Italy
Photo by Claudio Hirschberger, Unsplash
Expanding the green path in a tricolour nation
Over the second half of the 20th century Italy transformed itself from a largely agrarian society devastated by war into a manufacturing powerhouse. Now one of the world’s most prosperous countries, Italy boasts highly developed export industries centred around automotives, machinery, pharmaceuticals, and luxury goods; Italian citizens enjoy high life expectancy, quality of life, and excellent state-supported healthcare and education systems.
Although a significant chunk of Italy’s economy revolves around relatively high-carbon sectors like tourism and car manufacturing, public awareness and appetite for greening the economy is strong. The 2023-2030 Integrated National Energy and Climate Plan (NECP), revised in 2024, is Italy’s overarching climate policy, and lays out the country’s ambitions over the medium term. The plan includes targets of a 33% reduction in greenhouse gases, as well as EU aligned targets of 30% renewables in gross final consumption by 2030 (which includes an ambitious 34% renewable energy share in transport by 2030). Despite this, Italy’s energy policy remains strongly dependent on fossil fuels and the government still lacks an action plan for the phasing out of fossil fuel subsidies. Within the EU, Italy is generally seen as aligning with the Union’s positions on the international climate stage, though it occasionally criticises them and has often struggled to meet its commitments.
A strong approach to natural capital and circular economy, a well-developed social enterprise sector, and participation in the EU Emissions Trading System round out Italy’s policy landscape. Italy does not have a national carbon tax, but OECD data confirms that most energy-related emissions are priced through taxes or permits. Italy also maintains one of the most institutionalised beyond-GDP systems in the EU, with BES (Benessere Equo e Sostenibile) indicators updated annually and integrated into fiscal planning.
However, this transition is threatened by deep structural problems, both economic and political, which not only jeopardise Italy’s current prosperity but also the country’s path towards a secure green and fair future. The Superbonus scheme is a case-in-point of strong climate ambition undermined by weak administration. The superbonus scheme, intended to drive energy efficiency upgrades by paying homeowners 110% of the cost of energy saving renovations, became fiscally unsustainable and contributed to a sharp rise in public costs due to flawed implementation and misuse.
The global great recession of 2007, and the European debt crisis which followed, hit Italy particularly hard. Already seen as the Eurozone’s weak link, Italy entered a prolonged period of recession, stagnation and political instability. With eight Prime Ministers since 2008, Italy’s chronic political instability alongside decades of structural mismanagement, it is yet to be seen if Italy can put its economy back on a healthy footing for the future. And, affronted by record-breaking heat waves and droughts, if it will take climate change as seriously domestically as it does on the international stage.
Photo by Claudio Hirschberger, Unsplash
Policy Scores
Last updated 18 Dec 2025
Governance
National Green Economy Planning
Italy uses a set of national, legally anchored plans rather than one single “green-economy plan”. Core pillars are: the National Energy & Climate Plan (NECP/PNIEC) 2021–2030, final text submitted on 1 July 2024; the long-term climate pathway embedded via EU law and national planning; the Piano per la Transizione Ecologica (PTE) approved by the Inter-ministerial Committee for the Ecological Transition (CITE) in March 2022; and the Strategia Nazionale per lo Sviluppo Sostenibile (SNSvS 2022) (national SDG strategy), updated and re-approved in September 2023 to steer cross-government coordination and monitoring. Together with the EU-law-driven governance (Fit for 55/REPowerEU), this architecture sets 2030 targets (renewables, efficiency, GHG), establishes governance, and links to the budget cycle; however, it is not a single, statutory “green-economy plan” with economy-wide binding interim milestones beyond energy/climate fields.
Italy uses a set of national, legally anchored plans rather than one single “green-economy plan”. Core pillars are: the National Energy & Climate Plan (NECP/PNIEC) 2021–2030, final text submitted on 1 July 2024; the long-term climate pathway embedded via EU law and national planning; the Piano per la Transizione Ecologica (PTE) approved by the Inter-ministerial Committee for the Ecological Transition (CITE) in March 2022; and the Strategia Nazionale per lo Sviluppo Sostenibile (SNSvS 2022) (national SDG strategy), updated and re-approved in September 2023 to steer cross-government coordination and monitoring. Together with the EU-law-driven governance (Fit for 55/REPowerEU), this architecture sets 2030 targets (renewables, efficiency, GHG), establishes governance, and links to the budget cycle; however, it is not a single, statutory “green-economy plan” with economy-wide binding interim milestones beyond energy/climate fields.
Inclusive Corporate Governance
Italy promotes inclusive governance through stakeholder engagement in the National Sustainable Development Strategy (NSDS), involving over 200 NGOs and civil society actors. However, employee representation on corporate boards is not mandated, and trade unions have limited reach among vulnerable groups. Gender diversity is supported through voluntary initiatives and the EU Gender Balance Directive, but Italy does not enforce binding quotas for board-level gender representation. ESG reporting is encouraged but not systematically incentivized, and SDG alignment in corporate governance remains largely voluntary.
Italy promotes inclusive governance through stakeholder engagement in the National Sustainable Development Strategy (NSDS), involving over 200 NGOs and civil society actors. However, employee representation on corporate boards is not mandated, and trade unions have limited reach among vulnerable groups. Gender diversity is supported through voluntary initiatives and the EU Gender Balance Directive, but Italy does not enforce binding quotas for board-level gender representation. ESG reporting is encouraged but not systematically incentivized, and SDG alignment in corporate governance remains largely voluntary.
Participatory Policymaking
Public participation and impact analysis are mandated in several streams: the general administrative procedure law (Law 241/1990) on participation and access; the government’s Better Regulation system with Regulatory Impact Analysis (AIR)/ex-post review (VIR) and public consultations governed by DPCM 169/2017; and environmental assessments (SEA/EIA under Legislative Decree 152/2006, Part II) that implement the Aarhus Convention with public notice, submission and hearing rights. Italy’s Recovery and Resilience Plan includes measures to improve social inclusion and territorial equity. There is systematic use of consultation portals for strategies (e.g., SNSvS Forum), but, while consultation mechanisms exist, impact assessments and coverage for marginalised groups (e.g. IP/LCs, people with disabilities) are not systematically mandated across all policy areas.
Public participation and impact analysis are mandated in several streams: the general administrative procedure law (Law 241/1990) on participation and access; the government’s Better Regulation system with Regulatory Impact Analysis (AIR)/ex-post review (VIR) and public consultations governed by DPCM 169/2017; and environmental assessments (SEA/EIA under Legislative Decree 152/2006, Part II) that implement the Aarhus Convention with public notice, submission and hearing rights. Italy’s Recovery and Resilience Plan includes measures to improve social inclusion and territorial equity. There is systematic use of consultation portals for strategies (e.g., SNSvS Forum), but, while consultation mechanisms exist, impact assessments and coverage for marginalised groups (e.g. IP/LCs, people with disabilities) are not systematically mandated across all policy areas.
Beyond GDP
Italy maintains one of the most institutionalised beyond-GDP systems in the EU. ISTAT’s BES (Benessere Equo e Sostenibile) indicators (152 metrics) are updated annually and integrated into fiscal planning via a statutory BES annex to the Economic & Finance Document (DEF) and a dedicated MEF annual BES Report with forward projections. Italy also compiles environmental-economic accounts (SEEA) and produces recurring Natural Capital reporting coordinated by MASE/ISPRA. While integration into the budget/DEF cycle is advanced, a single comprehensive national wealth framework covering all capital stocks (human/social/natural/produced/financial) remains partial.
Italy maintains one of the most institutionalised beyond-GDP systems in the EU. ISTAT’s BES (Benessere Equo e Sostenibile) indicators (152 metrics) are updated annually and integrated into fiscal planning via a statutory BES annex to the Economic & Finance Document (DEF) and a dedicated MEF annual BES Report with forward projections. Italy also compiles environmental-economic accounts (SEEA) and produces recurring Natural Capital reporting coordinated by MASE/ISPRA. While integration into the budget/DEF cycle is advanced, a single comprehensive national wealth framework covering all capital stocks (human/social/natural/produced/financial) remains partial.
Finance
Green Finance & Banking
Italy participates in the EU-wide ESG risk management framework, with the European Banking Authority (EBA) guidelines becoming applicable in January 2026. The Bank of Italy conducts regular supervisory reviews, but ESG risks are not yet fully integrated into stress testing. Italy’s Recovery and Resilience Plan (RRP) includes green finance measures, such as support for sustainable mobility, energy efficiency, and circular economy investments. However, there is no national strategy with binding incentives or penalties for polluting investments.
Italy participates in the EU-wide ESG risk management framework, with the European Banking Authority (EBA) guidelines becoming applicable in January 2026. The Bank of Italy conducts regular supervisory reviews, but ESG risks are not yet fully integrated into stress testing. Italy’s Recovery and Resilience Plan (RRP) includes green finance measures, such as support for sustainable mobility, energy efficiency, and circular economy investments. However, there is no national strategy with binding incentives or penalties for polluting investments.
Greening Fiscal & Monetary Policy
Italy continues to implement targeted green fiscal measures but lacks a cohesive, long-medium-term framework. Initiatives include reduced guarantees for EMAS/Ecolabel-certified contractors, and tax deductions for energy-efficient renovation and decarbonisation (Industry 4.0 program). In 2021, Italy issued its inaugural sovereign €8.5 billion green BTP (Buoni del Tesoro Poliennali); 2024 allocations over €5 billion for sustainable projects. However, Italy lacks structural green tax reform, formal climate budgeting or green monetary policies like stress tests, leaving its fiscal green framework fragmented.
Italy continues to implement targeted green fiscal measures but lacks a cohesive, long-medium-term framework. Initiatives include reduced guarantees for EMAS/Ecolabel-certified contractors, and tax deductions for energy-efficient renovation and decarbonisation (Industry 4.0 program). In 2021, Italy issued its inaugural sovereign €8.5 billion green BTP (Buoni del Tesoro Poliennali); 2024 allocations over €5 billion for sustainable projects. However, Italy lacks structural green tax reform, formal climate budgeting or green monetary policies like stress tests, leaving its fiscal green framework fragmented.
Green Trade Practices
As an EU Member State, Italy’s trade policy is implemented through EU free trade agreements, such as the EU–Vietnam FTA (in force) and the EU–Mercosur Association Agreement (pending ratification). These systematically include Trade and Sustainable Development (TSD) chapters, which focus on cooperation and monitoring (e.g. panels of experts) but do not establish binding market-access liberalisation for environmental goods and services (EGS). Nor do they provide interoperability of green taxonomies or carbon-pricing systems. Italy does not participate in any multilateral “green trade pact” with binding provisions, nor are CBDR-linked exemptions used in EU FTAs. Domestically, Italy applies the EU Taxonomy Regulation (EU 2020/852), is covered by the EU Emissions Trading System (EU ETS), and will be subject to the Carbon Border Adjustment Mechanism (CBAM) once the transitional phase ends.
As an EU Member State, Italy’s trade policy is implemented through EU free trade agreements, such as the EU–Vietnam FTA (in force) and the EU–Mercosur Association Agreement (pending ratification). These systematically include Trade and Sustainable Development (TSD) chapters, which focus on cooperation and monitoring (e.g. panels of experts) but do not establish binding market-access liberalisation for environmental goods and services (EGS). Nor do they provide interoperability of green taxonomies or carbon-pricing systems. Italy does not participate in any multilateral “green trade pact” with binding provisions, nor are CBDR-linked exemptions used in EU FTAs. Domestically, Italy applies the EU Taxonomy Regulation (EU 2020/852), is covered by the EU Emissions Trading System (EU ETS), and will be subject to the Carbon Border Adjustment Mechanism (CBAM) once the transitional phase ends.
Pricing Carbon
Italy participates in the EU Emissions Trading System (EU ETS), which covers major sectors and has led to a 54% reduction in emissions from ETS sectors between 2005 and 2023. Italy does not have a national carbon tax, but OECD data confirms that most energy-related emissions are priced through taxes or permits. The National Energy and Climate Plan (NECP), updated in July 2024, outlines Italy’s decarbonization strategy, including sectoral targets. However, Italy does not have a legally binding carbon budget framework aligned with the 1.5°C Paris target.
Italy participates in the EU Emissions Trading System (EU ETS), which covers major sectors and has led to a 54% reduction in emissions from ETS sectors between 2005 and 2023. Italy does not have a national carbon tax, but OECD data confirms that most energy-related emissions are priced through taxes or permits. The National Energy and Climate Plan (NECP), updated in July 2024, outlines Italy’s decarbonization strategy, including sectoral targets. However, Italy does not have a legally binding carbon budget framework aligned with the 1.5°C Paris target.
Sectors
Cross-Sectoral Planning
Since 2021, Italy has made some progress in sectoral green coordination. The Ministry for Ecological Transition (MiTE) absorbed energy and environment mandates and formed the Interministerial Committee for Ecological Transition (CITE) to oversee the National Sustainable Development Strategy (NSDS) and the Ecological Transition Plan. In addition, the MiTE issued ministerial decrees via the Recovery and Resilience Plan, allocating €7 billion to Green Business and Circular Economy, funding sustainable agri-food, biogas/biomethane, waste-to-energy infrastructure, and waste collection The NSDS revision (2023) further integrated these priorities, under CITE oversight. However, while energy, agriculture, and waste sectors are now anchored in green strategy, industrial decarbonisation, transport planning, and sectoral monitoring systems still trail behind. Italy lacks cross-sector green roadmaps and comprehensive evaluation frameworks.
Since 2021, Italy has made some progress in sectoral green coordination. The Ministry for Ecological Transition (MiTE) absorbed energy and environment mandates and formed the Interministerial Committee for Ecological Transition (CITE) to oversee the National Sustainable Development Strategy (NSDS) and the Ecological Transition Plan. In addition, the MiTE issued ministerial decrees via the Recovery and Resilience Plan, allocating €7 billion to Green Business and Circular Economy, funding sustainable agri-food, biogas/biomethane, waste-to-energy infrastructure, and waste collection The NSDS revision (2023) further integrated these priorities, under CITE oversight. However, while energy, agriculture, and waste sectors are now anchored in green strategy, industrial decarbonisation, transport planning, and sectoral monitoring systems still trail behind. Italy lacks cross-sector green roadmaps and comprehensive evaluation frameworks.
Circular Economy
Italy has adopted a National Strategy for the Circular Economy, developed under the Recovery and Resilience Plan (PNRR), with milestones to 2035. Implementation is supported by mandatory Green Public Procurement criteria (Criteri Ambientali Minimi – CAM), which apply across multiple product categories and are regularly updated. Italy also operates Extended Producer Responsibility (EPR) schemes for packaging, batteries, and electronics. Monitoring is carried out by ISPRA, which reported a Circular Material Use Rate (CMUR) of 20.8% in 2023 (well above the EU average). However, no legislated, economy-wide CMUR target exists, and OECD assessments note uneven implementation across regions and sectors.
Italy has adopted a National Strategy for the Circular Economy, developed under the Recovery and Resilience Plan (PNRR), with milestones to 2035. Implementation is supported by mandatory Green Public Procurement criteria (Criteri Ambientali Minimi – CAM), which apply across multiple product categories and are regularly updated. Italy also operates Extended Producer Responsibility (EPR) schemes for packaging, batteries, and electronics. Monitoring is carried out by ISPRA, which reported a Circular Material Use Rate (CMUR) of 20.8% in 2023 (well above the EU average). However, no legislated, economy-wide CMUR target exists, and OECD assessments note uneven implementation across regions and sectors.
Green Transport & Mobility
Italy’s Integrated National Energy and Climate Plan (PNIEC, 2023 update) sets transport decarbonisation pathways to 2030, in line with the EU Fit-for-55 package and the EU Sustainable and Smart Mobility Strategy. According to ISPRA’s 2025 decarbonisation indicators, electricity accounted for 22.2% of final energy consumption in 2023 (50% in services, 39% in industry, but only 2% in transport). The PNRR supports the roll-out of charging infrastructure and zero-emission buses, with major cities such as Milan and Rome targeting fully electric bus fleets by 2030. A 2025 parliamentary briefing confirmed Italy’s alignment with EU transport decarbonisation goals, but at the national level there is no binding mandate for full electrification of public, private, and freight mobility by 2030.
Italy’s Integrated National Energy and Climate Plan (PNIEC, 2023 update) sets transport decarbonisation pathways to 2030, in line with the EU Fit-for-55 package and the EU Sustainable and Smart Mobility Strategy. According to ISPRA’s 2025 decarbonisation indicators, electricity accounted for 22.2% of final energy consumption in 2023 (50% in services, 39% in industry, but only 2% in transport). The PNRR supports the roll-out of charging infrastructure and zero-emission buses, with major cities such as Milan and Rome targeting fully electric bus fleets by 2030. A 2025 parliamentary briefing confirmed Italy’s alignment with EU transport decarbonisation goals, but at the national level there is no binding mandate for full electrification of public, private, and freight mobility by 2030.
Clean Energy
Italy’s NECP maintains EU-aligned targets: 30% renewables in gross final consumption by 2030, including 22% in transport and a 1.3% annual gain in heating & cooling. Includes grid modernization and auctions for solar and wind through Contracts for Difference (CfDs). In mid‑2024, grid data show renewables generation surpassed fossil briefly. Small-scale rooftop PV growth is outpacing utility-scale systems, big solar projects remain delayed due to complex permitting. EIB financing is accelerating investments, with ENEL's profits boosted by renewables, although high wholesale prices persist due to gas dependency. There is unbalance in sectoral implementation, particularly in heating and transport.
Italy’s NECP maintains EU-aligned targets: 30% renewables in gross final consumption by 2030, including 22% in transport and a 1.3% annual gain in heating & cooling. Includes grid modernization and auctions for solar and wind through Contracts for Difference (CfDs). In mid‑2024, grid data show renewables generation surpassed fossil briefly. Small-scale rooftop PV growth is outpacing utility-scale systems, big solar projects remain delayed due to complex permitting. EIB financing is accelerating investments, with ENEL's profits boosted by renewables, although high wholesale prices persist due to gas dependency. There is unbalance in sectoral implementation, particularly in heating and transport.
Just Transition
Green Job Creation
Italy’s green employment sector is robust and growing—about 3 million green jobs, representing 13.4% of all employment. The PNRR references green jobs creation, including around 117,000 annual temporary green jobs until 2030 under the NECP, alongside components on brown-to-green industrial conversion and wage-subsidies for youth and southern regions. However, there is still no dedicated national green jobs strategy, nor strong mechanisms for labor transition or social inclusion. The unresolved ArcelorMittal/Ex-Ilva steel transition underscore the absence of structured frameworks.
Italy’s green employment sector is robust and growing—about 3 million green jobs, representing 13.4% of all employment. The PNRR references green jobs creation, including around 117,000 annual temporary green jobs until 2030 under the NECP, alongside components on brown-to-green industrial conversion and wage-subsidies for youth and southern regions. However, there is still no dedicated national green jobs strategy, nor strong mechanisms for labor transition or social inclusion. The unresolved ArcelorMittal/Ex-Ilva steel transition underscore the absence of structured frameworks.
Just Transition Frameworks
Italy implements EU Just Transition Fund (JTF) with a national programme and Territorial Just Transition Plans focused on coal/industrial areas (e.g., Sulcis Iglesiente–Sardegna, Taranto–Puglia; additional territories as per the national JTF programme), financed under Reg. (EU) 2021/1056 and managed nationally (Agenzia per la Coesione). The PNRR includes reskilling/active labour measures and energy-transition investments, but Italy does not have a single national “Just Transition” framework statute that sets cross-sectoral benefit-sharing rules.
Italy implements EU Just Transition Fund (JTF) with a national programme and Territorial Just Transition Plans focused on coal/industrial areas (e.g., Sulcis Iglesiente–Sardegna, Taranto–Puglia; additional territories as per the national JTF programme), financed under Reg. (EU) 2021/1056 and managed nationally (Agenzia per la Coesione). The PNRR includes reskilling/active labour measures and energy-transition investments, but Italy does not have a single national “Just Transition” framework statute that sets cross-sectoral benefit-sharing rules.
Greening MSMEs & Social Enterprise
Italy has a legal framework for social enterprises, introduced in 2005 and updated in 2016, integrating the non-profit and social enterprise sectors. The Recovery and Resilience Plan allocates substantial funding to support MSMEs in green transition, including circular economy, energy efficiency, and sustainable mobility projects. The Ministry of Enterprises and Made in Italy promotes green technologies and competitiveness. However, access to green finance and regulatory support for MSMEs remains uneven.
Italy has a legal framework for social enterprises, introduced in 2005 and updated in 2016, integrating the non-profit and social enterprise sectors. The Recovery and Resilience Plan allocates substantial funding to support MSMEs in green transition, including circular economy, energy efficiency, and sustainable mobility projects. The Ministry of Enterprises and Made in Italy promotes green technologies and competitiveness. However, access to green finance and regulatory support for MSMEs remains uneven.
Inclusive Social Protection
Italy’s social protection framework remains largely traditional and it continues to rely on conventional schemes like Citizens’ Income (2019–2024) and its 2024 successors (Inclusion Cheques and Vocational Training Aid), aimed primarily at poverty relief, housing assistance, and labor activation. While regional basic income trials and other initiatives exist, they are not government-driven. There are no green social protection strategies led by the state, and financial support remains detached from ecological transition planning. Italy has no national pilots explicitly connecting social protection with the green transition but the country does have localised efforts, mainly through municipalities and regions, such as renewable energy community projects (ComER project) and NetZeroCities pilots involving community energy models and social-impact mechanisms. It also previously tested local basic-income-type schemes (for example in Livorno).
Italy’s social protection framework remains largely traditional and it continues to rely on conventional schemes like Citizens’ Income (2019–2024) and its 2024 successors (Inclusion Cheques and Vocational Training Aid), aimed primarily at poverty relief, housing assistance, and labor activation. While regional basic income trials and other initiatives exist, they are not government-driven. There are no green social protection strategies led by the state, and financial support remains detached from ecological transition planning. Italy has no national pilots explicitly connecting social protection with the green transition but the country does have localised efforts, mainly through municipalities and regions, such as renewable energy community projects (ComER project) and NetZeroCities pilots involving community energy models and social-impact mechanisms. It also previously tested local basic-income-type schemes (for example in Livorno).
Nature
Ocean & Land Conservation
Italy’s Strategia Nazionale per la Biodiversità 2030 (SNB 2030) sits within the SNSvS and EU GBF/SDG 14–15 context, alongside extensive Natura 2000, national parks and marine protected areas; implementation and monitoring are coordinated by MASE with periodic reporting through EU mechanisms and national statistical outputs. While strategy and legal frameworks are strong, consolidated GBF-aligned interim targets and regular public progress scorecards are still being strengthened across terrestrial/marine domains.
Italy’s Strategia Nazionale per la Biodiversità 2030 (SNB 2030) sits within the SNSvS and EU GBF/SDG 14–15 context, alongside extensive Natura 2000, national parks and marine protected areas; implementation and monitoring are coordinated by MASE with periodic reporting through EU mechanisms and national statistical outputs. While strategy and legal frameworks are strong, consolidated GBF-aligned interim targets and regular public progress scorecards are still being strengthened across terrestrial/marine domains.
Natural Capital Accounting
Italy has a well-established Natural Capital Committee, mandated by Law 221/2015, which publishes annual reports on the state of natural capital, including physical and monetary assessments. The 6th Report on Natural Capital, approved in 2025, integrates ecosystem valuation and supports environmental accounting. The Committee includes experts from government, academia, and research institutions. While Italy contributes to EU-level initiatives, integration of natural capital into national budgeting and planning remains partial.
Italy has a well-established Natural Capital Committee, mandated by Law 221/2015, which publishes annual reports on the state of natural capital, including physical and monetary assessments. The 6th Report on Natural Capital, approved in 2025, integrates ecosystem valuation and supports environmental accounting. The Committee includes experts from government, academia, and research institutions. While Italy contributes to EU-level initiatives, integration of natural capital into national budgeting and planning remains partial.
Sustainable Agriculture & Food Systems
Italy implements its CAP Strategic Plan 2023–2027, which funds eco-schemes, agri-environment-climate measures, and support for organic and biodiversity-friendly farming. Italy also enforces the “Legge Gadda” (Law 166/2016) on food donation and waste reduction, a pioneering framework to combat food waste. Broader sustainability planning is coordinated under the National Sustainable Development Strategy (NSDS). Internationally, Italy plays a leading role as host to FAO, WFP, and IFAD, collaborates with FAO on food systems transformation, and has designated multiple Globally Important Agricultural Heritage Systems (GIAHS). National programmes promote agrobiodiversity, traditional knowledge, and food education. However, Italy lacks a consolidated national food systems strategy with quantified ecological-footprint targets or explicit timelines for harmful subsidy phase-outs.
Italy implements its CAP Strategic Plan 2023–2027, which funds eco-schemes, agri-environment-climate measures, and support for organic and biodiversity-friendly farming. Italy also enforces the “Legge Gadda” (Law 166/2016) on food donation and waste reduction, a pioneering framework to combat food waste. Broader sustainability planning is coordinated under the National Sustainable Development Strategy (NSDS). Internationally, Italy plays a leading role as host to FAO, WFP, and IFAD, collaborates with FAO on food systems transformation, and has designated multiple Globally Important Agricultural Heritage Systems (GIAHS). National programmes promote agrobiodiversity, traditional knowledge, and food education. However, Italy lacks a consolidated national food systems strategy with quantified ecological-footprint targets or explicit timelines for harmful subsidy phase-outs.
Nature Finance
Italy regularly maps environmentally harmful and favourable subsidies via the official Catalogue of SAD/SAF (MASE/MEF), and has increased sovereign green financing (e.g., BTP Green with annual allocation reports). EU-level tools (EU Taxonomy, ETS/CBAM) apply. Policy to eliminate harmful subsidies is acknowledged in planning documents, yet comprehensive fiscal reform explicitly redirecting material amounts toward nature-positive outcomes (and dedicated mechanisms for IPLC stewardship—less relevant in Italy’s context) is still partial.
Italy regularly maps environmentally harmful and favourable subsidies via the official Catalogue of SAD/SAF (MASE/MEF), and has increased sovereign green financing (e.g., BTP Green with annual allocation reports). EU-level tools (EU Taxonomy, ETS/CBAM) apply. Policy to eliminate harmful subsidies is acknowledged in planning documents, yet comprehensive fiscal reform explicitly redirecting material amounts toward nature-positive outcomes (and dedicated mechanisms for IPLC stewardship—less relevant in Italy’s context) is still partial.
Green Recovery
Green Recovery Measures
The National Recovery and Resilience Plan (PNRR)—including its REPowerEU chapter—allocates at least 37% to climate objectives (Italy targets ≈40% in Commission documents), financing renewable energy, grid/digital, building renovation, mobility, circular economy and ecosystem measures, with milestones/targets attached and successive Council/Commission decisions amending and monitoring execution (2021, 2023, 2025). Green conditionality is embedded via EU regulations and plan milestones; some project-level execution has faced implementation adjustments, but the scale and breadth of green-linked measures remain significant.
The National Recovery and Resilience Plan (PNRR)—including its REPowerEU chapter—allocates at least 37% to climate objectives (Italy targets ≈40% in Commission documents), financing renewable energy, grid/digital, building renovation, mobility, circular economy and ecosystem measures, with milestones/targets attached and successive Council/Commission decisions amending and monitoring execution (2021, 2023, 2025). Green conditionality is embedded via EU regulations and plan milestones; some project-level execution has faced implementation adjustments, but the scale and breadth of green-linked measures remain significant.