Dispatch from Italy | July '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
- Nuclear energy law advances – On 4 June, the Italian parliament began debating a government framework law paving the way for a return to nuclear energy, aiming to establish a legal basis for investment in modern reactors, particularly small modular reactors (SMRs). Environment minister Gilberto Pichetto Fratin said reactors could come online from around 2033, while the next months will determine whether the coalition can secure parliamentary approval before the year ends. The proposal is still facing criticism, including from environmental NGO WWF Italia, which argues that current nuclear technologies offer no major improvement on the past and remain unproven at commercial scale despite decades of development. The debate about nuclear’s role intensified in the ongoing European heatwave, which has revived concerns over nuclear resilience, as some French reactors faced operational constraints due to overheated rivers and reduced cooling water availability. Italian analysts warned that more frequent droughts and extreme heat could turn access to water into a structural constraint for future nuclear capacity.
- Mattei Plan moves into financing phase – As part of Italy’s Mattei Plan for Africa, a series of agreements signed in Rome between the Africa Finance Corporation and Italian institutions aim to mobilise investment in African infrastructure projects across energy, transport, digital and industrial sectors. The initiative strengthens financial cooperation tools such as guarantees, co-financing and project preparation mechanisms, with a focus on strategic infrastructure projects including the Lobito Corridor, which connects the copper-rich regions of Zambia and the Democratic Republic of Congo to the Atlantic port of Lobito in Angola. At a public event in Rome on 24 June, climate think tank ECCO argued that the Mattei Plan should place the energy transition at its core as a driver of long-term cooperation with African countries.
The latest from Italy – last month in recap
- €23bn EU-backed renewables scheme – The European Commission has approved a 23-billion euro Italian state aid scheme to support renewable electricity generation, paving the way for the deployment of around 37.15 gigawatts (GW) of new capacity, including solar, wind and hydropower projects. The programme, implemented through long-term contracts for difference, is designed to stabilise investment conditions by guaranteeing revenues for producers while exposing them to market-based price signals over a 20-year horizon. The measure has now been translated into the government’s FER X framework. This is expected to accelerate auctions and unlock large volumes of stalled or delayed projects, marking one of the largest industrial policy interventions in Italy’s energy transition to date.
- Heatwaves becoming stress test for Italy's electricity grid – The heatwave at the end of June has exposed growing pressure on Italy's electricity system, with air conditioning driving demand close to seasonal peaks and localised blackouts affecting several cities. While transmission operator Terna has maintained overall system stability, repeated disruptions have highlighted the vulnerability of local distribution networks during periods of extreme heat. Rail services have also suffered delays linked to high temperatures, reinforcing concerns that infrastructure designed for a milder climate is struggling to cope with more frequent extremes. With heatwaves expected to become longer and more intense, the coming summers will test whether investments in grid modernisation, storage and network resilience can keep pace with rising electricity demand driven by global warming.
- Industry turns up pressure on renewables – High electricity prices are reshaping Italy’s political debate on energy. Business lobby group Confindustria is urging the government to accelerate renewables deployment by unblocking thousands of stalled projects and cutting permitting delays, warning that high energy costs are undermining industrial competitiveness. At the same time, at Confindustria’s annual assembly, prime minister Giorgia Meloni and the association’s president Emanuele Orsini signalled a broader alignment on energy policy, combining faster renewables rollout with a long-term role for nuclear power as part of Italy’s future energy mix. In his speech, Orsini called on political forces to “unblock suitable areas for large-scale solar and wind plants”, while also stressing that “we must accelerate the return to nuclear power”.
Rudi’s picks – highlights from upcoming events and top reads
- Book recommendation – Italy's debate over nuclear power is far from settled, making this newly published book by Giovanni Ludovico Montagnani and Matteo De Piccoli particularly timely. Rather than taking a clear pro- or anti-nuclear stance, Avete rotto l'atomo revisits Italy's unfinished nuclear history and examines both today's fission technologies and future reactor concepts through their technical, economic and regulatory dimensions. I appreciated its attempt to move the discussion beyond slogans and entrenched positions, offering readers the tools to engage with one of the country's most polarising energy debates.
- Press tour opportunity – If you are interested in covering one of Italy’s leading trade fairs dedicated to the ecological transition, applications are now open for an international press tour linked to Ecomondo, one of Europe’s main hubs for the green and circular economy held annually in Rimini. The initiative offers selected journalists and communicators access to the fair’s international programme, including institutions, companies and researchers working across energy, climate and sustainability transitions. You can apply here by 30 July, and find more information here.
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