Environment and Economy: Main Indicators - Years 2023–2024

In 2024, alongside real GDP growth of +0.7%, Energy consumption, Greenhouse gas emissions, and Domestic material consumption decreased by 2.1%, 2.8%, and 1.8%, respectively.

In 2023, GDP growth (+1%) was accompanied by a more pronounced decline in physical indicators: Energy consumption fell by 4.8%, Greenhouse gas emissions by 5.9%, and Domestic material consumption by 5.4%.

In 2023, the value of goods and services for environmental protection remained stable: €214.7 billion in output (+0.4% compared with 2022). Environmental protection expenditure amounted to €52.9 billion (+2.8%), and Environmental tax revenue reached €54.4 billion (+19.6%), with a further increase of 11.2% in 2024.

Physical flows of energy, materials and emissions decline

In 2024, the downward trend in the physical indicators provided by the Environmental Economic Accounts continues: in an economic context where GDP increases (+0.7% in volume), Net domestic energy use decreases by 2.1% and Greenhouse gas emissions by 2.8%. In 2023, GDP growth of 1.0% was accompanied by more pronounced contractions in Energy consumption (‑4.8%) and Greenhouse gas emissions (–5.9%), as well as a 5.4% decline in Domestic material consumption.

The reduction in energy consumption and greenhouse gas emissions in 2023 largely reflects, on the one hand, lower electricity demand and, on the other, an increasing share of electricity generation from renewable sources. Specifically, the use of hydropower increased while natural gas and coal use decreased. Further, lower gas use for heating, due to unusually mild weather conditions together with improvements in energy efficiency in the residential sector are also sources of reductions in consumption and emissions. Households recorded sharper reductions in consumption and emissions for domestic uses (–8.2% and –11.7%, respectively) than for own-account transport (–0.7% and ‑1.4%). Provisional estimates of Net domestic energy use for 2024 indicate a decrease by 4.1% for productive activities, and an increase by 2.2% for households, both for domestic uses (+1.1%) and own-account transport (+3.7%). Similarly, Greenhouse gas emissions decline by 4.5% in productive activities and increase by 2.2% among households.

Increased environmental expenditure and environmental taxes

Trends in environmental tax revenue can be interpreted in light of specific policy measures introduced in recent years. The 19.6% increase in environmental tax revenue in 2023 is attributable to the end of energy cost containment measures introduced in the previous year. In particular, the reinstatement of excise duties on mineral oils and – starting from the second quarter – of general system charges on electricity significantly affected the increase in energy tax revenue, amounting to 42.4 billion, which accounts for 78% of total environmental taxation. In 2024, environmental tax revenue rose to €60.6 billion (+11.2%), mainly due to the increase of 4.7 billion in the revenues from electricity use (including system charges).

In 2023 the environmental goods and services sector (a.k.a. ecoindustries) recorded a moderate growth, reaching €214.7 billion in output at current prices (+0.4%) and €80 billion in value added (+2.2%). Activities related to energy efficiency improvements increase by €2.1 billion  –  the largest absolute increase within the sector’s various activity types, mostly due to the maintenance of measures aimed at improving energy efficiency in buildings (notably the tax incentives known as “Superbonus 110%”).

The increase in National environmental protection expenditure in 2023 amounts to +2.8% in current prices. The rise in expenditure by corporations was more marked (+5,6%), mainly driven by higher spending on consumption and investment in the waste management sector.

In 2024, the reduction in energy consumption and greenhouse gas emissions continues

In 2024, Italy’s total energy requirement, measured by the Net domestic energy use (NDEU), declined to 6.1 million terajoules (Tj), recording a decrease of 2.1%, less pronounced than the 4.8% drop observed in 2023. At the same time, Greenhouse gas emissions amounted to 386 million tons of CO₂ equivalent (tCO₂eq) in 2024, decrease by 11 million tons compared with the previous year. The contraction (–2.8%) was also less marked than that recorded in 2023 (–5.9%).

The contraction in energy consumption (–4.8%) and greenhouse gas emissions (–5.9%) in 2023 is mostly due to the decline in electricity demand and the reduced use of natural gas and coal while the use of renewable sources, particularly hydropower, increased. The reduction in consumption and emissions was further supported by lower gas use for heating purposes, due to exceptionally mild weather conditions.

In 2023, productive activities consumed 4.2 million TJ, 4.6% less than in 2022, reducing emissions by 5.9%. Among them, the industry sector, representing more than 60% of both energy consumption and emissions, records the most significant decrease in both cases. Particularly relevant are the reduction in Electricity, gas, steam and air conditioning supply ( –17.7% in energy use and–23.7% for emissions), Manufacture of other non-metallic mineral products (–13.0% and –7.3% respectively) and Chemical industry (–9.9% and –15.8% respectively).

Agriculture, despite a 3.7% reduction in energy consumption, recorded an overall increase in greenhouse gas emissions of 2.5.. By contrast, the Services sector showed an overall increase in energy consumption and emissions (6.6% and 8.2% respectively), driven mainly by Transport activities, especially Water and air transport +20.0% and +17.2% for emissions.

Finally, households recorded a more marked contraction in domestic uses (–8.2% in consumption and –11.7% in emissions) than in own-account transport (–0.7% in consumption and –1.4% in emissions).

Around 80% of greenhouse gas emissions, – largely CO₂ – are the direct result of the combustion of energy sources required to meet the energy needs of the economic system[ii].

Non-energy-related greenhouse gas emissions recorded a slight overall decrease in 2023 compared with the previous year (–0.6%), although sectoral trends were highly heterogeneous: Agriculture, forestry and fishing +4.1%; Sewerage and waste management +0.5%; Manufacture of other non-metallic mineral products –5.1%).

The use of renewable sources in energy production increases

In 2024, the reduction in Energy consumption (–2.1%) and GHGs emissions (–2.8%) of resident units continues.

Productive activities made a significant contribution to the overall decrease in greenhouse gas emissions between 2023 and 2024 (Fig. 2). In particular, Electricity, gas, steam and air conditioning supply recorded a contraction in emissions of 10.6 million tCO₂eq (-16,7%), despite the increase in electricity demand observed in 2024. This trend is mainly attributable to changes in the energy mix used for electricity generation. During 2024, electricity production from renewable sources – particularly hydropower – increased, supported by abundant rainfall throughout the year. At the same time, a marked reduction in coal use was observed, partly replaced by natural gas due to improved competitiveness following the decline in gas prices over the course of 2024.

Particularly noteworthy is also the reduction in emissions from Manufacturing industries (–2.2%), with a strong contribution from the Manufacture of coke and refined petroleum products. In the Services sector, the main contribution to the reduction came from Water transport while most of the other tertiary productive activities recorded an increase in their emissions.

Households recorded an increase in their emissions of 2.3 million tons of CO₂ equivalent (+2.2%).