NATIONAL ENERGY AND CLIMATE PLAN ANALYSIS: ITALY - Assessment of Italy’s NECP: Summary

1 European Commission, July 2023, Italy - Draft Updated NECP 2021-2030 1 N A T I O N A L E N E R G Y A N D C L I M A T E P L A N A N A L Y S I S : I T A L Y In addition, in order to secure an orderly transition, the following aspects need strengthening: > Long-term contracts need to be aligned with the gas demand traje. [...] And despite the general ambition to reduce total quantities of consumed fossil gas, Italy seeks to explore new gas discoveries in the Eastern Mediterranean.5 Italy’s share of fossil gas consumption is above the EU average: its 40% of energy consumption, compared to the EU27’s 23% in 2021, makes it the bloc’s second largest gas consumer. [...] Assessing the feasibility and scale of gas networks to be decommissioned Although not in the European Commission’s NECP guidelines, understanding the future utilisation of the distribution network and its eventual decommissioning is crucial to plan for the expected decrease in gas use. [...] Preparing the gas network for a reduction in fossil gas use Point 1.2 of the European Commission’s guidance for the NECP, “Increase energy security and affordability, towards a more resilient Energy Union”, specifies that “Member States are encouraged to reflect progress and planning on the infrastructure projects that are identified as significant to meet the European Green Deal and the REPowerEU. [...] However, more than 40% of fossil fuel subsidies in Italy that were in place in 2021 have no defined end date or an end date after 2030, according to the latest report on energy subsidies in the EU published in October 2023.12 The report stresses that, while the increase in fossil fuel subsidies in 2022 was justified to support consumers during the energy crisis, the continuation of these in the me.