Dispatch from Italy | May '25
*** Get a bird's-eye view of Italy’s climate-friendly transition in the CLEW Guide – Italy moves on green transition, but fossil fuel ties remain tight***
Stories to watch in the weeks ahead
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Uncertainty of coal phase-out – Italy's plan to phase out coal by 2025 (excluding the island of Sardinia) faces an uncertain future, as a major coal-fired power plant near Rome, Torrevaldaliga Nord, might remain open beyond the end of the year. Delays in redevelopment projects and the absence of support from the EU’s Just Transition Fund, which helps regions in the transition towards a climate-neutral economy, have made it increasingly unlikely the country will meet its national deadline. The environment ministry has postponed the decommissioning of the plant, citing the need for energy reserves. Closedown exceptions have already been made for the Sardinia's Sulcis and Fiume Santo plants due to infrastructure constraints and energy security considerations, with the plants now due to close in 2028.
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European Green Deal at a crossroads – At the beginning of 2025, Italy experienced a significant increase in energy prices, with wholesale electricity prices averaging 141 euros per megawatt-hour (MWh) in January. The costs, combined with concerns over new tariffs from the US, have raised the alarm among energy-intensive industries such as chemicals, metallurgy and paper manufacturing. Against this backdrop, think tank ECCO warned that a growing dependence on US fossil fuels – driven by a protectionist US trade strategy – could hinder the EU's efforts to establish sustainable supply chains and slow the development of low-carbon industry in Italy. By embracing clean technologies and energy efficiency, Italy and Europe can counterbalance the negative impacts of trade barriers, bolstering industrial resilience in a decarbonising global markets, ECCO argued.
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Expanding access to funds – The publication of the report coincided with a key policy shift from the environment and energy security ministry. Access to incentives under the National Recovery and Resilience Plan (Italy’s EU-funded strategy to boost economic recovery post-pandemic) for Renewable Energy Communities (RECs) has been expanded to include municipality populations up to a maximum of 50,000 people. Previously, only municipalities up to a population of 5,000 could apply for funding. However, concerns remain, as the incentive scheme comes with tight deadlines. Applications must be submitted by November, requiring all permits and a grid connection quote in advance – steps that are often slow and unpredictable. Italy’s solar association has already called for the deadline to be extended and for stronger support measures, especially for small municipalities and grassroots initiatives.
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Scrutinising carbon capture and storage (CCS) – Italian oilfield services multinational Saipem secured a 520 million euro contract from energy firm Eni for the Liverpool Bay CCS project in the UK. The initiative will convert a traditional gas compression plant in North Wales into a CO2 compression station to enable permanent carbon storage in depleted offshore oil and gas reservoirs. Eni is betting heavily on CCS despite ongoing concerns; environmental groups Greenpeace and ReCommon denounce CCS as a technology that allows fossil fuel giants like Eni to continue oil and gas extraction under the guise of climate action.
On the research front, the Institute of Geosciences and Geo-resources (IGG-CNR) has been developing mineral carbonation technology as part of the EU-funded GECO project. The technology captures CO2 from the exhaust gases emitted by geothermal power plants via a chemical reaction and permanently stores it underground. The project aims to set up a pilot plant at industrial scale, potentially creating an Italian CCS supply chain.
The latest from Italy – last month in recap
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Strong growth and new policies for Italian renewables – There was a 55 percent rise in renewable energy projects last year in Italy compared to 2023, according to a report by consulting firm Althesys. The firm found 1,834 newly authorised projects, investments and corporate deals, totalling 81.6 gigawatts (GW) and 121 billion euros. Growth is driven by smoother permitting processes and cheaper technology. However, regional disparities persist, with the growth of installed capacity slower in the South.
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Grid stress and energy transition debates reignited – After the major blackout that hit Spain and Portugal in late April, discussions about the resilience of the power grid and the role of renewables have intensified in Italy as well. While some commentators were quick to blame wind and solar for the disruption, experts pointed to grid management problems and the increasing complexity of balancing intermittent sources with demand. The incident highlighted the urgent need to modernise European transmission networks, accelerate the deployment of flexible backup systems and rethink how to integrate renewables without overburdening aging grids. Greenpeace said the premature blame on renewables by several Italian media outlets was part of a “broader pattern of opportunistic attacks against the ecological transition, often driven by fossil fuel interests.”
Just a few weeks earlier, Terna – the operator of Italy’s national electricity grid – released its 2025 Development Plan, placing a strong emphasis on grid reinforcement and expansion to accommodate the rapid growth of renewables and ensure system stability. -
Industry pushback on energy relief plan – In late April, Italy's Senate approved a legislative package designed to mitigate soaring energy costs for households and businesses by providing direct financial relief and incentives for energy efficiency improvements. Roughly three billion euros will be allocated for the task, with significant portions earmarked for social bonuses aimed at supporting vulnerable families, alongside targeted aid intended to help companies cope with rising operational costs. The law will also introduce temporary safeguards to avoid sharp price swings and protect consumers. Industrial associations have strongly criticised the measure, arguing that it is insufficient, narrowly focused and fails to tackle the underlying structural challenges of Italy’s energy market. In response, the government said it was a necessary stopgap to reduce pressure on households. It acknowledged, however, that further reforms will be needed to ensure the energy market becomes more resilient and structurally sound.
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Climate protests intensify across Italy – Climate activists continue to take to the streets in cities across Italy. In Bologna, Ultima Generazione (the Italian branch of the international Last Generation climate movement) protested against the climate crisis and rising living costs, highlighting how extreme weather events drive up food prices by destroying crops. In the Emilia-Romagna region, heavy rain, hailstorms and floods have severely hit orchards and local farms. However, a survey revealed that consumers overestimated the resulting price hike, with respondents believing food prices had risen by 13 percent, compared to 3 percent in reality. In Rome, climate activist group Extinction Rebellion staged its fifth consecutive day of action, occupying the entrance to the Ministry of Justice in protest against the government’s new security decree, which activists have said restricts civil liberties and the right to protest, thus limiting climate activism. The sit-in was forcibly cleared. Sixty-seven people were taken to an immigration office on the outskirts of the city, despite having presented valid identification. A major national demonstration on 31 May in Rome is expected to bring together not only climate activists, but also a wide range of civil society groups.
Rudi’s picks - Highlights from upcoming events and top reads
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ECCA 2025 – European Climate Change Adaptation Conference - The 7th biennial European Climate Change Adaptation Conference (ECCA2025) will be held in Rimini (16-18 June) and will provide a platform to showcase cutting-edge research and innovative climate solutions. The conference brings together researchers, policymakers, practitioners and stakeholders to exchange insights on climate resilience, policy and practical implementation at all levels.
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"Il prezzo che paghiamo" – The Price We Pay - Produced by environmental NGOs Greenpeace Italia and ReCommon, and directed by journalist Sara Manisera, Il prezzo che paghiamo explores the human cost of climate inaction and fossil fuel exploitation. The documentary tells the stories of Italian communities impacted by the climate and environmental crises – victims often overlooked by mainstream narratives. Following the premiere in Rome, the film will tour across Italy.
