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Italy provides an annual average of USD 13.7 billion in total government support to fossil fuels (2017–2019), dominated by USD 11.2 billion for fossil fuel consumption via tax credits and exemptions on diesel and petroleum. While Italy has phased out support for coal production, it increased public finance for fossil fuels by 33% between 2014 and 2018, primarily for oil and gas production. The document also notes a USD 3.3 billion COVID-19 bailout for Alitalia and describes Italy's transparency regarding environmentally harmful subsidies as mediocre.

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  • Italy's total government support for fossil fuels averaged USD 13.7 billion annually from 2017 to 2019, consisting of USD 1.1 billion in direct transfers, USD 10.2 billion in tax expenditure, and USD 2.4 billion in public finance.
  • The largest portion of support is directed toward fossil fuel consumption, totaling USD 11.2 billion annually (2017–2019 average), primarily through tax credits and exemptions for petroleum and diesel.
  • Between 2014 and 2018, Italy increased its public finance for fossil fuels by 33% on average, driven mostly by support for oil and gas production, although it has eliminated support for domestic and international coal production.
  • Italy's transparency is rated as mediocre because the Ministry of Environment reports on environmental taxation and harmful subsidies irregularly, and public finance institutions lack comprehensive transaction-level investment data.
  • Additional unquantified support includes low royalty rates for oil and gas extraction (10% onshore and 7% offshore) and tax deductions for oil companies of up to 3% of generated income.

Cite the original document

APA
Picciariello, A. (2020). G20 Scorecard of Fossil Fuel Funding. International Institute for Sustainable Development. https://www.iisd.org/system/files/2020-11/g20-scorecard-italy.pdf
Chicago
Picciariello, Angela. G20 Scorecard of Fossil Fuel Funding. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/2020-11/g20-scorecard-italy.pdf.
Wikipedia
{{cite report |last1=Picciariello |first1=Angela |title=G20 Scorecard of Fossil Fuel Funding |publisher=International Institute for Sustainable Development |date=2020 |url=https://www.iisd.org/system/files/2020-11/g20-scorecard-italy.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{picciariello2020g20, author = {Picciariello, Angela}, title = {{G20 Scorecard of Fossil Fuel Funding}}, institution = {International Institute for Sustainable Development}, year = {2020}, url = {https://www.iisd.org/system/files/2020-11/g20-scorecard-italy.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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