Two new studies presented by the Istituto Affari Internazionali (IAI) supported by Environmental Defense Fund Europe
Rome, 15 May 2025 – Italian industry, which accounts for a significant share of Europe’s greenhouse gas emissions, faces a dual challenge: decarbonising its production processes while remaining competitive. This is the central issue addressed in two new studies conducted by the Istituto Affari Internazionali (IAI) and supported by Environmental Defense Fund Europe (EDF Europe), presented today during a webinar titled “Italy’s Energy-Intensive Industries: Between Competitiveness and Decarbonisation.”
The event served as a platform for dialogue on a national transition strategy that not only aligns with climate commitments, but also drives technological innovation and secures jobs in the renewable energy sector, clean technologies, and methane emissions management. Speakers included Pier Paolo Raimondi, Senior Researcher in the “Energy, Climate, and Resources” programme at the IAI, Massimo Micucci, Senior Consultant and spokesperson for Italy at Environmental Defense Fund Europe, Andrea Prontera, Associate Professor at the University of Macerata, Marco Ravazzolo, Environment, Energy and Mobility Policy Director at Confindustria, Carlo Bardini, Coordinator of European and international activities at the Energy Department of the Ministry of the Environment and Energy Security.
The study “Italy’s Energy-Intensive Industries amid Competitiveness and Decarbonisation” highlights that while Italy is making progress in reducing industrial emissions, it remains heavily reliant on natural gas, of which it is one of the European Union’s largest importers. Alongside solutions like electrification and the adoption of hydrogen in specific sectors, the study identifies the reduction of methane leaks, particularly in the energy and gas distribution sectors, as a key action to further improve Italy’s decarbonisation performance. Even though methane emissions from Italy's gas value chain have already significantly decreased over the past few decades (71.9% since 1990), they still make up close to 80% of the country's total fugitive methane emissions. By addressing regulatory delays and establishing a stable policy framework aligned with the new EU Methane Regulation, Italy can further cut emissions and meet its ambitious European climate targets.
The second study, “European and Italian Just Transition Policies amid Industrial Decarbonisation and External Policies” explores how Italy and the European Union can incorporate just transition principles into industrial policy to ensure that vulnerable regions, particularly those dependent on energy-intensive industries, do not suffer adverse economic and social impacts. The report emphasises the need for compensation mechanisms for struggling regions and the promotion of an inclusive transition that delivers benefits at both national and international levels, with a particular focus on Africa and the MENA (Middle East and North Africa) region.
“Reducing methane emissions in the energy sector is one of the fastest, most effective, and most cost-efficient actions Italy can take to accelerate the transition while also strengthening its industrial competitiveness,” said Lea Pilsner, Senior Policy Manager at EDF Europe. “A strong commitment in this direction, supported by clear and ambitious implementation of the EU regulation, will not only help Italy meet its climate goals, but also ensure a just transition for regions still reliant on fossil fuels, delivering benefits for the country’s energy security as a whole.”
“Italy must pursue a holistic industrial strategy that allows it to exploit technological and economic opportunities. To this end, an industrial plan is needed that includes all effective technologies for industrial decarbonisation, while also actively working at the European level,” commented Pier Paolo Raimondi, Senior Researcher at the IAI. “To support industrial transformation, an adequate social policy aimed at creating alternatives and compensatory instruments is also necessary. This approach must also define Italy's foreign policy, recognising the challenges and opportunities dictated by the energy and geopolitical context, as recognised by the Mattei Plan. In this sense, the recent initiatives announced by the European Commission provide Italy with a further opportunity to define industrial and climate cooperation between Europe and Africa."