Dispatch from Italy | August '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
- Italy seeks influence over next EU budget – Italy is looking to shape negotiations over the EU’s next long-term budget for 2028-2034, working with other countries to protect funding for regional development and agriculture. The government has also challenged the proposed application of the EU’s “Do no significant harm” principle – meant to prevent environmental damage – to future spending, arguing for greater “flexibility” – i.e. weakening. The ongoing negotiations will determine how around two trillion euros in EU funding will be allocated, and how strongly climate and environmental objectives will be tied to EU spending.
- Drought puts pressure on agriculture – Severe drought is affecting the entire Po basin, Italy’s most important river system. In several municipalities, water tankers have already been used to refill drinking-water reservoirs and maintain supplies for residents. The combination of water scarcity and extreme heat is also hitting Italy’s agriculture sector: farmer association Confagricoltura estimates that drought-related agricultural losses already exceed 1.5 billion euros. Among the most affected crops, rice production is expected to fall by around 10 percent, wheat by 9 percent and fruit and vegetable yields by between 5 and 10 percent, while losses could be as high as 20-25 percent in some areas. In the wine sector, grapes ripening earlier has forced some producers to bring the harvest forward to the first half of August and work during cooler hours, including at night.
- Italy's Social Climate Plan moves to Brussels – On 4 August, Italy approved its 9.3-billion-euro Social Climate Plan, designed to support vulnerable households, small businesses and transport users. The plan includes seven billion euros from the EU Social Climate Fund and 2.3 billion euros in national co-financing to support building renovations, household electrification, public transport and temporary income support. It has been designed to help deal with the carbon price being introduced on buildings and road transport starting in 2028 as part of the EU’s new Emissions Trading System (ETS2). The government will now submit the plan to the European Commission for formal negotiations before final approval. Environmental group Legambiente welcomed several measures but warned that the plan lacks the structural policies needed to cut energy costs and fossil-fuel dependence, raising questions over how effectively Italy will use the funds to make the transition socially just.
The latest from Italy – last month in recap
- Successive heatwaves hit Italy – Like much of western Europe, Italy has been hit by a succession of intense heatwaves this summer.The first came in late May, followed by a second in June,a third in early July, and a fourth that started on 29 July. July 2026 was also the hottest recorded in Italy since 1950, with temperatures 2.86°C above the 1991-2020 average – topping the previous record set in 2022. This reflects the broader picture across western Europe, where July was the second hottest on record, according to the Copernicus Climate Change Service.
- Wildfires spread across Italy – Wildfires have been impacting Italy since late July across the entire country, with major fires reported in Sicily, Calabria, Piedmont, Veneto and Friuli-Venezia Giulia. In Sicily alone, around 6,000 emergency responders were mobilised in late July; a firefighter died while responding to a blaze near San Cataldo. According to WWF, around 70,000 hectares had burned by early August, 133 percent more than the average of the past two decades, with almost one-third of fires affecting protected areas. Many fires are believed to have been deliberately started, adding a human factor to the growing wildfire risk during heatwaves with prolonged dry conditions.
- Electricity demand hits record as solar output rises – According to Terna, the Italian Transmission System Operator (TSO), Italy’s electricity demand reached a record 32.5 terawatt hours (TWh) in July – 8.3 percent more than the same month in 2025. Exceptionally high temperatures raised the demand for air conditioning, pushing the annual peak to around 58 gigawatts (GW) on 15 July – 4.5 percent above the previous year’s peak. At the same time, solar generation rose 20.6 percent, mainly thanks to increased installed capacity, and renewables covered 41.5 percent of national electricity demand in total.
Rudi’s picks – Top reads
- The cost of a hotter Italy – In July, Zero Carbon Analytics published a useful briefing (in English) on why Italy is warming faster than much of Europe and why the country is particularly exposed to extreme heat. The report brought together some striking figures: Italians experienced an average of 46 heatwave days in 2024, around three-quarters of which would likely not have occurred without climate change, while almost 52,000 heat-related deaths were recorded across the summers of 2022-2024. It also estimates that climate-related losses already cost Italy around 115 euros per person each year, with annual losses potentially reaching 1.6 percent of GDP by 2030.
- Two resources on Italy’s climate risks – For those interested in Italy’s climate trajectory, a group of researchers has published Rischio Climatico in Italia: Scenari, Costi e Opzioni di Risposta, an open-access report covering climate scenarios, economic costs and possible responses. I also recently published a long-form piece for Le Scienze on Europe’s “new” summer, based on interviews with three leading European and international climate scientists. The article is behind a paywall, but I can share some of the researchers’ comments with anyone interested, even just for background (feel free to message me: @rudibressa on Instagram or Linkedin).
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