate in

Italian regional inspection authorities actively contribute decision-making on projects and plans and should enjoy

to the work of IMPEL. Italy is also strongly involved in the

activities of the EUFJE and EnviCrimeNet. Italy is leading a effective environmental access to justice.

project on combating environmental crime, with Citizens can more effectively protect the environment if participation of Belgium, Spain, Romania, Belgium and they can rely on the three "pillars" of the Convention on involvement of EnviCrimeNet, Europol, Eurojust and Access to Information, Public Participation in Decisionmaking

 and Access to Justice in Environmental Matters ("the Aarhus Convention"). Public participation in the

240 COM(2016) 204 final i and COM(2016) 121 final of 14.4.2016. This administrative decision making process is an important

highlighted the need for better evidence on how the directive is used

in practice; for tools to support its implementation, such as guidance, element to ensure that the authority takes its decision on

training and ELD registers; and for financial security to be available in the best possible basis. The Commission intends to

case events or incidents generate remediation costs. examine compliance with mandatory public participation

241 IMPEL IRI Italy, p. 4, 19, 21 and 30. requirements more systematically at a later stage.

242 Amec Foster Wheeler Environment & Infrastructure/Millieu,

'Assessment and Summary of the Member States implementation reports for the IED, IPPCD, SED and WID' 2016, p. 265, study for European Commission 245 The EU funded "Tackling Environmental Crimes through

243 IMPEL IRI Italy, p. 4 and 13. Standardised Methodologies – TECUM' project aims at reinforcing

244 Since the 1990s, the Commission has been obliged to pursue the capacities of police services and specialized agencies in fighting infringement procedures targeting significant number of irregular environmental crime, especially where organized crime is involved. landfills in Italy. Lack of proper compliance monitoring and effective The project will tackle illicit waste trafficking as well as related

measures to tackle organised waste crime have been identified to be evolutionary forms of environmental crime, addressing the problems amongst the causes of the Naples waste crisis, see Study by an operational inter-agency approach aimed at standardization of 'Implementing EU Waste Legislation for Green Growth', transnational investigation procedures. BioIntelligence Service, p. 175. 246Pool Inquinamento

Italy 33

Access to justice in environmental matters is a set of the ongoing EU e-Government Action Plan 251 . The first

guarantees that allows citizens and their associations to two instruments create obligations to provide challenge acts or omissions of the public administration information to the public, both on request and actively. before a court. It is a tool for decentralised

implementation of EU environmental law. The access to EIA and SEA information and data is granted both at national level (EIA-SEA Portal of the

For each Member State, two crucial elements for Ministry of Environment 252 ) and at the different

effective access to justice have been systematically administration levels through dedicated websites, reviewed: the legal standing for the public, including fulfilling the requirements of the national legislation NGOs and the extent to which prohibitive costs represent concerning access to informational and public a barrier. participation in environmental assessments procedures

The Italian legal system grants NGOs legal standing in and with the intention of being in line with the provisions environmental matters in particular through case law. of the revised EIA Directive (Articles 5.6).

However, the conditions are not codified in a way that The INSPIRE Directive is a pioneering instrument for the right to take an environmental case to the court is electronic data-sharing between public authorities who laid down in national legislation with sufficient precision can vary in their data-sharing policies, e.g. on whether and clarity. It seems, for instance, that it is not clear access to data is for free. The INSPIRE Directive sets up a whether local branches of recognized environmental geoportal which indicates the level of shared spatial data NGOs are granted legal standing before the courts. The in each Member State – i.e. data related to specific

case law on that issue is not uniform 247 . locations, such as air quality monitoring data. Amongst

Suggested action other benefits it facilitates the public authorities' reporting obligations.

 .Take the necessary measures to ensure standing of

environmental NGOs to challenge acts or omissions of For each Member State, the accessibility of environmental data (based on what the INSPIRE Directive

a public authority in all sectoral EU environmental laws, envisages) as well as data-sharing policies ('open data')

in full compliance with EU law as well as the Aarhus

Convention. have been systematically reviewed

253 .

Italy's performance on the implementation of the

Access to Information, knowledge and INSPIRE Directive as enabling framework to actively

evidence disseminate environmental information to the public is lagging behind. Italy has indicated in the 3-yearly INSPIRE

The Aarhus Convention and related EU legislation on implementation report 254 that the necessary data-sharing

access to information and the sharing of spatial data policies allowing access and use of spatial data by require that the public has access to clear information on national administrations - including in particular local the environment, including on how Union environmental municipalities - other Member States' administrations law is being implemented. and EU institutions without procedural obstacles are not

It is of crucial importance to public authorities, the public yet available.

and business that environmental information is shared in Within Italy, the creation, management and publication an efficient and effective way. This covers reporting by of spatial information is often institutionally assigned to businesses and public authorities and active small municipalities, that are not able to make available dissemination to the public, increasingly through spatial information in conformity with the standards electronic means. required by the INSPIRE Directive due to lack of

The Aarhus Convention 248 , the Access to Environmental technological infrastructure and of qualified personnel.

Information Directive 249 and the INSPIRE Directive 250 Italy recently has started the preparation of legislative

together create a legal foundation for the sharing of proposals to establish the necessary licences for environmental information between public authorities overcoming the existing impediments to the sharing of and with the public. They also represent the green part of spatial data. It should be noted though that in order to

address the problems highlighted above the National

247 European Commission, 2012/2013 access to justice in 251 European Union, EU eGovernment Action Plan 2016-2020 - environmental matters Accelerating the digital transformation of government COM(2016)

248 UNECE, 1998. Convention on Access to Information, Public 179

Participation in Decision-Making and Access to Justice in 252 Ministry of Environment, EIA-SEA Portal Environmental Matters 253 Upon request by the Commission, most Member States provided

249 European Union, Directive 2003/4/EC on public access to an INSPIRE Action Plan addressing implementation issues. These environmental information plans are currently being assessed by the Commission.

250 European Union, INSPIRE Directive 2007/2/EC

Italy 34

Council for Spatial and Environmental Information

(CNITA) 255 was set up and aims to carry out a detailed

assessment on how it can create an open data policy taking also into account the priorities defined in the

Digital Single Market.

Assessments of monitoring reports issued by Italy 256 and

the spatial information that Italy has published on the

INSPIRE geoportal 257 indicate that not all spatial

information needed for the evaluation and implementation of EU environmental law has been made available or is accessible. The larger part of this missing spatial information consists of the environmental data required to be made available under the existing reporting and monitoring regulations of EU environmental law.

Suggested action

 Critically review the effectiveness of its data policies

and amend them, taking 'best practices' into consideration.

 Identify and document all spatial data sets required for

the implementation of environmental law, and make the data and documentation at least accessible 'as is' to other public authorities and the public through the digital services foreseen in the INSPIRE Directive.

255 Consulta nazionale per l'informazione territoriale e ambientale,

Decree 12.01.2016 256 Inspire indicator trends 257 INSPIRE Resources Summary Report

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