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Italy Legislative Decree 116/2020 (Circular Economy Package Implementation)

Italy Legislative Decree 116/2020 (Circular Economy Package Implementation): Italy’s Circular Economy Reform: New Waste and Packaging Obligations Under Decree 116/2020

Maílis Carrilho
Written by Maílis Carrilho
Updated on December 8th, 2025

Summary

Italy’s Legislative Decree 116/2020 implements the EU Circular Economy Package, updating national waste and packaging rules. It expands separate collection, strengthens recycling targets, revises waste classifications, and increases EPR obligations for packaging and other products. Companies must adopt new systems for segregation, documentation, and producer responsibility while municipalities upgrade collection infrastructure. The decree is now central to Italy’s transition to a circular economy.

Details

Jurisdictions
  • Italy
Exemptions

The decree is fully binding for all waste producers and packaging/ product manufacturers operating in Italy.

Companies must:

Comply with updated waste classifications.

Implement expanded separate collection and contract only authorised waste managers.

Participate in EPR schemes with updated fee structures.

Ensure traceability, updated documentation and proper labelling for packaging.

Exceptions:

Certain industrial by-products may fall outside the waste definition if meeting reuse criteria.

Small producers may face simplified recordkeeping depending on volume and type of waste.

Local authorities may grant transitional flexibility during the rollout of new collection systems.

Deep dive

2 min read
Published Dec 8, 2025

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What’s Required

Legislative Decree 116/2020 updates Italy’s Environmental Code to align with the EU Circular Economy Package. It introduces significant reforms to waste classification, separate collection, recycling targets and extended producer responsibility (EPR).

Key obligations include:

  • New definitions for municipal waste, commercial waste and separate collection obligations.

  • Expanded mandatory separate collection (organic waste, textiles, oils, small waste streams).

  • Stronger recycling targets for municipal waste toward 2030–2035.

  • Updated packaging waste rules aligned with EU Directive 2018/852.

  • Reinforced EPR responsibilities, including eco-modulated fees and reporting duties.

  • Stricter waste traceability and transparency obligations for companies.

Important Deadlines

  • Most provisions apply from 2020 onwards, phasing through the early 2020s.

  • New separate collection obligations for textiles and oils begin in 2025.

  • Municipal waste recycling target: 55% by 2025, increasing further toward 2035.

Current Status

  • The decree is active and constitutes a major pillar of Italy’s circular economy framework.

  • Municipalities and EPR consortia continue updating systems to meet new EU targets.

Penalties for Non-Compliance

  • Administrative fines for improper disposal, incorrect classification, missing separate collection or EPR non-compliance.

  • Potential criminal liability for serious waste crimes or illegal disposal.

Examples of Known Violations

  • Inspections frequently reveal incorrect waste classification and failure to comply with new separate collection rules.

  • Packaging producers have faced sanctions for non-payment of updated EPR contributions.

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on Dec 8, 2025 by Maílis Carrilho ·