Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Confindustria is strategically engaged on various EU and Italian climate change policy streams with predominantly negative positions. The association opposed a series of EU climate-related regulations and advocated for a long-term for fossil gas in the energy mix in 2023-25.
Top-line Messaging on Climate Policy: Confindustria does not appear supportive of efforts to address climate change in its top-line communications, citing concerns relating to impacts on international competitiveness, but does appear to support the UN Paris Agreement and its goals. In a November 2023 joint declaration, the association emphasized the threat of deindustrialization due to climate neutrality ambitions and the EU Green Deal. The association appeared to support “industrial policies for decarbonization” in a September 2024 press release, but qualified this support by stating they should not affect international competitiveness. In a May 2024 press release, Confindustria President Emanuele Orsini appeared to emphasize the impacts on international competitiveness from climate policy. InfluenceMap did not detect a position from Confindustria on the UNFCCC process in 2023-25.
Engagement with Climate-Related Policies: Confindustria appears to take largely negative positions on climate regulation in the EU. The association does not appear to support the EU Carbon Border Adjustment Mechanism, advocating for its simplification and additional protection against carbon leakage, including export rebates, in a June 2024 joint position paper. In the same paper it called for additional measures to safeguard competitiveness and full compensation of indirect costs in the EU Emissions Trading System (ETS). In February 2024 in a position paper it stated EU ETS reforms are “necessary ... to ensure the gradual phasing in of emissions-reducing goals.” However, in an October 2024 Euractiv article, Confindustria President Emmanuel Orsini voice concerns about the phase out of free allowances in the EU ETS, stating “we cannot afford to lose pivotal supply chains due to key policy choices that we now know were wrong”. In the same article, Euractiv also reported that the association will push for scrapping the new ETS for buildings and road transport. Confindustria’s President Emanuele Orsini also opposed the EU CO2 Standards for Light Duty Vehicles in a May 2024 press release.
Confindustria seems to adopt more mixed positions on renewable energy legislation and energy efficiency legislation. It appeared to support measures to boost the deployment of renewables in the EU Electricity Market Design reform, such as power purchase agreements, in a June 2024 joint paper. In a May 2023 Italian parliamentary hearing, the association supported fiscal incentives directed at energy efficiency to meet the goals of the EU Energy Performance of Buildings Directive, but also advocated for technology neutrality which would have an unclear impact on the ambition level of the policy.
Positioning on Energy Transition: Confindustria does not appear to support the transition of the energy mix away from fossil fuels, consistently promoting a role for fossil gas within the European and Italian energy mix. It supported new exploration and production of fossil gas, alongside renewable, low carbon and nuclear energy capacity, in a November 2023 joint statement. In a position paper, published in February 2024 ahead of the EU elections, Confindustria did appear to support a transition towards renewables becoming the dominant energy source, advocating a continued role for fossil gas, without placing clear conditions on the need for CCS or methane emission abatement on the use of gas, and without clearly specifying timelines for this transition that are in line with IPCC guidance. The association also appeared to support a long-term role for nuclear in the energy mix, but seemingly to accompany GHG-emitting energy sources, calling for a 'technology neutral' energy mix in Italy, in an October 2024 press release.
In October 2024 comments submitted to the European Commission, Confindustria did not appear to support the EU Hydrogen and Gas Decarbonization Package Delegated Act on the definition of low-carbon hydrogen, stating that the Act should not impose unnecessary regulatory burden and costs, and advocating for a transitional phase for the gradual introductions of the Act's requirements.