Just like other member states, Italy is subjected to the Europe-wide climate neutrality by 2050 target, under the European Climate Law. However, Italy does not have a domestic climate neutrality law yet.

Italy’s Long-term national climate strategy, published in 2021, sets out possible paths to reach climate neutrality, as required under European law. The strategy recognises potential residual emissions of 65-85 MtCO₂e, outlining a need to compensate these with up to 45 MtCO₂e from increased natural sinks (forest- and soil-based CDR), and to address the remaining 20-40 MtCO₂e with CCS and potentially CDR (in cases where CCS is combined with bio-based emissions sources).

Italy has specific targets established in the “Fit-for-55” package and REPowerEU. Under the European Climate Law, Italy must contribute to the collective achievement by the EU of at least 55% emissions reduction by 2030, climate neutrality by 2050, and net negative emissions thereafter;

Currently generating 11% of the European Union’s greenhouse gas (GHG) emissions, Italy’s emissions has nonetheless seen one of the most rapid decrease among EU member states since 2005, having decreased its total net GHG emissions by almost 30% as of 2020.

Italy does not have long-term or intermediate climate targets enshrined in domestic law. It is subjected to the following targets under European law:

• Under the European Climate Law, the EU as a whole must reduce its emissions by 55% by 2030. This commitment is reflected in the EU’s Nationally Determined Contribution to the Paris Agreement.
• Under the Effort Sharing Regulation, Italy must achieve a 43.7% emissions reduction in covered sectors by 2030;
• Under the Land Use, Land Use Change and Forestry (LULUCF) Regulation, Italy must deliver an additional net removal capacity of 3.2 MtCO₂ by 2030. Achieving this target would bring Italy’s total net LULUCF removals for 2030 to 35.8 Mt/year.

Italy has targets for emissions reductions at the sector level under the Effort Sharing Regulation and under the EU LULUCF Regulation. However, no overarching target for gross removals (combining land sinks and technical sinks) has been set.

Despite mentions of CCS and CDR in communications such as the long-term strategy, Italy has yet to publish concrete, binding targets for removals. The strategy sets out indicative quantities of durable and less durable CDRs needed to reach climate neutrality – see “Nested targets” below.

Legal and policy frameworks for novel CDR could emerge in the coming years. However, the right-wing government led by PM Giorgia Meloni (Brothers of Italy), in power since October 2022, has demonstrated scepticism over climate change, often characterising the green transition as ideologically biased.

Italy has a legally binding LULUCF target for 2030 through the EU LULUCF Regulation to deliver an additional net removal capacity of 3.2 MtCO₂ by 2030. Achieving this target would bring Italy’s total LULUCF CDR target for 2030 to 35.8 Mt/year.

The Long-term national climate strategy sets out indicative quantities of durable and less durable CDRs needed to reach climate neutrality – namely up to 45 MtCO₂e from the LULUCF sector, and 20-40 MtCO₂e from CCS and CDR, to address 65-85 MtCO₂e of total residuals.

Italy does not have a distinct target for permanent removals.

At the EU level, the latest version of the European Climate Law states that the EU as a whole must reach climate neutrality by 2050 and aim for net negative emissions thereafter, establishing the legal basis to introduce a quantified net negative target in the future. Italy does not have a net negative target in its domestic law, nor are there discussions around such a target.

Biomass sustainability

The EU Renewable Energy Directives from 2009, 2018, and 2023 set out rules on sustainable biomass at the EU level. The original (2009) directive is transposed into Italian law via Legislative Decree 3 March 2011, n. 28, the revised 2018 directive via Legislative Decree 8 November 2021, n. 199, while the 2023 directive has not yet been transposed. The directive is particularly relevant for bioenergy with carbon capture and storage (BECCS), as it regulates the use of biomass and biofuels for energy generation. Under Legislative Decree 8 November 2021, n. 199, Articles 39-44 set out requirements for bio-based fuels, including on lifecycle emissions of fuels and sustainability of sourced biomass.

Currently, the Directorate General for Mountain Economy and Forestry (DIFOR), under the Ministry of Agriculture, Food Security and Forestry, is responsible for developing the legal frameworks surrounding forestry.

Mitigation deterrence

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Note: Mitigation deterrence is explained in a separate report by Carbon Gap.

Like-for-like principle

The Long-term national climate strategy (2021) highlights the need for residual greenhouse gas emissions to be compensated by the absorption of CO₂, recognising the need for both geological storage and reuse of CO₂ (CCS-CCU). This sends a mixed message about the role that like-for-like compensation will play in Italy’s approach.

Note: The like-for-like principle is a precondition to reach a state of durable net zero, in which all fossil GHG emissions are compensated by durable removals. 

At the EU level, the Carbon Removal and Carbon Farming Framework (CRCF), an EU-wide certification mechanism, entered into force in November 2024. Methodologies for each CDR method are currently being developed by the European Commission and will be applicable across EU member states.

Article 45 of Law No 41 of 21 April 2023 established a public register of national agroforestry carbon credits generated on a voluntary basis. Currently, only forestry sector credits are assessed. Other practices, such as soil carbon, are pending technical reviews.

At the EU level, the Green Claims Directive, combined with the Directive on Empowering Consumers for the Green Transition, is expected to provide a comprehensive framework for climate-related claims, including what is defined as a compensation claim and the corresponding use of carbon credits.

Stemming from the EU Climate Law, only land-based removals from the LULUCF sector can be accounted for in the Italian national inventory, and be reported in Italy’s contribution towards the EU nationally determined contribution (NDC).

BECCS can be reported under the ESR, but not accounted for towards national emissions targets set by the Regulation, as per new guidelines by the European Commission.

Furthermore, the CRCF states that all certified units should count towards the EU’s NDC. However, inclusion in the NDC might not take place prior to the IPCC’s methodology report being published in 2027, which will provide guidance as to how durable CDR should be accounted for.

The CRCF states that by 31 July 2026, the Commission needs to assess whether the CRCF and Article 6 of the Paris Agreement could be aligned. This would mean that Article 6 credits would be eligible to become CRCF units. For now, the EU’s NDC and its targets set in the European Climate Law are to be achieved only through domestic measures.

(a) Legal framework covering key aspects

Legislative decrees 162/2011 and its subsequent amendment, 181/2023, provide the legal framework around geological CO₂ storage in Italy and specify the competent authority and monitoring and reporting obligations.

Legality of CO₂ transport and storage

Storage of CO₂ underground is legal under Legislative Decree 162/2011, with Chapter III setting out the requirements around permitting. A streamlined permitting procedure is available for projects with volumes under 100 Kt.

The EU TEN-E Regulation sets out guidelines for cross-border energy infrastructure within the EU, including trans-border CO₂ infrastructure projects.

Through the Industrial Carbon Management Strategy, the EU signalled the upcoming development of a dedicated regulatory package for CO₂ transport to cover remaining gaps in the CO₂ transport legal framework, including coordination between the many actors in the CCS value chain and standards for CO₂

Liability for CO₂ storage

Liability rules for CO₂ storage sites are set out in Legislative Decree 162/2011 (amended by Decree 181/2023). Article 19 sets out requirements for monitoring during the operational lifetime to detect any irregularities, migrations and leaks, and assess overall storage permanence. Article 23 sets out liability rules during decommissioning and site closure, during which monitoring measures continue to apply. Article 24 sets out how responsibility for the site can be transferred to the competent authority after closure, subject to certain conditions being met (including a period of not less than 20 years having elapsed, and evidence that stored CO₂ is permanently contained).

Environmental safety and remediation

The EU Environmental Liability Directive provides an EU-wide liability framework for environmental damages, including those induced by geological storage sites of CO₂. It was transposed into Italian law via a series of legislative acts.

Under Legislative Decree 162/2011, permits for exploration and large-scale storage are subject to environmental assessment, and only issued on the condition that adequate measures are taken for environmental protection and restoration (in the event of damage). Monitoring plans must assess impacts on the environment.

London Protocol

Italy plans to ratify amendments to Article 6 of the London Protocol and establish bilateral agreements with France and with Greece on the transboundary transport of CO₂. This is part of a Mediterranean Carbon Capture and Storage Plan between the three countries (as set out in its updated NECP from June 2024).

In 2022, the EU Commission released guidance on how to understand the amendment to Article 6 of the London Protocol. It concluded that the EU CCS Directive and the EU ETS Directive acted as a sufficient arrangement between countries in the European Economic Area (EEA). Therefore, according to the Commission, there is no need for bilateral agreements to implement the amendment to Article 6 of the Protocol. Bilateral agreements could be concluded only on issues that are not covered by the two directives.

(b) Legal framework covering all types of CO₂

The EU ETS Directive only recognises fossil CO₂ under its scope, as it only puts a price on emissions of fossil CO₂.

The EU TEN-E Regulation does not explicitly recognise all types of CO₂, causing confusion regarding whether projects transporting and storing biogenic and atmospheric CO₂ can be labelled as Projects of Common Interest or not.

Note: In the context of carbon management, there are three main types of CO₂, depending on their sources: atmospheric, biogenic and fossil CO₂. Atmospheric CO₂ is generally sourced from direct air capture, biogenic CO₂ from bio-energy with carbon capture and fossil CO₂ by point-source carbon capture in industrial facilities burning fossil fuels. Legal frameworks must cover all types of CO₂ to ensure equal access to CO₂ transport and storage infrastructure.

(a) Physical storage capacities

Geological storage

Italy offers opportunities for geological CO₂ storage, particularly along the Adriatic coast. Italy’s CO₂ storage capacity in geological reservoirs has been assessed as part of pan-European studies such as the EU GeoCapacity project. The study, which ran from 2006 to 2008, assessed the CO₂ storage potential of 25 EU countries, finding Italy’s capacity to be 6.57 Gt, including:

• 4,669 MtCO₂ in deep saline aquifers,
• 1,810 MtCO₂ in hydrocarbon fields,
• 71 MtCO₂ in coal fields.

Private sector estimates are also available for specific sites. Eni and Snam, companies collaborating on the Ravenna CCS project in the northeast of the country, estimate the storage capacity to be over 500 MtCO₂ in the depleted gas fields off the coast of Ravenna.

Mineral and product storage

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(b) Estimation of CO₂ storage needs

Italy’s Long-term national climate strategy identifies the need for its 20-40 MtCO₂e of residual emissions to be addressed through carbon capture and storage (CCS) and negative emissions – to achieve climate neutrality by 2050. This will take place alongside 45 MtCO₂e of LULUCF removals to address 65-85 MtCO₂e of total residual emissions.

Italy’s updated NECP from June 2024 also provides a breakdown of sectors for which capture and removal are needed. For the year 2022, the document identifies emissions of 67 MtCO₂ in the hard-to-abate industries, and 22 MtCO₂ in other industrial sectors (it is noted that these emissions are not expected to be significantly reduced by 2030), 7.5 MtCO₂ in the incineration sector (for which CCUS is the main decarbonisation lever), and 71.4 MtCO₂ in the thermal electricity and heat production sector (which is expected to reduce by around half to 2030). It is not clear exactly how CCS and CDR will be applied to address these emissions.

Specific potentials for BECCS and DACCS are not provided in the 2024 NECP but are identified as relevant for future data collection.

Ownership of infrastructure

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Cross-border cooperation

Italy is involved in multiple cross-border CCS projects – in which it participates in both the capture and storage parts of the value chain. Italy plans to ship captured CO₂ for storage in Greek waters as part of the Prinos project, and is also developing offshore CO₂ storage capacity on its own territory, including at the Ravenna CCS/Callisto hub. It expects to establish an injection capacity of around 4 MtCO₂/year at the site by 2030. Italy is also developing capture capacity as part of the Augusta C2, Cleankerk, and CapturEste projects.

Italian CO₂ storage projects, namely the Callisto Mediterranean CO₂ Network and Prinos CO₂ have been granted Projects of Common Interest status, which provides accelerated permitting as well as financial support. Prinos is also receiving support under the EU Recovery and Resilience Facility.

The framework for cross-border cooperation is set under the EU TEN-E Regulation through the Project of Common Interest (PCI) label. Cross-border projects that have been labelled as PCIs can apply for funding under the Connecting Europe Facility for Energy. Earning the PCI label can help projects reach a final investment decision, as the label adds a seal of assurance that the project is robust.

State support

Italy CO₂ capture, transport and storage projects stand to benefit from EU funding. The Callisto and Prinos projects have been granted PCI status, making them eligible for funding under the Connecting Europe Facility. No evidence of state-level funding for such projects has been found.

Indication of capture and storage volumes

The EU Net Zero Industry Act (NZIA) set a mandatory injection capacity target of at least 50MtCO₂/year by 2030 in the EU.

The licensing regime for CO₂ storage projects is set out in Legislative Decree 162/2011 and includes the following elements:

• Exploration for, and performing the activity of, underground CO₂ storage are permitted upon the acquisition of a licence. Details for the exploration licence are set out under Articles 8-11, and for the storage licence, under Articles 12-17;
• Licences must be granted by the Ministry of Economic Development and the Ministry of the Environment, in collaboration with the relevant local government;
• Licence applications should outline information such as a description of the technology to be used, expected CO₂ transport distances, the location of injection, the amount of CO₂ to be injected, the source of CO₂, a characterisation of the storage complex, an assessment of the safety, among other details;
• Licence applications must also include a monitoring plan, corrective action plan, and a provisional post-closure action plan;
• Licences are conditional on the demonstration of financial security of the operator, particularly to ensure the operator can cover costs including monitoring costs, and addressing any CO₂ Article 25 sets out the requirements regarding the financial guarantee;
• Licensing of storage activities greater than 100 kt require the opinion of the European Commission, and clear timelines are outlined for this process;
• Details on refusal to grant a licence or suspension of licensing are set out in Article 17.

Several private companies are emerging in the CDR sector in Italy. Climeworks has opened a pilot direct air capture (DAC) facility in Troia (Apulia) capable of removing 150 tonnes of CO₂ per year. CarpeCarbon is the first Italian DAC company. Limenet is developing a technology to store CO₂ in seawater in the form of calcium bicarbonates, and aims to become an international player in CO₂ storage through this technology. The Limenet plant in Augusta (Sicily), inaugurated in September 2024, will capture and store up to 800 tonnes of CO₂ per year.

Biomass availability

Italy’s draft updated National Energy and Climate Plan (NECP) considers growth in bioenergy demand to 2030, as well as the competing demand for biomass stock for different bioenergy applications. However, specific demand for the CDR sector is not assessed. An overall biomass availability figure, including sustainable biomass availability (domestic and imported) is not given. Italy’s renewable electricity included 16% bioenergy in 2021, of which most was solid biomass.

Italy is a major importer of wood products, including wood pellets, but also has significant domestic production. Much of this goes towards residential use in heating systems as well as for non-energy uses.

Renewable energy

Italy's total energy supply remains dominated by fossil fuels, with 37.5% oil and 38.1% natural gas in 2023. However, domestic production is largely renewable, and energy-related CO₂ emissions have declined by 26% since 2000. Italy's electricity supply includes 15.9% hydropower, 11.6% solar photovoltaic, 8.8% wind and 5.2% biofuels.

No dedicated research has been conducted to assess the renewable energy demands specifically needed for the CDR sector in Italy. Analysis by Carbon Free Europe suggests that renewable energy capacity needs to grow from 59 GW in 2022 to 419 GW in 2050 to align with its net zero ambitions.

Infrastructure availability

Italy has an emerging CO₂ storage sector, with storage projects in development domestically (e.g. Callisto Mediterranean CO₂ Network and Augusta C2) and through international transport networks, such as the Prinos CO₂ storage project.

In 2020, Italy published its National Research Plan (PNR) for the 2021-2027 period. It sets out key research priorities for climate change mitigation and adaptation, with focuses on accounting impacts, evaluating mitigation measures, development of adaptation interventions, and improved Earth-system modelling. CDR is not mentioned in the strategy.

ENEA and ISPRA are the key public institutions overseeing research related to climate change mitigation. ISPRA is responsible for compiling national greenhouse gas inventories, and thus undertakes some research on relevant topics like forest carbon removal rates and industrial emissions performance. However, limited work on CDR has been undertaken otherwise.

Italy has a National Forest Strategy, published in 2022, for the forestry sector and its supply chains (SFN), focused on boosting forest resilience, biodiversity, and mitigation and adaptation capacity. The strategy expects EU-level research programmes like LIFE+, INTERREG, and Horizon 2020 to play an important role in funding forest-related research.

In terms of funding, the Fund for Sustainable Growth could provide funding to CDR projects. The National Plan for Recovery and Resilience funds Italy’s green transition, a share of which could potentially be directed towards CDR. EUR 1.92 billion is dedicated to biomethane development. Biomethane production could be coupled with CCS and thus be considered CDR.

Italy’s National Forest Strategy, published in 2022, sets out a 20-year plan for the forestry sector. It focuses on boosting forest resilience, biodiversity, and mitigation and adaptation capacity. The strategy sets out the main funding sources foreseen for forest protection, which are mainly EU-level instruments such as the Agricultural Fund for Rural Development, EU Recovery Fund (NextGenerationEU), European Regional Development Fund and Cohesion Fund.

One notable domestic instrument is the Forestry Fund (Fondo Foreste), overseen by the Ministry of Agricultural, Food and Forestry Policies. With the Budget Law for 2025, the government confirmed the ‘Fund for Italian Forests’ for the years 2024, 2025 and 2026 with a total of approximately EUR 1 million. The Fund mainly aims to support the development of forest products, including biomass for energy use (firewood, wood chips and pellets).

In 2018, a change to the National Forest Law was criticised for its potential weakening of forest protections by reclassifying natural forests as abandoned land that could be used for logging. The National Forest Strategy was developed in response to this.

The EU Common Agricultural Policy sets up direct payments through ecoschemes aiming to support environmentally friendly practices. Some activities enhancing soil carbon sequestration are among the recognised practices.

The European Commission is due to publish a report by July 2026 examining the possible inclusion of CDR into the EU Emissions Trading System or another compliance regime. The Italian government has not provided a public view on this matter.

Nothing found.

Italy does not have any additional carbon pricing or taxation beyond the EU ETS in place.

Groups of stakeholders representing civil society were consulted as part of the development of the updated NECP, through a two-phase online consultation. The engagement covered different topics within the plan, with CCUS being examined as part of the topic of energy security.

The EU Just Transition Mechanism makes funding available for member states to support the green transition in territories most at risk of losing jobs due to the transition. In this context, EUR 1 billion has been made available for Italy, targeted at the regions Taranto, Apulia, and Sulcis Iglesiente, Sardinia. The funds will enable retraining of workers in preparation for new green jobs, the installation of renewable energy infrastructure, and support small- and medium-sized enterprises with the transition.

Nothing found.