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1、Energy Policy ReviewItaly 2023The IEA examines the full spectrum of energy issues including oil,gas and coal supply and demand,renewable energy technologies,electricity markets,energy efficiency,access to energy,demand side management and much more.Through its work,the IEA advocates policies that wi

2、ll enhance the reliability,affordability and sustainability of energy in its 31 member countries,11 association countries and beyond.Please note that this publication is subject to specific restrictions that limit its use and distribution.The terms and conditions are available online at www.iea.org/

3、t&c/This publication and any map included herein are without prejudice to the status of or sovereignty over any territory,to the delimitation of international frontiers and boundaries and to the name of any territory,city or area.Source:IEA.All rights reserved.International Energy Agency Website:www

4、.iea.orgIEA member countries:Australia Austria Belgium CanadaCzech Republic Denmark EstoniaFinland France Germany Greece HungaryIreland ItalyJapanKoreaLithuania Luxembourg Mexico Netherlands New Zealand NorwayPoland Portugal Slovak Republic Spain Sweden Switzerland Republic of TrkiyeUnited Kingdom U

5、nited StatesThe European Commission also participates in the work of the IEAIEA association countries:INTERNATIONAL ENERGYAGENCYArgentinaBrazilChinaEgyptIndiaIndonesiaMoroccoSingaporeSouth AfricaThailandUkraine 3 FOREWORD Foreword The International Energy Agency(IEA)has conducted in-depth peer revie

6、ws of its member countries energy policies since 1976.This process supports energy policy development and encourages the exchange of and learning from international best practices.By seeing what has worked or not in the“real world”,these reviews help to identify policies that deliver concrete result

7、s.Italy has successfully reduced its reliance on Russian gas imports over the last year.It has diversified its natural gas sources and supply routes signing new contracts with alternative suppliers,and making good use of the pipeline and LNG infrastructure that it has built up over the last decade.O

8、ver the longer term,an accelerated diversification to alternative energy sources,and a stronger focus on energy efficiency,will not only strengthen domestic energy security further,but also help Italy meet its emissions reduction targets.Italy is implementing several measures to improve the energy e

9、fficiency of residential and commercial buildings,with energy consumption already declining in this area.By 2030,the building sector is expected to contribute 60%of annual energy savings and the government has already launched several policy instruments for retrofitting existing buildings,which is t

10、o be commended.Since the last IEA review of Italy in 2016,the country has increased its climate ambitions by endorsing the EU-wide goal of reaching climate neutrality by 2050,as set out in the European Green Deal.Moreover,the country is on track to reach its national targets for both emissions reduc

11、tions and energy efficiency by the end of this decade,which is welcome news.Despite strong interest from investors,Italy is like several countries seeing a gap between actual and desired renewable energy installations.There is a similar picture in relation to distribution and transmission infrastruc

12、ture,which are essential elements of an efficient and integrated electricity system.Efforts to simplify and accelerate permitting procedures could help close these gaps.Encouraging legislative steps were taken in 2021 and there have been some clear signs since that the permitting for new projects is

13、 being expedited.The full adoption of the regulatory implementation framework would be a valuable and impactful next step.Italy is a founding member of the IEA and has engaged actively on international energy security and clean energy transitions.I am grateful for its leadership on international eff

14、orts to ramp up progress on power system modernisation through the International Smart Grids Action Network(an IEA Technology Collaboration Programme)and the Mission Innovation Green Powered Future Mission,for example.Both are important platforms for engaging and aligning stakeholders across the ene

15、rgy industry to address the shared challenge of decarbonisation.I sincerely hope that the recommendations set out in this report will help Italy accelerate its energy system transformation while ensuring energy supplies remain affordable and secure.Dr.Fatih Birol Executive Director International Ene

16、rgy Agency IEA.CC BY 4.0.5 TABLE OF CONTENTS ENERGY INSIGHTS 1.Executive summary.11 Key recommendations.14 2.General energy policy.15 Introduction.15 Energy supply and demand.17 Key institutions and energy players.20 Energy and climate policy.20 Energy prices,taxes and subsidies.25 Energy poverty.28

17、 Assessment.31 Recommendations.34 ENERGY SYSTEM TRANSFORMATION 3.Energy and climate change.37 Overview.37 Greenhouse gas emissions profile.38 Energy-related CO2 emissions and intensities.39 Climate governance.41 Climate policy and targets.42 Carbon pricing.46 Carbon capture,utilisation and storage.4

18、9 Hydrogen.49 Adaptation and resilience to climate change.51 Assessment.53 Recommendations.57 4.Energy efficiency.61 Overview.61 Energy demand.61 Energy efficiency policy and targets.63 Energy efficiency in buildings.65 Industrial energy efficiency.70 Energy efficiency in transport.72 Assessment.76

19、IEA.CC BY 4.0.TABLE OF CONTENTS 6 Recommendations.80 5.Renewable energy.83 Overview.83 Renewable energy supply and demand.84 Renewable energy targets and policies.85 Renewable electricity generation.86 Renewables for heating and cooling.93 Renewables in transport.95 Assessment.97 Recommendations.102

20、 6.Energy research,development and innovation.105 Overview.105 Key actors in the energy innovation ecosystem.105 Energy research,development and innovation policy.106 Resource push.107 Knowledge management.112 Assessment.115 Recommendations.117 ENERGY SECURITY 7.Electricity.119 Overview.119 Electric

21、ity supply and demand.120 Electricity policy.126 Future electricity mix.126 Future grid development.129 System flexibility.131 Market structure and reforms.134 Electricity emergency response.141 Assessment.142 Recommendations.145 8.Natural gas.149 Overview.149 Gas supply,demand and trade.150 Infrast

22、ructure.152 Gas policy.157 IEA.CC BY 4.0.TABLE OF CONTENTS 7 TABLE OF COTENTS Market structure.158 Gas emergency policy.160 Assessment.161 Recommendations.163 9.Oil.165 Overview.165 Supply and demand.166 Oil policy.170 Market structure.170 Infrastructure.172 Oil emergency policy and stockholding.174

23、 Assessment.175 Recommendations.176 ANNEXES ANNEX A.Key organisations involved in energy-related policies in Italy.177 ANNEX B:Organisations visited.179 ANNEX C:Energy balances and statistical notes.183 ANNEX D:Glossary and list of abbreviations.187 LIST OF FIGURES,TABLES AND BOXES Figures Figure 2.

24、1 Overview of energy production,supply and demand in Italy,2021.17 Figure 2.2 Total energy supply by source,total final consumption and GDP in Italy,2005-2021.18 Figure 2.3 Energy demand by sector and fuel in Italy.19 Figure 2.4 Households expenditure on energy by purpose and income decile in Italy,

25、2021.29 Figure 3.1 Greenhouse gas emissions by sector in Italy,2005-2021.38 Figure 3.2 Energy-related CO2 emissions by sector in Italy,2005-2021.39 Figure 3.3 Energy-related CO2 emissions and main drivers in Italy,2005-2021 Key economic,energy and emissions trends(left)and CO2 intensities(right).40

26、Figure 3.4 Energy-related CO2 emissions by fuel in Italy,2005-2021 CO2 emissions by fuel:Trend in 2005-2021(left)and composition in selected years(right).41 Figure 3.5 Italys historic net greenhouse gas emissions,projections and 2030 targets.45 Figure 3.6 Average effective carbon rates on CO2 emissi

27、ons,G20 economies,2018 and 2021.47 IEA.CC BY 4.0.TABLE OF CONTENTS 8 Figure 3.7 Losses from extreme weather events in European IEA countries,1980-2020.52 Figure 4.1 Energy demand and drivers in Italy,2005-2021.62 Figure 4.2 Total final consumption by sector in Italy,2005-2021.62 Figure 4.3 Achieved

28、and expected savings in 2020 based on the 2017 NEEAP;and NECP and likely target under FF55 for Italy for 2030.64 Figure 4.4 Total final consumption by source in buildings in Italy,2005-2021.66 Figure 4.5 Residential energy consumption by end-use in Italy,2020 and 2005-2020.67 Figure 4.6 Total final

29、consumption in industry by source in Italy,2005-2021.70 Figure 4.7 Total final consumption in transport by fuel in Italy,2005-2021.73 Figure 4.8 Registered electric vehicles and public charging points in Italy,2012-2021 75 Figure 5.1 Renewable energy in total final energy consumption in Italy,2005-2

30、021.84 Figure 5.2 Share of renewables by end-use sector and source in Italy,2021.85 Figure 5.3 Renewable energy in electricity generation in Italy,2005-2021.87 Figure 5.4 Renewable energy in heating and cooling in Italy,2005-2020.93 Figure 5.5 Renewable energy in transport in Italy,2005-2020.96 Figu

31、re 6.1 Public budget on energy RD&D per GDP in IEA countries,2019.108 Figure 6.2 Energy-related public RD&D spending by technology area in Italy,2010-2019.108 Figure 6.3 Energy-related private RDI spending in Italy,2013-2019.109 Figure 6.4 New patents in energy-related climate change mitigation tech

32、nologies in Italy,2005-2019.115 Figure 7.1 Electricity generation by source in Italy,2005-2021.121 Figure 7.2 Electricity generation by source in European IEA countries,2021.121 Figure 7.3 Dependence of electricity generation from Russian imports,selected IEA countries,2021.122 Figure 7.4 Italys ele

33、ctricity imports and exports,2005-2021.123 Figure 7.5 Electricity demand by sector in Italy,2005-2021.124 Figure 7.6 Map of Italys electricity system.125 Figure 7.7 National Trends Italia scenario.127 Figure 7.8 Single national price of the Italian wholesale market,2010-December 2022.136 Figure 7.9

34、Household clients in the enhanced protection and free market,and switching rate for changing supplier in Italy,2008-2021.138 Figure 7.10 IEA countries with the ten highest industry and household electricity prices,2021.139 Figure 7.11 Breakdown of electricity prices for a typical consumer in Italy,2

35、020-2022 140 Figure 8.1 Natural gas demand by sector in Italy,2005-2021.151 Figure 8.2 Italys natural gas net trade by country,2005-2021.152 Figure 8.3 Italys natural gas imports by interconnection,2015-2022.152 Figure 8.4 Map of Italys gas infrastructure.153 Figure 8.5 Natural gas prices,industry a

36、nd households in IEA countries,2021.160 Figure 9.1 Share of oil in the Italian energy sector,2000-2021.166 Figure 9.2 Italys crude oil,natural gas liquids and refinery feedstock net imports by country,2005-2021.167 Figure 9.3 Oil products demand by fuel and sector in Italy,2005-2021.168 Figure 9.4 O

37、il products production by product in Italy,2005-2021.169 Figure 9.5 Oil products trade by country in Italy,2005-2021.169 Figure 9.6 Price comparison for automotive diesel in the IEA,Q1 2022.171 IEA.CC BY 4.0.TABLE OF CONTENTS 9 TABLE OF COTENTS Figure 9.7 Price comparison for unleaded gasoline(95 RO

38、N)in the IEA,Q1 2022.171 Figure 9.8 Map of Italys oil infrastructure.172 Figure 9.9 Emergency oil stocks by type in Italy,January 2014-October 2022.175 Tables Table 2.1 Italys 2030 energy and climate targets.23 Table 2.2 Main fossil fuel support measures in Italy,2020.27 Table 2.3 Budgeted costs of

39、the measures to limit the costs of rising energy prices in Italy.28 Table 3.1 2020 and 2030 greenhouse gas emissions reduction targets for Italy and the European Union.42 Table 3.2 Hydrogen-related investment in Italys National Resilience and Recovery Plan.51 Table 4.1 Primary and final energy consu

40、mption,status and targets in Italy.63 Table 5.1 Italys 2020 and 2030 renewable energy targets,and status 2021.86 Table 5.2 Italys current renewables electricity capacity and 2030 indicative targets.88 Table 6.1 Italys participation in IEA technology collaboration programmes.113 Table 7.1 Gross elect

41、ricity generation capacity by source in Italy.122 Table 8.1 Italys natural gas import points by pipeline,winter 2021-2022.154 Table 8.2 Italys LNG import terminals,2022.155 Table 8.3 Italys natural gas storage capacity by location,2020/21.156 Table 9.1 Oil refineries in Italy.173 Boxes Box 2.1 Count

42、ry profile of Italy.16 Box 2.2 Italys National Plan for the Containment of Natural Gas Consumption.21 Box 2.3 A preliminary scenario for achieving the updated 2030 targets.24 Box 2.4 Social benefits for electricity and gas expenditure in Italy.30 Box 3.1 Examples of climate framework laws.43 Box 5.1

43、 Energy communities in Italy.90 Box 6.1 Future focus on hydrogen in Italy.111 Box 7.1 The renewable development zones approach to grid development.133 IEA.CC BY 4.0.11 ENERGY INSIGHTS 1.Executive summary Italys energy system has changed notably since 2010 and today the countrys energy mix includes m

44、ore natural gas and renewable energies and less coal and oil.From a lower base than the IEA average,Italys energy intensity,measured by the ratio of total final consumption(TFC)to gross domestic product(GDP),declined by 15%between 2005 and 2021,reflecting a shift in the economic structure from indus

45、trial to the service sector combined with energy efficiency improvements.Italy is on track to reach the emissions reductions and energy efficiency targets set in its National Energy and Climate Plan(NECP)for 2030.However,it will need to make substantial additional efforts to meet the much more ambit

46、ious new targets for 2030 stemming from the European Unions(EU)Fit-for-55(FF55)package(and that are still being defined in the EU legislative process)as well as to align with the even more ambitious objectives proposed by the REPowerEU plan aimed at rapidly reducing the European Unions dependence on

47、 Russian fossil fuels.Italy reduced total greenhouse gas(GHG)emissions by almost 30%between 2005 and 2019.There was an additional strong dip from 2019 to 2020 largely due to the Covid-19 pandemic,but preliminary data show a noticeable rebound of emissions in 2021,although they were still 4%lower tha

48、n in 2019.Italy is committed to achieving carbon neutrality by 2050.Energy poverty has been a key policy issue ever since the presentation of the Clean Energy for All European package in 2016 and has gained more importance in Italian energy policy in light of the recent massive price increases for n

49、atural gas and electricity.The government is implementing several policy measures to restore affordability across the board,but there is scope for more targeted interventions to combat energy poverty.Strengthening energy security through the energy transition The current energy crisis demonstrates t

50、hat accelerating the clean energy transition can also improve energy security.Italys energy sector is strongly reliant on fossil fuel imports from the Russian Federation(hereafter“Russia”),which in 2021 accounted for one third of total energy supply(TES)of fossil fuels.Natural gas was the single lar

51、gest fuel in TES in Italy at 42%in 2021,94%of which was imported and around 41%of natural gas imports originated from Russia.Natural gas is also the dominant fuel in the electricity sector,with a share of 50%of generation.Italy is committed to phasing out the dependence of Russian gas by 2025.Over t

52、he last decade,Italy has diversified its gas supply routes and sources and increased the flows through the existing liquefied natural gas(LNG)and pipeline import infrastructure.This now helps ease the countrys high dependence on Russian gas,which was reduced to around 3%of total gas imports by Novem

53、ber 2022.Reducing overall demand for natural gas through an accelerated diversification to alternative energy sources and a stronger focus on energy efficiency will not only strengthen energy security further,but also help the country meet its emissions reduction targets.IEA.CC BY 4.0.1.EXECUTIVE SU

54、MMARY 12 Oil accounted for 33%of TES and 37%of TFC in 2021.A high share(92%)of crude oil is imported,12%of which came from Russia in 2021.Italys crude oil import dependency on Russia has steadily declined over the last ten years and is expected to cease by the end of 2022 when an EU ban on seaborne

55、imports of Russian crude oil enters into force.Oil demand fell significantly in 2020 due to the restrictions on mobility during the Covid-19 pandemic,but has rebounded strongly since mid-2021.The government expects oil consumption to decline notably over the medium and long terms as a result of poli

56、cies to promote alternative fuels for passenger cars.The uptake of biofuels in the transport sector is particularly strongly promoted while there are plans to expand charging infrastructure for electric vehicles(EVs)and maintain the sale of new passenger cars with combustion engines beyond 2035 but

57、running on climate friendly fuels.However,Italy does not have specific targets for reducing oil consumption.In 2022,the government introduced a discount on the excise duty of gasoline and diesel to mitigate the impact of rising fuel prices on consumers caused by Russias invasion of Ukraine.While thi

58、s seems justifiable from a social policy point of view as a countermeasure to mitigate the price hikes,the government will continue implementing other policy measures to reduce oil consumption,and has removed the discount as of 1st January 2023.Coal plays only a minor,and continuously declining,role

59、 in Italys energy mix.It accounted for just under 4%of TES and 5%of electricity generation in 2021 and represented 7%of energy-related carbon dioxide(CO2)emissions in the same year.But all coal is imported and more than half of coal imports in 2021 came from Russia.As part of the countrys energy tra

60、nsition,Italy committed to phase out coal use in electricity generation by 2025 and replace it primarily with gas-fired and renewable generation,supported by a reinforced transmission infrastructure.While Italy has opted to temporarily increase the use of coal in light of the current energy crisis,i

61、t remains committed to the phase-out target year.Boosting low-carbon power generation Given its geographical location,Italy has a strong resource base to replace some of its electricity from natural gas with renewable power generation capacity.In 2020,the share of renewables in gross electricity con

62、sumption was 38%(with hydro being the main source),a substantially higher share than the target for 2020 of 26.4%.However,this share slightly decreased in the following years,due to the rebound of total electricity consumption in 2021 and lower hydro availability in 2022.Impressive renewables growth

63、 occurred between 2010 and 2013 when about 20 gigawatts(GW)were added to renewable electricity capacity,of which solar photovoltaics(PV)accounted for three-quarters,thanks to generous incentives.However,deployment has since stalled because the EU 2020 targets had been reached early and less generous

64、 incentives were sufficient for the sector.Long and complex permitting procedures on the other hand continue to plague new investments.As a result,between 2014 and 2022,Italy added only 8.6 GW of new renewable capacity,of which solar PV accounted for 5.6 GW.While capacity additions have recently gro

65、wn due to changes to the regulatory framework,Italy is far from installing 4 GW of new renewable capacity annually,which is needed to meet the targets set for 2030.In 2022,Italy added 1.6 GW of new solar PV capacity and 0.5 GW of new wind capacity.Italy has scope to increase the share of wind power,

66、which accounted for 11 GW(9%)of installed capacity and 7%of electricity generation in 2021.The NECP sees wind power capacity reaching 19 GW in 2030,which would require an accelerated roll-out.The government estimates that to achieve the FF55 packages likely IEA.CC BY 4.0.1.EXECUTIVE SUMMARY 13 ENERG

67、Y INSIGHTS more ambitious renewable electricity generation target,5 GW of new renewable generation capacity must be added annually from 2020 to 2030.The annual additions will need to be even higher to make up for the low additions in the years to 2023 and to also account for the new targets under th

68、e REPowerEU plan.The delivery gap for new renewable installations is due to the long permitting procedures,high administrative burden and increasing local opposition.Permitting procedures are also slowing down the strengthening of the distribution and transmission grids,which is required in a system

69、 with higher shares of distributed generation.Italy,therefore,needs to simplify the overall permission process all along the renewable electricity sector value chain.Encouraging legislative steps were taken in 2021;however,the regulatory implementation framework has not yet been fully adopted.Anothe

70、r important aspect is to incentivise Regions,which are in the lead of granting permits,to deliver their contribution to accelerating the countrys energy transition.The Regions have largely achieved the targets set for 2020,while new regional targets for 2030 are under negotiation between the Central

71、 government and the Regions.Moreover,these targets are not mandatory and the central government thus far has only limited leverage under Italys constitution to enforce them.Another challenge for Italy is the considerable regional disparity between renewable electricity generation and load centres.Di

72、spatchable renewable sources(hydro and bioenergy)are far more present in northern regions than in southern ones,which have a dominant share of variable sources(solar and wind).These territorial disparities complicate the management of electricity flows along the national transmission and distributio

73、n grids,which need to be further extended and upgraded.Italy has already made substantial progress in the development and deployment of system flexibility and smart grid solutions,including the installation of smart meters,but a higher penetration of renewables will require greater transmission,dist

74、ribution and storage capacity.Italy is also heading international efforts to ramp up progress in power system modernisation,including through Mission Innovation Green Powered Future Mission and the International Smart Grids Action Network.Accelerating energy efficiency improvements Improving energy

75、efficiency,especially in the building sector,which accounted for almost 40%of TFC in 2021,would make an important contribution to the energy transition.As natural gas was the main source of energy in buildings(with 51%in the same year followed by electricity at 27%),reducing energy use will also con

76、tribute to increasing energy security.Italy has put several measures in place to improve the energy efficiency of buildings and since 2017 building energy demand has started to decline.Looking towards 2030,the building sector is expected to contribute 60%of annual final energy savings.To achieve thi

77、s,the government has launched several new policy instruments for retrofitting existing buildings,including tax rebates for private and subsidies for public buildings.To stimulate economic recovery after the Covid-19 crisis,especially in the construction sector,and promote energy efficiency,the gover

78、nment launched the so-called“Super bonus 110%”in 2020.The scheme offers a declining rate of tax deductions,from 110%of incurred expenses for works performed by the end of 2023 to 65%in 2025 when the scheme ends;the same level as the earlier bonus scheme.While the Super bonus has IEA.CC BY 4.0.1.EXEC

79、UTIVE SUMMARY 14 resulted in a notable uptake of energy efficiency investment,it is not cost-effective,as investors do not feel the need to find the cheapest offer and the high demand has seen overall costs for renovation works increasing.The government should consider modifying the Super bonus to d

80、eliver stronger energy savings at lower costs and to also offer other climate-related benefits,for example via the chosen energy carrier of the new heating and cooling systems.When designing new instruments,a special focus should be given to energy efficiency measures that address the energy needs o

81、f the most vulnerable segments of the population.These groups often cannot benefit from the existing instruments to the same degree as other socio-economic groups.Italy should consider providing tailor-made policies and instruments that successfully overcome the identified access barriers.Key recomm

82、endations The government of Italy should:Revise the National Energy and Climate Plan,in line with the European Union timetable,to strengthen energy security,including by defining a plan that would enable Italy to end any reliance on Russian fossil fuels,while incorporating Italys commitments under t

83、he European Unions Fit-for-55 package and its 2050 carbon-neutrality target and aligning to the more recent REPowerEU plan proposals.Implement policies to reduce oil consumption in transport and promote the use of alternative fuels and vehicles,including through preferential taxation,to reduce carbo

84、n emissions from the transport sector.Swiftly implement the reform of permitting procedures for renewable generation projects and grid development,proactively engage with affected communities,introduce an incentive scheme for timely compliance by Regions based on agreed targets at the State-Regions

85、Conference level from 2023 onwards;and improve capacity to deliver at all government levels by providing adequate staff and technical assistance.Avoid untargeted measures,such as tax cuts,to address energy poverty;instead,focus on helping vulnerable consumers and consider combining light-handed dema

86、nd restraint measures with awareness-raising campaigns to encourage reduced energy consumption in the short term to reduce consumers bills.Revise the tax deduction schemes for energy efficiency investments in buildings to maximise energy savings per euro spent;ensure that the schemes can be sustaine

87、d for longer periods,thereby giving stakeholders market certainty.Ensure that the support schemes target low-income households more specifically and address identified barriers to their participation,taking into account the experiences with ongoing support schemes in Italy.IEA.CC BY 4.0.15 ENERGY IN

88、SIGHTS 2.General energy policy Key data (2021)TES:6 259 PJ in 2021,-11%since 2011 TES by source:natural gas 41.8%,oil 33.0%,bioenergy and waste 10.1%,other renewables 8.9%,coal 3.7%,electricity imports 2.5%Energy intensity per GDP(TES/GDP)*:2.7 MJ per 2015 USD PPP(IEA30 average 3.74 MJ per 2015 USD

89、PPP);-10%since 2011 Energy intensity per capita(TES/capita):105.9 GJ/capita(IEA30 average:166.7 GJ/capita);-10%since 2011 TFC:4 895 PJ;-8.5%since 2021 TFC by sector:buildings 40.1%,transport 30.2%,industry 29.7%*Gross domestic product in 2015 prices and purchasing power parity(PPP).Source:IEA(2022a)

90、.Introduction The Italian energy system has undergone major changes in the decade since 2010.Total energy demand has declined and the energy mix now counts more natural gas and renewables and less coal and oil.The invasion of Ukraine by Russia has shown vividly that accelerating the clean energy tra

91、nsition is also a matter of energy security.Natural gas dominates Italys energy mix and electricity output,with a high dependence on Russian imports.There is scope to save energy and fast-track renewable deployment in all sectors in line with the European Commissions(EC)proposed REPowerEU plan.The p

92、lan aims to reduce the European Unions dependency on Russian fossil fuels by increasing the share of renewables in the European Unions gross final energy consumption to at least 45%by 2030(European Parliament,2022).Italys 2019 NECP is the main strategic document guiding Italys energy policy to 2030(

93、Italy,Ministry of Economic Development,Ministry of the Environment and Protection of Natural Resources and the Sea,and Ministry of Infrastructure and Transport,2019).The plan will be updated in line with the European Green Deal goals and the 2021 FF55 package of legislative proposals to deliver on t

94、hem.The European Green Deal revised upwards the European Unions energy and climate targets,including cutting the European Unions net GHG emissions by 55%by 2030(from 1990 levels).To scale up IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 16 and accelerate efforts to expand renewables and improve energy effic

95、iency,the government has been prioritising the implementation of the National Resilience and Recovery Plan(NRRP)2021-2026,as foreseen by the EU package to help member countries recover from the Covid-19 socio-economic crisis and prepare for the green and digital transitions(EC,2021).The government e

96、mphasises the need of addressing energy poverty as part of a just transition.Box 2.1 Country profile of Italy Italy is a peninsula situated at the centre of the Mediterranean Sea,crossed by two large mountain ranges,the Alps and the Apennines.Its surface covers 301 300 square kilometre,including 2 m

97、ajor islands,Sicily and Sardinia,and about 70 minor islands.Italy is a parliamentary republic.Its territory is divided into 20 regions,5 of which are autonomous and 1 is constituted of two autonomous provinces.Each region has an elected parliament and a government,headed by a governor.Regions have w

98、ide-ranging legislative and regulatory powers.There are 7 904 municipalities.The countrys population has been declining slightly since 2014,to about 60 million inhabitants in 2020.The population is concentrated in small-and medium-sized cities,more than on average in the Organisation for Economic Co

99、-operation and Development(OECD).The share of the population in metropolitan areas(above 500 000 inhabitants)is 35%,compared to the OECD average of 60%(OECD,2020).Italy is among the ten largest economies in the world by nominal GDP,and the third in the European Union.It is a large manufacturer and e

100、xporter.Its products include machinery,vehicles,steel,pharmaceuticals,furniture,food and clothing.The manufacturing sector is largely based on small-and medium-sized enterprises.Services account for most of value added(56%in 2021),as in most EU countries.Agriculture,forestry and fishery were about 2

101、%of value added in 2021,slightly above the EU average.Italys economy had one of the lowest growth rates among EU countries in the past 15 years.The country faced one double-dip recession following the global economic crisis(2009-14).GDP in 2019 was nearly at the same level as in 2005.In 2020,with th

102、e onset of the Covid-19 pandemic,the economy contracted by 9.1%but rebounded by 6.6%in 2021.Economic growth is projected to slow down to 2.5%in 2022 as a consequence of Russias war in Ukraine(OECD,2022a).In 2021,Italys GDP per capita was about USD 46 600(in current prices and purchasing power pariti

103、es),or 90%of that of the euro area.The unemployment rate was 9.5%in 2021,higher than the average of the euro area(7.7%).Income inequality is higher than in most advanced economies,with the poorest 20%of households earning 6.6%of total income.There are wide differences between Italian regions,with so

104、uthern regions and the large islands being generally poorer,with lower quality infrastructure and services.Italy has the largest regional disparities among OECD countries in terms of unemployment rates and the second largest in terms of household income(OECD,2020).IEA.CC BY 4.0.2.GENERAL ENERGY POLI

105、CY 17 ENERGY INSIGHTS Energy supply and demand Italy is a net energy importer.On average between 2016 and 2021,Italy imported 80%of its TES,mostly oil and gas(Figure 2.1).Domestic production consists mainly of renewable energy sources such as bioenergy,hydro,solar and wind.Production from renewable

106、sources has increased in the last decade to reach 74%of domestic energy production in 2021.Italy produces a limited amount of oil and natural gas(Figure 2.1).Figure 2.1 Overview of energy production,supply and demand in Italy,2021 IEA.CC BY 4.0.Italy imports more than three-quarters of its energy ne

107、eds.Natural gas and oil dominate the energy mix.Buildings are the major end users.Notes:Other renewables includes hydro,solar,wind and geothermal.2021 data are not available for TFC so the chart refers to 2020.PJ=Petajoules.Source:IEA(2022a).Italy relies heavily on natural gas imports.In particular,

108、it has a high dependence on gas imports from Russia,which accounted for 41%of its total gas imports in 2021.In 2021,about 23%of the countrys electricity generation depended on fossil fuel imports from Russia,the second-highest dependency among International Energy Agency(IEA)member countries,just af

109、ter Hungary(see Chapter 7).Energy imports from Russia account for a significant part of final energy consumption(FEC)in all sectors(IEA,2022b).Natural gas dominates Italys electricity mix.In 2021,natural gas covered 50%of total electricity generation,the second-highest share among IEA countries afte

110、r Mexico.Hydro was the second-largest source of electricity(16%of electricity output)in 2021,followed by solar(9%),bioenergy and waste(8%),and wind(7%).Coal accounts for a minor and decreasing share(5%in 2021),followed by oil(3%)and geothermal(2%)(see Chapter 7).Fossil fuels are the main energy sour

111、ce:natural gas and oil accounted for 42%and 33%of TES in 2021,respectively,while coal represents a minor share(3.7%).Fossil fuel contribution to TES declined from 90%in 2005 to 78%in 2021,which remains in line with the IEA average.Energy supply from renewables grew to 19%of TES in 2021.Bioenergy and

112、 waste are the main renewable source,accounting for 38%of energy production and 10%of TES in 2020(see Chapter 5).Industry 01 0002 0003 0004 0005 0006 000ProductionTESTFC(by fuel)TFC(by sector)PJElectricityWindSolarHydroNuclearDistrict heatBioenergy andwasteNatural gasOilCoalTransportBuildingsImports

113、Transformations and lossesIEA.CC BY 4.0.2.GENERAL ENERGY POLICY 18 Italys 2020 renewables target,as set out in the 2009 EU Renewables Directive,was to cover 17%of gross final energy consumption with renewables.1 This target was met six years in advance thanks to a boom in PV installations early in t

114、he decade.About 20 GW were added to renewable electricity capacity in just four years,between 2010 and 2013,although at high costs to the consumers.However,the contribution of renewables to the energy mix stabilised at around 17-18%in 2014-2019.Only 4 GW of renewable electricity capacity were instal

115、led in that period,due to less generous incentives,long and complex permitting procedures,and increasing local opposition(see Chapter 5).In 2020,the share of renewables increased to 20.4%of gross final energy consumption,due to lower energy demand as a result of the Covid pandemic,and was 19%in 2021

116、.TES declined by 20%between 2005 and 2019.Most of this decrease occurred between 2005 and 2014,due to a prolonged contraction of the economy,a move towards less energy-intensive economic activities,and increased efficiency in power and heat generation.However,TES stabilised after 2014,before droppin

117、g by nearly 7.7%in 2020 with the onset of the Covid-19 pandemic.It increased again by 8.7%in 2021.Between 2005 and 2021,TES declined more than GDP,resulting in a 17%decrease in the energy intensity of the economy(TES/GDP).Italys overall energy intensity is relatively low compared to many IEA countri

118、es,but it has declined less than on average in IEA countries(-23%between 2005 and 2021)(Figure 2.2).Fossil fuels also dominate final energy demand,covering two-thirds of TFC.In 2021,TFC was primarily covered by oil,mostly used in transport,and natural gas,mainly used in industry and buildings(Figure

119、 2.3).Electricity covered some 21.5%of TFC,slightly below the IEA average of 23%.There is scope for electrification of end-uses,especially in buildings and transport.Bioenergy and waste,district heat,and solar accounted for the remaining TFC.Figure 2.2 Total energy supply by source,total final consu

120、mption and GDP in Italy,2005-2021 IEA.CC BY 4.0.Total energy supply and total final consumption have declined faster than GDP over the last 15 years.They stabilised in the second half of the 2010s,before dropping due to the pandemic.Source:IEA(2022a).1 These shares are based on Eurostat accounting.E

121、urostat applies formulas to normalise fluctuations of electricity generation from wind and hydro,and uses multiplication factors that give higher shares to advanced transport biofuels and to renewable electricity in transport.0.000.200.400.600.801.001.2001 0002 0003 0004 0005 0006 0007 0008 000PJSol

122、ar,windand tideElectricityimportsHydroBioenergy andwasteNatural gasOilCoalTFCGDP index(right axis)Index 2005=1IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 19 ENERGY INSIGHTS Buildings have been the largest energy-consuming sector since 2008,accounting for some 40%of TFC.Transport and industry have hovered

123、around 30%of TFC each in the last decade.Natural gas covered more than half of energy use in buildings in 2021.Nonetheless,buildings are the sector with the highest share of demand covered by renewables(25.3%),mainly bioenergy and renewable electricity.Oil is by far the dominant fuel used for transp

124、ort(89%in 2021).Electricity,oil and natural gas contribute nearly equal shares to industrial energy use(Figure 2.3).Figure 2.3 Energy demand by sector and fuel in Italy IEA.CC BY 4.0.Oil and gas cover two-thirds of TFC,with differences across end-use sectors.TFC has declined in all sectors,more rapi

125、dly in industry than in transport and buildings.Source:IEA(2022a).TFC followed a trend similar to TES,but declined at a slower pace.In 2021,TFC was 17%below its 2005 level.It dropped by 9%in 2020 as a result of the Covid-19 pandemic,but rebounded in 2021 by 9%,returning to a similar value as in 2019

126、.Industry accounts for most of the decrease in TFC.Industrial energy use declined markedly between 2008 and 2013 but has stabilised since(Figure 2.3).Energy use in buildings hovered around the same level for most of the last decade and started to decline in 2018,in part as a result of energy efficie

127、ncy measures(see Chapter 4).Transport energy demand declined by 14%between 2005 and 2019,although at a slower rate in the second half of the 2010s.It fell by 19%in 2020 due to the pandemic,but rebounded by 22%in 2021.Oil use decreased accordingly.In the medium term,some lifestyle changes induced by

128、the pandemic may result in higher energy use(e.g.,preference for private cars and higher consumption in homes when teleworking).Italy largely achieved its 2020 energy consumption targets deriving from the EU Energy Efficiency Directive(EED).In 2020,primary energy consumption(PEC)and FEC were about 1

129、6%below their respective targets.However,Italy fell short of its target of cumulated energy savings to be achieved through dedicated policy measures,as required by Article 7 of the EU EED(see Chapter 4).27%89%37%28%51%30%33%27%22%14%8%6%0%20%40%60%80%100%IndustryBuildingsTransportTotalOilNatural gas

130、ElectricityBioenergy and wasteHeatSolarCoalTFC by sector and fuel,202100110Index 2005=100BuildingsTransportIndustryTFC by sectorIEA.CC BY 4.0.2.GENERAL ENERGY POLICY 20 Key institutions and energy players The central government and the regions and autonomous provinces share legislative co

131、mpetences on the production,transport and distribution of energy.Regional legislative power in this matter is limited by the fundamental principles established by national legislation.The State-Region Conference is the institutional body devoted to co-ordinating national and regional policies in all

132、 matters of shared responsibility,including energy.The early 2020s saw a major institutional change.The top government competences concerning energy policy,formerly held by the Ministry of Economic Development,were attributed to the newly created Ministry of Ecological Transition(MiTE,Ministero dell

133、a Transizione Ecologica)when the government led by Mario Draghi took office on 13 February 2021,while the Ministry for the Environment,Land and Sea was in charge of national climate and environmental policies.The Inter-ministerial Committee for Ecological Transition was then created in 2022.The name

134、 of the MiTe was changed to“Ministry of the Environment and of Energy Security”when the government lead by Ms Giorgia Meloni took office on 22 October 2022,following general elections on 25 September 2022.The establishment of the MiTE aimed to increase the coherence of energy and climate policies an

135、d integrate the transition to a low-carbon and green economy into all of the ministrys activities.However,as of April 2022,the transfer of the energy competences from the Ministry of Economic Development to the MiTE,with effective integration of staff and functions,had not yet been completed.Several

136、 other ministries have energy-or climate-related competences,such as the ministries responsible for transport and infrastructure,agriculture,and education and research.In addition,various other organisations are involved in developing,implementing and evaluating energy-related policies(see Annex A).

137、Energy and climate policy In line with the EU energy and climate policy framework,Italys energy policy aims to decarbonise the energy supply through the expansion of renewable energy,electrification and increased energy efficiency across the economy.This is also broadly consistent with the IEA roadm

138、ap to net zero(IEA,2021).All the national and regional documents defining energy and climate policies were approved before Russias invaded Ukraine and its consequences on energy supply and markets.These events have shifted political attention to the security of supply and how to ensure energy securi

139、ty while striving for decarbonisation.The Italian government has announced that it will cease the import of Russian gas by 2025.Italy was the first EU country to issue the alert level for natural gas on 26 February 2022.And in mid-June 2022,Russia substantially cut its gas supply to Italy,as to othe

140、r European countries,prompting the government to implement gas emergency measures(see Chapter 8).To address the security of gas supply,the government issued a National Plan for the Containment of Natural Gas Consumption in September 2022(Box 2.2)(MiTE,2022).IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 21 E

141、NERGY INSIGHTS In 2019,the NECP,required for all EU countries,became the main strategic document guiding national energy policy to 2030.The NRRP 2021-2026 is expected to contribute to reaching the objectives of the NECP and the European Green Deal.Italy also adopted a Long-Term National Strategy on

142、Reducing Greenhouse Gas Emissions(LTS)in January 2021 and the Ecological Transition Plan(ETP)to 2050 in March 2022.The government produced several other planning and strategic documents.2 There is a need to rationalise the multitude of policy documents for the clean energy and low-carbon transitions

143、.2 These include the 2017“Elements for a Sustainable Mobility Roadmap”,the“National Plan for Electric Vehicle Charging Infrastructure”,and the“National Strategic Framework for the Development of the Alternative Fuels Market and Related Infrastructures”(see Chapter 4).Box 2.2 Italys National Plan for

144、 the Containment of Natural Gas Consumption The national plan sets out a three-pronged strategy to contain natural gas consumption.The first is to accelerate the filling of gas storage facilities to reach a 90%storage level by November 2022.On 1 September the storage level was 83%.The second is to f

145、urther diversify gas imports,both via pipeline and as LNG;to install floating storage and regasification units as existing LNG terminals reached their maximum capacity;and to double domestic gas production.These measures are expected to replace around 30 billion cubic metres(bcm)of Russian gas with

146、25 bcm of gas from alternative sources by 2025.The 5 bcm difference would be covered by additional renewables and energy efficiency measures.The government plans to install 8 GW of new renewable onshore and offshore electricity generation capacity every year starting in 2023 which would imply a mass

147、ive increase compared to the current additions that linger around 1 GW annually(see Chapter 5).The aim is to make 9.3 GW operational from 2022 to the end of 2023 of which,7 GW would be installed from January 2022 to March 2023.In addition,the government plans to increase the production of biomethane

148、 by 2026.The third point laid out in the document is the overall reduction of gas consumption in line with the EU rules dated 5 August 2022.The new EU rules imply a voluntary decrease of Italian gas demand of 8.2 bcm and a mandatory reduction of 3.6 bcm in case an alert level is issued at the EU lev

149、el.To achieve these gas reductions,Italy would:A.Maximise electricity production from alternative fuels,including coal-fired generation,which would temporarily result in higher GHG emissions.The expected savings from the fuel switch are 2.1 bcm.B.Mandate a reduced heating season,shortening daily hea

150、ting hours together with reduced maximum heating temperatures.This would save a further 3.2 bcm.C.Behavioural changes would contribute 2.7 bcm of gas savings.D.The industry sector would be called upon to decrease consumption through,among other measures,an increase in interruptible contracts.Jointly

151、,measures A+B+C would achieve 8.2 bcm of savings,and A+B alone would be sufficient to reach the mandatory 3.6 bcm in the case an EU alert is issued.Source:Italy,MiTE(2022).IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 22 In the early 2010s,all regions and autonomous provinces developed and adopted their own

152、 regional energy-environment plans,which established regional energy policy objectives and their impact on GHG emissions.The procedures for developing,implementing and updating the plans vary across regions.As of June 2022,only 2 out of 20 regions(Piedmont and Sicily)had updated their plan after the

153、 approval of the NECP;3 others had started the updating process(Apulia,Campania and Sardinia).The regional plans have not followed the evolution of energy and climate policies at national and EU levels,which hampers implementation.The Italian energy information system includes a number of institutio

154、ns that operate mainly for non-statistical purposes(ARERA,GSE,RSE,ENEA and Terna,see Annex A).They are co-ordinated by the MiTE,which is also responsible for all other areas of energy statistics.The Institute for Environmental Protection and Research is in charge of GHG emissions inventories and pro

155、jections.This approach ensures that data responsibilities are allocated based on relevant competencies,but also adds transaction costs due to the need to validate data from different sources and share them among institutions.The roles and responsibilities of participating institutions should be bett

156、er defined and ideally formalised(e.g.,through memoranda of understanding),so that they can be sustainably maintained over time.The MiTE also lacks adequate human and financial resources for co-ordinating the energy information system.Energy and climate policies and targets to 2030 The NECP defines

157、2030 targets for GHG emissions,renewable energy and energy efficiency that are intended to support the achievement of 2030 EU-wide targets in these areas.3 The NECP is to be updated in 2023 in line with the enhanced EU goal of reducing net GHG emissions by 55%by 2030(from 1990 levels).The ETP endors

158、es this target at the national level,as well as the carbon-neutrality goal for 2050.It indicates a share of 72%of renewables in electricity generation as a fundamental step to achieve the 2030 climate target.Table 2.1 provides details of the current national targets and of the expected new 2030 targ

159、ets under the FF55 package.As of end-June 2022,the new targets were under negotiation(see Chapter 3).The NECP outlines a list of 101 policies and measures to achieve its targets.It estimates that achieving its goals requires EUR 183 billion in cumulative additional investments by 2030 compared to th

160、e Current Policies Scenario(equivalent to an 18%increase).The plan focuses on expanding the use of renewables,especially wind and solar electricity generation,and increasing energy efficiency across the economy,with a focus on the building stock and transport.The NECP sets out additional electricity

161、 storage targets by 20304 and mentions the potential role of hydrogen as a clean energy carrier(see Chapters 3 and 7).Italy plans to ban coal use for electricity production as of 2025.The phase-out will be implemented taking into account an adequate capacity replacement,the development of the electr

162、icity grid and high penetration of renewable sources.However,the plan may be delayed due to energy security concerns.After Russias Gazprom reduced gas supplies 3 These targets were in line with the 2030 EU Climate and Energy Framework,which aimed to reduce EU-wide net GHG emissions by 40%from 1990 l

163、evels,improve energy efficiency by 32.5%and increase the share of renewables in gross final energy consumption to 32%.4 6 GW of pumped hydro capacity and utility-scale electrochemical storage,as well as 4 GW of distributed electrochemical storage by 2030.IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 23 ENER

164、GY INSIGHTS to Italy in mid-June 2022,the country considered activating its Emergency Plan,including increased coal power output.This will entail higher GHG emissions in the short term.The instruments proposed by the NECP to stimulate investments and the uptake of more efficient equipment and techno

165、logy do not differ from those already tried and tested in the past,although the incentives are higher.These include tax incentives for building renovations and purchasing zero-emission vehicles,subsidies for renewable electricity generation,biofuels quotas,and infrastructure investments.Less attenti

166、on is paid to encouraging behavioural changes in favour of saving energy(and CO2 emissions)at home and in the workplace,as well as to reducing travel demand or private car use,in line with the REPpowerEU plan and the recent IEA Playing My Part recommendations(IEA,2022c).5 Table 2.1 Italys 2030 energ

167、y and climate targets 2020 status 2030 targets (NECP)Expected or proposed targets 2030 (FF55)*GHG emissions Net GHG emissions versus 1990(including removals)-32%-55%GHG emissions covered by the Effort Sharing Regulation*CO2-eq emissions versus 2005-25%-33%-43.7%Energy efficiency Primary energy consu

168、mption 6 084 PJ(2021)5 238 PJ 4 681 PJ Final energy consumption 4 742 PJ(2021)4 346 PJ 3 936 PJ Renewable energy share(in gross final energy consumption)*Overall target 19.0%(2021)30%36.7%Electricity 36.0%(2021)55.4%62-65%Heating and cooling 19.7%(2021)33.9%40%Transport 10.0%(2021)21.6%38%Renewable

169、electricity in total electricity generation(ETP target)72%Cross-border electricity interconnection*8%10%Energy dependence 77.7%(in 2016)75.4%*The Effort Sharing Regulation(Regulation(EU)2018/842)sets binding national targets for emissions from sectors that fall outside the scope of the EU Emissions

170、Trading System(EU ETS).These sectors include transport,buildings,agriculture,non-ETS industry and waste.*The overall renewable target and the transport target are binding.The sectoral renewables targets on electricity and heating/cooling are indicative.*The electricity interconnection target is base

171、d on the ratio of interconnection import capacity and generation capacity.*Targets obtained by applying the rules proposed by the European Commission in the Fit-for-55 package.Sources:EC(2022);Italy,Ministry of Economic Development,Ministry of the Environment and Protection of Natural Resources and

172、the Sea,and Ministry of Infrastructure and Transport(2019);information provided by RSE during the IEA visit in April 2022.5 The IEA report Playing My Part recommends simple actions such as turning down the heating and air conditioning,adjusting boiler settings,carpooling,reducing driving speed,repla

173、cing short car journeys with walking or biking or using public transport.IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 24 The NECP foresees Italy meeting its 2030 targets if all existing and planned measures are timely and fully implemented(see Chapters 3-5).However,new measures and additional investments w

174、ill be necessary to achieve the more ambitious targets of the FF55 package(see Table 2.1).Achieving these new targets while reducing gas dependence from Russia at the same time will require significantly scaling up and accelerating efforts to expand renewables and improve energy efficiency(Box 2.3).

175、IEA analysis shows that each addition of 2 GW of renewables(1 GW of solar PV and 1 GW of wind)would reduce Italian dependence on Russia for electricity generation by one percentage point(IEA,2022b).Critical for implementation will be engaging local governments,households and businesses.6 It is essen

176、tial to swiftly remove the administrative barriers to the deployment of renewables,as indicated by the NRRP(see below).Reforming fossil fuel subsidies and introducing a form of carbon pricing could contribute to Italys clean energy transition efforts.As the ETP emphasises,priority should be given to

177、 addressing energy poverty to make these measures socially acceptable and ensure a just transition.6 For example,several measures require the willingness of citizens and businesses to invest to reduce energy use.Box 2.3 A preliminary scenario for achieving the updated 2030 targets In December 2021,R

178、SE updated the energy scenario used as a basis for the 2019 NECP to take account of the new economic outlook,the impact of the pandemic,the NRRP implementation and the European Green Deal objectives.According to some preliminary results,cutting net GHG emissions by 55%would require reducing Italys e

179、nergy consumption by 22%by 2030 compared to 2019,or 9.5%below the level estimated by the NECP.Electricity would need to account for 28%of final energy consumption,compared to the 25%planned by the NECP.Renewables supply would have to increase by 11%compared to the NECP scenario,or by 52%from their 2

180、019 level.Renewables electricity production capacity would need to be 20 GW higher than foreseen in the NECP,to reach 115 GW in 2030(including renewable electricity to produce hydrogen).Overall,renewables would have to account for at least 70%of electricity generation.Increasing electrification woul

181、d require a higher deployment of heat pumps(+10%compared to NECP projections);about 7.3 million EVs,or 20%of the car fleet in 2030(an additional 1 million cars compared to previous forecasts);and 43%of electricity in industry consumption(compared to the 38%planned in the NECP).Industrial energy inte

182、nsity would need to decline by 20%compared to the 2019 level.The RSE model considers hydrogen use as essential to achieving the FF55 objectives.Green hydrogen should contribute 0.63 Mtoe to the energy supply in 2030.This would call for 9 terawatt hours(TWh)renewable electricity generation,or 5-7 GW

183、capacity,to produce green hydrogen.A larger use of biomethane(2.6 Mtoe)in both transport and the gas network would also be required.Source:Information provided by RSE during the IEA visit in April 2022.IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 25 ENERGY INSIGHTS The NRRP contribution to achieving the 20

184、30 targets The NRRP aims to unleash the economic growth potential and promote the ecological and digital transitions.It envisages a comprehensive reform package and investments of EUR 222.1 billion,of which EUR 191.5 billion will be from the EU Recovery and Resilience Facility(RRF).7 The EU will lik

185、ely make additional funds available for integrating the energy security objectives of REPowerEU in the NRRPs.Outlays for the green and low-carbon transition amount to 37%of total RRF allocations to the NRRP.8 In line with the NECP,most of these funds are allocated to renewables,hydrogen,grid and sus

186、tainable mobility(EUR 21.9 billion);the rail network(EUR 20.6 billion);and energy efficiency and building renovation(EUR 12.6 billion)(EC,2021).The NRRP also foresees important reforms,including streamlining administrative procedures for renewable energy installations,reforming hydropower and gas di

187、stribution concessions,phasing out regulated electricity prices,and setting the regulatory framework for deploying hydrogen.Energy and climate policies and targets to 2050 The LTS outlines possible pathways to reach carbon neutrality by 2050.9 According to the strategy,Italy will need to cut GHG emi

188、ssions by 84-87%to be carbon neutral by 2050.To do so,the LTS envisages more than doubling electricity production,with 95%generated from renewables by 2050;massive electrification,with over half of energy demand covered by electricity,and even more in the transport and buildings sectors;sector coupl

189、ing and new forms of flexibility,like Power-to-X;progressively replacing natural gas with hydrogen and other synthetic fuels;shifting transport demand from private cars to public/shared transport modes;accelerating the energy renovation of buildings(from an“annual renovation rate”of 0.9%envisaged by

190、 the NECP to 2%by 2050,of which about 80%of deep renovations).Energy prices,taxes and subsidies Italys energy prices are among the highest in the IEA.They generally increased between 2010 and 2020,with differences across sectors and fuels.Prices for business use are lower than prices for non-busines

191、s use.Prices jumped in the second half of 2021 and the first half of 2022.The relatively high prices are the result of high energy taxes(including value-added tax,VAT).10 The tax shares of the prices of natural gas,electricity and automotive fuels are generally higher than in most IEA countries,exce

192、pt for taxes on electricity used in industry(see Chapters 7-9).Energy excise duties are levied within the framework of the 2003 EU Energy Tax Directive and are generally well above the minimum rates set by the directive.An excise tax on 7 National funds contribute EUR 30.6 billion to the NRRP.8 The

193、NRRP outlines six missions:1)digitisation,innovation,competitiveness and culture(EUR 40.3 billion);2)green revolution and ecological transition(EUR 59.5 billion);3)infrastructure for sustainable mobility(EUR 25.4 billion);4)education and research(EUR 30.9 billion);5)inclusion and cohesion(EUR 19.8 b

194、illion);and 6)health(EUR 15.6 billion).9 The LTS decarbonisation scenario does not take into account the impact of the Covid-19 pandemic on emissions scenarios.10 The standard VAT rate of 22%applies to all fossil fuels and electricity.Electricity for households and natural gas used in the residentia

195、l sector below a consumption threshold benefit from a reduced rate of 10%.IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 26 energy applies to most use of oil products,natural gas and coal.Biofuels are taxed only when used for transport.Fossil fuels used to generate electricity are taxed,albeit at low rates.E

196、nergy use,including electricity,in the residential sector is generally taxed at higher rates than in the industrial and commercial sectors.Several discounted rates and exemptions apply(OECD,2019).11 As a result of high excise rates,between 2010 and 2020,Italy had one of the top three implicit tax ra

197、tes on energy(defined as the ratio of energy tax revenue to FEC in a calendar year)in the European Union.It dropped sharply to EUR 350 per tonne of oil equivalent(toe)in 2020 as a result of lower energy use,but it was 22%above its 2010 level.Italy has made progress in reporting and analysing energy

198、subsidies,and has become a leader in terms of transparency on energy subsidies(EC,2020a).12 The fourth and latest edition of the“Catalogue of Environmentally Damaging Subsidies and Environmentally Advantageous Subsidies”was released in early 2022.It identified 34 environmentally harmful subsidies in

199、 the energy sector,totalling EUR 9.5 billion in 2020.It also identified 12 energy subsidies that are beneficial to the environment,totalling EUR 12 billion in 2020.Italy is among the main providers of fossil fuel subsidies in the European Union(EC,2020a).OECD(2022b)appraises government support for f

200、ossil fuels at EUR 9.02 billion in 2020,80%of which was provided in the form of tax discounts and exemptions.Government support for fossil fuels decreased by only 2%between 2015 and 2019(in nominal terms)but dropped by 11%in 2020.13 However,the decline in support in 2020 is the result of lower fuel

201、consumption due to the pandemic(OECD,2022b).Table 2.2 presents Italys main fossil fuel support measures.The differential excise tax treatment for diesel fuel accounts for a quarter of fossil fuel support.The excise duty on diesel is 23%lower than the rate on petrol.This is not justified from a clima

202、te mitigation point of view,for CO2 emissions per litre(L)of diesel are higher than they are per litre of petrol.In addition,diesel engines generate higher emissions of local air pollutants like nitrogen dioxides and particulate matter,with negative impacts on human health.The Inter-ministerial Comm

203、ittee for Ecological Transition tasked the MiTE with developing a plan for phasing out environmentally harmful subsidies in line with the EU FF55 package.The plan is expected to be completed by mid-2022.In March 2022,the Minister of Ecological Transition announced that five environmentally harmful s

204、ubsidies had been eliminated for a total of EUR 105 million.However,this is a modest amount compared to the 26 millions provided in fossil fuel support.Measures to limit the impact of soaring energy prices in 2021-2022 The government introduced several packages in a bid to contain rising energy pric

205、es.In March 2022,it introduced a 0.25 EUR/L discount on the excise duties for petrol and diesel,or 0.305 EUR/L when including VAT.The discount was supposed to apply for one month but was repeatedly renewed to apply throughout 2022 before finally being removed on 1st January 2023.The VAT rate on natu

206、ral gas for households was cut from 22%to 5%in the 11 Lower rates apply,among others,to natural gas used in transport,diesel used in agriculture and electricity used by energy-intensive companies.Fuels used for fishing,domestic navigation and commercial aviation,and electricity used by small residen

207、tial consumers are exempt.12 Italy undertook a peer review on fossil fuel subsidies in 2019 as part of the G20 voluntary peer review programme.13 Government support to fossil fuels was EUR 10.3 billion in 2015,EUR 10.1 billion in 2019 and EUR 9.02 billion in 2020(OECD,2022b).IEA.CC BY 4.0.2.GENERAL

208、ENERGY POLICY 27 ENERGY INSIGHTS first quarter of 2022,and the exemptions from“general system charges”on electricity retail prices from the fourth quarter of 2021 until September 2022.Before this exemption,the general system charges accounted for 21%of electricity retail prices(see Chapter 7).In add

209、ition,various types of support were made available for businesses to partially compensate for the extra energy costs.These measures include support to road freight operators,as well as agriculture and fishing businesses.As of April 2022,these measures implied additional costs for the central governm

210、ent budget of nearly EUR 14 billion in 2021-2022(Table 2.3).This corresponds to 0.3%of GDP in 2021 and 0.7%in 2022(Italy,Ministry of Economy and Finance,2022).These additional costs were partly covered by,among others,revenue from auctioning CO2 emissions allowances and from the extraordinary taxati

211、on on“extra profits”of energy companies.These support measures run counter to the objective of reducing wasteful fossil fuel subsidies and offset Italys progress on this matter.The budget cost of these measures was 1.5 times higher than the total fossil fuel support in 2020(Table 2.3).Table 2.2 Main

212、 fossil fuel support measures in Italy,2020 Support measure Description Amount in 2020(EUR billion)Share of total fossil fuel support(%)Tax expenditure (discounts and exemptions)Differential excise tax treatment for diesel fuel Diesel fuel benefits from a reduction of 23%of the excise tax vis-vis pe

213、trol.2.257 25.0 Tax relief for road haulage companies Road haulage companies operating in Italy can obtain partial refunds on the amount of excise tax paid for their fuel purchases as long as the trucks using the fuel comply with the Euro 2 emissions standards.Refunds usually correspond to a fixed a

214、mount of fuel.The increase in the excise rates on automotive fuels is also partially refunded.1.294 14.3 VAT reduction on electricity for domestic use Reduced VAT rate of 10%(compared to the standard rate of 22%)for household electricity use.0.998 11.1 Direct transfers CO2 allowance-free allocations

215、 Some emissions quotas under the EU Emissions Trading System are distributed to companies free of charge.1.708 18.9 Electricity demand response scheme The electricity transmission system operator(TSO)contracts the annual capacity of demand response from energy-intensive industrial facilities with an

216、 electricity consumption usually higher than 7 gigawatt hours(GWh).Participation in this voluntary scheme implies that the provision of electricity to these facilities can be interrupted without prior notice in case of need.The compensations amount to EUR 150 000 per megawatt(MW)per year for sudden

217、interruptions,100 000 EUR/MW per year for emergency interruptions,and 300 000 EUR/MW per year for sudden interruptions to facilities located in Sardinia or Sicily.n.a Source:OECD(2021).IEA.CC BY 4.0.2.GENERAL ENERGY POLICY28 The partial and total exemption from the electricity system charges was the

218、 most expensive measure,accounting for 45%of total costs in the biennium(Table 2.3).This measure is estimated to have limited the rise in households electricity bills to 9.9%in the third quarter of 2021,compared to a potential increase of 20%(Italy,Ministry of Economy and Finance,2021).Faiella and L

219、avecchia(2022)estimate that the government measures limited the contraction of energy consumption and contained the increase in energy expenditure.14 Energy poverty Italy does not have an official definition or indicator of energy poverty.15 According to estimates of the Italian Observatory on Energ

220、y Poverty(OIPE,2021),16 energy poverty increased from 7.3%in 2014 to 8%in 2020(about 2.1 million households).The risk of energy poverty is higher in southern regions and is correlated with poverty.Families living in older multi-apartment buildings are at higher risk of energy poverty,as the energy p

221、erformance of buildings is largely linked to the year of construction(OIPE,2020).Table 2.3 Budgeted costs of the measures to limit the costs of rising energy prices in Italy(EUR million)2021 2022 Reduction of VAT rate on natural gas 1 088 592 Discount on general system charges on electricity(all use

222、rs)1 200 Exemption from the general system charges for households and small businesses 800 4 200 Discount on general system charges on gas 250 Discounts on excise duties on petrol and diesel 588 Extension of the social bonus on electricity and gas(low-income households)450 503 Tax credit to partiall

223、y compensate for the extra costs due to high electricity prices 2 328 Tax credit to partially compensate for the extra costs due to high natural gas prices 995 Support to road freight transport 601 Tax credit for fuels used in agriculture and fishing 140 Other measures to reduce costs due to high en

224、ergy prices 26 Total 3 538 10 224 Note:Based on information available up to 6 April 2022.Sources:Italy,Ministry of Economy and Finances(2021;2022).Between 2005 and 2021,the average Italian household spent between 10%and 11%of its budget on energy(electricity,heating and private transport).The share

225、of energy 14 Government mitigation measures led to a contraction in electricity and gas use of 6.8%,compared to a 7.9%drop in the absence of measures.Expenditure for electric heating increased by 6.2%with the government measures,against an estimated growth of 9%in the absence of measures(Faiella and

226、 Lavecchia,2022).15 The NECP defines energy poverty as“the difficulty of acquiring a minimum basket of energy goods and services or the condition whereby access to energy services implies a diversion of resources(in terms of expenditure or income)beyond what is socially acceptable”.16 The Italian Ob

227、servatory on Energy Poverty is an informal network of researchers from universities,public and private entities,and institutions interested in the subject of energy poverty.It is hosted by the Interdepartmental Centre Giorgio Levi Cases for Energy Economics and Technology at the University of Padua.

228、IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 29 ENERGY INSIGHTS spending varies with total expenditure distribution.In 2021,households in the first decile of the distribution(the poorest)spent nearly 13%of their budget on energy,compared to 6%of the tenth(wealthiest)decile(Figure 2.4).As a comparison,the p

229、oorest households spent 8.3%of their budget on average in the European Union in 2018(EC,2020b).This signals the presence of energy poverty in Italy.Transport fuels account for a large share of energy expenditure for all households.However,the share of transport fuels in the total energy budget is lo

230、wer for the poorest households,as less than two-thirds of households in the lowest income decile own a car(Faiella and Lavecchia,2021).Therefore,reducing transport fuel taxes as the government did helps the vast majority of the population,including the wealthiest,but it is less effective in supporti

231、ng the most deprived households.In general,reducing energy prices is a regressive and non cost-effective measure to reduce the impact of rising prices on vulnerable households,as all households benefit from such measures,irrespective of their income and state of need.Faiella and Lavecchia(2022)estim

232、ate that the 2021-2022 government interventions to counteract rising energy prices mitigated the increase in the energy share of total expenditure less for the poorest households than for the average household.Targeted support schemes would be more appropriate to mitigate the impact of higher energy

233、 prices on low-income households.Figure 2.4 Households expenditure on energy by purpose and income decile in Italy,2021 IEA.All rights reserved.In 2021,the share of the budget spent on energy by the poorest households was nearly double that spent by the wealthiest households.Transport fuels are the

234、largest energy expenditure category in all income groups.Source:Faiella and Lavecchia(unpublished),calculations based on ISTAT data.At the end of 2021,in response to surging energy prices,the government extended the social bonuses for electricity and gas bills to vulnerable households(Box 2.3).Howev

235、er,the cost of this measure was less than EUR 1 billion,compared to the EUR 8.7 billion allocated to directly mitigating the price of electricity,gas and transport fuels for all households(see Table 2.3).In 2020,some 4 million households were potentially eligible for the means-tested electricity and

236、 gas bonuses.This is nearly double the number of households that were estimated in energy poverty that year,indicating that the bonuses could be better targeted.Also,consumers not connected to the natural gas network cannot benefit from the gas bonus,although they usually use other sources for cooki

237、ng and space 4.0%3.9%3.7%3.4%3.2%3.1%2.7%2.7%2.4%1.8%4.6%3.7%3.1%2.8%2.5%2.3%2.0%1.8%1.6%1.2%3.9%4.7%5.0%4.9%4.8%4.9%4.7%4.5%4.0%3.3%0%2%4%6%8%10%12%14%Share of total expendituresTotal expenditure decilePrivatetransportElectricityHeatingIEA.CC BY 4.0.2.GENERAL ENERGY POLICY 30 and water h

238、eating(Lavecchia and Stagnaro,2018).17 It would be more efficient and equitable to merge the electricity and gas bonuses into one single energy allowance,as indicated by the NECP.The NECP does not set a goal to reduce energy poverty.It considers the incentive schemes for energy renovation of buildin

239、gs as a means to address energy poverty.However,there is evidence that incentives such as tax deductions for energy renovation works(the so-called“Ecobonus”)have regressive effects(see Chapter 4).They benefit homeowners and households with higher upfront spending capacity,while most of the low-and m

240、iddle to low-income households rent their homes in Italy.18 The lack of socio-economic eligibility requirements has exacerbated distortions.Direct public investment in renovating and building energy-efficient social housing would be more effective and efficient to address energy poverty risks.Howeve

241、r,the NRRP allocates EUR 2.8 billion to social housing investment,compared to EUR 13.5 billion in tax incentives for the energy renovation of buildings.17 In 2021,at the national level,about 8%of households did not have any heating equipment.However,this share was 13%on average in the southern regio

242、ns and 32%on the two main islands(Sardinia and Sicily).Income levels are lower in these regions than on average in Italy,but these are also warmer regions.In 2021,about 21%of households had no gas connection,but there are large regional differences.The gas network coverage is much lower in the south

243、ern regions and is absent in Sardinia(ISTAT,2022).18 According to 2019 data from the National Institute of Statistics,nearly 79%of households own their homes in Italy.However,ownership varies largely with income.Overall,70%of households in the bottom two quintiles of the income distribution live in

244、rented houses.Box 2.4 Social benefits for electricity and gas expenditure in Italy The electricity and gas bonuses for vulnerable households(defined as those in economic and physical hardship)are means-tested benefits.Only households with an active electricity or gas contract,or living in a multi-ap

245、artment building sharing electricity or gas supply,are eligible for the benefit.The bonus is determined by the Italian Regulatory Authority for Energy,Networks and Environment(ARERA,Autorit di Regolazione per Energia Reti e Ambiente)and amounts to about 30%of the expenses incurred by an average hous

246、ehold user for electricity and 15%of average expenses for gas.The bonus operates as a fixed discount on electricity or gas bills,with the amount varying with the size of the household and,for gas only,with the climate zone of residence.Since 2021,social bonuses have been granted automatically to hou

247、seholds that are eligible for welfare benefits of any kind,based on their socio-economic status.In 2020,before the reform,only 855 000 households benefited from the electricity bonus,due to a lack of awareness and complex application procedures.The reform resulted in around 2.4 million and 1.5 milli

248、on households receiving the bonus for electricity and gas,respectively,in 2021.However,this was still below the 4 million households potentially eligible for the bonus.In response to rising energy prices,in 2021-2022 the government strengthened the bonus mechanisms by raising the socio-economic ceil

249、ing to access the social bonus from EUR 8 265/year to EUR 12 000/year until end-2022.This implies extending the eligibility for the social bonus to an additional 1.2 million households.The cost for the state budget is estimated at EUR 953 million in 2021-2022.IEA.CC BY 4.0.2.GENERAL ENERGY POLICY31

250、ENERGY INSIGHTS Improving competition in the electricity and gas retail markets and reinforcing customer protection can also help to tackle energy poverty.In general,households with a higher risk of energy poverty are also those less educated and less reactive to price changes in the market.These cu

251、stomers tend to be less willing to switch energy providers(OIPE,2020).There is,therefore,a need to improve information about energy prices and services provided by retailers,facilitate the switching procedures,and encourage the participation of customers in managing their energy use(see Chapter 7).A

252、ssessment Italy has taken steps towards the clean energy transition in the last 15 years.It has overachieved its 2020 targets for renewable energy,energy savings and GHG emissions(as part of the EU energy and climate framework).Total energy supply and the energy intensity of the economy have decline

253、d.The energy mix has shifted towards natural gas and renewables,and coal now has a residual role in electricity generation.However,progress in improving energy efficiency,deploying renewables and curbing GHG emissions slowed down in the second half of the 2010s.Italys primary and final energy demand

254、s were fairly stable,before dropping in 2020 with the onset of the Covid-19 pandemic,but rebounding in 2021 to similar levels as 2019.Progress on improving energy efficiency has been mixed,despite significant government expenditure and incentives,especially for the buildings sector.A time-consuming

255、authorisation process and increasing local opposition resulted in a slow shift to renewable electricity,with only 4 GW of capacity added between 2014 and 2019.Fossil fuels still account for nearly 80%of the energy supply and are almost entirely imported.Natural gas is the main energy source and cove

256、rs half of electricity generation.Italys heavy dependence on natural gas imports from Russia(41%of its gas imports in 2021),combined with volatile global energy markets in the wake of Russias invasion of Ukraine,is a major risk to the countrys energy security and economy.There is a high political em

257、phasis on how to ensure energy security while striving for decarbonisation.The government expressed a determination to cease importing gas from Russia by 2025.Russias decision to cut its gas supply to Italy in June 2022 is likely to lead to increased use of coal for power generation,leading to highe

258、r GHG emissions.This measure can only be temporary and should not derail plans for the transition.On the contrary,the clean energy transition should be accelerated.Italy should do more to reduce energy demand and fast-track renewable deployment in all sectors in line with the ECs REPowerEU plan.This

259、 would also help Italy to curb GHG emissions and control expenditure on energy commodities,thereby helping to fighting energy poverty.Energy governance and policy In line with the EU energy and climate policy framework and the IEA roadmap to net zero,Italy aims to decarbonise its energy supply mainl

260、y by expanding renewable energy,electrifying end-uses and increasing energy efficiency across the economy.In a welcome move,the government announced in the National Energy Strategy of 2017 its plans to ban coal use for electricity generation by 2025.This may be delayed due to increased energy securi

261、ty concerns,as well as insufficient progress to install renewables and develop the electricity grid.IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 32 Progress has been made in enhancing governance and policy coherence for the clean energy transition.Unifying responsibilities for energy and climate policy und

262、er the MiTE,established in 2021,has great potential to result in a more cohesive approach to energy and climate governance.However,the merger of these functions is not yet complete.The central and regional governments share legislative competences on energy.All regions have their own regional energy

263、-environment plans,but most plans have not been updated and are not attuned to the evolution of energy and climate policies at the national and EU levels.There is a need to rationalise the multitude of strategic documents and plans related to energy and climate policy.The governance of energy and cl

264、imate policy could be strengthened by adopting a climate framework law that,among other things,allocates clear responsibilities and sets accountability mechanisms for achieving targets.There is also the need to track progress towards the energy transition in a more timely and complete manner to info

265、rm policy making.This requires adequate resources and clear responsibilities for data collection and co-ordination of the energy information system.The 2019 NECP is the main document guiding Italys energy and climate policies.It will need to be revised to reflect the enhanced targets of the EU Fit-f

266、or-55 package,including clear milestones to measure progress.The NECPs measures to achieve the 2030 targets on GHG emissions,renewables and energy efficiency focus on stimulating investment and structural improvements.They do not differ from those already tried in the past,although the incentives ar

267、e higher.More attention should be paid to encouraging behavioural changes in favour of saving energy(and CO2 emissions)at home,in the workplace and for travelling,in line with the IEAs recent recommendations made in Playing My Part(IEA,2022c).The NECP foresees Italy meeting its 2030 targets if all e

268、xisting and planned measures are timely and fully implemented.However,achieving the more ambitious Fit-for-55 targets will require significantly scaling up and accelerating efforts to expand renewables and improve energy efficiency.With this aim,the government has been prioritising the implementatio

269、n of the NRRP 2021-2026,which allocates over EUR 70 billion to the clean energy and low-carbon transitions.The NRRP can provide a significant boost to Italys efforts to decarbonise the energy sector while enhancing security of supply.In addition to substantial support schemes and public investments,

270、it foresees important regulatory reforms in the energy sector.Implementing the reforms promptly will be key,as will measuring the effectiveness of spending and improving competences to deliver at the national and subnational levels.Priority should be given to addressing the long permitting procedure

271、s and the lack of ownership of renewable energy targets by the regions.A series of simplification measures,implemented in late 2021 and early 2022,have started to unblock a backlog of authorisation requests.However,relevant institutions,especially at the local level,still lack the administrative cap

272、acity to speed up the permitting procedures for new plants and powerlines.Energy prices,taxes and subsidies Italy has high energy prices compared to most IEA countries.Taxes account for a larger part of final energy prices than the IEA average.However,several tax discounts apply.The government has m

273、ade welcome progress in reporting and assessing energy subsidies IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 33 ENERGY INSIGHTS against the countrys broader energy and environmental goals.However,Italy remains among the main providers of fossil fuel subsidies in the European Union.The fourth and latest su

274、rvey of subsidies conducted by the MiTE(released in early 2022)identifies environmentally harmful subsidies in the energy sector totalling EUR 9.5 billion in 2020.The largest such subsidy is the lower excise duty on diesel compared to petrol,which cannot be justified from climate mitigation or envir

275、onmental points of view.In a bid to contain rising energy prices,in 2021-2022 the government introduced successive support packages comprising several discounts on energy taxes and charges(on automotive fuels,natural gas and electricity).The packages also provided fiscal support to businesses to par

276、tially compensate for the extra energy costs and expanded the population potentially eligible for the social bonuses for energy bills.The efforts to adjust taxes and subsidies in light of increasing energy prices are politically understandable.However,this approach implies that the large majority of

277、 the relief aids households that are not in immediate need and suppresses market signals to save energy.The government should target relief to the most vulnerable segments of the population and economy.This could save public resources that could then be used to advance the energy transition and ensu

278、re that it is equitable.Extending the social benefits for vulnerable households accounted for less than EUR 1 billion of the support package,compared to the EUR 8.7 billion allocated to directly mitigating energy prices for all households and small businesses.This amount is comparable to total fossi

279、l fuel support in 2020.Reforming fossil fuel subsidies and introducing a form of carbon pricing could contribute to Italys clean energy transition efforts.The MiTE is expected to present a plan to phase out environmentally harmful subsidies in line with the EU FF55 package by mid-2022.Priority shoul

280、d be given to addressing energy poverty to make these measures socially acceptable and ensure a just transition.Energy poverty Italy does not systematically monitor energy poverty.Estimates indicate that in 2020,8%of households were at risk of energy poverty(about 2 million households).Italys poores

281、t households spend a larger share of their budgets on energy than,on average,the poorest households in the European Union.In addition to energy tax discounts,Italys measures to address energy poverty include social bonuses for electricity and gas expenditures and various incentives for the energy re

282、novation of buildings.However,energy renovations have had regressive effects.Due to the lack of socio-economic eligibility criteria,incentives for energy renovation have mostly benefited higher income homeowners.The NRRPs outlays for these incentives are nearly five times higher than those for direc

283、t public investment in social housing,which would be more effective and efficient for addressing energy poverty.Electricity and gas bonuses are provided to vulnerable households that are connected to the networks,based on the households socio-economic condition.In 2020,some 4 million households were

284、 potentially eligible for the bonuses,or nearly double the number of households that were estimated to be in energy poverty that year.This indicates that the bonuses could be better targeted.In addition,the design of the bonuses risks distorting consumers choices in terms of both energy use and carr

285、iers by,among others,discouraging switching retailers or investing in energy efficiency.There is scope to better co-ordinate the social bonus with the incentives for energy renovations of buildings,as well as with awareness-raising initiatives about the electricity and gas markets.IEA.CC BY 4.0.2.GE

286、NERAL ENERGY POLICY 34 Recommendations The government of Italy should:Complete the restructuring of the ministry responsible for energy and climate and ensure coherence in all strategic energy and climate-related plans and implementation measures at the national and regional levels.Ensure that the F

287、it-for-55 and RePowerEU targets as well as Italys 2050 carbon-neutrality target are fully taken into account in the upcoming revision of the National Energy and Climate Plan.Swiftly implement the reform of permitting procedures for renewables and grids foreseen in the National Resilience and Recover

288、y Plan;improve capacity to deliver at all government levels by providing adequate staff and technical assistance to the relevant offices.Reform fossil fuel subsidies that hamper the clean energy transition and are not justified on economic and social grounds.Modify tax reductions and government spen

289、ding programmes(social bonus)meant to alleviate the impact of high energy prices on citizens and companies,avoid distortions and target only households at risk of energy poverty and small companies.Conduct systematic information and education campaigns to improve peoples understanding of the clean e

290、nergy transition and the role of renewables in it,as well as to help households better manage their energy use and bills(including selecting prices and services provided by retailers).Rationalise the energy information system,formally define each participating institutions responsibilities,and ensur

291、e appropriate human and financial resources for the co-ordination of the system.IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 35 ENERGY INSIGHTS References EC(European Commission)(2022),Delivering the European Green Deal(website),https:/ec.europa.eu/clima/eu-action/european-green-deal/delivering-european-gr

292、een-deal_en(accessed 31 May 2022)EC(2021),Analysis of the Recovery and Resilience Plan of Italy,Commission Staff Working Document accompanying the document Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Italy,SWD(2021)165 final,

293、https:/eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52021SC0165&from=EN EC(2020a),Energy Subsidies:Energy Costs,Taxes and the Impact of Government Interventions on Investments:Final Report,https:/data.europa.eu/doi/10.2833/546611 EC(2020b),Energy Prices and Costs in Europe,Commission Staff

294、Working Document accompanying the document Report from the Commission to the European Parliament,the Council,the European Economic and Social Committee and the Committee of the Regions,SWD(2020)951 final,https:/ec.europa.eu/energy/sites/ener/files/documents/swd2020_951_-_1_en_autre_document_travail_

295、service_part3_v1.pdf European Parliament(2022),Amendments adopted by the European Parliament on 14 September 2022 on the proposal for a directive of the European Parliament and of the Council amending Directive(EU)2018/2001 of the European Parliament and of the Council,Regulation(EU)2018/1999 of the

296、 European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources,and repealing Council Directive(EU)2015/652(COM(2021)0557 C9-0329/2021 2021/0218(COD)(1),https:/www.europarl.europa.eu/doceo/document

297、/TA-9-2022-0317_EN.html#title1 Faiella,I.And L.Lavecchia(2022),Contenimento dei prezzi dellenergia e spesa delle famiglie Containing energy prices and household spending,Energia,No.1/22,pp.36-39,March Faiella,I.and L.Lavecchia(2021),Households energy demand and the effects of carbon pricing in Italy

298、,Questioni di Economia e Finanza(occasional papers),No.614,Bank of Italy,Rome,https:/www.bancaditalia.it/pubblicazioni/qef/2021-0614/QEF_614_21.pdf?language_id=1 IEA(2022a),World energy balances,IEA World Energy Statistics and Balances(database),https:/www.iea.org/data-and-statistics/data-product/wo

299、rld-energy-balances(accessed 15 June 2022)IEA(2022b),National Reliance on Russian Fossil Fuel Imports,https:/www.iea.org/reports/national-reliance-on-russian-fossil-fuel-imports IEA(2022c),Playing My Part,https:/www.iea.org/reports/playing-my-part IEA(2022d),Energy prices,IEA Energy Prices(database)

300、,https:/www.iea.org/data-and-statistics/data-product/energy-prices(accessed 20 June 2022)IEA(2021),Net Zero by 2050,https:/www.iea.org/reports/net-zero-by-2050 ISTAT(Instituto Nazionale di Statistica,Italian National Institute of Statistics)(2022),Aspects of daily life,Households Economic Conditions

301、(database),https:/www.istat.it/en/households-economic-conditions(accessed 15 June 2022)IEA.CC BY 4.0.2.GENERAL ENERGY POLICY 36 Italy,Ministry of Economic Development,Ministry of the Environment and Protection of Natural Resources and the Sea,and Ministry of Infrastructure and Transport(2019),Integr

302、ated National Energy and Climate Plan of Italy,Rome,https:/energy.ec.europa.eu/system/files/2020-02/it_final_necp_main_en_0.pdf Italy,Ministry of Economy and Finance(2022),Documento di Economia e Finanza 2022,Sezione I.Programma di Stabilit Economic and Financial Document 2022,Section I.Stability Pr

303、ogramme,https:/www.dt.mef.gov.it/export/sites/sitodt/modules/documenti_it/analisi_progammazione/documenti_programmatici/def_2022/DEF-2022-Programma-di-Stabilita_PUB.pdf Italy,Ministry of Economy and Finance(2021),Documento di Economia e Finanza 2021 Nota di Aggiornamento Economic and Financial Docum

304、ent 2021 Update Note,https:/www.dt.mef.gov.it/export/sites/sitodt/modules/documenti_it/analisi_progammazione/documenti_programmatici/nadef_2021/NADEF_2021.pdf Italy,MiTE(Ministerio della Transizione Ecologica,Ministry of Ecological Transition)(2022),Piano Nazionale di Contennimento dei Consumi di Ga

305、s Naturale National Plan for the Containment of Natural Gas Consumption,https:/www.mite.gov.it/sites/default/files/archivio/comunicati/Piano%20contenimento%20consumi%20gas_MITE_6set2022_agg.pdf Lavecchia,L.and C.Stagnaro(2018),Povert energetica:Una riforma per rendere il bonus pi equo e meno distors

306、ivo Energy poverty:A reform to make the bonus fairer and less distorting,IBL Briefing Paper,20 July,Istituto Bruno Leoni,Torino,https:/www.brunoleoni.it/poverta-energetica-una-riforma-per-rendere-il-bonus-piu-equo-e-meno-distorsivo OECD(Organisation for Economic Co-operation and Development)(2022a),

307、OECD Economic Outlook,Volume 2022 Issue 1:Preliminary Version,https:/doi.org/10.1787/62d0ca31-en OECD(2022b),OECD Inventory of Support Measures for Fossil Fuels:Country Notes,https:/doi.org/10.1787/5a3efe65-en OECD(2021),OECD Inventory of Support Measures for Fossil Fuels(database),https:/stats.oecd

308、.org/Index.aspx?DataSetCode=FFS_INDICATOR_DETAILED%20(accessed 15 June 2022)OECD(2020),OECD Regions and Cities at a Glance 2020,https:/doi.org/10.1787/959d5ba0-en OECD(2019),Taxing Energy Use 2019:Using Taxes for Climate Action,https:/doi.org/10.1787/058ca239-en OIPE(Osservatorio Italiano sulla Pove

309、rt Energetica,Italian Observatory on Energy Poverty)(2021),La povert energetica in Italia nel 2020 Aggiornamento Energy poverty in Italy in 2020 Update,22 December,OIPE,Padua,https:/oipeosservatorio.it/wp-content/uploads/2021/12/2021_PE_ITA_2020.pdf OIPE(2020),La Povert Energetica in Italia:Secondo

310、Rapporto dellOsservatorio Italiano sulla Povert Energetica Energy Poverty in Italy:Second Report of the Italian Observatory on Energy Poverty,https:/oipeosservatorio.it/wp-content/uploads/2020/12/rapporto2020_v2.pdf IEA.CC BY 4.0.37 ENERGY SYSTEM TRANSFORMATION 3.Energy and climate change Key data G

311、HG emissions with LULUCF(2020):*348.9 Mt CO2-eq;-37.2%since 2005,-32.4%since 1990 GHG emissions without LULUCF(2020):*381.2 Mt CO2-eq;-35.5%since 2005,-26.7%since 1990 CO emissions from fuel combustion(2021):302.2 Mt CO2-eq;-35%since 2005,-23%since 1990 CO2 emissions by sector(2020):electricity and

312、heat generation 31%,transport 30%,buildings 22%,industry 17%CO2 intensity per GDP(2021):*0.131 kgCO2/USD(IEA average 0.186 kgCO2/USD)CO2 intensity per capita(2021):5.02 tCO2/capita(IEA average 8.278 tCO2/capita)*Land use,land-use change and forestry.*Gross domestic product in 2015 prices and purchas

313、ing power parity(PPP).Sources:IEA(2022a),ISPRA(2022a).Overview Italy has reduced GHG emissions at a faster pace than on average across the European Union since 2005(European Parliament,2021),in part due to sluggish economic performance.Energy industries and manufacturing accounted for most emissions

314、 reductions,while progress in transport and buildings was slower.The country achieved its 2020 emissions targets.However,it will need to accelerate the pace of emissions reductions to meet the more ambitious targets of cutting net GHG emissions by 55%by 2030(from 1990)in line with the European Green

315、 Deal and the EU FF55 legislative package.Italy is engaged internationally in the fight against climate change.It is a party to the United Nations Framework Convention on Climate Change(UNFCCC)and has integrated EU climate policies into its domestic strategies and plans.The 2019 NECP guides climate

316、mitigation action to 2030,although it will have to be updated in line with the more ambitious EU climate mitigation objectives.Russias invasion of Ukraine and the ensuing natural gas crisis may jeopardise Italys decarbonisation plans.It will likely entail increased GHG emissions in the short term if

317、 coal use increases to replace natural gas.IEA.CC BY 4.0.3.ENERGY AND CLIMATE CHANGE 38 Greenhouse gas emissions profile Between 2005 and 2019,total GHG emissions in Italy,excluding land use,land-use change and forestry(LULUCF),declined by 29%(Figure 3.1).GHG emissions started to drop remarkably wit

318、h the global financial crisis of the late 2000s and continued to decline,albeit more slowly between 2015 and 2019.They decreased in all sectors,and mostly in energy industries and manufacturing.In 2020,emissions fell to 381 million tonnes of carbon dioxide equivalent(Mt CO2-eq),or by 9%from 2019.1 T

319、his was a consequence of the exceptional restrictions on social and economic activity to contain the spread of Covid-19.The largest drop was in transport emissions(Figure 3.1;ISPRA,2022b).Preliminary estimates indicate that 2021 GHG emissions were 6.8%higher than in 2020(above the projected 1%growth

320、),due to economic recovery and increases in transport activity(ISPRA,2022c).Italys LULUCF has acted as an emission sink,absorbing an average of 34 Mt CO2-eq per year from 2005 to 2020.Figure 3.1 Greenhouse gas emissions by sector in Italy,2005-2021 IEA.CC BY 4.0.GHG emissions have declined considera

321、bly in the last 15 years,with a dip in 2020 due to the onset of the Covid-19 pandemic.Energy production and use is the main source of emissions.Notes:Non-energy sectors include agriculture(9%of 2020 total GHG emissions),waste(5%)and industrial processes(8%).Buildings represent the most important par

322、t of other emissions,as per the UNFCCC classification.Sources:IEA based on data from ISPRA(2022a;2022c).CO2 accounts for 79%of Italian GHG emissions.Methane(excluding LULUCF)has averaged about 10%of the countrys GHG emissions in the last decade.Agriculture is the main source of these emissions,follo

323、wed by waste management.Fugitive emissions account for a relatively low share of methane emissions(9%in 2020).They originate mainly from the extraction of natural gas and oil.These emissions declined by 12%between 2005 and 2019,due to declining domestic production of oil and gas.However,they grew by

324、 2%in 2020 following an increase in oil production(from the Tempa Rossa field)(see Chapter 9).1 GHG emissions without LULUCF were 418 Mt CO2-eq in 2019.-1000 100 200 300 400 500 6002021 preliminaryestimateNon-energyIndustry(fuelcombustion)FugitiveemissionsBuildings(andothers)Energy industriesTranspo

325、rtLULUCFMt CO2-eq-35%-29%IEA.CC BY 4.0.3.ENERGY AND CLIMATE CHANGE 39 ENERGY SYSTEM TRANSFORMATION Energy-related CO2 emissions and intensities Energy production and use have accounted for 80%of GHG emissions on average in the last decade.From 2005 to 2019,Italys energy-related CO2 emissions decreas

326、ed almost steadily.2 In 2020,CO2 emissions dropped by 11%compared to 2019,as a consequence of the Covid-19 pandemic.In 2021,CO2 emissions rebounded by 8%year-on-year,but they were still 4%lower than in 2019.In the last decade,electricity and heat generation and transport have been the largest source

327、s of CO2 emissions from fuel combustion(Figure 3.2).Figure 3.2 Energy-related CO2 emissions by sector in Italy,2005-2021 IEA.CC BY 4.0.Energy-related CO2 emissions have declined steadily since 2005.They have declined in all sectors and notably in energy industries and manufacturing.Source:IEA(2022a)

328、.Overall,energy-related CO2 emissions have declined much faster than GDP and continued to decline even while the economy was growing in 2015-19(Figure 3.3).In 2019,prior to the Covid-19 pandemic,CO2 emissions were 32%below their 2005 level,while GDP declined by 1%over that period.Although emissions

329、rebounded in 2021 after the Covid-related fall in 2020,they were still 29%lower than in 2005.As a result,the carbon intensity of Italys economy(CO2/GDP)continued to fall and remains well below the IEA average.Similarly,CO2 emissions declined faster than TES,resulting in a decrease in the carbon inte

330、nsity of the energy supply(CO2/TES).3 This trend indicates progress towards the decarbonisation of Italys energy supply.However,after the drop in 2020,both CO2/GDP and CO2/TES rebounded in 2021 to levels only 1.2%and 2.5%lower than in 2019(Figure 3.3).The energy industries(mainly electricity and hea

331、t generation)abated 42%of energy-related CO2 emissions in 2005-19.In the same period,emissions from electricity and heat generation dropped by 39%,driven by increasing renewable generation,the switch from coal to natural gas and the entry into operation of more efficient gas-fired combined-cycle 2 T

332、here were slight increases in 2010 and 2015 due to a particularly cold winter and hot summer,respectively.3 In 2020,the carbon intensity of Italys economy was 0.129 kg CO2 per unit of GDP(USD at 2015 prices and PPP),or 50%below its 2005 level.For comparison,the IEA average was 0.185 kg CO2/USD in 20

333、20.The carbon intensity of energy supply(CO2/TES)decreased by 19%between 2005 and 2020,to 47.6 kg CO2/Terajoule(TJ)(slightly below the IEA average of 49 kg CO2/TJ).16%17%33%29%31%32%20%22%0 50 100 150 200 250 300 350 400 450 500Mt CO2021 provisionalBuildingsElectricity andheat generationTransportIndustryIEA.CC BY 4.0.3.ENERGY AND CLIMATE CHANGE 40 plants(Figure 3.2).As a result,CO2 emissions from