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• Italy is the in Europe. Besides agricultural goods production, it ranks , a key sector for the technological and ecological transformation. It also has a large car industry sector. A estimates that, without an industrial policy supporting the EV transition, Italy could lose up to 58 percent of its car production by 2030 and over 90,000 jobs. The report urges structural measures on both demand and supply.
• Italy is becoming a to North Africa and the Middle East, especially after the changes in Europe鈥檚 energy supply following Russia鈥檚 invasion of Ukraine. Algeria Italy鈥檚 main gas supplier, followed by Azerbaijan, and northern European countries the Netherlands and Norway.
• The dependence of Italy : the share of net imports relative to gross energy availability dropped from 79.2 percent in 2022 to 74.6 percent in 2023. There was a significant decline in the imports of solid fuels (-38%), renewables and bioliquids (-22%), and natural gas (-15%). Domestic energy generation increased by 4.2 percent compared to 2022, mainly due to a rise in energy generated from renewable sources.

• Greenhouse gas emissions have decreased since 1990. Italy . The country has remained consistently within its in the and estimates that its will result in it slightly exceeding the 2030 target.

• Due to the , the European Green Deal and the national energy transition plans should have solid However, people have a strong distrust of politics, the institutions and the media.
• Analysts that since the energy crisis 2022, the entire political spectrum in Italy sees renewables expansion as a no-regret measure. At the same time, the three-party government coalition set up in 2022 of Fratelli d鈥橧talia, Lega and Forza Italia is focussing on becoming a 鈥済as hub鈥� in the Mediterranean Sea in order to secure energy supplies and diversify sources. Experts this could delay efforts to decarbonise the energy system and put climate targets at risk.

• The debate on nuclear energy has flared up again in Italy, driven by the Meloni government coalition, which regards nuclear as a key power source to help accelerate decarbonisation. The country closed its last nuclear power plant following a 1987 referendum in the wake of the Chernobyl disaster. Environment and energy security minister Gilberto Pichetto Fratin in exploring new nuclear power installations as a complementary source for the country鈥檚 energy mix, capable of providing baseload power. The government laid out its nuclear vision in the latest (NECP), with a scenario of nuclear reaching a share between 11 percent and 22 percent in the national energy mix by 2050. On 28 February, the government guidelines that require the adoption of legal changes within the next 12 months to define a national nuclear strategy. Nobel laureate Giorgio Parisi has of nuclear in a modern, renewable-based energy system.听

  (See our Q&A for the historical context, the feasibility of these plans, the key players involved and the role of social media in shaping public opinion.)

• Europa Verde, (Green Europe) a political party with a focus on climate-friendly transformation, had no representation in Italy鈥檚 parliament for 14 years. In the 2022 election, it re-entered, but won only a couple of seats. They fared better than expected at the 2024 , when an alliance called AVS with leftist party Sinistra Italiana managed to elect 6 MPs.听

• The country鈥檚 steps toward climate neutrality laid out in the National Energy and Climate Plan (NECP) remain vague, according to think tank analysts and climate activists. Italy has submitted a draft update of the plan to the EU. The was submitted to the European Union in July 2024. According to this plan, Italy aims for renewables with a capacity of 131 GW by 2030.听

• Demand for electricity in Italy reached 31.3 billion kilowatt hours (kWh) in July 2024, a 4.5 percent increase compared to July 2023, published by Terna, the company that manages the Italian national electricity transmission grid. This year marked the country鈥檚 highest monthly consumption of electrical energy in July since 2015, the data showed. A detailed analysis of provisional monthly electricity demand in 2023 and 2024 is available .
• Electricity from fossil fuel sources in Italy decreased by 21 percent in the first six months of 2024 compared to the first half of 2023, to the think tank Ember. At the same time, solar energy saw significant growth, with 6.8 GW of new capacity connected in 2024 鈥� a 30 percent increase compared to 2023, according .

Major transition stories

• A "less ideological" Green Deal - Concern about climate change is still , as Italy has been hit by a long in the South (especially Sicily) and by powerful storms in and . However, 听to the European Green Deal is growing, as the government and publicly condemned it and called for a 鈥渓ess ideological鈥� energy transition.听

• Mattei plan 鈥� Italy's government has presented a plan focused on energy and migration cooperation with Africa, the so-called 鈥溾�� (Piano Mattei), named after the founder of Italian energy group Eni, Enrico Mattei. The plan is part of the efforts to turn Italy into a major energy hub, distributing gas from North Africa and the Mediterranean to the rest of Europe. The official launch of the plan occurred on 28 鈥� 29 January during the Italy-Africa Summit. It encompasses five main policy pillars: education and training; agriculture; health; water; and energy. Italy said it would set aside 5.5 billion euros, including 3 billion euros from the climate fund established in 2021 to support international environmental projects. Observers criticise that the plan has been
• Climate protests 鈥� Following the large success of youth protests in 2018, more and more activists are trying to enter politics in city councils and other institutions. Before the 2023 elections, Fridays for Future Italy proposed to political parties a 鈥� a plan to address the transition in energy, mobility and certain other fields. has been included in the 'Security package,' aimed at targeting climate activists. Now, there is a risk of up to two years of imprisonment for those who block a road in an organized manner. The new regulation by the government appears explicitly designed to punish and discourage roadblocks by climate activists. The has been signed by the President of the Republic and now it's sealed in law. An activist from group Ultima Generazione has against it.
• Just transition 鈥� In Italy, there is a fierce debate about how not to leave anyone behind in the transition to climate neutrality. Certain political leaders, among them the former minister for ecological transition said they preferred a slower transformation to a "bloodbath" for some people. Buying an electric car, renovating buildings in order to make them more climate friendly, or dealing with higher affects everyone, but low-income households as well as workers in the traditional industrial sectors might need support to cope with the changes.
• Lawsuits against fossil fuels 鈥揋reenpeace Italy, ReCommon and 12 Italian citizens are suing ENI, the economy and finance ministry, and the Italian development bank Cassa Depositi e Prestiti, as shareholders for damage 鈥� past, present and future 鈥� caused by climate change 鈥渢o which society has significantly contributed by its conduct over the past decades, while being aware of it鈥�. The NGOs have declined ENI's mediation request concerning a possible defamation lawsuit which the company aims to bring against Greenpeace Italy and ReCommon. A second climate lawsuit, against the Italian State, was dismissed in March 2024 when the judge said there was no legal ground for an NGO (A Sud) to ask the State to cut emissions.

• Climate foreign policy 鈥� Under the former government led by Mario Draghi, Italy itself as a credible partner in , despite shortcomings at home. It hosted the 2021 e, with one focus on climate. Now it plays a more marginal role, often criticising the European measures. Its focus has shifted to securing gas deliveries from Algeria, Egypt and other countries in North Africa. This was the main focus of Italy鈥檚 G7 presidency in 2024, .

• Adaptation 鈥揑taly鈥檚 first climate adaptation strategy was published in 2018, , after a long process of approval and review that showed how climate adaptation is undervalued in the country.
• Carbon removal 鈥� Forests and wet peatland are among the natural carbon sinks that exist today. foresaw the planting of six million trees. However, several cities, such as Milan or Rome, have failed to implement a strategy to achieve this goal. Regarding technological carbon removal and storage solutions, Italy is slowly making efforts. It carries out tests and publishes studies: Eni, whose shareholders include the government, has a project to store CO2 in depleted with the aim of decarbonising the country's industrial areas.
• Raw materials and recycling 鈥� The energy crisis fuelled by Russia鈥檚 war against Ukraine and the need for fossil-free energy have pushed the dependence on imports of key raw materials back to the in Italy and Europe. The is conomy strategy and a China strategy. The EU is working on a raw materials act. Italy ranks听鈥� both urban and special - with 83.2 percent (2020), above the EU27 average (39.2 percent). In 2023, will be sent for recycling.
• Seabed drilling 鈥� In Italy, seabed drilling The seabed stocks more than 90 billion cubic metres of methane and the extraction reportedly costs 5 cents per cubic metre, while importing it would cost 50-70 cents. The public, especially , are concerned about the drilling鈥檚 impact on the seascape and the associated emissions.
• Subsidies on renewables. After the approval by the European Commission of incentive systems for agrivoltaics and renewable energy communities (RECs), that approximately 7.4 billion euros will be unlocked, with a potential new installed energy capacity of over 6 GW.
• Eni, the state-controlled oil and gas company, has unveiled its 2024-2027 . Oil and gas production will increase: 39% of capital expenditure will go to gas, 21% to oil. Eni plans to get to 8 GW of renewable energy in 2027 (from 3 GW in 2023). the energy and climate think tank Ecco, "the company's decarbonization presents a long-term target-zero net emissions by 2050 that rests too heavily on expensive technologies with uncertain applicability, such as CO2 capture and storage and biofuels, and does not demonstrate a willingness to change the current asset portfolio, which is heavily tied to the upstream sector."

• Renewables acceptance 鈥� Sardinia鈥檚 recently appointed centre-left government passed a bill almost entirely throughout the island. There is in Sardinia against large renewable installations, which combines the classic not-in-my-backyard (NIMBY) approach with accusations that these projects 鈥� developed on Italy鈥檚 mainland 鈥� are exploitative and colonialist towards the island's resources and landscape. The consulting firm specialised in the energy sector, Elemens, (which analyse geographic information) to map prohibited areas, classing 99 percent of Sardinia as unsuitable.

Sector overview

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