Dispatch from Italy | February '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'.***

• Slashing energy costs…or weakening the energy transition? – After months of rumors and delays, Italy’s government approved a decree aimed at reducing energy costs for households facing energy poverty and for businesses struggling with high energy bills. The package was introduced in response to persistently high energy prices, which remain above the European average, due to the country’s heavy dependence on imported gas. Around 2.7 million low-income households will receive a one-off payment of 115 euros to help cover electricity costs. The decree also seeks to lower energy costs for businesses, both directly – by partially covering system charges included in electricity bills – and indirectly – by supporting the use of long-term energy supply contracts – which can provide greater price stability. The question is whether the decree will succeed in lowering energy costs, or whether it will just slow down the energy transition instead. Part of the package is financed through an increase in the regional production tax (IRAP) for energy companies, which does not distinguish between fossil fuels and renewable energy. Critics argue that the measure is insufficient, as it does not address the fundamental problems in Italy’s energy market and may ultimately encourage continued consumption of fossil fuels.
• Broken promises – The industrial city of Piombino on Tuscany's coast has turned into a key test case for the resilience of the government’s energy policies. In the months following Russia's invasion of Ukraine, the government – then led by prime minister Giorgia Meloni’s predecessor Mario Draghi – decided to place the new Golar Tundra floating LNG terminal in the city’s port. The agreement with the local community was that it would remain there for only three years before being relocated further north, near Savona in neighbouring region Liguria. Following regional elections in Liguria, however, the new local government decided against the move, meaning the terminal will remain in Piombino. Residents are angry about broken promises, given that the infrastructure is located closely to residential areas and water and air pollution levels are high. 

• African celebration for the Mattei Plan – Meloni attended the African Union summit in Addis Ababa, Ethiopia, in mid-February as guest of honour. A purposes of the meeting was to mark the second anniversary of the Mattei Plan, Italy’s long-term development and energy cooperation strategy for Africa. Italy has launched projects in dozens of African countries, with biofuel production in Kenya being among the most significant undertakings. So far, the Mattei plan has been aimed at diplomatic purposes rather than actually providing anything of scale. It has helped Meloni to position Italy as a European key partner for the African continent, but the financial resources involved remain tiny compared with larger initiatives like the EU’s Global Gateway. The Addis Ababa meeting marks the beginning of a new phase of the Mattei Plan, which could result in larger investments but also increase gas extraction and the development of fossil fuel infrastructure.
• From Venezuela to Africa – Italian oil and gas major Eni is among the five companies authorised by the US Treasury Department to operate in Venezuela, alongside US multinationals Chevron, BP, Shell, and Spain’s Repsol. However, the company’s main strategic focus remains on Africa, where Eni recently announced the discovery of a major new offshore gas field near off the coast of Côte d’Ivoire. Eni’s CEO Claudio Descalzi said the company is considering a return to oil and gas trading, which the company ceased in 2019. Competitors such as Shell and BP have generated significant profits from trading in recent years, prompting Eni to reassess its strategy.
• The Italian gigafactory dream is over – Automotive Cells Company (ACC) – a joint venture between carmakers Stellantis, Mercedes-Benz, and TotalEnergies – announced the cancellation of its gigafactory project in Termoli, in the Molise region. As such, the plan to convert the historic plant into a battery production hub has failed. The companies blamed weak demand for electric vehicles in Europe. Just days earlier, carmaker Stellantis announced a cost-cutting reduction in its electric vehicle models and programmes, saying the pace of the energy transition has been overestimated.

• A good cli-fi read – Bruno Arpaia is the most-read climate fiction novelist in Italy. In his novel Qualcosa là fuori (“Something out there”) from 2016, Arpaia describes how a group of Italians migrate towards Scandinavia to leave a country ravaged by climate extremes. In the just-published sequel, Il mondo senza inverno (“The winterless world”), he imagines what they find in Norway: an apartheid society dominated by AI still struggling with climate issues at the end of the century.
• Technology or activism? – From 4 to 6 March, Rimini, on the Adriatic coast, will host Key – The Energy Transition Expo. It is Italy’s leading trade fair dedicated to the technologies, policies, and business models of the energy transition, with a focus on renewables, electrification, efficiency, and industrial decarbonisation. For those looking for something more political and activist-oriented, Rome will host the Le parole giuste Festival (“The right words”), a major gathering of Italian environmental journalists, from 27 to 29 March.