Italy consumes less energy, emits fewer greenhouse gases and uses more renewable sources. But it also pays more environmental taxes and spends more to protect the environment. This is the picture, articulated and far from linear, that emerges from Istat’s latest analysis of key economic and environmental indicators. A balance sheet that tells of an ongoing, still fragile transition made up of real progress and glaring contradictions.
In 2024, with GDP growing by 0.7 percent, energy consumption fell by 2.1 percent and climate emissions by 2.8 percent. In 2023 the reduction had been even more pronounced: -4.8% for energy and -5.9% for greenhouse gases. Numbers that confirm a positive trend, but should be read carefully: not all improvement is the result of structural choices. Contingent factors, such as milder weather and the strong recovery of hydropower thanks to abundant rainfall, also weighed in.
Fewer fossils, more renewables
The most significant change concerns the energy mix. Production from renewable sources, especially hydroelectric, increased in 2024, while the use of coal and, to some extent, natural gas was drastically reduced. This allowed a net decrease in emissions in the power generation sector, despite the increase in demand.
This is good news: it indicates that the energy system is becoming less polluting. But the European comparison calls for caution. Italy’s emission intensity remains higher than the EU average: 53.8 tons of CO₂ per terajoule versus a European average of 51.4. Countries such as Sweden travel at levels more than halved. A sign that there is still ample room for improvement.
If production activities reduce consumption and emissions, households show a more contradictory trend. In 2024, household energy consumption returned to growth (+2.2 percent), driven mainly by private transportation. Household emissions also increased, breaking the previous year’s decline.
A clear signal: technological efficiency is not enough if the way we move, live and consume does not also change. The knot is cultural before it is economic. Without more sustainable mobility and real containment of consumption, progress risks remaining partial.
Environmental taxes: the bill grows
On the tax front, revenues from environmental taxes exceeded 60 billion euros in 2024, an increase of 11.2 percent in a single year. Nearly 80 percent came from energy taxes, which are back in full swing after the end of price containment measures introduced during the energy crisis.
Those paying more are mostly businesses, but households are also seeing the bill rise. It is a delicate transition: environmental taxation can be a powerful tool for guiding behavior, but it risks becoming a mere budgetary lever if not accompanied by alternative investments and services.
Green industry grows, but slows down
The eco-industries sector is now worth more than 214 billion euros. It grows little in terms of production, but increases in value added, driven mainly by energy efficiency interventions in buildings, still supported by tax incentives. This is where half of the wealth generated by the environmental sector is concentrated.
Total spending on environmental protection exceeded 52 billion, an increase of 2.8 percent. They invest mainly in businesses, particularly in waste management and water purification, while attention to soil decontamination and biodiversity protection is growing.
