This country note features selected environmental indicators from the OECD Core Set, building on harmonised datasets available on OECD Data Explorer. The indicators reflect major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. The OECD is working with countries and other international organisations to further improve the indicators and the underlying data.
Environment at a Glance: Italy
Italy’s economy, among the largest in the OECD, is highly dependent on imports of energy and raw materials. The North region is richer and more economically advanced than the South. A large number of small and medium-sized enterprises, clustered in several industrial districts, mostly in the North, are the backbone of Italian industry. After a slowdown due to the Covid-19 pandemic, tourism is once again one of the fastest growing and most profitable sectors of the national economy.
Regional disparities in income, infrastructure and access to services, including environmental services, are high. Population is ageing and density is high although unevenly distributed. Over 30% of the population lives in coastal areas. Urban sprawl around cities has increased car dependency and traffic congestion, also affecting air quality.
Extending for about 1 300 km from north to south, Italy has an exceptionally long coastline (almost 8 300 km) along the Mediterranean Sea and includes the large islands of Sicily and Sardinia as well as about 70 minor islands. Most of the country is mountainous and prone to earthquake. The country has a wide variety of ecosystems and landscapes, reflecting variations in climate (from Mediterranean to Alpine and continental) as well as its very rich cultural heritage. Average rainfall is not evenly distributed over seasons and regions, the South and the islands are more arid. There are few mineral resources. Some oil, gas and coal are exploited, but represent a very small part of national consumption.
In Italy, greenhouse gas emissions have been decreasing by about 21% in the last 32 years (1990-2022). This is mainly due to the combustion of energy (mainly from transports, energy industries and the residential sector), and therefore CO2 emissions, which account for more than 82% of total emissions. In addition, according to the most recent projections by Ispra, Effort Sharing Regulation (ESR) emissions in 2030 are expected to drop by around 41% from 2005 levels compared to a target of 43.7%1.
The per person production-based and demand-based (or footprint) greenhouse gas (GHG) emissions remain below the OECD averages and have declined since 1995.
Emissions reductions, especially since 2008, are due to the reduction of energy consumption and industrial production, following the 2008 economic crisis and the relocation of some industries, but also of the growth in the production of renewable energy and the increase in energy efficiency.
Italy has reduced its reliance on Russian gas imports over the last year. It has diversified its natural gas sources and supply routes – signing new contracts with alternative suppliers, and making good use of the pipeline and LNG infrastructure that it has built up over the last decade (IEA, 2023[1]). This in turn has provoked soaring regional natural gas prices and higher costs on liquefied natural gas (LNG) imports. Electricity consumption fell by 2.9% in 2023, across most sectors. Agriculture’s electricity consumption decreased by 6.5%, industry by 4.0%, the tertiary sector by 2.1%, the household sector by 3.0%) and the residual 'other' sector by 10.5%. Transport and fishing recorded increases of 5.6% and 5.2% respectively (Arera, 2024).
The share of oil products in gross domestic energy consumption is decreasing in favour of natural gas (37.9% of the total in 2022) and renewable sources (19.8% of the total in 2023).
The diversification of the energy mix and the increase in renewable sources have contributed to increase Italy's level of energy self-sufficiency, which is one of the lowest among industrialised countries.
Small particulates (PM2.5) emissions amounted to 144 kt in 2022, below the target set for 2020 (164 kt, a 10% reduction compared to 2005 values), decreasing by 28.7% compared to 2000. In the same period, PM2.5 emissions from non-industrial combustion increased (+36%), due to the increase in the combustion of wood in residential heating, which has the largest share of total emissions in 2022 (64%)2.
Sulphur oxide (SOX) emissions are among the main cause of acidification of the atmosphere, with negative effects on ecosystems and materials. In 2022, SOx emissions were reduced by about 88% compared to 2000, mainly due to the new limits on the sulphur content in fuels.
Emission reductions in non-methane volatile organic compounds (NMVOC), with a decrease of about 38% between 2005 and 2022, attained the target set by the legislation for 2020 (-35%). NMVOC emissions come mainly from the use of solvents (40.2% of total emissions in 2022), which decreased by more than 32% compared to 20003.
Nitrogen oxide (NOx) emissions decreased and reached the target set by the legislation for 2020 (-40%) already in 2015; the decreased reaching 52% in 2022. The contribution of road transport remains fairly stable over the years (41% in 2022). NOx emissions from other mobile sources, although decreasing, represent the second largest source of emissions nationally. Other combustion, on the other hand, is the only sector that increased.
In 2022, the entire Italian population was exposed to levels of particulate matter above the World Health Organization recommended threshold value (5 μg/m3): 87% of the population was exposed to levels above the interim target IT 4 (10 µg/m3); 42% was exposed to levels above IT3 (15 µg/m3). In the latter case, the exposed population is mainly concentrated in the Po Valley area (Lombardy, Veneto, Piedmont and Emilia-Romagna)4. 90% of the population (residing in 70% of municipalities) is exposed to levels above the interim target IT4 (10 μg/m3); and 46% of the population (residing in 34% of municipalities) was exposed to levels above IT3 (15 μg/m3). Annual averages vary from 8 to 20 μg/m3 across regions. The exposed population is mainly concentrated in the Po Valley (Piedmont, Lombardy, Emilia-Romagna and Veneto). No municipality recorded levels above IT1 (35 μg/m3) in 2020. In the period 2016-2022, an overall decreasing trend in PWE (Population Weighted Exposure) values was observed, with the sole exception of 2017, when a higher average value was recorded (16 µg/m3). The national average decreased from 15 µg/m3 in 2016 to 14 µg/m3 in 2022, i.e. a reduction of 7%5.
In 2022, 9 142 billion m3 were abstracted for public water supply in Italy. This represents 155 m3 per year per inhabitant. 84.7% of the volume was abstracted from groundwater (48.5% from wells, 36.2% from springs), 15.2% from surface water and the remaining 0.1% from marine and brackish water, concentrated mainly in Sicily to supply the smaller islands. There were approximately 37 400 active abstraction points.
In 2022, despite the slight reduction of the volume withdrawn (-0.5% compared to 2020 and -3.6% to 2015), Italy remained the EU country with the highest amount, in absolute value, of total fresh water abstracted for public water supply, and the third in per inhabitant terms. The largest amount of abstraction for public water supply was in the Po River district with 2.80 billion cubic meters (30.7% of the total), and, among regions, in Lombardy (1.48 billion cubic meters; 16.2%).
Regional differences in abstractions are significant and generally depend on different water requirements, water basins, water transport infrastructures and leakages. Interregional water exchanges are mainly done in the South: the abstractions of Basilicata and Molise regions, net of the losses in supply and any local wholesale uses for industry and agriculture, are partly channelled to neighbouring regions to supply areas where local water supply is insufficient.
In 2022, the percentage of resident population connected to urban wastewater collecting system in Italy was 88.8%. Not all the wastewater produced was treated in urban wastewater treatment plants (UWWTPs). In 2020 96.3% of Italian municipalities were connected, partially or entirely, to an UWWTP. Most are located in Northern Italy. Treatment service is completely lacking in 296 municipalities (3.7%), representing 1.3 million inhabitants. The share of population connected to wastewater treatment plants is about 70% according to latest available data (2018).
In 2022 the public urban wastewater treatment was provided by 18 118 plants: 10 172 were primary plants and Imhoff tanks (56.1%), 5 823 were secondary plants (32.1%) and the remaining 2 123 plants with advanced (or tertiary) treatment (11.7%). In 2022, the majority of the plants (88.7%) were managed by 210 specialised water operators and the remaining by 1 067 municipalities or other local authorities.
These plants have been designed to treat a total organic biodegradable load of 107.3 million population equivalent.
In 2020, the relative average actual polluting load that flowed into the plants corresponded to about 67 million total population equivalent, of which 29.2% was treated with secondary treatment and 65.2% with advanced treatment.
The total amount of wastewater treated in the Italian wastewater treatment plants was approximately 6.7 billion m3 in 2020, corresponding to about 114 m3 per year per inhabitant. 70% of the wastewater treated in urban plants underwent an advanced type of treatment.
Connection to independent wastewater collecting and treatment systems is frequent in sparsely populated areas and far from urban centres.
Unlike the UWWTPs for which there is a dedicated biannual ISTAT survey (Urban water census), data on "other wastewater treatment plants" (not urban) are incomplete.
The new Circular Economy Action Plan adopted in March 2020 is one of the main building blocks of the European Green Deal. The action plan posits initiatives along the entire life cycle of products, with the aim of reducing the consumption footprint, doubling the rate of use of materials by 2030, promoting circular economy processes, encouraging sustainable consumption and preventing waste generation.
The generation of municipal waste stood at 28.7 million tonnes in 2022, a decrease of 1.9% compared to 2021. The generation of municipal waste per person has remained relatively stable since 2012, at almost 500 kilogrammes (kg) per year. This represents a decrease with respect to the 542 kg generated in 2010.
The share of landfilling decreased from 77.5% in 2000 to 19.9% in 2022, in favour of recycling, which increased from 10.2% to 32.1% over the same period.
In contrast to the decrease in material consumption (-33.7%), real GDP increased between 2000 and 2023 (7.7%), resulting in improved resource productivity (+62.6%). Resource productivity in Italy in 2022 is 4.64 euro/kg, well above the OECD Europe value and the OECD area.
In 2022, forests cover about a third of land and agricultural land about 32% of Italy’s territory. Between 2012 and 2018, there is a general increase in artificial areas mainly at the expense of agricultural areas and, to a lesser extent, wooded and semi-natural areas. In Italy, as in the rest of Europe, cultivated areas show a contraction linked to processes of cultivation abandonment or urbanisation, while urban continue to expand.
Italy is extremely rich in biodiversity; it has the highest number and density of both animal and plant species within the European Union, as well as a high rate of endemism. This rich biodiversity is in large part due to its range of biogeographic regions (CBD, 2022[2]).
Italy has a great wealth of animal species, with a high number of endemic species: Italian fauna is estimated at over 58 000 species, of which about 55 000 invertebrates and 1 812 protozoa, which together represent about 98% of the total species richness, as well as 1 258 species of vertebrates, which represent 2%. The IUCN assessments and the demographic trends of populations highlight rather worrying threat levels for the Italian fauna, even if the risk of extinction is quite variable among the different taxonomic groups. Of the 672 species of vertebrates (576 terrestrial and 96 marine), 6 are extinct and 161 are threatened with extinction (equal to 28% of the species assessed).
Italy ratified several international conventions and agreements and is committed to the implementation of the EU directives on the protection of biodiversity, such as the Habitats and Birds Directives and the Marine Strategy Framework Directive, as well as monitoring the achievement of the objectives of the European Biodiversity Strategy 2030 (SEB 2030). Protected areas cover 11.6% of Italian territorial waters and Ecological Protection Areas, and 21.6% of the Italian territory. Despite the increase in the number of protected areas since 1991, 22% of the marine area and 8% of the land area are still to be protected in order to reach the SEB2030 target of 30%.
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
The share of environmentally-related tax revenue in GDP has been significantly declining in recent years but, at 2.1% in 2022, is still above the OECD average. Like most OECD countries, energy is the largest tax base (1.54% of GDP), followed by transport (0.57% of GDP). Pollution based taxes are negligible and resource-based taxes non-existing.
Italy’s energy prices are among the highest in the IEA. They generally increased between 2010 and 2020, with differences across sectors and fuels. The relatively high prices are the result of high energy taxes (including value-added tax, [VAT]). The tax shares of the prices of natural gas, electricity and automotive fuels are generally higher than in most IEA countries, except for taxes on electricity used in industry. Energy excise duties are levied within the framework of the 2003 EU Energy Tax Directive and are generally well above the minimum rates set by the directive (IEA, 2023[1]).
In 2020, the Italian customs office announced an increase in tax rates on lubricating oils, from EUR 120/tonne to EUR 150/tonne. This change in benchmark tax rate for lubricating oil is expected to drive an increase in the revenue foregone of measures exempting lubricating oils used in the petrochemical sector in the following years ahead.
The energy crisis in 2022 along with the COVID-19 economic effects has led the Italian government to introduce several temporary fossil fuels support measures, mostly benefitting transports, households, and firms. The transportation sector has been assisted especially through the reduction of excise duties on fuels. Even though they still have tripled in some cases when compared to 2021, households’ energy bills have been contained thanks to electricity and natural gas vouchers which saw an increase in the total support amount and the number of eligible consumers of the already existing social bonus (Bonus Luce e Gas). Moreover, households benefitted from the previously mentioned VAT reduction on natural gas, the elimination of system charges in electricity bills and reduced natural gas bills (OECD, 2023[3]).
In total, 81.1% of GHG emissions in Italy were subject to a positive Net Effective Carbon Rate (ECR) in 2023. Explicit carbon prices in Italy consist of emissions trading system (ETS) permit prices, which cover 33.9% of greenhouse gas (GHG) emissions in CO2 eq. Fuel excise taxes, an implicit form of carbon pricing, cover 72.2% of emissions in 2023. Direct fossil fuel subsidies cover 28.2% of emissions. About 67% of GHG emissions have a Net ECR above EUR 60 per tonne of CO2 eq, a mid-range estimate of current carbon costs. Net ECRs are highest in the road transport sector, which accounts for 24.3% of the country's total GHG emissions. The Net ECR is on average positive in all sectors (OECD, 2024[4]).
The share of environmentally related government R&D budget has been fluctuating and represents 2.5% in 2023. The share of renewables in public energy R&D has also fluctuated but overall increased since 2000.
With an annual average of just over 10 environmentally related inventions per million inhabitants in 2020-22 (filed for protection in at least two jurisdictions), about half the OECD average, Italy is a minor player in the patenting sector. The share of environmentally related inventions has followed the more general OECD area trend and is now just below the OECD average, 9.2% on average in 2020-22.
Italy’s development co-operation promotes education, food security, clean water access, energy, gender equality, and employment creation and work dignity. In recent years Italy has committed to renewed equitable partnership with African countries. Italy’s total official development assistance (ODA) increased in 2024 to USD 6.7 billion (preliminary data), representing 0.28% of gross national income (GNI).
In 2022-23, Italy committed 22.9% of its total bilateral allocable ODA in support of the environment and the Rio Conventions, down from 45.7% in 2020-21. The DAC average was 39% in 2022-23. Fourteen per cent of screened bilateral allocable ODA focused on environmental issues as a principal objective, compared with the DAC average of 9.6%. Seventeen per cent of total bilateral allocable ODA focused on climate change overall, down from 36% in 2020-21 (the DAC average was 34.8%). Italy had a greater focus on adaptation (21.8%) than on mitigation (18.9%) in 2022-23. Ten per cent of screened bilateral allocable ODA focused on biodiversity overall, down from 18.5% in 2020-21 (the DAC average was 7.6%). Italy committed USD 7.8 million in support of the conservation and sustainable use of the ocean in 2023, USD 2.5 million less than in 2022. The 2023 value is equivalent to 0.7% of Italy’s bilateral allocable ODA. (OECD, 2025[5]).
References
[2] CBD (2022), Country profiles: Italy, https://www.cbd.int/countries/profile?country=it.
[1] IEA (2023), Italy 2023 Energy Policy Review, OECD Publishing, Paris, https://doi.org/10.1787/278dd18f-en.
[5] OECD (2025), Development Co-operation Profiles, OECD Publishing, Paris, https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/italy_53431c59-en.html.
[4] OECD (2024), Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris, https://doi.org/10.1787/b44c74e6-en.
[3] OECD (2023), OECD Inventory of Support Measures for Fossil Fuels: Country Notes, OECD Publishing, Paris, https://doi.org/10.1787/5a3efe65-en.
https://indicatoriambientali.isprambiente.it/
https://indicatoriambientali.isprambiente.it/it/core-set/oecd-environment-at-glance
ARERA (Autorità di regolazione per energia, reti e ambiente) (2024), Press release
https://www.arera.it/fileadmin/EN/PRESS/2024/240709eng.pdf
ISTAT, Press release https://www.istat.it/en/press-release/istat-water-statistics-years-2020-2023/
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