Dispatch from Italy | April '26
*** Our weekly Dispatches provide an overview of the most relevant recent and upcoming developments for the shift to climate neutrality in selected European countries, from policy and diplomacy to society and industry. For a bird's-eye view of the country's climate-friendly transition, read the respective 'Guide to'. ***
Stories to watch in the weeks ahead
- Energy prices and geopolitical shocks – The escalation of the Iran war has led to increased volatility on fossil fuel markets. For Italy, where gas accounts for around 44 percent of the country's electricity production and plays a central role in industry, these dynamics are quickly reflected in wholesale power prices and consumer bills. Analysts noted that Italy’s structural reliance on gas exposes the system to external shocks, as energy prices are largely driven by gas costs and by the volatility of international markets linked to import dependence, making the country particularly vulnerable to geopolitical events that affect global supply.
- Algeria as a strategic supplier and Qatar LNG exposure – Prime minister Giorgia Meloni travelled to Algeria at the end of March to strengthen bilateral energy ties and secure more gas, consolidating a partnership that has grown since 2022 due to Russia’s war on Ukraine. The visit followed a broader diplomatic tour in the Gulf, including a stop in Qatar, as Italy seeks to stabilise its gas supply amid rising geopolitical risks. At the same time, the country remains exposed to liquefied natural gas (LNG) price swings and potential disruptions linked to Qatar, a key supplier for Europe, whose export capacity has already been hit by attacks during the Iran war, with around 17 percent of output knocked offline for up to several years. The Italian energy system remains highly sensitive to LNG dynamics: According to an analysis by rating agency Moody’s, any interruption in Qatari flows could have disproportionate effects on Italy compared to EU peers with more diversified energy sources. The analysts underscore the urgency of exploring renewables and demand-reduction strategies.
- Another step towards nuclear energy – Italy signalled a renewed openness to nuclear power, confirming the country’s adhesion to the international commitment to triple global nuclear capacity by mid-century. The move, supported by the Ministry of Environment and Energy Security, reflects a gradual repositioning for Italy within international energy discussions. In October, the government submitted a draft framework law to Parliament on nuclear energy, currently under discussion, which would define the national planning framework, governance structure, the strengthening of the safety authority, and regulations covering the entire lifecycle of a plant. Given public sensitivity and the practical challenges of reopening legacy plants or rolling out small modular reactors (SMRs), the move is best read as political signalling rather than a concrete step towards deployment.
The latest from Italy - last month in recap
- Fuel prices hit historic highs and trigger policy response – Petrol and diesel prices in Italy surpassed the symbolic threshold of two euros per litre for the first time as a direct consequence of the Iran war. In response, the government introduced a temporary fuel price reduction mechanism of approximately 25 cents per litre, effective until the end of April. The measure aims to mitigate immediate social and economic pressure, particularly for the transport and logistics sectors. However, the policy has already had visible side effects. In some Italian cities, motorists queued at fuel stations to take advantage of lower prices, while transport associations expressed strong concern over operating costs. Trade associations such as Trasportounito announced a nationwide strike of heavy-duty vehicle operators, meanwhile Unatras called for continuous assemblies across multiple cities, signalling growing unrest within the logistics sector. The measures reflect mounting pressure from operators demanding more effective and lasting support to stabilise fuel costs and safeguard their businesses.
- ETS under pressure amid industry pushback – Italy has called for a temporary suspension of the EU’s Emissions Trading System (ETS), with the Minister of Enterprises and Made in Italy, Adolfo Urso, arguing that rising carbon costs are weighing on industrial competitiveness and should be paused, pending revision. Environmental groups – including Greenpeace Italia, Legambiente and WWF Italia – have pushed back, warning that weakening the scheme would undermine the EU’s crisis response and delay the transition. They argue that ETS revenues should instead be channelled into renewables, electrification and energy efficiency. Of the 18 billion euros generated at the EU level, only around nine percent is currently effectively reinvested in climate action, according to an analysis by think tank ECCO.
- Coal phase-out delayed amidst energy crisis – Italy is moving to postpone the shutdown of its remaining coal-fired power plants to 2038, extending the original 2025 deadline by 13 years, as part of a broader response to energy security concerns linked to the Iran war. The measure would allow plants currently on standby to remain available as a strategic reserve and potentially be reactivated in case of supply shocks. An independent analysis warns that the extension risks being both costly and ineffective, arguing that keeping coal capacity available does little to address structural energy vulnerabilities while potentially diverting resources from cleaner alternatives. The government has framed the move as a pragmatic safeguard amidst volatile gas markets, but critics say it could undermine Italy’s coal phase-out commitments and slow the pace of the energy transition.
Rudi’s Picks - highlights from upcoming events and top reads
- Eni’s biofuel project under scrutiny – A major investigation by Politico is drawing international attention to the dark side of energy company Eni’s “green” jet fuel strategy. The report focused on a flagship project in Kenya, where the company promoted castor seed cultivation as a sustainable feedstock for aviation fuels. According to the investigation, many small farmers were left without promised payments and in some cases without sufficient food supplies, raising concerns about social and environmental standards.
- Journalism community gathers in Perugia - The International Journalism Festival 2026 returns to Perugia from 15 to 18 April for its 20th edition, bringing together reporters, editors and media professionals from around the world for a four-day programme of panels, workshops and networking, all with free access. As part of the programme, Clean Energy Wire will host a session with Covering Climate Now titled “Covering a heating world with fewer resources,” focusing on the decline in climate coverage despite rising public interest.
27 Feb 2026, 11:00
Rudi Bressa, Giorgia Colucci, Ferdinando Cotugno
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