Europaudvalget 2020
SWD (2020) 0911
Offentligt
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EUROPEAN
COMMISSION
Brussels, 14.10.2020
SWD(2020) 911 final
COMMISSION STAFF WORKING DOCUMENT
Assessment of the final national energy and climate plan of Italy
EN
EN
 swd (2020) 0911 (forslag) - COMMISSION STAFF WORKING DOCUMENT Assessment of the final national energy and climate plan of Italy
Table of contents
1.
2.
SUMMARY ............................................................................................................................ 2
FINALISATION OF THE PLAN AND CONSIDERATION OF COMMISSION
RECOMMENDATIONS......................................................................................................... 4
Preparation and submission of the final plan .............................................................................. 4
Consideration of Commission recommendations ........................................................................ 4
3.
ASSESSMENT OF THE AMBITION OF OBJECTIVES, TARGETS AND
CONTRIBUTIONS AND OF THE IMPACT OF SUPPORTING POLICIES AND
MEASURES ............................................................................................................................ 7
Decarbonisation........................................................................................................................... 7
Greenhouse gas emissions and removals ................................................................................ 7
Renewable energy ................................................................................................................... 8
Energy efficiency ........................................................................................................................ 9
Energy security............................................................................................................................ 9
Internal energy market .............................................................................................................. 10
Research, innovation and competitiveness ................................................................................ 11
4.
5.
COHERENCE, POLICY INTERACTIONS AND INVESTMENTS .................................. 12
GUIDANCE ON THE IMPLEMENTATION OF THE NATIONAL ENERGY
AND CLIMATE PLAN AND THE LINK TO THE RECOVERY FROM THE
COVID-19 CRISIS ................................................................................................................ 14
Guidance on the implementation of the national energy and climate plan ............................... 14
Link to the recovery from the COVID-19 crisis ....................................................................... 17
ANNEX I: POTENTIAL FUNDING FROM EU SOURCES TO ITALY, 2021-2027 ............... 19
Table 1:
Table 2:
EU funds available, 2021-2027: commitments, EUR billion ................................ 19
EU funds available to all Member States, 2021-2027, EUR billion...................... 19
ANNEX II
–
DETAILED ASSESSMENT OF HOW COMMISSION
RECOMMENDATIONS HAVE BEEN ADDRESSED....................................................... 21
1
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1. S
UMMARY
Italy’s
final integrated national energy and climate plan (‘NECP’)
1
sets a 2030 reduction target
for
greenhouse gas (‘GHG’) emissions
not covered by the EU emissions trading system (‘non-
ETS’) at -33%, as compared to emissions in 2005. Italy aims to exceed this target, with planned
measures expected to reduce Italian GHG emissions in the Effort Sharing Regulation (ESR)
sectors by 35% in 2030 compared to 2005. The NECP also estimates the cumulative additional
reduction effort in relation to the existing policies and measures projection between 2021 and
2030. The plan lacks precise indications on how Italy intends to achieve the land use, land use
change and forestry (LULUCF)
2
'no-debit' commitment (i.e. that accounted emissions do not
exceed removals). The NECP identifies the objectives of Italy's national adaptation strategy for
the energy sector, and refers to the ongoing preparation of the national adaptation plan.
Italy sets a
contribution of 30%
(as a share of gross final consumption)
to the 2030 EU
renewable energy target,
maintaining the same level indicated in the draft NECP. This is
considered as sufficiently ambitious as it is above the minimum share of 29% resulting from the
formula in Annex II of the Governance Regulation
3
.
For
energy efficiency
the Italian contribution to the collective 2030 EU target is sufficient
4
and
amounts to 125.1 Mtoe for primary energy and 103.8 Mtoe for final energy consumption. The
contribution has not changed in comparison to the draft plan. The final plan provides substantial
information on the actions and national goals to renovate the building stock. Italy has not yet
submitted its long-term renovation strategy.
The final NECP sets
new objectives for energy security.
The NECP aims at reducing the level
of dependency (from 77.7% in 2016 to 75.4% in 2030 and to 74.6% in 2040) and sets out levels
for additional storage (almost 1000 MW by 2023, split between hydroelectric and
electrochemical production, and 6 000 MW in addition to 4 000 MW distributed storage by
2030).
On the
internal energy market,
the final plan includes objectives, policies and measures such as
removing price distortions or including measures to ensure the non-discriminatory participation
of new market participants in the deployment of the second generation of smart metering systems
and the phasing-out regulated prices. However, there is a lack of clear objectives, milestones and
timelines to deliver on the envisaged reforms and measures. On
electricity interconnectivity,
Italy expects to increase its interconnectivity level to 10% by 2030.
In terms of national objectives and funding targets for
research, innovation (R&I) and
competitiveness,
the final NECP confirms the objective to double the public funds for research
into clean energy, from around EUR 222 million in 2013 to the approximately EUR 444 million
from 2021. The overall R&I target is a 1.53% of GDP by 2020.
1
The Commission publishes this country-specific assessment alongside the 2020 Report on the
State of the Energy Union (COM(2020)950) pursuant to Article 13 of Regulation (EU) 2018/1999 on
Governance of the Energy Union and Climate Action.
2
Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the
inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the
2030 climate and energy framework, and Regulation (EU) No 525/2013 and Decision No 529/2013/EU.
3
The Commission's recommendations with regard to the Member States' renewable ambitions are
based on a formula set out in this Regulation. The formula is based on objective criteria.
4
In accordance with the methodology as illustrated in the SWD(2019) 212 final.
2
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On investment needs, the NECP provides substantial information, including the incremental
annual investments needs for 2017-2030 across different sectors and their expected
macroeconomic impacts. The NECP estimates that, between 2017 and 2030, EUR 183 billion in
cumulative
additional investment
are needed compared to the current policies scenario
(equivalent to an 18% increase) to address the objectives set out by the plan. The assessment of
expenditure and funding sources presented for the national, regional or Union levels remains
partial.
The measures contained in the plan are well coordinated with
air quaity
policy and the impacts
of different measures on reduction of most relevant air pollutants are well reflected.
The final plan also includes a list of
energy subsidies,
in particular for fossil fuels, and related
actions undertaken and plans to phase them out. The list of energy subsidies appears to be in line
with the figures and categories as identified in recent Commission analyses on energy subsidies.
However, specific actions to gradually phase-out harmful subsidies remain limited.
On a
socially just and fair energy transition,
the NECP provides a good analysis of the
expected socioeconomic impact, focusing on the phase-out of coal and possible impacts on
occupation and skills. Italy estimates that implementing the NECP will create 117 000 additional
jobs each year in 2017-2030. In addition, the NECP analyses the professions that will be affected
most by the energy transition, how these can be re-skilled, and the jobs
‘of
the future.’
On
energy poverty,
Italy reports the number of households affected and lists several existing
measures to reduce energy poverty as well as future ones that are going to be implemented.
However, the plan does not set any specific and measurable objective for 2030 and only includes
an estimate of a slight reduction of the incidence of energy poverty as a projection of existing
trends.
There are
several examples of good practice
in the final plan, in particular the confirmed phase-
out of coal from electricity generation by 2025, the ambitious goals on electromobility, the
comprehensive overviews of investment needs and energy subsidies.
The following table presents an overview of Italy’s
objectives, targets and contributions under the
Governance Regulation
5
:
Latest
available
data
Assessment
of 2030
ambition
level
National targets and
contributions
Binding target for greenhouse gas
emissions compared to 2005
under the Effort Sharing
Regulation (ESR) (%)
National target/contribution for
renewable energy:
5
2020
2030
-18
-13
-33
As in ESR
Sufficiently
ambitious
17.8%
17%
30%
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018
on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and
(EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC,
2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of
the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No
525/2013 of the European Parliament and of the Council.
3
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Share of energy from renewable
sources in gross final
consumption of energy (%)
National contribution for energy
efficiency:
Primary energy consumption
(Mtoe)
Final energy consumption (Mtoe)
Level of electricity
interconnectivity (%)
(29% is the
result of
RES
formula)
147.2
116.5
8.8%
158
124
8%
125.1
103.8
10%
Sufficient
Sufficient
n.a.
Sources: European Commission, Energy statistics, Energy datasheets: EU countries; European Semester
by country;
Italy’s
final national energy and climate plan.
2. F
INALISATION OF THE
R
ECOMMENDATIONS
PLAN AND CONSIDERATION OF
C
OMMISSION
Preparation and submission of the final plan
Italy
notified
its final NECP to the Commission on 31 December 2019.
Alongside its final NECP, Italy notified a table indicating the sections of the NECP addressing
the Commission’s recommendations.
Italy organised an online
public consultation,
which ran from 20 March to 5 May 2019, to
gather comments and proposals, particularly on the measures identified in the draft NECP. The
main outcomes of the consultation are briefly described in the final NECP. The NECP also
describes briefly how these comments have been taken into account. However, there is no
summary of how these comments have been taken into account. In addition, dedicated thematic
experts groups met. A
strategic environmental assessment
(SEA) was also carried out on the
NECP under Directive 2001/42/EC.
Consideration of Commission recommendations
In June 2019, the Commission issued nine recommendations to Italy in view of the finalisation of
its NECP
6
. Annex II to this staff working document provides a detailed account on how the
different elements of Commission recommendations have been reflected in the final NECP.
Overall, the final NECP
largely addresses
most of the Commission recommendations. The main
changes introduced in the final plan are the following:
On
renewables,
Italy
largely addressed
the recommendation to improve sectoral objectives for
renewables and to strengthen policies and measures. Compared to its draft NECP, Italy has
slightly increased the share of renewables in the heating and cooling sector and in the transport
sector (22% by 2030). The latter is particularly ambitious and well above the EU target of 14%.
The final NECP also reports new measures to promote local energy communities, self-
6
Commission Recommendation of 18 June 2019 on the draft integrated national energy and climate
plan of Italy covering the period 2021-2030, C/2019/4412.
4
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consumption and administrative simplification. However, those policies might not be enough to
achieve the proposed level of ambition particularly beyond 2022.
On
energy efficiency,
Italy
partially addressed
the recommendation to update and scale up
energy efficiency policies and measures. Both contributions for primary energy and final energy
consumption remained in line with the values included in the draft NECP, are considered as
sufficient to achieve the EU level target for 2030. The plan includes most of the required
information on the measures needed to achieve the energy savings targets, including for
buildings. Some measures are lacking detail on how the instruments will be upgraded or
reformed. On buildings, the information provided has much improved. Most of the mandatory
elements on the long-term renovation strategy have been provided, for instance on indicative
milestones for 2030 and an estimation of expected energy savings. The long-term renovation
strategy has not been submitted yet.
On
energy security,
Italy
partially addressed
the recommendation to outline the measures
supporting the energy security objectives and to clarify the role of gas. In particular, Italy detailed
measures and indicators on flexibility, particularly taking into account diversification, demand
response and storage. However, the NECP still misses specific targets or timelines. The plan also
gives limited explanation about the regional context when assessing resource adequacy in the
electricity sector, the impacts of the capacity remuneration mechanisms and the phase-out of
coal-fired power plants in terms of consumers prices.
Linked to the
internal energy market,
Italy
partially addressed
the recommendation to set
clear objectives, milestones and timelines. The final plan includes additional objectives, policies
and measures linked to both the wholesale and retail market but lacks measurable and robust key
performance indicators. It promotes sector integration, better integration of renewables, and
favours the active role and the protection of prosumers and consumers.
On
research, innovation and competitiveness,
Italy
did not address
the recommendation to
clarify the national objectives and funding targets. The final NECPs misses specific and
quantified objectives. The links with SET plan priorities remain weak. And the competitiveness
angle is underdeveloped.
Italy
partially addressed
the recommendation to strengthen
regional cooperation.
Several
actions have been undertaken to reinforce regional dialogues, particularly across the
Mediterranean. However, exchanges with France, Germany and Switzerland on the priorities of
the NECP are not reported. Specific initiatives/deliverables that have been identified remain
limited.
Italy
largely addressed
the recommendation to list actions undertaken and plans to
phase-out
energy subsidies,
in particular for fossil fuels. A comprehensive and quantitative catalogue of
environmentally harmful (as well as favourable) subsidies has been included, and steps to phase-
out the harmful subsidies are described, including the creation of a new commission tasked with
eliminating environmentally harmful subsidies. At this stage specific subsidies to be phased out
have yet to be identified.
Italy
fully addressed
the recommendation to complement the
analysis on air quality and air
pollutants emission.
Emission reduction projections for relevant air pollutants have been
included followed by a list of measures aiming to contribute to improved air quality.
Explanations on the linkages between air and climate plans analysis are provided.
5
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Italy
partially addressed
the recommendation to better integrate
just and fair transition
aspects.
The NECP announces the creation of a new institution/observatory to monitor and
develop a national strategy on the fight against energy poverty, but specific targets have yet to
been established.
Links with the European Semester
In the context of the European Semester framework for the coordination of economic policies
across the EU and of the country report 2019
7
, Italy received country-specific recommendation
8
on climate and energy indicated that Italy should
“focus investment-related
economic policy in
research and innovation and in the quality of (sustainable) infrastructure, taking into account
regional disparities”.
However, identifying financing needs and securing the necessary funding
will be key to deliver on Italy’s energy and climate objectives.
In the 2020 country report
9
adopted on 20 February 2020, the Commission found that Italy has already reached its 2020
targets on greenhouse gas emissions reduction, renewable energy and energy efficiency.
Due to the COVID-19 crisis, the European Semester country-specific recommendations for 2020
addressed Member States’ responses to the pandemic and made recommendations to
foster
economic recovery. In particular, they focused on the need to start mature public investment
projects as soon as possible and promote private investment, including through relevant reforms,
notably in the digital and green sectors. In this context, Italy received a country-specific
recommendation
10
stressing the importance of focusing investment on
‘the
green and digital
transition, in particular on clean and efficient production and use of energy, research and
innovation, sustainable public transport
[…].’
The 2020 Semester Country Report found that
energy efficiency of buildings, climate adaptation, prevention of hydrogeological and seismic
risks, and water and waste management in some regions remain a challenge, together with air
quality and sustainable mobility. Investing in environmental sustainability could be an
opportunity for growth.
The Governance Regulation requires Member States to ensure that their national energy and
climate plans take into consideration the latest country-specific recommendations issued in the
context of the European Semester. Italy’s national energy and climate plan has the potential to
support the implementation of the European Semester recommendations, as it identifies the
necessary investments needs and financial resources to meet them.
7
The Annex D to the 2019 Country report also sets out priority investments for the 2021-2027
cohesion policy, substantially contributing to the clean energy transition.
8
Recommendation for a Council Recommendation on the 2019 National Reform Programme of
Italy and delivering a Council opinion on the 2019 Stability Programme of Italy, COM(2019) 512 final.
9
Commission staff working document, Country Report Italy 2020, SWD/2020/511 final.
10
Recommendation for a Council Recommendation on the 2020 National Reform Programme of
Italy and delivering a Council opinion on the 2020 Stability Programme of Italy, COM(2020) 512 final.
6
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3. A
SSESSMENT
MEASURES
OF THE AMBITION OF OBJECTIVES
,
TARGETS AND
CONTRIBUTIONS AND OF THE IMPACT OF SUPPORTING POLICIES AND
Decarbonisation
Greenhouse gas emissions and removals
The NECP confirms Italy’s 2030 non-ETS
target of -33% below 2005 under the Effort Sharing
Regulation and provides the estimated absolute numbers of the target for 2025 (243 Mt CO2eq)
and 2030 (221 Mt CO2eq). It also estimates the cumulative additional reduction effort of 142 Mt
CO2eq, in relation to the existing policies and measures projection between 2021 and 2030. On
the basis of information in the NECP, with planned policies and measures (WAM scenario), Italy
would achieve 34.6% reductions in the ESR sectors in 2030 compared to 2005. Annual emission
allocation budgets are only presented for 2025 and 2030. For the EU ETS sector, the EU-wide
target of -43% compared to 2005 is applied, but under the WAM scenario the NECP shows an
overachievement, assessing the reduction to -55.9%. There is no indication on whether Italy
expects to generate credits from the LULUCF sector and whether it would use them to comply
with the ESR. Italy has also a quantitative target for further emission reduction in the building
sector. In the civil sector (residential and tertiary), the reduction in emissions for 2030 compared
with 2005 in the scenario for the NECP totals approximately 35 MtCO
2
eq.
Overall, policies are consistent with national targets. The final NECP is well developed, sets
targets, trajectories are often provided along with an indication of the technology and the sector
contributing to targets. However, the analysis of the decarbonisation dimension contains some
shortcomings. The lack of data, including the unclear assumptions behind the impacts of policies
and measures, makes it difficult to evaluate if the GHG emission reductions will be fully
achieved.
For transport, the final plan identifies a broad range of measures, including incentives to modal
shift, promotion of public transport, mandatory blending of alternative fuels and improved urban
mobility planning requirements. Electromobility and the underpinning charging infrastructure is
supported by fiscal incentives, mandatory minimum shares in public procurement, and funding to
deploy publicly accessible charging points. Almost six million electrically powered vehicles are
expected to be in circulation by 2030.
GHG projections for agriculture indicate emissions would remain stable with existing and
planned policies. Planned policies in the agricultural and LULUCF sectors focus on animal
husbandry waste management, investment and target for biogas, sequestration in agricultural soil
and forestry, a programme for tree planting, potential payments for carbon sequestration in
forests and arable lands. The plan refers to the common agricultural policy and preparation of a
consolidated law on forests and a new national forest strategy. Relevant policies and measures
are not very detailed or specific.
The final NECP confirms the objective of gradually phasing-out coal for electricity generation by
2025 in favour of an electricity mix based on a growing renewable energy share and, for the
remainder, gas. This objective is conditional on the related infrastructure development and it is
expected to take into consideration the social impact.
The NECP seems consistent with the national adaptation strategy (NAS). The NECP identifies
the objectives of Italy’s NAS
for the energy sector, and refers to the ongoing preparation of the
national adaptation plan. Specific measures to achieve
NAS’s
overall objectives are presented for
7
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the energy sector, grouped in various areas, including physical vulnerability, operation
vulnerability, impacts on demand (addressing energy demand and agriculture). The NECP
provides a list of project and actions to increase resilience as well as budgets. More information
could be provided on the goals and strategies in the health and agriculture sectors.
As of 1 September 2020, Italy has not notified its national long-term strategy to the Commission
as required under Article 15 of the Governance Regulation.
Renewable energy
The national contribution to the 2030 EU renewable energy target is specified in the plan. The
renewables share
is set at 30% in gross final consumption of energy in 2030. This is considered
sufficiently ambitious as it is above the share of 29% by 2030 that results from the formula in
Annex II of the Governance Regulation. The indicative trajectory to reach the 30% contribution
in 2030 has been slightly updated, including specific reference points for 2022 (renewables share
of 21%), 2025 (23%) and 2027 (26%). These reference points are just below the trajectory
indicated in the Governance Regulation.
In the
electricity
sector, renewable energy generation is projected to reach almost 55% in 2030
(compared to 34.1% in 2017), with solar power becoming the main source of renewable
electricity (52GW of installed capacity), ahead of the current main source which is hydropower
(19.3 GW of installed capacity). Wind power capacity and electricity share will be roughly
doubled by 2030 compared to 2017 (19.3 GW, of which 0.9 GW offshore). The number and type
of policies might not be enough to achieve targets; particularly beyond 2022 where measures
have yet to be budgeted and approved. Planned capacities are generally described but are not split
between new capacities and repowering.
For
heating and cooling,
the ambition of the final plan has been slightly increased compared to
the draft plan
–
to a share of 33.9% by 2030 (compared to 20.9 in 2020
–
a 13% increase). In
absolute terms, consumption from renewables is expected to surpass 15 Mtoe in the heating and
cooling sector, an increase which is primarily linked to the increase in renewable energy provided
by heat pumps (more than a doubling from 2.6 Mtoe in 2017 to 5.7 Mtoe in 2030). The plan
states that the principal instruments to promote the renewables consumption in heating are often
integrated with those for energy efficiency and are already operational. However, these measures
are not assessed in terms of contribution to the renewable target in heating and cooling. There is
also no calendar underpinning the annual increase of renewable heating and cooling for the 2021-
2030 period.
In the
transport sector,
the share of renewable energy has been slightly increased compared to
the draft plan, to reach 22% by 2030. The main measures are to promote advanced biomethane,
and introduce a mandatory quota for the consumption of conventional and advanced biofuels by
2030. Other measures aim for increased energy efficiency and an increase of renewable
electricity use in road and rail. Multipliers are included in the calculation of this trajectory as set
out in Articles 25-27 of Directive 2018/2001. The renewable transport target is challenging but
policies seem to be in place to support such an increase of renewable in this sector. The plan
includes a description of 19 measures, including support to advanced biofuel, penetration of
Electric Vehicles (EV) and modal shift to increase efficiency. Infrastructure policies are also
consistent with this target and budget and policies are in place to create an EV and alternative
fuels network.
8
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Energy efficiency
Italy’s national contribution for energy efficiency in 2030 is 125.1 Mtoe for primary energy and
103.8 Mtoe for final energy consumption. Italy has not made changes to the levels set out in the
final plan compared to the draft plan. Also more generally, few changes have been made in
comparison to the draft plan, except the assessment of the expected impacts of the planned
policies and measures. Italy presents the
cumulative savings
to be achieved under Article 7 of
the Energy Efficiency Directive
11
with a cumulative amount of 50 977 ktoe for the entire 2021-
2030 period, which has been correctly calculated and the measures provided for are consistent
with it. The expected savings of the measures in relation to Article 7 were provided together with
other elements required, which were described in a dedicated separate document accompanying
the plan.
Italy sets out nine main measures to achieve the energy efficiency goals and the plan provides
information on all of them. These measures are mainly a continuation of the policy architecture
already in place, but it is planned to step them up or in some cases to reform them. Some new
elements can be seen in the measures on sustainable mobility and in the National Fund for
Energy Efficiency, which has been approved in 2014 but will be fully implemented only in the
coming years.
The expected savings from those measures is consistent with the target proposed and it is well
reflected in the scenario with additional measures (WAM), which is the basis used by Italy for to
calculate its 2030 goal. On that basis, the measures seem sufficient if properly implemented and
upgraded. The largest impacts are attributed to the tax deduction mechanism for building
renovation and the white certificate scheme, which are both already well established instruments
in Italy. In addition, also the measures affecting the transport sector will have an important role.
For the sectors affected, it is expected that the savings will be achieved mostly in the residential
sector (35%) and transport (27%), followed by the commercial (25%) and industry (13%).
On energy efficiency in buildings, Italy showed a sufficient level of ambition. In this context, the
measures and actions envisaged by Italy are realistic. The plan mentions that the exact number of
buildings to be renovated will be determined in the long-term renovation strategy. However, for
most of the measures, a clear timetable for their implementation is missing and there is no
estimation of wider benefits. In the final NECP, Italy is planning the renovation of 130 mainly
non-residential public buildings to nearly zero-energy buildings (NZEB) standards in 2020 (there
are currently 1 400 NZEB across the country) and to accelerate the annual deep renovation rate to
0.7% for residential and to 2.9% for non-residential (hospitals excluded) buildings.
Energy security
Maintaining high levels of security of energy supply is a priority of the Italian NECP in view of
the ongoing transformation of the energy system that points towards an objective of 55%
renewable
electricity
and increasing shares of domestic renewable energy. When considering
risks, the plan does not fully take into account the
plans of the other connected Member States
or the specific risks of isolated territories such as Sicily or Sardinia, even though the plan states
that the decarbonisation objective is posing a number of problems as regards managing the
security.
11
Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on
energy efficiency as amended by Directive (EU) 2018/2002.
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Italy aims to reduce the level of dependency from 77.7% in 2016 to 75.6% in 2030 and to 74.6%
in 2040 and in terms of electricity storage to increase gradually available capacity, in particular
1 000 MW by 2023 and 6 000 MW in addition to 4 000 MW distributed storage by 2030.
On
diversification of sources,
the plan stresses the importance of renewables integration and gas
diversification mainly by optimising the use of existing infrastructure and further developing the
LNG market and renewable gases. The NECP details the specific projects which are required to
meet the electricity interconnection target, to improve gas security of supply and diversification
of resources. However, no specific key performance indicators are defined for the gas sector even
though it is considered of vital importance for the national energy system.
On the transition from traditional fuels to renewable sources, Italy confirms the intention to
phase-out coal by 2025 in its final NECP. On
oil,
the plan focuses on measures to reduce the
consumption of fossil fuels and boost bio-refineries, biofuels and storage. On
gas,
the plan has a
good level of description with a extensive list of policies and measures such us updating
preventive, emergency and defence plans, upgrading transmission and gas storage network,
diversifying gas supply or promoting LNG in maritime transport and ports.
On
electricity,
the plan identifies the need for updating the emergency plan in line with the risk-
preparedness regulation and support measures regarding flexibility and resilience of the system.
It provides a detailed description of the new capacity market, as well as the need for storage
capacity and demand response. However, the plan gives little consideration to the regional
context when assessing resource adequacy in the electricity sector. Information is lacking on the
impacts of the new capacity market and the phase-out of coal-fired power plants on consumer
prices. The plan envisages significant further measures and investments to reach 6 000 MW of
storage
and EUR 36.2 billion of distribution and transmission network. It mentions renewable
gas, demand response and storage as key technologies to improve security of energy supply.
The plan considers
cybersecurity
and cross-border coordination in the energy sector, but does
not specify measures.
The planned policies and measures are considered credible in relation to achieving the objectives,
because it provides a complete picture of the needs to ensure the security of energy supply. A
further assessment will be needed to specify the
particularities in the islands.
The plan makes
sufficient links with the
emergency plans
for gas, electricity and oil, provided for by the
applicable sectoral rules.
Internal energy market
Italy sets an
interconnectivity level
of 10% for 2030. However, the plan does not provide clarity
on whether Italy intends to meet the EU electricity level of 15% by 2030. The plan lists current
projects of common interest (PCIs) aimed at increasing interconnectivity.
Given the electricity sector target of 55% renewable electricity in 2030 and the planned phase-out
of coal from electricity generation, a brief overview of the different sources of
flexibility
that is
needed to integrate the rising share of renewable energy into the electricity system is provided.
The plan relies on increased flexibility through existing thermoelectric production facilities and,
above all, by increasing market participation of new flexible resources such as agregation,
demand response and new storage systems. The
‘uptake
of consumption and efficient
consumption management systems’ is explicitly mentioned as a priority objective for future
energy infrastructure needs and could be seen as a demand-side approach. However, it lacks
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specificity, demonstrating a lack of strategic attention to the potential of demand-side measures
as an alternative to supply side developments.
The plan provides an overview of current
market conditions
for gas and electricity, including
levels of competition and liquidity of markets. The final plan includes policy objectives and
measures related to the internal energy market. For example, removing price distortions or
including measures to ensure the non-discriminatory participation of new market entrants and the
different flexibility sources (e.g. demand response and storage) in the energy markets and
deploying second generation smart metering systems. On the retail market, the plan refers to (i)
completing the liberalisation of the market by introducing measures to phase-out the regulated
price system for households and small businesses, and (ii) promoting the active role of
consumers. However, no specific objectives on competition development are set (e.g. current-
projected switching rates, Herfindahl-Hirschman Index (HHI)). Those measures are considered
credible in achieving the objectives and are in line with implementing the clean energy package, ,
although they have been postponed several times. However, there is a lack of clear objectives,
milestones and timelines to deliver the envisaged reforms and measures.
According to its NECP, Italy is considering to introduce a mandatory quota for renewable gases
(including hydrogen) and to establish enabling rules for injection of hydrogen into existing
natural gas infrastructures. It is expected to build a ‘hybrid’ electricity-gas
energy system, which
can boost the use of alternative fuels in the transport sector. The plan forecasts reaching around
1% of the renewable target for the transport sector through the direct use of hydrogen in cars,
buses, trucks, trains, and possibly sea transport.
On
energy poverty,
the final NECP still lacks a specific target but reports both the number of
households currently affected (about 8.6% or 2.2 million households, in 2016), and the expected
reduction by 2030 (1% reduction representing about 230 000 fewer households in energy poverty
compared to 2016). These policies and measures are considered credible in achieving the target,
as they focus on both supporting consumers in energy poverty through social bonuses and
promoting energy efficiency solutions in buildings.
Research, innovation and competitiveness
The plan identifies relevant areas for
research and innovation
priorities in 2030 and 2050.
These mostly relate to renewables (in particular photovoltaics, concentrating solar power, and
energy from the sea), storage (including hydrogen, power to gas), the integration of renewables
within the energy system, the devices for the security of the electrical system, e-mobility, bio-
refineries, materials processes and systems for the energy efficiency in the industry and in
buildings.
The identified energy research and innovation priorities and objectives are ambitious and require
a substantial increase in R&I investments. The final NECP confirms the target of doubling the
public funds for research in clean energy, from EUR 222 million in 2013 to EUR 444 million in
2021. Italy undertook this commitment under the mission innovation initiative, launched as the
technology leg of the Paris Agreement. In light of the progress made by Italy as illustrated in the
2020 Mission Innovation country report, it appears very ambitious and challenging to maintain
the commitment taken.
There is an increasing alignment of the Italian energy research and innovation objectives with the
R&I priorities identified with the
strategic energy technology (SET) plan.
Energy efficiency,
renewables, grid transmission, distribution and storage, and hydrogen and fuel cells are the
research and innovation energy sectors absorbing most of the clean energy research funds.
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On
competitiveness,
emphasis is put on developing an industrial renewable energy sector in
Italy. Given its growing relationship with the renewable supply chain, Italy also wants to support
the production chain of digital architecture and automation systems linked to network services.
Other sectors specifically mentioned as targeted in terms of objectives for national
competitiveness and developing perspectives in foreign markets are (i) the circular economy, (ii)
geothermal energy, (iii) liquefied petroleum gases and methane, (iv) the bioethanol sector, (v) the
production of batteries and electrochemicals, and (vi) photovoltaics. In terms of policies and
measures, the NECP mostly describes a large number of funds to support research, incentives to
engage the private sector and small and medium enterprises in research and innovation, and
support them in modernising operations and increasing competitiveness. In addition, the NECP
illustrates the
establishment of ‘energy cluster’ public private partnerships. The
national plan for
industry 4.0 offers a range of support instruments to address the increasing digitalisation of the
energy sector.
4. C
OHERENCE
,
POLICY INTERACTIONS AND INVESTMENTS
The policies presented in the NECP seem generally in line with the set objectives. Interactions
are generally described, for example it is mentioned that energy efficiency and renewable will
impact on energy security positively but might impact on the interconnectivity level (the high
renewable share) negatively. The NECP also illustrates to a certain extent the
interlinkages
between energy security and decarbonisation goals. The NECP aims at encouraging the
production of renewable gas to inject to the network and, in future, to adopt for all final uses,
including electricity generation. Overall, the plan recognises esisting interactionss between
renewables and energy efficiency policies and GHGs. However the plan does not include a
detailed assessment of such interactions at the level of single policies and measures. Overall, the
quantitative impact of renewables and energy efficiency policies on GHG targets is unclear. Main
negative interactions identified concern the production of bio-generated heat to reduce GHG and
the intention to set tougher emissions requirements for heat installations. Italy has not provided
information on how positive interactions may be maximised or negative ones mitigated.
Consistent with Italy’s
national adaptation strategy, the NECP also details in the energy security
dimension how the energy sector could be affected by climate change and includes the measures
that could be taken to address such risks. Information is lacking on adaptation co-benefits and
trade-offs for energy efficiency, such as in the thermal management of buildings.
On
investment needs,
Italy has provided information on the expected incremental investment
needs across sectors and a consolidated quantitative assessment of their macroeconomic impacts.
The overall assessment of investment needs is estimated to represent EUR 1 194 billion for
2017-2030, mainly for the transport sector
–
EUR 759 billion, followed by the residential sector
with EUR 180 billion. The additional overall investment effort with respect to the investment
needs under current policies over the considered period amounts to EUR 186 billion. However,
the plan does not provide clear details on the methodology applied to calculate investment needs.
The NECP includes a partial assessment of expenditure and funding sources and provides
information about the financing of different policy areas, covering both existing and new policies
(national as well as EU public funds). On the European Regional Development Fund and
Cohesion Fund investments, the plan notes that in 2021-2027, priority will be given to
investments in line with implementing the NECP. The plan does not identify risk factors, and
does not develop a strategy to close the investment gap.
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A description of existing
energy subsidies,
in particular for fossil fuels, is included. The plan
appears to be in line with internationally used definitions. In the plan, energy subsidies are to be
understood in the broadest sense, including direct incentives, exemptions, tax reductions and
discounts, tax relief and implicit subsidies. The plan refers to the fact that Italy has been subject
to a peer review by the G20 producing a report on fossil fuel subsidies in 2018. A timeline to
phase-out energy subsidies, in particular fossil fuel subsidies, is not mentioned in the final plan.
On
just and fair transition,
the plan provides a thorough and good analysis of the
socioeconomic impact, with a focus on the phase-out of coal and possible impacts on occupation
and skills. Necessary funding
will be covered from EU ETS quotas (through a ‘Fund for
vocational retraining in areas in which coal-fired
power plants are located’)
from 2020 to 2024.
In addition, the NECP contains an analysis of professions that will be mostly affected by the
energy transition, how these can be re-skilled, and which are the jobs
‘of
the future.’
The final NECP provides information and analysis on
air quality and air emissions policy,
stating that both air and climate plans use a consistent methodology. While the NECP provides
sufficient insurance that it has analysed the air impacts of its policies and measures, the extent to
which the policies and measures presented in the NECP are reflected in the National Air
Pollution Control Program (NAPCP)
12
is less clear.
The
circular economy
and its potential for GHG emissions reduction is well integrated, but not
quantified. The synergies and trade-offs between energy, climate and other environmental issues
such as biodiversity are acknowledged, but their interactions could be further developed. Further
quantification efforts would be welcome in future NECPs, in line with the most recent scientific
evidence.
While energy efficiency actions are well developed and described as a priority in the plan, the
application of the
energy efficiency first principle
in itself is not addressed directly in the
NECP. However, certain measures imply a priority for energy efficiency among other criteria.
For instance, in the energy security dimension, priority is given to increased efficiency as a
means to reduce energy import dependency. The development of demand-based mechanisms is
also considered in parallel to grid interventions. In the context of the coal phase out, in the
internal energy market dimension the increasing role of gas and renewables in power generation
does not seem to take much into account demand-base actions as alternatives to supply measures.
In line with the goals of the
clean energy for EU islands initiative,
Italy has already started a
pilot a project to promote renewable penetration smaller islands not connected with the main
network. In this context, the specific targets for covering consumption with locally generated
renewable energy and specific incentives, have been established.
The final version of the plan fully complies with
data transparency
requirements and with the
use of European statistics.
12
NAPCP had to be submitted by 01/04/2019 under Directive (EU) 2016/2284 on the reduction of
national emissions of certain atmospheric pollutants
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5. G
UIDANCE ON THE IMPLEMENTATION OF THE NATIONAL ENERGY AND
CLIMATE PLAN AND THE LINK TO THE RECOVERY FROM THE
COVID-
19
CRISIS
Italy needs to swiftly proceed with implementing its final integrated national energy and climate
plan as notified to the Commission on 31 December 2019. This section provides some guidance
to Italy for the implementation phase.
This section also addresses the link between the final plan and the recovery efforts from after the
COVID-19 crisis, by pointing at possible priority climate and energy policy measures Italy could
consider when developing its national recovery and resilience plan in the context of the Recovery
and Resilience Facility
13
.
Guidance on the implementation of the national energy and climate plan
In the plan, Italy plans additional measures which would lead to greenhouse gas emissions
reductions in effort sharing sectors of -34.6% by 2030, compared to 2005, which go beyond the -
33% target in the Effort Sharing Regulation.
The Italian contribution to the EU 2030 renewables target is sufficiently ambitious when
compared to the share resulting from the formula in Annex II of the Governance Regulation.
Similarly, the Italian contribution to the 2030 energy efficiency target is assessed to be sufficient.
Italy’s plan leaves however still scope to further develop and strengthen policies and measures on
both renewables and energy efficiency as to contribute more to the EU climate and energy targets
and strengthen the green transition.
On
renewables,
Italy committed to increase the share of renewables in gross final energy
consumption to 30% in 2030 and would necessitate additional policies and measures.
Implementing new initiatives to overcome administrative burden would be important for the swift
implementation of the measures. Italy might consider tapping into the potential of other new
sources and technologies. The NECP already aims at encouraging the production of renewable
gas to be injected into the network and to be used, in future, for all final uses, including
electricity generation. Further steps could also be taken to preserve existing renewable energy
production by promoting, revamping and repowering previous installations, in particular existing
wind power plants. Italy could also leverage on existing pilot projects to explore innovative
offshore energy across the Mediterranean.
On
energy efficiency,
it is important that the main identified instruments and policy measures are
quickly implemented to avoid any delay that could put at risk achievement of the expected
energy savings and overall objectives. Italy is invited to further develop practical application of
the energy efficiency first principle in climate and energy planning. Achieving the ambitious
contribution could be supported by making use of funding dedicated to green transition to finance
13
On 17 September 2020, the Commission has put forward the Annual Sustainable Growth Strategy
2021 (COM(2020) 575 final), as well as guidance intended to help Member States prepare and present their
recovery and resilience plans in a coherent way, without prejudice to the negotiations on the proposal for a
Regulation on the Recovery and Resilience Facility in the European Parliament and the Council
(Commission Staff Working Document. Guidance to Member States
–
Recovery and resilience plans,
SWD (2020) 205 final).
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energy efficiency policy and by developing instruments which would be sustainable over time
from the financial point of view.
Improving energy efficiency in buildings has much potential for speeding up energy savings and
contributing to the recovery of the economy after the COVID-19 pandemic. Building on the
momentum of the
Renovation Wave
initiative
14
, there is scope for Italy to intensify efforts to
improve the energy performance of the existing building stock with specific measures, targets
and actions. Italy might also consider further improvements the new tax credit for restorations
and energy saving (the
‘ecobonus’)
and further redirect public support towards the renovation of
public and private buildings through increased public funding and by leveraging EU and national
budgets with private money in smart and innovative mechanisms that could combine grants,
lending, guarantees and loan subsidies. Italy is expected to provide a robust and comprehensive
long-term renovation strategy, in line with Article 2a of the Energy Performance of Buildings
Directive. The long-term renovation strategy requires the definition of a roadmap for
decarbonisation by 2050 with ambitious milestones for 2030 and 2040 and 2050, measurable
progress indicators, expected energy and wider benefits, measures and actions to renovate the
building stock, and a solid finance component with mechanisms for mobilising public and private
investment.
As regards
energy poverty,
Italy is encouraged to consult the Commission Recommendation of
14 October 2020 on energy poverty and its accompanying staff working document providing
guidance on the definition and quantification of the number of households in energy poverty and
on the EU-level
support available to Member States’ energy poverty policies and measures.
Energy poverty could be, among other measures, addressed through specific support to socially
innovative solutions and social enterprises that work on addressing this challenge (e.g. energy-
awareness campaigns, retraining unemployed as energy advisors, supporting green installations
by cooperatives, buying energy-saving appliances for social enterprises to rent out).
On
energy security,
Italy would benefit from further developing key performance indicators to
improve security of energy supply and diversification of resources, as well as further develop the
information on the regional context when assessing resource adequacy in the electricity sector.
Likewise, Italy is invited to further assess the particularities of islands on security of supply, as
well as further assess the impacts on prices of the new capacity market and the phase-out of coal-
fired power plants. Italy might also want to further develop specific measures supporting
cybersecurity.
On the
internal energy market,
Italy would benefit from setting-up a dedicated roadmap and a
clear timetable to deliver on the reforms and measures envisaged in the final plan, such as
removing price distortions, ensure the non-discriminatory participation of new market entrants or
phasing-out regulated prices, which has been postponed a certain number of times.
Italy would benefit from defining clear indicators to track achievement of milestones towards its
research and innovation and competitiveness
objectives. Over time, the gathering of granular
research, innovation and competitiveness data will be useful to strengthen this process. Italy
14
Communication ‘A Renovation Wave for Europe –
greening our buildings, creating jobs,
improving lives’, COM(2020)662 and SWD(2020)550.
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would benefit from exploring further the links between the policies and measures to be put in
place for the different sectors and the competitiveness objectives.
Italy estimates that, between 2017 and 2030, EUR 183 billion in cumulative
additional
investment
are needed compared to the current policies scenario to address the objectives set out
by the plan. While economic activity was already weak at the time the NECP was finalised, the
COVID-19 outbreak and associated measures have triggered a considerable economic slowdown
in Italy. The start of mature public investment projects supporting the green transition can have
an important role to play in contributing to the economic recovery. Forward-looking stable policy
frameworks are important to guide businesses’
and households’ investment decisions and
incentivise investment also in the private sector.
Italy is invited to continue ongoing efforts on
regional cooperation
with a view to intensifying
exchanges and initiatives that will facilitate the implementation of its national energy and climate
plan, in particular for relevant cross-border issues. Italy would also benefit from stepping up
regional cooperation with neighbouring countries, in particular by promoting renewable and
sustainable projects across the Mediterranean and by further exploring the possibilities within the
clean energy for EU islands initiative to advance the clean energy transition on its islands
15
. Italy
is also invited to better exploit the potential of the
multilevel climate and energy dialogues
to
actively engage and discuss with regional and local authorities, social partners, civil society
organisations, business community, investors and other relevant stakeholders and to discuss with
them the different scenarios envisaged for its energy and climate policies.
Italy is invited to extend and update the identification and reporting on
energy subsidies
and
intensify action to phase them out, in particular for fossil fuels. The green transition in Italy
would receive a further boost from rapid phase-out of the fossil fuel subsidies identified in the
NECP and recent Commission analyses. This would involve the further development and
implementation of specific plans with associated timelines, coupled with measures to mitigate the
risk of households’ energy poverty.
For all investments implementing the national energy and climate plan, Italy is invited to ensure
these are in line with national, regional or local plans for
air pollution
reduction, such as the
National Air Pollution Control Programme (NAPCP), and relevant air quality management plans.
In implementing its plan, Italy is invited to make the
best possible use of the various funding
sources available,
combining scaled-up public financing at all levels (national and local, as well
as EU funding) and leveraging and crowding in private financing. Tables 1 and 2 of Annex I
provide an overview of EU funding sources which should be available to Italy during the
forthcoming multiannual financing period (2021-2027) and EU funding addressed to all Member
States and companies. For the forthcoming period, the European Council has committed to the
mainstreaming of climate action into all EU programmes and instruments and to an overall target
of at least 30% of EU funding to support climate objectives. At the same time, EU expenditure
should be consistent with the Paris Agreement and the ‘do no harm’ principle of the European
15
In this context, the Commission will help address related issues in a strategic manner in its
upcoming Strategy for Offshore Renewable Energy by identifying key actions in the area of maritime
planning, upscaling technologies, and a new approach to infrastructure planning and offshore renewables
capacity building.
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Green Deal. At the EU level, funding will be available for Italy from the Innovation Fund, and
will also be based on revenues from the auctioning of allowances under the EU emissions trading
system.
Link to the recovery from the COVID-19 crisis
The vast majority of Member States’ final national energy and climate plans were drafted before
the COVID-19
crisis, and the present Staff Working Document assesses Italy’s plan in that
context. Nevertheless, the implementation of Italy’s final integrated
national energy and climate
plan will need to fully take into account the context of the post-COVID-19 recovery.
In the context of the Recovery and Resilience Facility, which is expected to be operational on 1
January 2021,
the final plan constitutes a strong basis for Italy to design climate and energy-
related aspects of its national recovery and resilience plan,
and to deliver on broader
European Green Deal objectives.
In particular,
mature investment projects outlined in the plan, as well as key enabling
reforms that address inter alia, investment barriers, should be frontloaded as much as
possible.
The link between investments and reforms is of particular relevance for the national
recovery and resilience plans, to ensure a recovery in the short to medium term and strengthening
resilience in the longer term. In particular, Member States’ recovery and resilience plans should
effectively address the policy challenges set out in the country-specific recommendations adopted
by the Council.
In addition,
the Commission strongly encourages Member States to include in their recovery
and resilience plans investment and reforms in a number of ‘flagship’ areas
16
. In particular,
the ‘Power up’, ‘Renovate’ and ‘Recharge and refuel’ flagships are directly related to
energy and
climate action and to the contents of the final national energy and climate plans. Measures under
the ‘Reskill and upskill’ flagship
are also essential to foster the climate and energy transition in
all Member States.
In turn, the Recovery and
Resilience Facility will provide opportunities to accelerate Italy’s
green transition while contributing to economic recovery.
In order to follow the commitment
of the European Council to achieve a climate mainstreaming target of 30% for both the
multiannual
framework and Next Generation EU, Italy’s recovery and resilience plan will have to
include a minimum of 37% expenditure related to climate. Reforms and investments should
effectively address the policy challenges set out in the country-specific recommendations of the
European Semester, and will have to respect the principle of ‘do no harm’.
Based on Italy’s final national energy and climate plan, and on the investment and reform
priorities identified for Italy in the European Semester,
the Commission services invite Italy to
consider, while developing its national recovery and resilience plan, the following climate
and energy-related investment and reform measures:
Measures and investments to promote energy efficiency of buildings; measures and
investments to decarbonise the power sector, in particular by boosting renewable
electricity production, reducing the role of natural gas and increasing the role of
renewable gas, as outlined in the NECP, while continuing the planned phase out of coal
by 2025, and upgrading energy infrastructures; measures and investment to support
Cf. Annual Sustainable Growth Strategy 2021 (COM(2020) 575 final), pp. 9-12.
16
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circular economy; reviewing taxes and subsidies to make them consistent with the green
transition, while taking into account redistributive aspects;
Measures and investments to develop sustainable transport, including infrastructure;
Measures promoting climate change adaptation, including to ensure the climate-proofing
of existing and future infrastructures.
The above mentioned measures are indicative in nature and not meant to be exhaustive. They aim
to orient reflections in the development of the national recovery and resilience plan. They do not
prejudge the position of the Commission on the actions to be proposed. This position will, inter
alia, need to comply with the agreed legislative text on the Recovery and Resilience Facility.
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A
NNEX
I: P
OTENTIAL FUNDING FROM
EU
SOURCES
TO
I
TALY
, 2021-2027
Table 1:
Programme
Cohesion policy funds
(ERDF, ESF+, Cohesion
Fund)
Common agricultural policy
–
European Agricultural Fund
for Rural Development, and
direct payments from the
European Agricultural
Guarantee Fund.
Recovery and Resilience
Facility
Just Transition Fund
ETS auction revenue
EU funds available, 2021-2027: commitments, EUR billion
Amount
42.1
Comments
In current prices. Includes funding for European territorial
cooperation (ETC). Does not include amounts transferred
to the Connecting Europe Facility.
In current prices.
35.1
65.5
In 2018 prices. Indicative grants envelope, sum of 2021-
2022 and estimated 2023 commitments. Based on the
Commission’s summer 2020 GDP
forecasts.
In 2018 prices. Commitments both under the multi-annual
financial framework (MFF) and Next Generation EU.
Indicative: average of actual 2018 and 2019 auction
revenues. The amounts in 2021 to 2027 will depend on the
quantity and price of auctioned allowances.
0.9
1.4
Table 2:
Programme
Horizon Europe
InvestEU
EU funds available to all Member States, 2021-2027, EUR billion
Amount
91.0
9.1
Comments
In current prices. Includes Next Generation EU credits.
In current prices. Commitments both under the multi-annual
financial framework (MFF) and Next Generation EU.
Includes the InvestEU fund (budgetary guarantee to public
and private investment) and the advisory hub (technical
advice). Does not consider appropriations available to
beneficiaries through implementing partners, such as the
European Investment Bank.
In current prices. The commitment for transport includes the
contribution transferred from the Cohesion Fund. Excludes
Connecting Europea Facility Military Mobility funding for
dual use infrastructure.
In 2018 prices. Non-allocated commitments for loans. Loans
for each Member State will not exceed 6.8% of its gross
national income.
In current prices.
In current prices.
In current prices. Commitments under Next Generation EU.
Approximation: 7/10 of the allocations of ETS allowances to
provide revenue to the Innovation Fund for 2021-2030 and
assuming a carbon price of EUR 20 per tonne.
Connecting Europe Facility
Transport
Energy
24.1
5.8
360.0
Recovery and Resilience
Facility
Technical Support Instrument
Programme for Environment
and Climate Action (LIFE)
European Agricultural Fund
for Rural Development
Innovation Fund
0.9
5.4
8.2
140.0
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Note to both tables
The figures provided by programmes under the EU budget include both the proposals under the
forthcoming multiannual financial framework, and the reinforcement of these under the Next Generation
EU instrument outside the EU budget.
The figures quoted in this document are based on the conclusions of the European Council of 17-21 July
2020. They however do not prejudge the outcome of the ongoing discussions between the European
Parliament and the Council on the elements of the recovery package, such as the Multiannual Financial
Framework, the sectoral programmes, their structure and budgetary envelopes, which will be concluded in
accordance with their respective adoption procedure.
For most of the above funds, support to the climate and energy transition is one objective among others.
However, for the forthcoming period, the European Council has committed to the mainstreaming of
climate action into all EU programmes and instruments and to an overall target of at least 30% of EU
funding to support climate objectives. EU expenditure should also be consistent with the Paris Agreement
and the ‘do no harm’ principle of the European Green Deal.
Some of the programmes listed in Table 2 provide funding through open calls to companies, not public
administrations.
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ANNEX II
–
DETAILED ASSESSMENT OF HOW COMMISSION RECOMMENDATIONS HAVE BEEN ADDRESSED
Recommendations
Decarbonisation
No recommendation.
–
GHG
Decarbonisation
Underpin the welcomed level of ambition of Italy's 30%
renewable energy share for 2030 as contribution to the Union's
- renewables
2030 target for renewable energy by detailed and quantified
policies and measures that are in line with the obligations
requested in Directive (EU) 2018/2001 of the European
Parliament and of the Council (8), to enable a timely and cost-
effective achievement of this contribution.
Increase the level of ambition of renewables in the heating and
cooling sector to meet the indicative target included in Article
23 of Directive (EU) 2018/2001.
Put forward measures to meet the transport target in Article 25
of Directive (EU) 2018/2001.
n.a.
Partially
addressed
-
Assessment
Due to the lack of information at policy level it is difficult to see
whether the targets might be achieved, as the policies which are
evaluated are not achieving targets. The number and type of policies
might not be enough to achieve targets, particularly after 2022 where
measures have yet to be budgeted and approved.
Largely
addressed
Largely
addressed
Reduce the complexity and regulatory uncertainty and provide Largely
additional details on the enabling frameworks for renewable addressed
self-consumption and renewable energy communities, in line
with Articles 21 and 22 of Directive (EU) 2018/2001.
Energy
efficiency
As regards energy efficiency, ensure that the key policy Partially
instruments illustrated in the draft integrated national energy addressed
and climate plan would still deliver adequate savings in the
period 2021-2030.
Compared to the draft plan, the ambition towards renewables in the
heating and cooling sector has been slightly increased to a share of
33.9% by 2030 (compared to 20.9 in 2020
–
a 13% increase).
In the transport sector, the share of renewable energy has been slightly
increased compared to the draft plan, to reach 22% by 2030. The main
measures are to promote biomethane and introduce a mandatory quota
for the consumption of conventional and advanced biofuels by 2030.
The plan to adopt new standards to make it possible to implement direct
lines, active customers, citizen energy communities and closed-off
distribution systems, self-consumption of energy from renewable
sources and renewable energy communities. The final NECP further
describes measures to promote local energy communities, self-
consumption and administrative simplification.
The final NECP does not present significant improvements compared to
the draft NECP and the goals under Articles 5 and 7 of the Energy
Efficiency Directive are confirmed with minor changes. However,
additional details including on the impacts of the planned measures are
provided in the Article 7 notification accompanying the plan.
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Adequately reflect the envisaged updates and improvements to
existing support schemes in the final integrated national
energy and climate plan and in the following progress reports.
Scale them up significantly to allow for the achievement of the
indicated energy savings goals.
Given the significant untapped potential, continue to work on
strengthening energy efficiency measures for buildings (for
new and existing public and private buildings) and in
transport.
Partially
addressed
More details were provided on the measures planned to achieve the
energy efficiency goal. However, a clear explanation on how the
instruments would be reformed and scaled up is missing.
Largely
addressed
Energy security
Specify the measures supporting the energy security Partially
objectives on diversification and reduction of energy addressed
dependency, including measures ensuring flexibility.
Take into account the regional context and the actual potential Partially
of the interconnectors and of the generation capacities in the addressed
neighbouring countries when assessing resource adequacy in
the electricity sector.
Clarify to what extent the development expected in the gas Partially
sector is compatible with the stated decarbonisation goals and Addressed
the envisaged phase-out of coal-fired thermoelectric plants.
The NECP contains an extensive description of current and planned
policies and measures for buildings. However, it lacks sufficient detail
on the timetable for the implementation and duration of both existing
and additional measures. Additional measures have been announced
–
and in some cases already adopted
–
to strengthen energy efficiency in
transport, including funding measures for the renewal of public fleets,
obligations for public fleets to ensure a minimum share of electric and
plug-in hybrid vehicles, as well as incentives for modal shift of freight
transport and renewal of private vehicle fleets. The information on
buildings in the NECP is much improved. The long-term renovation
strategy has not been submitted yet.
When considering risks, the plan does not fully take into account the
plans of the other connected Member States or the specific risks of
isolated territories, such as Sicily or Sardinia.
The plan mentions the need for coordinated actions carried out by
European countries but gives a limited explanation about the regional
context when assessing whether resource is sufficient.
The plan takes into account the phase-out of coal-fired power stations by
gas-fuelled power stations to ensure system stability.
The plan provides a sufficient overview of current market conditions for
gas and electricity, including levels of competition and liquidity of
markets. Forward-looking objectives and targets for strengthening
market integration are still needed, particularly for wholesale natural gas
markets and the phase-out of electricity regulated prices.
Internal energy
Set clear objectives, milestones and timelines to deliver on the Partially
envisaged reforms in the energy markets, notably in the addressed
market
wholesale natural gas markets and in the operation of both the
electricity and natural gas retail markets.
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Research
innovation and
competitiveness
Clarify the national objectives and funding targets in research,
innovation and competitiveness, specifically related to the
Energy Union, to be achieved between 2021 and 2030, so that
they are readily measurable and fit for purpose to support the
implementation of targets in the other dimensions of the
integrated national energy and climate plan.
Underpin such objectives with specific and adequate policies
and measures, including those to be developed in cooperation
with other Member States, such as the strategic energy
technology plan.
No recommendation.
Not
addressed
The final NECP provides more information on the forward-looking
analysis and on the way to approach to time horizon 2030 and 2050. It is
still not specific on how the envisaged research and innovation resources
are allocated to the different research priorities that are presented. The
objectives on competitiveness objectives are barely mentioned.
In general, the plan provides information on a number of funding
instruments for the R&I implementation. However, the relationship
between policies and measures (e.g. funding instruments) and research
and innovation objectives is quite loose. The cooperation with the SET
plan is only broadly addressed.
Partially
addressed
Investments
and funding
sources
Regional
cooperation
n.a.
Carry out consultations with neighbouring countries and Partially
within the Central and South-Eastern Europe Gas addressed
Connectivity (CESEC) High-Level Group in view of the
finalisation of the integrated national energy and climate plan.
The NECP illustrates preliminary cooperation with the neighbouring
countries on Central and South-Eastern Europe Gas Connectivity
(CESEC) that allowed to identify some possible lines of cooperation
including cooperation on alternative fuels in the transport sector, on RES
and on energy efficiency. However, specific outcomes that are expected
from such cooperation are still to be developed. Moreover, cooperation
with neighbours such as France, Germany and Switzerland is not
reported.
The final NECP illustrates several initiatives aimed at strengthening
cooperation in the Adriatic including a new Memorandum of
Understanding between Italy and Greece to promote industrial
partnerships focusing on sustainability and on the diversification and
security of energy supplies. The NECP also refers to further initiatives
for a better coordination of new projects and infrastructure in the
Adriatic. However, those remain to be defined in detail.
Actions and plans to phase-out (fossil) energy subsidies are described in
the plan, but they are not fully developed yet. The 2020 Budget Law
provides that, by 31 January 2020, a Commission will be set up within
the Ministry of the Environment and Protection of Natural Resources
Explore further the cross-border potential and the macro- Partially
regional aspects of a coordinated energy and climate policy, addressed
notably in the Adriatic with the aim of reducing the region's
carbon footprint and implementing an ecosystem approach
and further harness the potential of deeper Mediterranean
cooperation.
Energy
subsidies
List actions undertaken and plans to phase-out energy Largely
subsidies, in particular for fossil fuels.
addressed
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Air quality
Complement the analysis of the interactions with air quality Fully
and air emissions policy, including from a quantitative addressed
perspective.
and the Sea to study and draw up proposals for ecological transition and
for the reduction of environmentally damaging subsidies. A clear
timeline to phase-out subsidies appears to be missing. The NECP
suggests that some actions to reform subsidies require agreement at
European or global level.
Emission reduction projections for relevant air pollutants have been
reported both for the ‘with existing measures’ and ‘with additional
measures’ scenario for 2020
and 2030, followed by a list of measures
aiming to contribute to improved air quality. Explanations on the links
between air and climate plans analysis are provided.
Italy has provided a detailed description of the possible impact of the
transition on employment, although measures proposed to deal with this
impact do not emerge. The NECP tackles skills’ needs effectively
through an analysis of professions that will be mostly affected by the
energy transition, how these can be re-skilled,
and which are the jobs ‘of
the future.’ The section dedicated to the social impact (e.g. distributional
effects) is rather limited. The plan also includes on the social impacts of
the phase-out of coal, and Italy has established a dedicated fund for the
conversion of employment using ETS auction revenues.
The policies and measures addressing energy poverty are considered
credible, but the plan does not include specific measurable targets and
details on the financial resources to implement the policies and
measures.
Just transition
and energy
poverty
Integrate just and fair transition aspects better, notably by Partially
providing more details on social, employment, skills, income addressed
distribution impacts of planned objectives, policies and
measures, including for carbon-intensive and industrial
regions.
Complete the approach to addressing energy poverty issues by Partially
including specific measurable targets, and details on the addressed
financial resources for the implementation of the described
policies as required by the Regulation (EU) 2018/1999.
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