Nearly 50 billion euros in a single year. This is the figure that photographs the weight of environmentally harmful subsidies (SAD) in Italy in 2024 according to Legambiente’s new report. We are talking about 48.3 billion destined to support, directly or indirectly, activities linked to fossil fuels and polluting production models. A figure that is on the rise compared to the previous year and that, if we widen our gaze, takes on even more significant contours: in the last fifteen years, total spending has reached at least 436 billion euros.
Numbers that tell a glaring contradiction: while commitments to decarbonization multiply, a substantial share of public resources continues to support the traditional energy system.
The knot of transparency: accounts that don’t add up
But the problem, the association points out, is not only how much is spent. It is also how these subsidies are counted. The official Catalog of the Ministry of the Environment, which is supposed to offer a complete picture, has – Legambiente denounces – significant gaps. There are unquantified items, others completely absent, and discrepancies with data from the State Accounting Department. In total, almost 12 billion euros are unaccounted for. In addition, there are more than 377 million euros of unexplained differences and, above all, 26.4 billion classified as “environmentally uncertain subsidies”: resources that simultaneously support harmful activities and innovation, but remain outside of any revision plan.
The result is a fragmented picture in which the true size of the problem is likely to be underestimated. And without a solid foundation, any reduction strategy becomes difficult.
The landmark case: gas royalties
One emblematic example stands out among the critical issues: exemptions on royalties for gas extraction. They appear in official documents with an unchanged value of 5 million euros for five consecutive years, regardless of actual production or market trends.
A figure that, rather than an estimate, seems to be a “frozen” figure, and one that fuels doubts about the quality of monitoring. Not least because, according to Legambiente, the system as a whole has generated hundreds of millions of euros in lost revenue for the state compared to other countries.
The largest slice of SAD is in the energy sector, with more than 14 billion euros. Here, tax breaks, free ETS allowances and public support for fossil infrastructure weigh most heavily. This is followed by construction and transport, with figures around 9 billion and 8.7 billion, respectively. Agriculture and fisheries also contribute, albeit to a lesser extent, to an overall picture that cuts across the Italian economy.
How much can be recovered
The report estimates that a substantial portion of these resources could be reallocated. About 23 billion would be eliminable and another 25 could be reallocated by 2030. That is nearly 50 billion that could be shifted to investments in renewables, energy efficiency, welfare and innovation. Not chump change, especially at a time when energy security is back at the center of international debate.
Legambiente calls on the government for a sharp change of pace. The proposal is to define a national plan to eliminate and reshape harmful subsidies by 2030, correct critical issues in the Catalogue and reform the tax and energy system according to the “polluter pays” principle. Also on the table is a review of utility bill charges, strengthening incentives for building efficiency, and realigning energy policies with European goals.
An issue that goes beyond the environment
The issue is not just about climate. Also at stake are economic stability and the cost of energy for households and businesses. Continuing to support fossils means remaining exposed to volatility in international markets, as evidenced by the geopolitical tensions of recent years.
The paradox is obvious: while billions are being spent to calm bills, billions more are being invested to keep alive the system that makes those bills unstable.
