The systemic impact of circular economy in mountain areas

In mountain areas, strengthening agricultural and forestry supply chains enhances local resources, meets food needs and creates economic and social value for communities often affected by ageing and marginalisation. In this context, the circular economy plays a crucial role: it reduces waste, optimises the use of energy, soil, water and biomass, and promotes the regeneration of ecosystems (European Commission, 2022).

Adopting a circular approach in the mountains means integrating agriculture, tourism, catering and agri-food processing into a cohesive system, where food becomes the hub of ecological and cultural relationships. This vision strengthens social cohesion, facilitates the creation of networks between producers, restaurateurs, tour operators and institutions, and opens up new market opportunities for typical mountain products (Euromontana, 2020).

‘Restanza’ – understood as the ability to actively put down roots in one’s own territory, caring for and innovating the inhabited space – is a key to understanding how mountain communities can become drivers of sustainable development (Teti, 2022). Staying means creating lasting bonds with the environment and promoting local knowledge, countering exodus and encouraging bottom-up circular economy practices.

Vertical migration, i.e. migration processes that bring new inhabitants or “vertical migrants” to highlands, can become a driving force for the revival of local economies, introducing innovative skills and projects (Membretti et al., 2024). Similarly, the “middle ground” – intermediate spaces between abandoned rural areas and structured tourist circuits – offers the ideal terrain for experimenting with synergies between environmental sustainability and social inclusion (Varotto, 2020).

A key tool in this approach is the assessment of ecosystem services, i.e. the ability to measure and evaluate the environmental, social and economic benefits provided by mountain ecosystems: from climate regulation to biodiversity protection, from landscape conservation to quality food production. Assessing these services not only allows us to guide land management choices, but also to recognise and remunerate the work of farmers, foresters and local communities, who act as true custodians of the land. Today, various forms of relationship between cities and mountains are considered, based primarily on spatial proximity, and the mountain-plain connection is crucial for the maintenance of ecosystem services.

From an economic and social point of view, the circular economy in the mountains can generate new employment opportunities, promoting the emergence of so-called green jobs, and promoting inclusive business models that involve young people, women and vulnerable groups. (ILO, 2018). This can enable the repopulation of these areas, which over the decades have suffered a slow decline and a shift of their inhabitants downstream and towards urban centres.

The introduction of social responsibility practices at company and supply chain level can further strengthen territorial cohesion and trust between actors.

Applying the circular economy to tourism in mountain areas means reducing waste, maximising efficiency in the use of natural resources and promoting the regeneration of materials and territories. But it also means putting local communities back at the centre, recognising them as active players in the tourism system, custodians of knowledge and practices that can contribute to building an authentic, sustainable and inclusive offer. In this context, social innovation is a strategic lever for imagining new and shared solutions to environmental and social challenges, activating participatory processes, short supply chains and models of responsible hospitality (Borsacchi et al., 2024).

Finally, valorising waste as a resource – through applications in green building, cosmetics and crafts – transforms waste into opportunities and creates real “laboratories” of innovation that can be replicated in other areas (MEA, 2005).

To work, this approach requires collaboration between local actors, continuous research, monitoring mechanisms and evaluation of results. Education, environmental awareness, compliance with regulations and risk management are key elements in ensuring tourism that is not only sustainable, but also resilient and capable of adapting to future changes.

Investing in the circular economy of mountain areas means restoring value to the territories and the people who live there, transforming challenges into concrete opportunities for a sustainable and lasting future.

The circular economy in mountain areas will be one of the priority research topics for the next three years for ARCO’s Circular Innovation and Sustainable Commodities Unit, in synergy with the services offered by other ARCO units, including territorial analysis, social inclusion and evaluation, also within the framework of the agreement signed with the Municipality of Cantagallo, valid for the period 2025-2029.

Read more on the Circular Innovation & Sustainable Commodities Unit