Energy: EU Commission launches investigation into Italy’s anti-ETS decree

Brussels – Italy is proceeding with unilateral changes to EU emissions rules, and the European Commission is shining a spotlight on the choices made by the Meloni government. “Our experts are analysing the texts” and will carry out a “full review,” announced Anna Kaisa Itkonen, spokesperson for the EU executive on energy issues. At the heart of this technical work is Italy’s energy decree, just passed by the Council of Ministers, which aims to separate the cost of greenhouse gas emission certificates at the centre of the ETS system, from the determination of the price of renewable energies, such as hydroelectric or solar, in order to lower costs in bills for households and businesses. 

Brussels wants a clear picture before commenting on a recently adopted measure and verifying its compatibility with EU rules, which is the real crux of the matter and is taking time. The cautious approach avoids public clashes between Rome and Brussels, which may not necessarily be postponed to a later date. 

“We have already begun discussions with Brussels” on the subject of the ETS mechanism, said the Minister for the Environment and Energy Security, Gilberto Pichetto Fratin, in an interview with Il Sole 24 Ore, where he defended the reasons behind the government majority’s decision. Thanks to the Italian measure, he argues, “2.7 million vulnerable households will enjoy a total benefit on their bills that will be almost equal to half the annual cost of their electricity bill, while for all other households the ‘voluntary’ discount will be at least €60 per year.”  As Italy, the minister adds, “we must continue the negotiations and we are ready to open a constructive dialogue based on concrete facts and not on ideology.” 

Energy and the taxation of polluting sources are therefore opening up a new front in the confrontation between the government and the European Commission, at a time when relations on environmental and sustainability issues are marked by Brussels’ heavy-handed approach, as demonstrated by  new infringement proceedings opened less than a month ago.