Circular Economy in Milan: a model for sustainable urban innovation

Introduction

Milan, one of Europe’s most dynamic cities, is leading the way in implementing circular economy principles. Traditionally known as Italy’s fashion and financial hub, Milan is now gaining recognition for its commitment to sustainability and waste reduction. The concept of a circular economy, a system designed to eliminate waste and keep resources in continuous use, is increasingly being integrated into the city’s economic, social, and environmental policies. By embracing circularity, Milan is setting an example for urban centers worldwide on how to create sustainable and resilient economies.


History of Circular Economy in Milan

The roots of the circular economy in Milan can be traced back to the city’s industrial and artisanal past, where resourcefulness and reuse were common practices. In the post-war era, Milan’s economic boom led to increased production and consumption, but traditional values of repair and repurposing remained strong. One of the earliest examples of circular economy principles in action was the thriving second-hand markets and repair workshops scattered throughout the city. Additionally, in the 1990s, Milan introduced one of Italy’s first large-scale waste separation and recycling programs, setting a precedent for future sustainability efforts. Over the years, local government initiatives, business innovation, and community-driven sustainability movements have further advanced circular economy practices, making Milan a leader in this field today.


Milan: A Circular City?

A circular city is one that prioritizes sustainability by minimizing waste, maximizing resource efficiency, and designing systems that promote reuse, repair, and recycling. Milan has increasingly positioned itself as a model for circular urban development, integrating these principles into multiple aspects of daily life. The city’s investment in green infrastructure, renewable energy, and circular business models is evidence of this transformation.


Through policies that encourage responsible consumption, businesses that prioritize resource efficiency, and initiatives that foster circular design, Milan is proving that a large metropolitan area can operate within planetary boundaries. The city has undertaken significant initiatives to transition from a linear economic model, characterized by a “take-make-dispose” approach, to a circular one. The city administration, businesses, and residents are collaborating to reduce waste, promote recycling, and foster a culture of reuse. Through ambitious policies and partnerships with private entities, Milan is working toward minimizing its environmental footprint and maximizing resource efficiency.


One of the key strategies implemented by the city is the Circular Economy Strategy of Milan, which outlines concrete steps for reducing waste production and promoting sustainability in various sectors. This initiative aligns with the European Green Deal and the United Nations’ Sustainable Development Goals (SDGs), emphasizing Milan’s role in global environmental efforts.


All of this can be seen in different sectors: waste management, fashion, architecture and food are just some examples.



1. Waste Management and Recycling Innovations


Milan has one of the most efficient waste management systems in Europe. The city boasts an advanced recycling system that has achieved remarkable results, with over 60% of household waste being recycled. This is largely due to an effective door-to-door waste collection system, citizen awareness campaigns, and strict waste separation policies.


The city also supports innovative waste-to-resource programs, such as food waste reduction initiatives. One of the most notable projects is the “Milan Urban Food Policy Pact,” which promotes sustainable food consumption and redistribution of surplus food to charities. Through partnerships with supermarkets, restaurants, and local food banks, Milan significantly reduces food waste while addressing social inequalities.



2. Circular Fashion and Design in Milan


As a global fashion capital, Milan is at the forefront of promoting circularity in the textile and fashion industries. The city’s designers and fashion houses are increasingly adopting sustainable practices, such as upcycling, zero-waste design, and eco-friendly materials.


Milan Fashion Week now includes a strong focus on sustainability, with brands showcasing collections made from recycled materials and ethical production processes. The rise of second-hand clothing markets, clothing rental services, and repair workshops demonstrates how Milan is reshaping the fashion industry with circular economy principles.


In addition, the city is home to innovative fashion startups that emphasize sustainability. Companies like Orange Fiber, which produces fabrics from citrus by-products, and ECONYL, which creates regenerated nylon from ocean waste, are gaining international attention for their environmentally friendly solutions.



3. Sustainable Architecture and Urban Planning in Milan


Milan’s urban planning strategy is deeply intertwined with circular economy principles. The city has adopted green building practices and sustainable construction materials to reduce environmental impact. Notable examples include the Bosco Verticale (Vertical Forest), a pioneering project that integrates greenery into high-rise buildings, improving air quality and biodiversity.


The city is also investing in smart infrastructure, such as energy-efficient buildings and renewable energy sources. Urban regeneration projects transform abandoned industrial areas into eco-friendly spaces that prioritize sustainability, social inclusion, and economic development. Milan’s Porta Nuova district exemplifies how circular economy ideas can reshape urban landscapes, making cities more livable and resource-efficient.



4. Circular Economy in Milan’s Food Sector


Milan’s approach to circular economy principles in the food industry is particularly noteworthy. The city has developed sustainable food supply chains, prioritizing local and organic products while minimizing food waste.


Initiatives such as urban agriculture, community gardens, and farm-to-table programs help create a more sustainable food ecosystem. Additionally, the city’s restaurant industry is increasingly embracing circularity, with chefs incorporating food scraps into creative dishes and businesses implementing composting systems.


Milano Circolare: A Hub for Circular Innovation

A key initiative further reinforcing Milan’s commitment to circularity is Milano Circolare, a project launched by the city to connect businesses, startups, and associations that embrace the circular economy. This initiative serves as a platform to showcase companies that implement sustainable practices, encourage collaboration among stakeholders, and promote innovative solutions for waste reduction and resource efficiency.


Milano Circolare also provides a catalog that maps circular economy actors across various sectors, making it easier for businesses and consumers to engage with environmentally responsible enterprises. By fostering a strong network of circular economy participants, Milan is strengthening its position as a leading sustainable city in Europe.


Challenges and Future Prospects

Despite Milan’s impressive progress, challenges remain in achieving a fully circular economy. The transition requires significant behavioral changes among businesses and consumers, as well as continued investments in technology and infrastructure. Many traditional businesses still rely on linear production models, making it difficult to shift to more sustainable practices. For instance, the fashion industry—one of Milan’s economic pillars—faces challenges in scaling sustainable materials and ensuring fair labor practices while maintaining profitability.


Regulatory frameworks must also evolve to support circular business models and eliminate bureaucratic hurdles that hinder innovation. Companies often struggle with unclear or restrictive regulations regarding recycled materials, waste management, and product life cycle extension. Furthermore, while Milan has made strides in waste separation, ensuring proper disposal and preventing contamination in recycling streams remains a significant challenge.


Looking ahead, Milan’s vision for a circular economy includes further integration of digital technology, smart waste management solutions, and increased collaboration between public and private sectors. By leveraging artificial intelligence, blockchain, and data analytics, the city can enhance resource efficiency and create a more interconnected and resilient circular economy.


Conclusion

Milan is proving that a circular economy is not just an environmental necessity but also an opportunity for economic growth, social development, and urban resilience. By embracing circularity in waste management, fashion, architecture, and the food sector, the city is setting a benchmark for sustainable urban development. As Milan continues to innovate and expand its circular initiatives, it serves as an inspiration for other cities worldwide, demonstrating that a sustainable future is within reach.


Organizations like Tondo play a crucial role in this transition, with initiatives such as the Re-think Circular Economy Forum and Circular Threads fostering innovation and collaboration in circular cities. By supporting research, business incubation, and public engagement, Tondo helps Milan and other urban centers develop circular solutions that drive long-term sustainability. As Milan continues to expand its circular initiatives, it serves as an inspiration for cities worldwide, demonstrating that a sustainable future is within reach. Find out more on our website!

Emma Salioni

WIth a degree in Digital content management for media, enterprises and cultural heritage, Emma Salioni has always had a strong interest in sustainability and circularity. After a period of time spent workin in The Netherlands, she started working with Tondo managing social media and communication, as well as supporting the organization of hackathons and events.