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The “green economy”: new opportunities for Italy

    • Milan
    • 28 November 2011

          The key objective to emerge from the discussions at this National Conference was that of transforming a constraint into an opportunity. The green economy must be made the cornerstone of a new, more sustainable and enduring development model. It was observed that, in recent years, particularly in the wake of the protracted effects of the worst economic and financial crisis in recent history, the world has begun to stop treating the “environmental factor” as a possible limitation on freedom of enterprise, but rather to see it from a more comprehensive perspective. That factor might well serve to boost growth, sustain domestic demand, and inject high added-value inputs into the production system, in terms of technological innovation as well as the generation of new employment.

          The revolution in the very concept of “green growth”, which has taken shape in the debate among experts and between business operators, has been accompanied by a change in public perception of the issues in question. Faced with this shift in both public and consumer sentiment (and the no longer infrequent transformation of these groups into “green producers”), private enterprise and public decision-makers are being called on to make inevitable and rapid changes to business strategies, economic and energy policy measures, administrative options for all things innovation-related, and the production and distribution of goods and services linked to so-called “industrial ecology”. It was felt, on closer reflection by the participants, that this is a phenomenon which, together with microeconomic trends, is also and in the main impacting on the macroeconomic choices of the key players in the international community, cases in point being the big gamble on the green economy by Obama’s America immediately following the outbreak of the global crisis, the European Union’s soon-to-be-revised 20-20-20 Strategy, and, lastly, the Chinese juggernaut’s shift towards “green growth”.

          Against the backdrop of this global revolution, deemed by many observers as “momentous”, the prospects of the green economy in Italy were seen as being mixed. Weighing in on the negative side, as is well-known, are the country’s chronic state of energy dependence, the lack in recent years of any long-term national strategy geared towards selectivity and innovation, the lack of any systematic link between the research sphere and industry, and the uncertainty of the legal and regulatory framework. Notwithstanding these shortcomings, and despite an all-too-often cumbersome use of public incentives (which has distorting effects on the market and, in particular, is no longer sustainable in view of the state of the country’s public finances), the participants identified as a strength the fact that Italian businesses today are already competitive and largely well-positioned to seize the opportunities offered by “green growth”. In 2010 alone, the trade surplus amounted to 2.3 billion euro in the renewable energy sector and 1.3 billion euro in the energy efficiency sector. It was further noted that Italian firms which have invested in the green economy, even at a time of great difficulty for the country’s production system, have shown a greater propensity to export and have been able to gain market shares in, for instance, the Mediterranean basin and the Middle East.

          It was conceded, however, that despite these advances, there is still much to be done, particularly in terms of approach to the issue. Indeed, it was suggested that there is a lack of a rounded awareness of the multifaceted nature of this issue, which in public debate is often reduced to a consideration of renewable resources, efficiency and energy conservation. In contrast, the broad-ranging potential for generating innovation and boosting GDP inherent in “green growth” could spell as-yet insufficiently explored additional benefits in many other sectors, including: sustainable mobility, public and private construction, tourism, the agro-food industry, manufacturing, hi- or ultra hi-tech industry, and the public administration (as regards green public procurement).

          Hence, in conclusion, the participants stressed the fundamental importance of the growth and optimization of both human capital employed in key green economy sectors (which is predominantly better-trained and characterized by more stable and quality employment levels), as well as, and in particular, of social capital, in terms of increased awareness and participation in processes that, ultimately, directly impinge on the development of a model of growth and prosperity geared to building a future for the entire nation.