Rimini, Italy: Mohamed Hassan
Italy recorded an increase in greenhouse gas emissions in 2025, while renewable energy deployment remains well below 2030 targets and dependence on foreign energy supplies remains high.
However, the country continues to perform strongly in the circular economy, with growing climate transition initiatives emerging in cities.
Italy is facing more challenges than progress in its transition towards a green economy, with greenhouse gas emissions rising in 2025, renewable energy deployment falling behind national targets and continued heavy dependence on foreign energy supplies.
These findings are outlined in the 2026 Report on the State of the Green Economy, presented on November 3 at the opening of the States General of the Green Economy, held in Rimini as part of Ecomondo.
Prepared by the Foundation for Sustainable Development, the report examines key areas of Italy’s ecological transition, including the climate crisis, energy, material circularity, mobility and agriculture.
According to the report, Italy is struggling with rising greenhouse gas emissions, delays in expanding renewable energy sources and a high level of energy dependence on other countries.
The country, however, continues to achieve significant results in the circular economy, while cities are showing growing momentum in initiatives aimed at accelerating the ecological transition.
“We are seeing an overall critical situation in the transition to a green economy, with a few limited positive signs, although an IPSOS survey shows that the green momentum among citizens and businesses has increased,” said Edo Ronchi, president of the Foundation for Sustainable Development.
Climate Crisis Leaves Italy Increasingly Exposed to Extreme Weather
Italy’s geographical position at the heart of the Mediterranean basin makes it particularly vulnerable to the effects of the climate crisis.
Over the past 50 years, the country’s average temperature has increased by more than 2°C, a rise exceeding the global average.
During the summer of 2026, several Italian cities experienced prolonged periods under the red heat alert, which indicates emergency conditions posing health risks even to healthy people, as well as greater dangers for vulnerable groups.
Italy also recorded more than 2,300 extreme weather events in 2025.
Greenhouse Gas Emissions: 2030 Target Remains Far Away
The report highlights insufficient progress in reducing greenhouse gas emissions.
After several years of decline, Italy’s greenhouse gas emissions increased again in 2025, while the reduction recorded so far in 2026 has remained limited.
Between 2015 and 2024, Italy reduced its emissions by an average of 7 million tonnes annually.
However, to meet the 2030 target set out in the National Integrated Energy and Climate Plan (PNIEC), the country needs to cut emissions by an average of 14 million tonnes per year from 2026 onwards — twice the annual reduction achieved in previous years.
Renewable Energy Deployment Falls Short of National Targets
Italy is also lagging behind in the expansion of renewable energy.
The PNIEC sets a target of renewable energy accounting for 39.4% of total energy consumption by 2030.
However, the renewable share of Italy’s energy consumption stood at just 19.6% in 2024, compared with the European Union average of 25.2%.
The gap is also evident across individual sectors.
In 2024, renewable sources accounted for 20% of energy consumption for heating and cooling, against a 2030 target of 35.9%. In transport, the renewable energy share stood at 10%, compared with a target of 34.2%.
In 2025, renewable sources covered 47% of Italy’s electricity production, while the 2030 target is 70%.
New renewable energy installations reached 7.2 gigawatts (GW) in 2025, below the levels recorded in Germany, at 23.3 GW, and Spain, at 10.8 GW.
According to the report, Italy will need to install approximately 10 GW of new renewable energy capacity every year to achieve its national target.
Energy Dependence and Consumption
Italy remains among the European countries most dependent on foreign energy supplies, with energy dependence standing at around 74% in recent years, compared with an EU average of approximately 57%.
The report nevertheless points to Italy’s relatively good energy intensity.
In 2024, gross inland energy consumption per unit of GDP stood at 72 tonnes of oil equivalent per million euros, compared with the European average of 85 tonnes.
Over the past 20 years, energy consumption per unit of GDP has declined by 30% in Italy, below the EU average reduction of 36%.
Circular Economy Remains One of Italy’s Strongest Areas
The circular economy is among the sectors where Italy continues to record some of its strongest performances.
In 2025, resource productivity reached €4.6 of GDP for every kilogram of material consumed, compared with the EU average of €3.
Italy also maintained a higher circular material use rate than several major European economies.
In 2024, the rate stood at 21.6%, compared with the EU average of 12.2%, France’s 17.8% and Germany’s 14.8%.
The report also recorded a waste recycling rate of 86% in Italy in 2022, significantly higher than the European average of 41%.
In 2025, the recycling rate for packaging waste reached 77.3%.
However, Italy remains heavily dependent on imported materials. This dependence reached 47.1% in 2025, more than twice the EU average of 22.1%.
Water Consumption: Italy Leads Europe in Civil and Industrial Use
Water management remains another major challenge for Italy.
According to the report, Italy has the highest water consumption for civil and industrial purposes among European countries and ranks second, after Spain, in water withdrawals for agriculture.
Annual water availability per capita stands at approximately 2,260 cubic metres, less than half the EU average.
Climate change has contributed to a 20% decline in water availability compared with the beginning of the 20th century, according to the Italian Institute for Environmental Protection and Research (ISPRA).
During the summer of 2024, drought affected approximately 40% of Italy’s territory.
The country’s ageing and inefficient water infrastructure is adding to the pressure.
Italy’s water distribution network loses more than 40% of the water introduced into the system.
Meanwhile, the reuse of treated wastewater remains limited to just 4%, despite an estimated national recovery potential of 23%.
Sustainable Mobility: Electrified Cars Gain Ground, but Public Transport Funding Remains Insufficient
Italy’s transport sector has recorded some positive developments in the renewal of its vehicle fleet, particularly through the growing market share of electrified cars.
During the first half of 2026, hybrid vehicles accounted for 49.7% of new car registrations, up from 44.4% during the same period in 2025.
Plug-in hybrid vehicles increased their share from 5.3% to 9%, while battery electric vehicles rose from 5.2% to 8.4%.
Combined, plug-in hybrids and battery electric vehicles reached 17.4% of new registrations.
Over the same period, the share of newly registered petrol cars declined from 26% to 19.7%, while diesel vehicles fell from 10% to 6.8%.
However, support for local and regional public transport remains insufficient.
Between 2015 and 2025, funding for the National Transport Fund increased by only 6% in nominal terms, while its real value declined by 13.5%.
In 2025, available resources were €660 million lower than in 2015.
Agriculture: Organic Farmland Declines for the First Time in a Decade
In 2025, the value added by Italy’s agricultural sector increased mainly due to higher prices, while production volumes remained largely unchanged.
The climate crisis continues to affect agricultural output.
According to the European Environment Agency, drought accounts for 54% of agricultural losses, while very intense rainfall is responsible for 21%.
One of the report’s most significant findings concerns organic farming.
For the first time in 10 years, the area of certified organic farmland and land under conversion declined in 2025, falling by 5.4% compared with 2024.
This follows a 59.3% increase in organic farmland between 2015 and 2024.
Sicily and Apulia remain the Italian regions with the highest concentration of organic agricultural land.
Meanwhile, Italy’s so-called DOP economy continues to expand. The combined value of products with Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) status has reached €20.7 billion.
Cities Step Up Ecological Transition Initiatives
Cities are among the areas showing greater momentum in Italy’s ecological transition, with climate adaptation measures becoming increasingly widespread, partly supported by funding from the National Recovery and Resilience Plan (PNRR).
The report highlights the growing development of climate shelters and measures designed to counter urban heat islands.
Another important approach is the development of so-called sponge cities, designed to absorb and manage heavy rainfall through the removal of impermeable surfaces and the creation of green spaces, retention basins, ponds and wetlands.
These urban infrastructures can help collect rainwater, make it available for reuse during periods of water scarcity and reduce the impacts of high temperatures.
Overall, the 2026 Report on the State of the Green Economy presents a mixed picture of Italy’s ecological transition.
While the country continues to face significant delays in climate action, renewable energy deployment and resource management, it maintains strong performance in recycling and circular material use.
At the same time, new urban initiatives are emerging to help cities adapt to the growing impacts of climate change.
