Dispatch from Italy | March ‘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

• Worries about energy prices - January ended with an average wholesale electricity price in Italy of 143 euros per megawatt hour (MWh), marking an increase compared to previous months. Comparing January 2025 averages, Italy's electricity prices on the day ahead market were 25 percent higher than Germany's, 40 percent higher than France's, and 48 percent higher than Spain's. This led to widespread criticism from the opposition, while national consumer union head Marco Vignola called for the reintroduction of support measures. To prevent further price hikes for households and businesses, the minister for the environment and energy security Gilberto Pichetto Fratin in early February signed a decree allowing the early auctioning of stored gas — as gas often sets the market price for all electricity producers. Later in the month, the Council of Ministers approved a three-billion-euro measure to reduce energy bills: 1.6 billion will go to families in economic hardship, while 1.4 billion will be allocated to businesses, both large and small. The measure will last for three months, pending a decline in gas prices on international markets.
• Nuclear energy plans take another step forward – Italy is a step closer to its return to nuclear power as plans continue to move through the legislative process. At the end of January, environment and energy security minister Pichetto Fratin submitted a draft law to the government: the proposal called for “the approval, within 24 months, of one or more legislative decrees establishing regulations for the production of sustainable nuclear energy” in Italy and aligning national legislation with EU directives. He had confirmed that “Italy is ready to return to nuclear power, which represents a crucial choice — not to replace renewables, but to complement them, ensuring a balanced and sustainable energy mix.” On 28 February, the government also approved the enabling law on new nuclear energy. Now, within 12 months, the government must adopt a series of legislative decrees to define a national strategy to build new power plants, deal with waste and conduct research and development. Prime minister Giorgia Meloni, in a video shared on social media, stated: “Today, the government has also approved an important measure to guarantee safe, clean, low-cost energy that ensures Italy’s energy security and strategic independence,” calling on Parliament to "take a stand”.
• Hydrogen ambitions - Italy is positioning itself as a key energy hub between North Africa and Central Europe, with hydrogen at the centre of its strategy. This vision moved forward with the signing of a joint declaration of intent in Rome by Italy, Germany, Austria, Algeria, and Tunisia to develop the Southern Hydrogen Corridor. The project aims to transport green hydrogen from North Africa to European markets. However, critics question who truly benefits from Italy’s hydrogen push. While the EU backs hydrogen imports as part of its decarbonisation goals, concerns remain over the real feasibility of large-scale green hydrogen production in North Africa, where renewable capacity is still developing. Additionally, watchdog groups argue that Italy’s hydrogen strategy is tailored to serve Snam, the country’s main gas transmission operator, rather than prioritising a genuinely sustainable energy shift. The risk is that massive public investments get funnelled into repurposing gas infrastructure instead of accelerating direct renewable deployment.

• Environmental organisation Germanwatch’s latest edition of the Climate Risk Index confirms that, over the past 30 years, Global South countries have been disproportionately affected by extreme weather events. Italy is the most impacted country in Europe, ranking first for deaths and damages caused by extreme weather. Globally, it holds the third position for the number of extreme weather events recorded in 2022.
• If you happen to be in Rome, don’t miss the "Il Paese della Biodiversità" photography exhibition, organised by National Geographic Italia in collaboration with the National Research Council (CNR). The exhibition will be open to the public until 30 April 2025 at the CNR’s central headquarters. Featuring around 50 stunning photographs by The Wild Line — a collective of renowned nature photographers Marco Colombo, Bruno D’Amicis, and Ugo Mellone — the exhibition captures the wild side of Italy.