Dispatch from Italy | May '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
- Renewables: decline in installations, rise in popularity – Given the rise in energy prices, the slowdown in renewable energy deployment, which declined four percent last year, is no longer seen as sustainable. According to European Commission data, the average wholesale electricity price in Italy was the highest in the EU in 2025. The current energy crisis might reshape perceptions of renewables, including in previously sceptical parts of the country. A clue came from Emanuele Orsini, president of industry association Confindustria - who had previously dismissed the energy transition as ideological and unrealistic. Orsini has now called for “shock treatment” to clear the backlog of permits for new renewable energy projects. He pointed to local governments as the main source of the problem, specifically naming the island of Sardinia and the southern Calabria region. “They are not doing their homework,” he said.
- Italy fights for more EU budget space for energy – The Meloni government is asking the EU for greater fiscal space and more budget flexibility for energy spending. Economy minister Giancarlo Giorgetti first raised the issue, then Meloni herself brought it directly to European Commission president Ursula von der Leyen. Italy wants energy-related spending to be exempted from EU budget rules through the activation of the so-called National Escape Clause, a mechanism designed for severe crises (currently also used for military expenses). The Commission responded that "at the moment, the safeguard clause is not an option." According to daily La Repubblica, however, that “no” could turn into a “yes” if the situation around the Strait of Hormuz continues to deteriorate and Meloni manages to build a broader coalition supporting this idea.
- Russian gas, anyone? – Following three years of steady reductions, Italy almost completely phased out Russian gas imports last year. Several political and business leaders now say the country should revisit this foreign policy decision and resume imports. Eni CEO Claudio Descalzi called for the suspension of the European ban on Russian gas imports set to take effect in 2027. Transport minister Matteo Salvini also called for a change of course:“Rather than shutting down factories, schools and hospitals, we should go back to buying gas and oil from all over the world, including Russia, since we are not at war with Russia.” One of Italy’s main opposition leaders, former prime minister Giuseppe Conte, said that “Russian gas is cheaper for businesses and citizens,” adding that this is a good reason to sit down at the negotiating table with Vladimir Putin.
- Back to nuclear: a new law by the end of 2026 – The coming months offer the Meloni government a final chance to open a path for Italy’s return to nuclear energy by establishing a regulatory framework. Environment minister Gilberto Pichetto Fratin has ambitious plans for the timeline: “By the end of May in the Chamber of Deputies, by the end of July at the latest in the Senate. My intention, which reflects that of the government, is to have all implementing measures in place by the end of the year, so that the country has the legal framework needed for investment decisions on new nuclear power.”
The latest from Italy – last month in recap
- Eni makes wave of fossil discoveries – Oil and gas group Eni is partially state-owned, with its CEO effectively appointed by the government. Descalzi was confirmed as CEO for a fifth consecutive term, a role he has held since 2014 under six different governments. At the start of this year, Eni announced new fossil fuel discoveries around the world equivalent to one billion barrels, the latest in Indonesia. In the first quarter, profits from fossil fuel exploration and production reached 3.36 billion euros, while the company’s transition-related businesses – Enilive and Plenitude – generated 351 million euros. Fossil fuel production increased by 9 percent compared to a year earlier.
- Chinese carmaker rides to the rescue – Italian manufacturing is in trouble, epitomised by household appliance maker Electrolux, who cut 1,700 jobs out of a workforce of 4,500. According to La Stampa, the country’s various industrial crises now affect around 60,000 workers, with high energy costs adding further pressure to an already structural emergency. Against this backdrop, Chinese carmaker BYD has opened the door to potentially taking over one of Italy’s struggling car factories. Stella Li, the company’s executive vice-president, told Bloomberg that BYD is in talks with Stellantis and other European carmakers about acquiring underused plants. In Italy, according to Il Fatto Quotidiano, the most likely candidate could be the Cassino plant, where car production took place on only 20 days during the first four and a half months of 2026 because of falling orders.
- Italy's role in Santa Marta – Italy took part in the “coalition of the willing” meeting in the Colombian city of Santa Marta to discuss the transition away from fossil fuels. Many were surprised by the invitation, since the meeting had been convened to break the deadlock over a new fossil fuel phase-out roadmap that Italy, among many others, had opposed at the last UN climate conference in Brazil (COP30). The government sent its climate envoy Francesco Corvaro. According to Valeria Zanini of the think tank ECCO Climate, “Italy adopted a constructive and cooperative approach, making a political investment in the diplomatic value of this space, something that was not a given, considering that we are used to seeing positions much more focused on gradualism and technological neutrality.”
Ferdinando’s pick – Top read
- Our chemical romance – Il Post recently published an in-depth analysis of the decline of Europe’s chemical industry. The article includes a focus on Italy, offering a broader picture of the country’s industrial crisis: closures, layoffs and a once booming sector increasingly at risk. At the same time, it also highlights some notable examples of industrial transition. In Priolo the petrochemical complex is set to be converted into a biorefinery producing biodiesel from waste materials. Meanwhile, in Brindisi, a new lithium iron phosphate battery factory is expected to open, mainly serving large-scale electricity storage systems.
22 May 2026, 08:00
Rudi Bressa, Giorgia Colucci, Ferdinando Cotugno
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