The report addresses specific topics related to the interaction between energy and the circular economy, covering areas such as technical standardization, RSE’s participation in the IEA Bioenergy technical cooperation program, the measurement of “circularity,” and the gradual integration of circular economy principles into public incentive mechanisms.

Regarding standardization, the report provides updates on the annual activities conducted by national (UNI CTI CT 283) and international (ISO TC 300) bodies in the field of energy recovery from waste and Solid Recovered Fuels (SRF).

In terms of cooperation with the IEA, the report summarizes the key technical feedback obtained from RSE’s participation in the annual activities of Task 36 of the IEA Bioenergy TCP. Concerning circularity metrics, the annual activity led to the definition of a preliminary framework for measuring circularity in the energy sector, particularly in electricity generation. Once the objectives of measurement, assessment criteria, and system boundaries were defined, an “extended” evaluation strategy for circularity was chosen, identifying three evaluation areas (resource management, enabling factors, effects), which were further detailed through various assessment categories and specific themes. A preliminary set of indicators was identified and subjected to feasibility analysis to assess the availability of the necessary data sources for their development. Finally, the consistency of existing environmental subsidies in national legislation (direct incentives and tax breaks) with circular economy principles was analyzed. Using a database of over 170 support measures (as listed in the Catalog of Environmentally Harmful and Environmentally Friendly Subsidies, introduced by Law 221/2015), 56 measures potentially harmful to the circular economy were identified, with a financial value of approximately 13.5 billion euros in 2019, and 75 measures potentially favorable to the circular economy, amounting to about 13.0 billion euros. A comparison between the environmental and circularity perspectives was also carried out to identify areas of overlap and divergence when these two perspectives are separately applied to subsidy evaluation. It emerged that, while there are areas of overlap and synergy, there are also autonomous areas of intervention that may place the two perspectives in contradiction with each other if not properly coordinated. This result underscores the importance of coordination between industrial, environmental, and energy policies in achieving Italy’s long-term sustainable development goals, as well as those of the United Nations.