Energy Shocks Push Italian Companies to Make Decarbonisation a Competitiveness Strategy

Italy’s high energy costs are turning decarbonization from a compliance issue into a competitiveness strategy for many of the country’s largest companies.

According to the Financial Times, Italian businesses have been pushed to reduce energy use and emissions after a series of energy price shocks, beginning with Russia’s full-scale invasion of Ukraine in 2022 and continuing through more recent geopolitical instability in the Middle East. The pressure has been especially acute in Italy, where energy prices have been reported to be as much as 30% above the European average because of the country’s dependence on imported natural gas and slower renewable energy deployment.

The result is a more practical phase of corporate climate action. Instead of treating sustainability mainly as a reputational or reporting exercise, leading Italian companies are increasingly linking decarbonization to lower operating costs, supply chain resilience, access to finance and long-term competitiveness.

Italy’s energy structure helps explain why the business case has become stronger. The country has limited domestic fossil fuel resources, no operating nuclear power plants and a power system where gas has remained central. Clean Energy Wire notes that Italy remains one of the EU’s most import-dependent economies and has not fully capitalised on its renewable energy potential, despite early leadership in solar. The International Trade Administration reported in 2026 that Italy’s overall energy needs are still met largely by natural gas and oil products, while renewables account for about one-fifth of the mix.

For businesses, this means exposure to global gas markets can translate quickly into higher electricity and heat costs. Energy-intensive manufacturers, infrastructure operators, transport companies and building owners face a direct incentive to cut consumption, install on-site renewables, electrify processes where viable and improve operational efficiency.

Large Companies Move from Targets to Investment

The FT reported several examples of Italian companies using decarbonization as part of their core business planning. Aeroporti di Roma, part of Mundys, has developed a solar farm alongside one of Rome Fiumicino airport’s runways. The project includes 55,000 photovoltaic panels with 22 MW of peak capacity, with plans to expand to 60 MW, enough to cover around half of the airport’s electricity demand.

For airports, the relevance is broader than electricity bills. Aviation infrastructure operators are under growing pressure from airlines, regulators and passengers to reduce Scope 1 and Scope 2 emissions, while also influencing harder-to-abate Scope 3 emissions from aircraft operations, ground transport and supply chains. Mundys is also reported to be encouraging airlines and suppliers to reduce their own emissions, including through incentives linked to decarbonization plans and the promotion of sustainable aviation fuel.

Construction and infrastructure group Webuild is taking a different route, focusing on process efficiency. According to the FT, the company has reduced emissions by rethinking construction logistics, shifting some transport from road vehicles to rail or on-site conveyor systems, and using tunnel-boring machines that it says consume 20 percent less energy than conventional alternatives. Webuild also reported €586 million of investment in clean technologies during 2024 and 2025.

These examples show how decarbonization is increasingly being framed as operational improvement. For companies exposed to volatile energy prices, every efficiency gain can lower emissions and reduce cost risk at the same time. That is particularly relevant in sectors where margins are sensitive to power prices, fuel costs or carbon-related regulation.

Finance Becomes a Transition Lever

Financial institutions are also playing a growing role. The FT reported that Generali and Intesa Sanpaolo are working to decarbonize both their own operations and their financial portfolios, with sustainability targets linked to executive remuneration. Intesa Sanpaolo, Italy’s largest bank by assets, aims to direct 30 percent of new lending towards helping borrowers meet sustainability goals.

This matters because the cost of transition is not evenly distributed. Large companies often have better access to green bonds, sustainability-linked loans and institutional investors seeking climate-aligned assets. Smaller companies, by contrast, can struggle to finance energy audits, efficient machinery, electrification, rooftop solar or data systems needed for emissions reporting.

That gap is important in Italy, where small and medium-sized enterprises form a large part of the industrial base. The FT cited concerns that many SMEs still view emissions reduction as a compliance burden rather than a strategic investment. Cassa Depositi e Prestiti, Italy’s state-backed financial institution, is working on financial tools to support smaller companies and reduce the risk of a two-speed transition.

Policy Pressure and Market Pressure are Converging

Corporate action is also being shaped by EU climate policy. Italy submitted its updated National Energy and Climate Plan for 2021 to 2030 to the European Commission in 2024. The plan sits within the EU’s wider climate framework, including emissions reduction targets, energy efficiency measures and renewable energy deployment goals.

At the same time, European companies face expanding sustainability reporting requirements, carbon pricing exposure and pressure from customers with science-based targets. For suppliers, especially in manufacturing and infrastructure, emissions performance is becoming a commercial factor. Companies that can provide lower-carbon materials, energy-efficient services or credible emissions data may gain an advantage in procurement processes.

Italy has already reduced emissions across major sectors over the longer term. A European Parliament briefing found that between 2005 and 2023, Italy reduced greenhouse gas emissions in all sectors, with the largest cuts in industry and energy. However, transport, agriculture and waste recorded more modest reductions, showing that the next phase of decarbonization will require wider action across value chains.

The practical challenge now is implementation. Italy needs faster renewable permitting, grid upgrades, storage, flexibility technologies and more support for industrial electrification. E3G has warned that Italy still lacks a clear roadmap for a net-zero power system by 2035 and that gas continues to play a disproportionate role in the country’s decarbonization agenda.

For businesses, the direction is clear even if the pathway remains uneven. Energy volatility has made efficiency and clean energy investment more attractive. EU rules are increasing the cost of inaction. Customers and lenders are asking for better emissions data and transition plans. The companies that move early may reduce exposure to fuel price shocks, strengthen access to finance and position themselves more effectively in low-carbon supply chains.

The Italian case also carries a wider lesson for Europe. Decarbonization is often presented as a cost. In economies highly exposed to imported fossil fuels, it can also be a hedge against volatility, a productivity strategy and a route to industrial resilience.

Source: www.ft.com