ITALY Law and Practice Contributed by: Francesco Fonderico, Elettra Monaci, Eugenio Fidelbo and Marco Pellizzola, Ambientalex Studio Legale
sued a major Italian energy company, together with its main shareholders, demanding that it be held liable for the damage caused by climate change and ordered to reduce its GHG emissions.
human rights and the environment resulting from their activities and the value chains in which those activities are embedded. At a national level, companies conducting environ - mental due diligence currently are concerned with general environmental legislation. To such extent, not every component is to be considered as strictly related to climate change. Typically, climate change- related issues may include: • IPPC/industrial emissions permits; • environmental impact assessment/strategic envi - ronmental assessment; • air pollution, brownfield sites, waste, etc; and • renewable energy/energy efficiency. 6. Climate-Friendly Investment Support 6.1 Renewable Energy Renewable Energy Policy At a policy level, the government, in accordance with the Italian Integrated National Energy and Cli - mate Plan (PNIEC), is committed to a new approach in resource and environmental management with a focus on aspects of energy security, self-production and consequent resilience. Consistent with its com - mitment to reduce GHG emissions by 2030, Italy is committed to a transition towards renewable energy sources (including biofuels and hydrogen), to the ener - gy efficiency of its infrastructure and to the adoption of smart technologies aimed at energy efficiency and resilience in a cybersecurity framework. The PNIEC is structured into five lines of action, which will be developed in an integrated manner: from decar - bonisation to energy efficiency and security, through to the development of the internal energy market, research, innovation and competitiveness. The goal is to create a new energy policy that ensures the full environmental, social and economic sustainability of the national territory. Renewable Energy Legislation The main piece of legislation for renewable energy is currently Legislative Decree No 199/2021 (hereinafter “Renewable Energy Decree II”). It transposes into the
5. Transactions 5.1 Due Diligence
Unlike France or Germany, Italy has not implemented any specific legislation on environmental due dili - gence. The Bank of Italy’s Occasional Paper No 545/2020 has highlighted that, so far, there has not been adequate growth in the awareness of the risks linked to climate change and the opportunities linked to the transition towards a low-carbon economy. Between May and July 2025, the Bank of Italy con - tinued its efforts to highlight best practices and share insights through a series of publications, including action plans on integrating climate and environmental risks into the business processes of large systemically important institutions (LSIs) and non-bank intermedi - aries. Despite this, even at a transaction level, climate-relat - ed financial risk (CRFR) disclosure is still unsatisfac - tory. However, these issues are not limited to Italy. The Directive (EU) 2024/1760 on corporate sustainability due diligence (the so-called “CSDDD”) was adopted in response to concerns that voluntary action had not produced sufficient progress across a number of sec - tors and jurisdictions. Italy has not yet adopted the provisions necessary to transpose the directive, which must be implemented by 26 July 2028. The directive, as amended by Directive (EU) 2026/470, aims to ensure that large companies operating in the European market contribute to the economic and social transition toward sustainability by adopting “due diligence measures” designed to prevent and, where possible, eliminate the adverse impacts on
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