Scenario

The international scientific community is unanimously convinced that climate change is a genuine threat to future generations and that it is largely the result of human activity. This awareness is the result of the commitment, study and insight of many, including non-governmental organisations, governments, institutions and companies that over the past decades have joined together to create policies and concrete actions aimed at protecting the climate and the environment at a global level.

Starting from the first United Nations Conference on these issues, held in 1992 as part of the “Earth Summit” in Rio de Janeiro, through the Kyoto Protocol in 1997, the European 20-20-20 package in 2007, and the Paris Agreement of 2015 on the reduction of harmful emissions, Europe has reached the European Green Deal, the implementation package “Fit for 55”, and the REPowerEU proposal.

In this evolving phase of its climate and environmental goals, Europe has decided to make its emissions reduction target even more ambitious, moving from an initial target of a 40% cut in CO2 by 2030 compared to 1990 levels, to a new target of a 55% cut by 2030, in order to achieve net carbon neutrality by 2050.

To achieve this target, a gradual decarbonisation of the energy system is envisaged, along with a strong expansion of energy from renewable sources and the phase-out of coal. With ambitious and well-defined action plans, Europe has played a leading role in United Nations conferences aimed at tackling climate change.

Partly due to the ongoing energy crisis triggered by the Russian-Ukrainian crisis, the outcomes of the 27th Conference of the Parties (COP 27) in Sharm El-Sheikh were not particularly encouraging. However, it emerged that the commitments already made worldwide would make it possible to limit the temperature increase to within 2 °C by the end of the century, although the new safety threshold has been set at 1.5 °C. Therefore, further efforts and investments by states and additional actions will be needed to limit the temperature rise to within 1.5 °C.

Despite contingent criticalities, the latest COP also confirmed the necessity of the energy transition path that states, citizens and companies will have to follow and that we at ERG – by vocation and commitment to the renewable energy sector – were among the first to undertake. As pioneers of the energy transition, we will continue to contribute to the achievement of international decarbonisation targets in an increasingly efficient manner.

This path will require significant investment and may also entail social costs. It will therefore be important to implement measures for a socially fair transition, so that no one is left behind. To meet the targets, it will be necessary to invest in technological innovation and involve institutions, companies, governments and citizens in a shared plan. With its experience, passion and determination, ERG will of course play its part.

It is now clear that sustainability must be at the heart not only of every company’s strategy but also of governments’ agendas. The G20 in Rome in October 2021 had already identified its priorities in three pillars of sustainability: Planet, People and Prosperity.

As proof of the heightened sensitivity and sense of urgency shared by citizens and political parties, on 8 February 2022 the Italian Parliament approved, by a large majority, a reform of the Constitution, introducing among its fundamental principles the protection of the environment, biodiversity and ecosystems, also in the interest of future generations (Article 9 of the Constitution). It was also established that private economic initiative must not conflict with social utility and must not harm safety, freedom, human dignity, health or the environment.

The National Energy and Climate Plan (NECP)

As established in the Clean Energy Package adopted by the European Union in 2018, each Member State submitted its National Energy and Climate Plan (NECP) to the European Commission, outlining its pathway towards energy decarbonisation by 2030 in line with overall EU targets. The final version of Italy’s NECP sets out the following main objectives:

  • 30% share of energy from renewable sources in gross final energy consumption;
  • 22% share of renewable energy in gross final energy consumption in transport;
  • 1.3% annual incremental share of renewable energy in gross final energy consumption for heating and cooling (indicative);
  • −33% reduction in greenhouse gas emissions for sectors not covered by the Emission Trading System compared to 2005 levels;
  • ≥10% electricity interconnection level with neighbouring countries;
  • 55% indicative target for renewable energy in gross final electricity consumption;
  • Confirmation of the phase-out of coal-fired electricity generation by 2025.

The targets set out in the NECPs, in Italy as in the other EU Member States, are subject to revision to align them with the even more ambitious targets defined in the latest EU policy packages, namely “Fit for 55” and “REPowerEU”.

REPowerEU

The European Commission’s REPowerEU plan, presented in May 2022, identifies renewable energy as the primary response to the instability of energy supplies from abroad, which has significantly contributed to rising energy prices across Europe.

Through REPowerEU, EU institutions aim to make Europe more energy resilient and independent from Russian fossil fuels well before 2030. The main measures and actions proposed include:

  • raising the EU target for the share of renewable energy in gross final energy consumption from 40% to 45% by 2030;
  • achieving an installed photovoltaic capacity target of 320 GW by 2025 and nearly 600 GW by 2030.

European guidelines are also envisaged to streamline and accelerate authorisation procedures for both renewable energy plants and grid infrastructure within low environmental risk “go-to areas”, where permitting timelines are expected to be reduced by up to half.